European Structural and Investment Funds Common Provisions and Common Provision Rules etc. (Amendment) (EU Exit) (Revocation) Regulations 2020

Lord Stevenson of Balmacara Excerpts

Wednesday 16th September 2020 Grand Committee

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, as other noble Lords have said, I am grateful to the Minister for his clear and focused introduction, which allowed us to understand better the importance of the SI with regard to clearing up the statute book, but also to point out some of the transitional difficulties that the Government will face as they see the end of these substantial schemes, which, as other noble Lords have said, have had such a huge impact across the country. They are a significant investment, many communities are involved, they connect all parts of the United Kingdom, and it is vital that we get this right. That would be true even if it were not also the case, as the noble Baroness, Lady Kramer, pointed out, that the impact of Covid-19 stresses every aspect of that and will bring it very much to the forefront of our thinking.

The noble Lord, Lord Naseby, went through the Explanatory Memorandum and asked a number of detailed questions. I just wanted to ask one or two questions related to consultation. The extent and territorial application of this is clearly a United Kingdom issue, and the Minister has made it clear that these funds are and always have been reserved items. However, there is a tension regarding the local impact; other speakers made points on how the further you go from the centre of Whitehall with this, the easier it is to see the discrepancies and differences that need to be addressed, with funding of this nature coming, as it does, with a focus on trying to level up rather than reinforce existing divisions.

I was therefore intrigued to see in paragraph 4.3 of the Explanatory Memorandum:

“Devolved Administrations were involved in the preparation of this instrument.”


Can the Minister indulge us by explaining what that meant? Were they shouted at, engaged, and were there meetings or a discussion? I would really like to know. Contrast that with paragraph 10.1 in particular, which says that there was “no formal consultation”—presumably this was done with ties off, in an informal situation—but:

“Devolved Administrations have all provided consent letters from their ministers to the laying of this SI.”


That is a novel way of doing it. I am intrigued by this; it is a new process, which I have never seen before. Perhaps the Minister would be prepared to share those letters with the Committee. If he is not able to, perhaps he could explain in another letter what was going on here. I am not interested in prying into confidential details but I would like to know how the process works in practice.

All speakers mentioned it, but my noble friend Lord Foulkes and the noble Baronesses, Lady Ritchie and Lady Bowles, went into some detail about how we are going to be fed information about the shared prosperity funds that replace all the existing funding. As I said, £9.5 billion is a lot for even this Treasury to find on the money tree. The case has been well made for early notification about the thinking behind this and the consultation process going into it. Tying it to some feature of the calendar that allows a Minister to say something more concrete than just “It’s coming soon” would be good.

It is important to get assurances from Ministers that there is going to be a fund of this nature, size and reach, to understand better how constraints will apply to how much it is expected to do and how that will be done, whether there will be partnership arrangements—as was expressed by the noble Baroness, Lady Ritchie—and whether there will be a bidding process or top-down delivery. We do not need firm details, but it would be interesting to know which way the Government are thinking.

I follow that with the astute observation of the noble Baroness, Lady Bowles, that we might need to think harder about what might happen to us if the situation affecting the withdrawal agreement continues and the EU takes sanctions against the UK for its approach so far. If the first port of call is the retention of previously allocated structural funds, perhaps not this SI but the previous one will need to be repealed and we will have to go back to the first version. SI 625 may indeed have a longer life than we originally thought. I do not expect the Minister to go all the way down the track on this, but it would be helpful or reassuring to us if we knew that he had thought this through and that there are plans in place.

As I said at the beginning, we are talking about substantial sums of money, hard-wired into the way our country operates. It may not be the best or a long-term solution, but I appeal to the Government to think carefully about changes, as they come forward. It is important that we learn the lessons from the ESIF and its various formulations over the years. Bringing it all into one fund might be attractive, but the appetite to stop term funding is not there, and they will need to think carefully about how to share this money in a way that is effective and efficient, in terms of its overall goals, and that does not cut out partnership and local intelligence in how it is best applied.