(4 years, 2 months ago)
Commons ChamberThe right hon. Gentleman talks about levelling up and areas where the UK Government have competence, but can I ask him for his comments on the shared prosperity fund? We have waited since 2018 for a consultation on it, and for much of that time he was Secretary of State and in a position to do something about it. Two years on, we are still waiting for clarity on how that money will be spent to benefit Wales.
The hon. Gentleman makes a fair point: we need to bring forward much more detailed proposals about how the shared prosperity fund will work. I hope—this is a call to the Minister—that these clauses will change the nature of the discussion, because they will enable the UK Government to play a more prominent part in how the shared prosperity fund develops. That is not the Government’s position yet, as I understand it, but certainly I hope it will be, and I will be calling for that.
The devolved Administrations receive their funding through the Barnett formula, but that delivers a capacity limitation to the interventions that they can make. Although the Welsh Government receive £120 for every £100 spent in England, which is a very fair settlement as a result of the relative poverty that many of us highlight regularly, that broadly equates to about 5% or 6% of spending in devolved areas according to the population. As a consequence of that relatively small sum of money, large infrastructure projects are much more difficult to deliver. They demand such capital sums that they are difficult to justify in any one community. The nature of devolution has caused resources to be spread far more thinly, and they do not have the impact that they could have in any one area.
(4 years, 2 months ago)
Commons Chamber