A delayed £42 million fund has been secured from the UK Government to boost businesses, productivity and skills in mid Wales. 

Back in July, Powys and Ceredigion County Councils agreed a joint bid for money from the so-called Shared Prosperity Fund (SPF) designed to plug the financial gaps left by the UK exiting the European Union (EU).

Over a three-year period, Ceredigion will be entitled to nearly £15m worth of funding which is intended to improve pay, jobs and living standards, public services, and strengthen communities - while Powys will get the rest of the cash.

The decision from the UK Government was expected in October but was finally been approved yesterday, a Ceredigion County Council cabinet meeting heard.

Officers from both councils will now work together to allocate funding to particular projects.

No major applications for funding are likely to be received for the first year due to the delays but eventually the council will take bids for more significant projects. 

Cabinet member for economy and regeneration, Cllr Clive Davies, told the meeting: “I’m pleased to say we’ve had the determination received this morning from the UK Government with the offer letter.

“Because of the delays in approval of the funding, projects funded in this financial year will need to have a strong focus on deliverability.

“To ensure that no money is lost by Ceredigion in year one, spend will primarily be allocated to in-house projects which either have already started or are able to mobilise quickly.

“During year two, this will be for more significant projects when calls for larger projects, which span years two and three, will be considered.

“Year three will see the bulk of the delivery and there won’t be any more EU funding by then.

“But there will be a lag to get this up and running.”

Independent councillor, Rhodri Evans said: “If for example – I know spending by Ceredigion has been brilliant but if it isn’t so good in Powys – is there that flexibility that any underspend in Powys could be used in Ceredigion or would the money be able to be carried over to the next financial year?

“We want assurances that no money will be sent back and it can all be used.”

The joint Powys and Ceredigion SPF project would be split between different themed projects with the 40 per cent going to what the government is calling ‘communities and place’, 40 per cent to supporting local business and 20 per cent to people and skills.

The UK Shared Prosperity Fund (UKSPF) is a central pillar of the UK Government’s sluggishly-paced roll out of its ‘Levelling Up agenda’ and provides £2.6billion of funding for investment by March 2025, with all areas of the UK receiving an allocation by a funding formula rather than a competition.