Scottish Replacement For EU Structural Funds

Section 2 Funding and Allocation

This sets out the proposed allocation methodology for the disbursement of funding from the Scottish Government to regional partnerships across Scotland. It does not comment upon the allocation of monies from the UK to Scotland other than to assume that full replacement funding will be routed from the UK Government to the Scottish Government.

Summary

A transparent, needs-based regional allocation model will be developed by the Scottish Government. This model need not align with the allocation model(s) used in other parts of the UK.

The model will use a basket of weighted measures which will then be applied across each regional partnership geography to determine an allocation to that partnership.

The measures used will be aligned to the aims of the overall themes of the National Programme which are:

• Improving Places
• Tackling Poverty
• Skilled People
• Business and Job Growth

Devolving Funds to Regions

Funding will be allocated to each regional partnership in support of a 5 year programme that will be agreed in advance with Scottish Government.

Each regional partnership programme will fit within the Scottish framework and support the achievement of overall aims and objectives of the national programme.

Regional partnerships will be free to allocate money as the wish in their regions as long as they can demonstrate how their plans will support national objectives.

Regional partnership leads must involve communities and citizens through inclusive engagement in the development of their plans and allocation models.

Regional partnership leads must provide options within allocation models enabling communities direct access to the funds to bring forward local projects.

Geographies and National Programmes

Regions will align with the Highlands and Islands and South of Scotland Enterprise areas and with emerging Regional Economic Partnership Areas in the rest of the country.

National Programmes

A final model is still to be decided upon – options are to directly fund national agencies to deliver support across Scotland or to route all monies through the regions who will each contract with national agencies to deliver support in their area. Discussions have shown a preference for routeing the monies through regions however this is still to be fully agreed.

Whichever model is decided upon, we will liaise fully with the relevant stakeholders and delivery bodies to ensure that the final model delivers a suitable balance between local accountability and equality of access to key programmes such apprenticeships and policy approaches such as "No-one left Behind".

Use of Indicators to Determine Allocations

We are currently working with economists on the types and number of indicators that could be used to determine regional allocations. A final list has not yet been agreed but the thematic areas that indicators are likely to cover are: Economy; Inclusion and Poverty; Skills and Employment; and Community and Covid Impacts.

Match Funding

Match funding will continue to be a requirement in the programme however, without more detailed information from the UK Government around the quantum and conditions of the funding, decisions on this matter cannot be taken.

Next Steps

Further work is required on how best to design the tiered model. Of particular note is how best to ensure that the principle of empowering communities is delivered, including how this might be achieved in practice without creating more bureaucracy and administration or impacting on the position and role of the local authorities.

As noted above, further work is required to be done on how best to deliver national level activities.

Fuller consideration of match funding issues will be taken forward once the quantum and conditions of funding from the UK Government are known.

Finally, there needs to be more work done on the number of indicators used to determine allocations.