Pride in Place scheme in Welsh devolution row won't apply in Northern Ireland

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The UK government has confirmed that a contentious funding initiative, which directs money to Welsh towns without routing it through the Welsh government, will not be implemented in the same manner in Northern Ireland. The second phase of the town centre regeneration scheme, known as Pride in Place, will see spending decisions in Wales controlled directly by the UK government, whereas Northern Ireland’s Executive will receive an equivalent amount of money to administer themselves.

This approach has drawn criticism from Welsh Labour politicians, eleven of whom wrote to the Prime Minister expressing their concerns that the Pride in Place scheme undermines devolution by sidestepping Cardiff’s governance. In response, the government pointed to Keir Starmer’s recent statement emphasizing his support for devolution, asserting that he is “a big believer in devolution” and values the benefits it brings when Labour holds power both in Westminster and Wales.

Details of the funding arrangement reveal a clear distinction in how the scheme operates across the UK. During a parliamentary exchange, Northern Ireland Secretary Hilary Benn explained to Plaid Cymru MP Llinos Medi that Northern Ireland will be allocated a “corresponding funding” sum of £45.5 million over three years via the local growth fund, a decision made in consultation with the Northern Ireland Executive. Medi highlighted that unlike Wales, where funds have been redirected to Whitehall, Northern Ireland’s executive was actively involved in the consultation process, calling for Wales to receive equal respect and transparency.

In Wales, the second phase of Pride in Place involves the distribution of £20 million each to nine local authorities over a decade. This money comes from the local growth funds, which mostly fall under Welsh government control and were designed to replace economic aid previously provided by the European Union. However, the scheme relies on the UK Internal Market Act (UKIMA), which enables the UK government to circumvent approval from the Welsh government to provide financial support in devolved areas such as town centre improvements. Welsh ministers, including Economy Minister Rebecca Evans and First Minister Eluned Morgan, have voiced their opposition to this legislation. Morgan has even raised these issues directly with Prime Minister Starmer, with Welsh Labour MSs expressing “considerable unhappiness” about the arrangement, insisting that the entire local growth fund should be managed by the Welsh government, as was the case before Brexit

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