Unlike EU funds, which were run in Wales by the Welsh government, SPF is administered by the UK government via local councils.
The move had been criticised by Labour as rolling back devolution.
Election campaigning in Anglesey, Labour’s shadow chancellor Rachel Reeves, said: “The Tories are in disarray with their desperate half-baked gimmick. They’ve broken their promises on levelling up, and undermined devolution time and time again.
“We are committed to delivering funds that promote economic development in communities like Ynys Môn, restoring the decision-making role on structural funds to Wales and backing the creation of good, local jobs.”
Plaid Cymru’s Llinos Medi said: “Just as when the Conservatives falsely claimed that Wales wouldn’t lose any money under post-Brexit funding, they now falsely claim that Wales wouldn’t lose out under their National Service plan.
“The public however can see the truth, that the Conservatives are intent on levelling down the Welsh economy.
“With Labour taking Wales for granted, only Plaid Cymru will fight for economic fairness for Wales and the future of our young people.”
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