(8 years, 9 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I have to make it clear that there was no guarantee that the fund would bring a net benefit to the UK, or that it would be possible to apply, until a proper assessment had been done of the level of damage, the regional thresholds and whether we qualified to make an application. That assessment has now been done and we have announced our intention to apply before the deadline, which is the right thing to do. We will then work through the process to ensure that the UK gets the maximum benefit that can be delivered. Separately from that, the Government are already doing what needs to be done to support communities. The Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Penrith and The Border (Rory Stewart), has been doing a huge amount of work in Cumbria, as I am sure the right hon. Gentleman knows, to ensure that communities get the support they need, regardless of the progress made with this fund. It will take time, but we are now committed to applying to the fund.
Can the Minister confirm that the UK paid £36.5 million into the EU solidarity fund last year, making us the second largest net contributor, and that we have only ever claimed once, in 2007, when we received £130 million? Is not the reason we have been reluctant to claim that we get very little out of the scheme because of our rebate? Effectively, we are paying into an insurance scheme that we cannot claim from.
My hon. Friend is absolutely right that there is an interplay between the application for funds, the funds being paid out and the rebate. The reality is that this is a complex process and there are restrictions on how money that is released can be spent. We have made the assessment and believe that the fund will be of net benefit to the UK, which is why we have today announced our intention to apply.
The hon. Lady raises a very important point. Many areas across the country recognise what devolution can do and want to be part of it. Discussions continue in Yorkshire and Humber. We want to find deals that work for local areas. They have to be reached by agreement, have to be bottom-up and bespoke, and have to match the economic geographies that exist. When we get those deals—we will continue to work with areas that want them to deliver them—I am sure we can ensure that they last for the long term and drive real difference in the improvements we want to see.
In the east midlands we currently have a joint bid by Derbyshire and Nottinghamshire and a separate bid by Leicester and Leicestershire. Does my hon. Friend agree that it might make more sense to have a combined bid of the three counties, previously known as the golden triangle?
My hon. Friend puts forward an interesting and important idea. However, I am not going to tell any area what its devolution proposal geography should look like. It is for areas to come together and identify the opportunities and sensible economic areas that exist. I am sure that those who are engaged in the discussions with the Department will have heard his comments, and I am sure that we can ultimately find a solution that will work for everyone.