UK Shared Prosperity Fund

Bob Stewart Excerpts

Thursday 5th September 2019 Commons Chamber

[Hywel Williams (Arfon) (PC)]

European funding has been hugely important to Wales: particularly to my area of north Wales, but also to mid-Wales, and other areas. I echo the concern expressed by the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry): many of us are frustrated by the lack of information—any information at all, for that matter—about how the shared prosperity fund will operate. The delay in the consultation is just symptomatic of the lack of care that the Government have shown towards the European funding that we have already had and towards what will happen in future, suggesting that regional funding is a low priority for this Government.

This issue is incredibly important in Wales, because we get a large amount of European funding. In fact, we get four and a half times more per head from the European Union in funding than any other nation or region in the UK. Of course, this was not always the case. Some people here will recall that the maps were redrawn to delineate west Wales and the valleys as the area that would get funding. These maps are called nomenclature of territorial units for statistics maps—ludicrously known as NUTS maps, as that is the acronym. The previous NUTS map for Wales put poor west Wales, where I live, in with the rather more prosperous north-east Wales, and south-west Wales in with the rather more prosperous Cardiff area. When the map was redrawn, suddenly we were allocated funding under the European Union’s regional policy, showing the value of that policy and also that a degree of cleverness is required in acquiring that funding, which we eventually showed.

Wales—particularly my area—is economically on a par with the former communist parts of eastern Europe, Portugal and southern Spain. That is not something that we celebrate, of course, although it does bring us in a certain amount of funding. Rather, it is the consequence of decades of marginalisation, neglect and mismanagement by Westminster. Let me echo the points made by the hon. Member for Inverness, Nairn, Badenoch and Strathspey. At the very least, can we have an assurance from the Minister that not a penny less will come to Wales under this fund as compared with under European funding?

[Bob Stewart (Beckenham) (Con)]

My reading is that, actually, the funding will continue. It will just not come from Europe; it will come from London—at least in the immediate future.

[Hywel Williams]

The hon. Gentleman may be right, but I would like some confirmation of that, and certainly more information than “the immediate future” because we are looking beyond 2021. There are projects whose timescales demand that. In fact, there are projects in my community that require funding for many years into the future, including projects at Bangor University.

What is also extremely unclear, to me at least—perhaps the Minister can enlighten us—is the criteria for the allocation of money under the shared prosperity fund. I would argue for allocation on the basis of need. We will not accept the milking of funds that would otherwise have gone to Wales to fund projects elsewhere. That is certainly a fear. For example, Welsh farming might proportionately get considerably less money than one would expect if the criteria were based on, say, per head funding.

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[Luke Graham]

I secured a debate on Scottish funding and devolved funding just before the summer recess to which no SNP MP turned up. In that debate, I gave the opportunity to challenge those figures and have an in-depth, detailed discussion about them, because they are not recognised by the Library. If they are, I will be happy to welcome another debate on the topic, so that we can take it further.

I would like to go on to the positive things that we are trying to do. The shared prosperity fund allows us to formalise the process of applying for funds. It could also build and improve the city deal and growth deal projects that have already been awarded Scotland to the value of over £1 billion. The money in the city deals has been very welcome, but I think Members on both sides of the House would agree that the city deal and growth deal process could do with some improvement. We can have less bureaucracy, and central Government should provide support to not only the devolved Administrations but the local authorities and civic groups that are applying for these funds. So often, exciting and transformational opportunities are lost because local businesses and local groups do not have the skills to meet a Green Book or European set of qualifications to access the funding that they so require.

[Bob Stewart]

It seems to me that there is a requirement for the shared prosperity fund organisation to have a local office, particularly to help small businesses.

[Luke Graham]

I thank my hon. Friend for his suggestion. That is just the kind of innovative proposal that we should be putting forward and having a cross-party discussion about, to ensure that the shared prosperity fund works for the entire United Kingdom.

Although we could talk about this for a great many hours more, I am conscious of time, so I will conclude. I am pleased that the Government have guaranteed funding to 2022, which I am sure the Minister will confirm, so that we can give assurances to the charities, local government and businesses in our communities. We do not come with grievance; we come with solutions. Let us keep the central fund of around £1.2 billion plus inflation for the future, but let us also recognise that it has not delivered transformational change for our constituents in Scotland. Perhaps we could put some of the UK match funding into a new direct central fund that local authorities and businesses could bid into, along national lines, to provide greater clarity and guarantees for our local communities, so that they can access the funds they so badly need to thrive and survive.

I agree with colleagues in Wales, Scotland and England that these funds provide opportunities to all our regions. We want to combat structural inequality and improve the opportunities we have, and we want to do it through a fine United Kingdom system.