Wales: Regional Development Funding

Debate between Stephen Kinnock and Chris Bryant

Tuesday 7th May 2019 Westminster Hall

[Stephen Kinnock]

I agree with every word. As I will come on to, the key point is that we must not receive a penny less; there must not be any sleight of hand in the shift from EU structural funding to the shared prosperity fund.

EU structural funds are distributed to regions throughout the European Union based on their relative GDP. Areas where GDP per capita falls below 75% of EU GDP are placed in the first tier, and therefore receive the maximum funding. The poorer the region, the higher its priority and the more funding it receives. West Wales and the valleys is ranked as a region of the highest priority, and therefore received £2 billion for the 2014-20 cohort. No other area of the UK received more than £750 million, showing the scale of the challenge for the economy in that area of Wales. We are talking about a serious amount of funding here.

Like much of Wales, my Aberavon constituency has benefited hugely from European money, and from the strong vision and partnership working formed between the Welsh Government and our local Neath Port Talbot Council. Take, for instance, the new integrated transport hub—a Neath Port Talbot Council project in partnership with the Welsh Government, using EU money—or the sunken gardens and toddlers’ play area on Aberavon beach, which is a Neath Port Talbot Council project using EU funding granted by the Welsh Government.

There are more, from the bay campus, as my hon. Friend mentioned, to the Croeserw community enterprise centre, to the Cognation mountain bike trails in the Afan valley, to the Port Talbot magistrates court regeneration project. Those projects would not have been possible without European funding and strong political leadership of a type we see consistently from the Welsh Government and our local councils, but too rarely from Westminster. That is why Brexit raises a number of concerns regarding the future of regional development funding.

[Chris Bryant (Rhondda) (Lab)]

My hon. Friend is absolutely right that the Government have previously guaranteed that every penny from Europe that Wales lost would be matched by Westminster funding. That still has not happened. Has he noticed that, in the meantime, the Government have guaranteed that the British overseas territories will now receive from Westminster every single penny that they received from the European Union? Is it not a bit of an irony that the British Government are prepared to guarantee money to our overseas territories but not to our territories at home?

[Stephen Kinnock]

Indeed. That is a quite shocking example of the failure to prioritise what is happening right on our doorstep. It is absolutely vital that we see the funding in Wales that we need if we are to deliver. We all know how much support is required to deal with the huge changes in our economy over recent decades. We currently have a system that, while not perfect, works relatively well: EU funding is targeted at less prosperous areas and delivered by devolved Administrations who know the needs of their areas better than anyone else.

Now, we can debate Brexit until the cows come home—I am sure that we would love to—but I am sure that we can all agree that it is crucial that Wales does not lose a single penny of the funding that we would have received had the British public voted to remain instead of to leave the EU on 23 June 2016. The UK Government have agreed to replace those European funds, yet nearly everything about the shared prosperity fund is still to be worked out. We still do not know how much funding will be available. We need £1.7 billion per year UK-wide to keep up with what the EU is set to contribute from 2020 to 2026.