UK Shared Prosperity Fund

Alison Thewliss Excerpts

Thursday 5th September 2019 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

I thank the hon. Member for Brecon and Radnorshire (Jane Dodds) for setting out her stall for her constituency. In the short time that she has been here, she has been a strong advocate for her constituents. I also thank my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) and the Backbench Business Committee for granting us time to discuss this fundamentally important issue.

It is difficult to think of an area of Scotland’s economy that has not benefited from structural funds, and my constituency is no exception. Being part of the EU has been beneficial to Scotland in many ways, just as it has for Cornwall, as the hon. Members for North Cornwall (Scott Mann) and for Truro and Falmouth (Sarah Newton) set out, and for Wales, as the hon. Member for Arfon (Hywel Williams) and other Members said. There is no doubt that communities will be poorer as a result of leaving the EU—culturally, socially and economically. Organisations in Glasgow Central have received over £241 million in European structural funds since 2014 according to figures from the Library.

The aims of European structural funds are closely aligned with those of the Scottish National party—to grow the economy while tackling inequalities. Our Madame Ecosse, Winnie Ewing, MEP, fought for European funds when Westminster got its sums wrong and tried to deny them to the highlands of Scotland. The Scottish Government have set out a programme of sustainable inclusive growth in their national performance framework and we are working as a responsible Government to improve outcomes across a range of indicators. It is extremely important that any replacement fund does not diverge from the aims of our inclusive growth strategy.

European structural funds have been vital in the delivery of inclusive growth in Scotland. The European social fund has been used to increase the skills available in Scotland’s labour market and to help to lift people out of poverty into increased social inclusion. The European regional development fund is supporting small and medium-sized enterprises and is investing in Scotland’s transition to a low-carbon economy. There is still a lot to be done to tackle inequality and we cannot let these issues be overshadowed by the process of Brexit.

The Scottish Government value the European structural funds dearly, not just because of the monetary value, but because we have a shared vision of what we can achieve when they are used in a strategic way. I am not convinced that the UK Government share that vision. I agree with the hon. Member for Ellesmere Port and Neston (Justin Madders) that local areas do not want handouts on Westminster terms. It is difficult for anybody in Scotland to know precisely what the UK Government’s intention is. We have been waiting an inordinate amount of time for details on the UK shared prosperity fund. From the 2017 Tory manifesto until now, we still do not know. The hon. Member for Ayr, Carrick and Cumnock (Bill Grant) himself called it skeletal—I think that is being generous, frankly. It is not a trivial amount of money that we are dealing with here. Third sector organisations, which are delivering vital services in our communities, need to know what their future will be.

The hon. Member for Aberavon (Stephen Kinnock) set out well the questions that he and his APPG have been seeking and referred to the lack of answers and clarity that, shockingly, we still have. We need to know how the new fund will be drawn and whether there will be criteria to allow for the treatment of contaminated land, for example, such as in Shawfield in the Clyde Gateway area. Decontamination programmes are crucial to development but cannot go ahead until funding is secured. Opportunities to clarify matters have come and gone, with the spending review only yesterday failing to address the issue.

These are vital funds, and many of the organisations that depend on them are doing valuable work to mitigate some of the worst excesses of this UK Tory Government. Those on the Tory Benches could barely be providing a better argument for Scottish independence. We are once again seeing a tale of two Governments, with the Scottish Government working to increase equality and grow the economy in a sustained and sensible way, and the UK Government hellbent on pursuing a hard exit from the EU without adequate preparations for what will come next.

The Scottish Government have been clear on the five key principles that they would like any new funding scheme to adhere to. First, there should be no reduction in the level of funding that Scotland currently receives from the EU. Secondly, the devolution settlement must be respected, and there must be no reduction in the powers that the Scottish Parliament currently has. Thirdly, the Scottish Government should be an equal partner in the development of the shared prosperity fund. The hon. Member for Ochil and South Perthshire (Luke Graham) let the cat out of the bag when he talked about the bypassing of the Scottish Government—

[Luke Graham]

Will the hon. Lady give way?

[Alison Thewliss]

No, the hon. Gentleman has had his say.

[Luke Graham]

The hon. Lady is misinterpreting me. I did not talk about bypassing the Scottish Government. I specifically said—I am sure that Hansard will have recorded this—guaranteeing the £1.2 billion plus inflation, plus an additional fund that could be administered centrally so that they could work together in partnership, because that is what our constituents want: devolution plus central Government in a United Kingdom.

[Alison Thewliss]

The hon. Gentleman is talking about a United Kingdom system here. He is talking about the UK choosing Scotland’s priorities. That is not what our communities deserve, that is not devolution and that does not respect the devolution settlement, and he knows that just fine.

Fourthly, the current flexibility in the allocation of funds should not be reduced. Fifthly, the replacement scheme should be operational in time to be implemented in early 2021, so that communities, organisations and businesses in Scotland do not lose out on much-needed funding. There must not be any gap, and the Minister needs to be able to guarantee that today.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

With the threat of actually being out of the EU in literally a matter of weeks, is not a gap inevitable, given that we are talking about the end of 2021?

[Alison Thewliss]

I agree with my hon. Friend that a gap is inevitable. We do not know what will happen, and the UK Government cannot tell us what will happen next week, never mind in 2021. We cannot believe anything that they tell us on these commitments.

Will the Minister today commit to giving the principles set out by the Scottish Government the consideration they deserve, because the people of Scotland did not vote for any of this Brexit mess and should not lose out on funding as a result? Scotland has benefited from EU funds while the UK Government looked the other way, from the Kessock bridge to inequalities, education and industry. Will he guarantee today that Scotland will have not one penny less under the shared prosperity fund than we would have received under the EU?