UK Shared Prosperity Fund

Debate between Drew Hendry and Jake Berry

Thursday 5th September 2019 Commons Chamber

[Drew Hendry]

I am grateful to the hon. Gentleman for those comments and I can confirm that I will underline those very points later in my speech.

[The Minister for the Northern Powerhouse and Local Growth (Jake Berry)]

rose—

[Jake Berry]

Show me the money.

The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) has repeatedly referred to “EU money”. I hope he will acknowledge that it is not the EU’s money but British taxpayers’ money and that he will reflect on the fact that, in 2018, we paid £13.2 billion into the EU and they returned £4.2 billion to this country.

[Drew Hendry]

I will reflect on the fact that if it had not been for EU funding—that is what I am talking about: funding that is generated out of EU schemes—the highlands and islands, as others have pointed out, would have been ignored by Westminster.

--- Later in debate ---

[Drew Hendry]

I thank all hon. Members who took part in today’s debate and the Backbench Business Committee for the opportunity. I must correct the Minister, because the CPMR is not a think tank. It is a representative organisation of local authorities from across Europe, and I know that because I used to be its vice-president. We asked the Minister to clarify the flexibility and timetable, but we have had no answer. We asked the Minister whether funding will be matched pound for pound, but we have had no answer. We have had no answer on whether devolution will be fully respected. He said—[Interruption.] I will allow the Minister in.

[Jake Berry]

To be absolutely clear and to repeat what I said in my contribution, the Government will fully respect the devolution settlement in respect of the UK shared prosperity fund and, I am sure, in all other respects.

[Drew Hendry]

In that case, I will accept the Minister’s comments, but he will be judged not on cheap words but on the actions of this Government and on whether they fail our communities.

Question put and agreed to.

Resolved,

That this House notes with concern that the Government is more than half a year behind its schedule to provide details of post-2020 funding through a UK Shared Prosperity Fund; supports the Joseph Rowntree Foundation’s recommendation that the Fund should at the very least match the £2.4 billion per year currently allocated through the EU structural funds; and calls on the Government to ensure that full details of the fund are published with urgency, that the devolved settlement is respected and that there is no reduction in the levels of funding to devolved governments or their role in distributing funds.

Oral Answers to Questions

Debate between Drew Hendry and Jake Berry

Tuesday 11th June 2019 Commons Chamber

[Jake Berry]

I would not question the authority, even-handedness and open-mindedness of House of Commons Library. I would direct my right hon. Friend to the debate that took place in Westminster Hall on 14 May, led by the hon. Member for Barnsley Central (Dan Jarvis), in which colleagues and the Government set out in considerable detail our ambition to drive jobs, growth and prosperity in all parts of our United Kingdom through this fund.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Research from the independent Conference of Peripheral Maritime Regions has shown that Scotland stands to lose nearly €1 billion of funding if the UK Government do not match EU funding after 2020. Given what the Minister has said about his responsibilities, will he tell us which of the 10 candidates for Prime Minister have given guarantees to replace every penny of this funding and retain Holyrood’s role in disbursing it?

[Jake Berry]

It is welcome that the hon. Gentleman wants to play such an active and full part in the Conservative leadership election, but he knows, as I do, that decisions about the UK shared prosperity fund, on quantum and all other matters, will be taken during the comprehensive spending review and the consultation. I would say to him that the Scottish Government must absolutely play their part in being an advocate for the areas of Scotland that share this Government’s ambition to create jobs, wealth and growth through the UK shared prosperity fund, mirroring in many ways what is being achieved through European funds.

[Drew Hendry]

The public will have heard that answer, which is clearly insufficient and not good enough. The highlands and islands alone stand to lose €180 million, and the Secretary of State for Environment, Food and Rural Affairs has said that he is willing to grab control of devolved spending. Is it any wonder that the Scottish public are now looking to Scotland being an independent nation state in Europe with an equal seat at the table, rather than this shambles?

[Jake Berry]

Well, Mr Speaker, if you want a strong demonstration that this country is better together, you need look no further than the highlands and islands growth deal, a partnership between the UK Government and the Scottish Government that is changing lives for people across the highlands and islands. That is a demonstration in one Government policy of why this Union should stay together.

Shared Prosperity Fund

Debate between Drew Hendry and Jake Berry

Tuesday 14th May 2019 Westminster Hall

[Jake Berry]

As the hon. Gentleman knows and I was just about to say, the quantum of the UK shared prosperity fund will be determined as part of the comprehensive spending review. That is the appropriate time for the Government to make commitments of the sort he seeks. However, he and the hon. Member for Aberavon (Stephen Kinnock) are correct that the Government must come forward with their consultation—I am clear that this must happen—before the comprehensive spending review to enable areas to contribute to that consultation.

We have not been sitting on our hands, as people who have listened to the debate may think. We have already engaged with more than 500 stakeholders. We have had 25 official-level engagements across the country, including with our counterparts in the devolved Administrations. In addition, in my role as Minister for the northern powerhouse, I have engaged with mayors. I have talked to them specifically about how we can work together to provide evidence to the consultation that demonstrates that, as so many people have said, the impetus for investment of the UK shared prosperity fund should come from our regions rather than being directed out of Whitehall.

Having listened to contributions to the debate, I think everyone believes that it would be nice if that happened. The point is that by working with our metro Mayors, our local enterprise partnerships and authorities across England—that is certainly my role as English Minister for local growth—to create the evidence base, we can move beyond thinking that it would be nice to proving that it is how we will get the biggest return on investment. There is work ongoing in my Department, in advance of the consultation, to ensure that that hugely important argument is made, and won, when my dear chums in the Treasury are making decisions about how the money should be distributed following the consultation. I hope that answers some of the questions that Members asked. My response to the main question is that the consultation will start very shortly.

Let me move on to some of the specific points that were made. On public transport investment, Members may not have seen the most up-to-date figures, which are available on the Treasury website. They show that transport capital expenditure is higher per capita in the north of England than in London. People often talk about total capital expenditure across the north of England versus London. There are some parts of the north of England where very few people live, so it is much more realistic to talk about capital expenditure per capita, and it is higher per capita in the north of England.

Many colleagues talked about the weakness of Green Book calculations for making investment decisions, which I think is acknowledged across the House. That is why the Government came forward with a rebalancing formula in the industrial strategy. That formula looks at areas that are less developed, depending on how we define that, and at factoring future growth into Green Book calculations. Changes have been made recently to ensure that community benefit is also included in such calculations.

My hon. Friend the Member for Newton Abbot (Anne Marie Morris) commented on the ring-fencing of coastal money. By the end of the current spending period, the Government will have invested £200 million directly in coastal communities through our coastal communities fund, which is about driving prosperity on our coasts. The UK shared prosperity fund must not be viewed on its own as the only support the Government give to drive regional growth. We have contributed £53 million to part of the exciting growth deal in the highlands and islands, which has resulted in things such as the north coast 500 route, which I hope to visit this summer, prospering.

[Drew Hendry]

rose—

[Jake Berry]

I will let the hon. Gentleman advise me about the best place to stay.

[Drew Hendry]

I am grateful to the Minister for raising that money for the Inverness city region deal. Will he go a step further and match 50:50 the commitment of the Scottish Government, who put considerably more money into that deal than the UK Government did?

[Jake Berry]

We will have to look at how much new money the Scottish Government have committed. Since we have talked repeatedly about devolution, particularly from a Scottish viewpoint, I note that the Smith commission agreement, which was signed by all parties in Edinburgh, contains a commitment by the Scottish Government to look at further devolution to local councils in Scotland. Devolution does not stop in Edinburgh, but I understand that no progress has been made on that.

I could go on, and I would like to, but I want to give the hon. Member for Barnsley Central the customary time to conclude the debate. I hope that colleagues do not doubt the Government’s commitment not just to devolution, but to regional growth. The UK shared prosperity fund, which we will consult fully on shortly, will continue that commitment to driving productivity and growth everywhere.