Lord Teverson (LD)
I congratulate Bishop Robert—the right reverend Prelate—on securing this debate, which is really important. I absolutely agree with his theme that we think so much about the levelling-up agenda as being north versus south—or, indeed, on occasions, as has been shown factually in terms of government funding programmes over the years, urban versus rural. Of course, the south-west is important in its rural population and its rural contribution culturally and economically.
If noble Lords will forgive me, I will talk mainly about Cornwall and the Isles of Scilly, and the shared prosperity fund. What I say is not a criticism of the Government; one of the things I want to succeed is the shared prosperity fund. There are a number of questions here that I will go through and I would be happy to have those answered subsequent to the debate rather than necessarily here today.
Nearly everything that I talk about will also be relevant to the rest of the greater south-west. It is perhaps symbolic that all the speakers in this debate are lined up on the same side of the argument, apart from the Minister—
The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
We have someone here who was leader of Wiltshire County Council for 16 years. Take that one away.
Lord Teverson (LD)
I apologise. But we have a unity here.
In Cornwall, our earnings are some 20%—one-fifth—less than the national average. Our GDP is 30% less than the national average. It is interesting that if you look at the contours of productivity, as you move further south-west, productivity goes down significantly east to west. Is that inevitable? I look across to the Republic of Ireland, which used to be one of the tigers of the European economy. It is still more affluent than many parts of the UK. That remoteness is not something that we should take for granted; actually, it causes those differences. Of course, exactly as the right reverend Prelate said, house prices go in the opposite direction. They are high and largely unaffordable for the resident population.
We are still unclear how the shared prosperity fund will operate. We have a framework there. We understand it is going to be £2.6 billion over three years. The promise by the Government—certainly the Prime Minister—has been that the funding that Cornwall and the Isles of Scilly had under European programmes will be replicated. I ask for confirmation that, in that first period of three years, Cornwall and the Isles of Scilly will have something like £300 million in funding, and that over the seven years—it was a seven-year programme in European days—it will be something like £700 million.
One of the positives about seven-year programmes was that you could plan over that time. Three years is a lot more difficult. Perhaps we could have an assurance that we will not have a programme that starts late and has to spend by the end of year 3, meaning that those projects are short-term and not optimal. I think the Minister would understand that issue.
I also understand that the programmes will be primarily revenue-based. Yet when we come to productivity—I will say more on this later—yes, it is around skills, which I will also come on to, but it is also around investment. A lot of that needs to be capital expenditure rather than just revenue. Will the Government recognise that as that programme proceeds?
I also understand that in the first year 20% of the funding for shared prosperity will go towards a fund called Multiply, which is all about adult numeracy and language. Excellent though that is, it means that there will not be any skills element in the first year, meaning there is a gap between the ESF programmes we have at the moment and skills-based programmes we might have in future after the first year.
One of the great frustrations of European funding was that it took two years to agree the programmes between local authorities, Whitehall and Brussels. It is absolutely essential that these programmes start on time. They need to be agreed and then roll out as soon as the money is available on projects that are not too short term. I ask the Minister: will there be flexibility for the whole south-west—whether Cornwall, Devon or Dorset—as it understands its own needs best? Will that delegation of decision-making downwards, which was sometimes also absent in European programmes, be improved?
Lastly, I want to talk about productivity for 15 seconds. This is a practical thing. Whenever companies I know have applied for European funding in the past it has all been “Jobs, jobs, jobs”. The problem is not jobs; the problem is productivity, careers and decently paid jobs. I ask the Minister that, when people have to fill forms out, they are not just around jobs; they are around productivity and quality. We as the south-west and as Cornwall want to contribute to the rest of the United Kingdom. Please let us do so.
Lord Greenhalgh (Con)
My Lords, I too congratulate the right reverend Prelate the Bishop of Exeter on securing this debate. He was known as Robert Atwell when he was chaplain during my early years as an undergraduate. He looked a lot younger then—but then, so did I. I used to row, which you cannot believe, given the physique I have now. He said, “You got on the first boat, in your first term!” As a Roman Catholic, he got me into the chapel and made it very much part of college life. That is what he has brought to his current job. He really cares about his region, and it comes through palpably. He has raised a lot of very important issues.
I take issue with the idea that the Government do not have the credentials to speak for the south-west. Here today we have the noble Lord, Lord Khan of Burnley, a former cabinet member for Burnley. We also have with us a very distinguished leader for six years of Somerset County Council, which is a pretty good innings for the Liberal Democrats. But the Government Whip here has been—
Lord Teverson (LD)
I said that the speakers were on this side. I was not in any way—
Lord Greenhalgh (Con)
Fair enough, but the Government Whip here, my noble friend Lady Scott of Bybrook, was for 16 years—not just six—leader of Wiltshire Council.
A noble Lord
Lord Greenhalgh (Con)
That is living there; this is leading a council for 16 years. I managed six, which is in itself an achievement. The knowledge, the experience and the drive that it takes to lead a council for 16 years is here supporting me. What is more, I have covering fire from my noble friend Lord Whitby, who represents the great Birmingham City Council, which he led with great distinction for many years—
Lord Greenhalgh (Con)
There you go; on this side of the House we have real experience. I want to deal with the accusation from the noble Lord, Lord Khan, that there is no money and no power. Let us deal with the money first and the power second.
On commitment to the south-west and the money currently being spent, these are staggering sums. There is an initial £131 million investment through round one of the levelling-up fund—that is money. The towns fund is investing £198 million across nine towns in the south-west—that is money. Eleven places in the south-west have received over £138.5 million of funding through the future high streets fund—that is money. The noble Lord should recognise that that is money. There is £92.6 million allocated to the south-west through the getting building fund—that is money. In 2017, the West of England Combined Authority agreed a devolution deal worth over £900 million in investment in the area over 13 years—that is money.
Let us think about the future, because now we are talking about real power: devolution and devolution deals. I know that a number will come to the surface in the next few years in the south-west, devolving real power away to the south-west. That is the power that follows the money.
I want to deal specifically with the right reverend Prelate’s issues; since he secured the debate, I should address most of my remarks to them. He talked about the capacity for innovation. One of the things I learnt in preparation for this debate is that we are increasing public R&D investment to £20 billion by 2024-25. Of this, at least 55% will go to places outside London and the south-east, helping those places to develop competitive advantages. Obviously, I hope that much of that goes to the south-west. There is a lot of money there to deal with the deprivation that the right reverend Prelate has outlined. Certainly, the south-west has benefited from £303 million of Innovate UK funding since 2008. We continue to see R&D investment, which can only get bigger, going to the south-west.
The right reverend Prelate is also a great champion on issues of rural and coastal deprivation. He asked a couple specific questions about whether targeted interventions reach the rural hinterland. The Government will publish the second report on rural proofing in England this spring—imminently. It will set out how government departments are working to support levelling up in rural areas through targeted approaches where needed, and how we are strengthening the rural economies. More on that anon.
On connectivity and the patchy provision of rural services, last week the Government announced a further £32 million of funding to protect the crucial Dawlish rail link in Devon. This is part of £155 million to level up investments between communities in the south-west.
The noble Lord, Lord Teverson, wanted to know about the UK shared prosperity fund. It is a good question, but he will just have to wait a bit. The prospectus will be published imminently, but I take the point about having time to plan and having flexibility. As a former local leader myself, I completely agree with those principles, and they are points well made.
The noble Lord, Lord Teverson, who I think is a distinguished former Member of the European Parliament, also wanted to know whether EU funding levels will be matched for Cornwall and the Isles of Scilly. I have been told that the Government will match current EU funding levels in Cornwall and the Isles of Scilly and will publish details of allocations in due course. There is some information for the noble Lord that I think is positive.
Will there be flexibility? I think I have answered that. Let us get the detail about that on the table in future.
It is important to recognise that the Government set out an ambition that takes us to 2030, along with some clear missions, and through the spending review they have been driving the spending around those missions. They will measure those and publish an annual report, but I thank the right reverend Prelate for once again making us realise that it is not a north/south issue or a rural/urban issue: there is deprivation and issues that need to be tackled throughout all four nations of this great United Kingdom.
The Church plays an incredibly important role, particularly in education, and I recognise that. The right reverend Prelate mentioned the diocesan schools. In my patch, Hammersmith and Fulham, we have wonderful voluntary aided schools that provide first-class opportunities within the maintained sector for young people to get on in life. Long may that continue.
This has been a great debate. There is a lot to be said for the south-west—but you would never know it, listening to the noble Lord, Lord Khan.