EU Structural Funds: Least Developed Regions

Derek Thomas Excerpts

Wednesday 26th June 2019 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I am glad to have the opportunity to speak in this interesting and important debate. The six Cornish MPs went to the Treasury some time ago to set out why it was so important to address the issue properly. It is absolutely right that when we get the consultation, we use the expertise available to make sure it is done correctly.

I want to be clear that in Cornwall and on Scilly we are looking not for a handout, but for a hand up. The aim of European funding is to reduce inequalities between communities and reduce disparities in regional levels of development, with particular regard to those that have increased deprivation, rural and island areas, areas affected by industrial transition and regions that suffer from severe and permanent natural or demographic handicaps. Cornwall and the Isles of Scilly fit perfectly with those aims. There is no reason not to see ourselves as benefiting from funding.

The seven least developed areas have set some priorities. The most sensible one, I think, is for an ambitious regional policy for England and Wales that recognises the need for a specific mechanism for the regions that are furthest behind. We want a protected allocation of funds to such regions that will allow a genuine rebalancing of the UK economy. I have heard nothing from the Treasury or the Minister to suggest that is not their intention.

[Sarah Newton (Truro and Falmouth) (Con)]

My hon. Friend is making a powerful point. The modern industrial strategy clearly commits to making sure that regions can play their full part, so no region is left behind. The allocated funding would not only improve the lives of people in Cornwall and the Isles of Scilly, but enable the region to contribute to national well-being.

[Derek Thomas]

My hon. Friend is absolutely right. As I say, we have heard nothing yet to suggest that the economy in Cornwall and on Scilly could not thrive. It is really important to MPs in Cornwall that we are part of the solution, not the problem. In July last year I set up a group that works with local business, Cornwall Council and people who already work with the most deprived and left behind in our communities. The group looks at the skills that a shared prosperity fund should deliver to enable people to get the well-paid, skilled jobs they want. The Chief Secretary to the Treasury, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), attended the first meeting and set out a Government commitment and invitation for us to engage in the process and help them to understand what was needed.

Outside this building today there are thousands of people demanding that we take urgent action on climate change, clean up our air and make our society healthier and fairer. Through the shared prosperity fund we can achieve exactly that, particularly in places such as Cornwall. The Committee on Climate Change recommendations set out the need for massive upskilling to give people the skills needed for research and innovation, so that we can decarbonise our environment and our economy and ensure that people are healthier, live in healthier homes and have better opportunities. Now is the right time to have this debate and create a vibrant, low-carbon economy with better health, better skills and better pay.

In our jobs and growth group we have looked at skills. Even with European funding, the real problem in Cornwall is that many communities and young people never feel they have the opportunity or the learning that they need.

[Alex Cunningham (Stockton North) (Lab)]

The hon. Gentleman has talked about young people, and I am sure he will share my anxiety about the future of the youth employment initiative, which is EU-funded. It helps to provide opportunities to young people who are not in employment, education or training. The Tees valley is one area that benefits from it at the moment. Does he share my anxiety about the fact that there is no clarity from the Government about the future of that funding?

[Derek Thomas]

I welcome that intervention, but I will continue with my point about the real problem for us in west Cornwall. Quite often, there are two options in Cornwall. One is to go away to university, which is much easier now because we have a university in Cornwall, in the constituency of my hon. Friend the Member for Truro and Falmouth (Sarah Newton). However, the vast majority of our young people leave Cornwall, in what we describe as a brain drain. The opportunities for those who are left behind are very limited. There is a real need to look at apprenticeships and how further education can be properly funded for the skills and jobs that we need for the future. I believe that Cornwall has a real opportunity to share in that, exploit it and thrive, and I believe that shared prosperity is the solution.

Our group has looked at the role of high streets, and Cornwall Council is running an inquiry into how to make high streets work. They are no longer just about shops; they are about an experience, and where people live. They are places to get support and advice, and they even include workplaces other than shops. Lots of work is being done in communities in all our constituencies in Cornwall on understanding high streets. That is not just so that we can say, “Government, give us money so we can spend it,” but because we want support to make local economies low carbon. We have great talent; now, we need great opportunity.