Uncertainty over whether the UK will leave the European Union with or without a deal is holding up a public consultation on a replacement for structural funding, according to the government.
In April, the housing, communities and local government select committee said the government must urgently publish its proposals for the Shared Prosperity Fund intended to replace EU structural funding.
However, in its official response to the committee’s report, the Ministry for Communities, Housing and Local Government continued to refuse to commit to a publication date.
It said: “We believe that leaving with a deal is the best outcome and remain focused on ensuring our smooth and orderly withdrawal from the EU.
“It is right, however, that we also continue to prepare for all scenarios. Therefore, the government continues to review our approach to consulting on the fund accordingly.”
The government response also outlined a number of new burdens that it expects local government will fall on following Brexit.
It said: “Progress has been made in identifying new burdens relating to the additional costs to councils associated with applying to the EU Settlement Scheme on behalf of children for whom they have parental responsibility and for supporting the applications of those for whom they have shared parental responsibility.
“As a result of new burdens assessments, the Government is supporting local government in alternative ways including through providing training for the replacement to the TRACES system, working with Trading Standards to support enforcement of food labelling regulations and ensuring enough supply of authorised signatories for Export Health Certificates by designating it a cost recoverable function.”
