The reshuffle of post-Brexit financing could put 93 jobs in danger

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Changes in a post-Brexit financing program could put 93 jobs at the Caerphilly council at risk next year.

A new report explains how the County County Borough Council will pass this year the award of the British government's shared prosperity fund (UKSPF).

The term contracts fixed on the personnel are likely to be renewed until the end of March 2026, but after that, a “unclear” future.

After the change of government in 2024, Westminster should replace the UKSPF with a new model of structural financing, offering a greater role to decential administrations of the United Kingdom.

The British government has appointed the next 12 months as a year of “transition”, during which the Caerphilly Council will receive an allowance of 11.4 million pounds sterling.

This money will be spent on a variety of programs, such as green spaces, downtown events, public WiFi, commercial support and vocational training.

But the local authority does not expect to learn what replaces the UKSPF until the summer, arousing uncertainty on longer -term planning – and the staff.

The Caerphilly Council said “at this stage, we do not know” what this future model “will look like”, but expects the Welsh government and the Cardiff capital region “play a more important role in the allocation and distribution of financing”.

The first changes are already underway, when the Council reduces certain roles in the multiplied plan funded by the government, designed to improve the numeral adult skills.

The rest of the 93 long -term staff members working on current UKSPF programs in the county district “will be at risk” while the modifications are calculated.

All layoffs could cost the council up to £ 537,000 of potential redundancy packages, although the money has been put next to the payments of interest linked to the UKSPF, in the event of a worse scenario.

The UKSPF was at the heart of the “raising-up” agenda of the Minister of the time, Boris Johnson, and replaced the structural funds of the European Union which dried after Brexit.

But the program sparked the first criticisms of the Welsh government, in the midst of accusations that the Westminster program bypassing the devolution.

When the fund was announced in 2022, Vaughan GETHING, then Minister of the Welsh government economy, said the plans had not “reflected the distinct needs of Welsh communities” and had “implications for the role that the Welsh government is able to play” in economic development.

However, in recent evidence of the Senedd finance committee, the local WELSH Government Association (WLGA) said that the UKSPF had “revealed to be a flexible fund, allowing local authorities to support projects that are adapted to the satisfaction of local needs”.

He described the “welcome change” fund of EU regimes which were to meet strict criteria.

But the WLGA said that three discussions between advice and the United Kingdom and Welsh governments would be useful for developing a successor program.

“It will be the best way to ensure that funding allocated for economic development purposes in the Welsh government budget completes the activities in which local authorities are involved,” said WLGA.

The members of the Caerphilly council office should approve the UKSPF spending plans for the coming year during a meeting on Wednesday, March 19.

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