At present the United Kingdom (UK) receives money from the European Union (EU) so that it can invest in areas of the country that are considered under developed.

With the UK leaving the EU there has been concern as to what level of funding will be available and how it will be distributed.

Although in some minds leaving the EU may bring levels of uncertainty and anxiety, this time should be used to reevaluate the current system. There is no better time than now to encourage a fairer way to ensure that areas that are less developed in certain regions benefit from the new funding system.

This report will examine how the current system is leaving small towns in regions that do not qualify for funding behind and what the best way forward will be. In addition, we will examine how decision making on fund allocation should be taken away from the government in Cardiff and given to local authorities. Furthermore, we will be looking at the formula used to determine the funding Wales receives and what would be a better formula for the future, making sure the level of funding that Wales receives is maintained.