United Kingdom Internal Market Bill

Gerald Jones Excerpts

Wednesday 16th September 2020 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

The right hon. Gentleman talks about levelling up and areas where the UK Government have competence, but can I ask him for his comments on the shared prosperity fund? We have waited since 2018 for a consultation on it, and for much of that time he was Secretary of State and in a position to do something about it. Two years on, we are still waiting for clarity on how that money will be spent to benefit Wales.

[Alun Cairns]

The hon. Gentleman makes a fair point: we need to bring forward much more detailed proposals about how the shared prosperity fund will work. I hope—this is a call to the Minister—that these clauses will change the nature of the discussion, because they will enable the UK Government to play a more prominent part in how the shared prosperity fund develops. That is not the Government’s position yet, as I understand it, but certainly I hope it will be, and I will be calling for that.

The devolved Administrations receive their funding through the Barnett formula, but that delivers a capacity limitation to the interventions that they can make. Although the Welsh Government receive £120 for every £100 spent in England, which is a very fair settlement as a result of the relative poverty that many of us highlight regularly, that broadly equates to about 5% or 6% of spending in devolved areas according to the population. As a consequence of that relatively small sum of money, large infrastructure projects are much more difficult to deliver. They demand such capital sums that they are difficult to justify in any one community. The nature of devolution has caused resources to be spread far more thinly, and they do not have the impact that they could have in any one area.

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[Gerald Jones]

May I state at the outset that I am extremely proud to be Welsh—that is no secret—but I am also almost equally proud to be British? I have never prescribed to the nationalists’ view that we have to choose one over the other. I want to live in a strong Wales, with a vibrant, dynamic and forward-thinking Welsh Government, but I also want Wales to be a strong, active and equal part of the United Kingdom—[Interruption.] Do you mind? I want it to have a healthy respect for devolution. That is why I am so concerned about the damage that this Government will do to the future of the Union by pushing ahead with this Bill, not to mention the damage that they have already done and will continue to do to Britain’s reputation and standing in the world.

As we know, the Prime Minister negotiated and signed an agreement with the EU and, just a few months later, is saying that it contains serious problems that could break up our country. Instead of working with the EU to try to find a way forward, this Government are introducing legislation that knowingly and openly breaks international law and will frustrate the process of getting a deal.

The UK’s long-standing reputation has been built on our values and the fact that we have long stood up for the rule of law, and this Prime Minister and Government want to risk all that and throw it away by disregarding an international treaty that the Prime Minister personally negotiated and signed up to. This is not just wrong but completely incompetent, and his behaviour will do us no favours around the world and will not help us to negotiate new trade deals with other countries. We have only to listen to the comments from the US Democrats in the past few days to know that.

It is clear that there needs to be a strong internal market within the UK to enable businesses across all our four nations of the UK to trade freely, which will be vital for the economy and shared prosperity.

[Daniel Kawczynski]

Of course, all of us in this House respect the devolution process and Welsh decision-making in Cardiff, but does the hon. Gentleman accept for a moment that, as Cardiff and London increasingly diverge, for border communities such as mine with businesses on both sides of the border there are additional problems and risk as a result of that increasing divergence between our two capitals?

[Gerald Jones]

I thank the hon. Gentleman for his comments, but it is certainly clear to me from comments I have heard from the Government side of the Chamber that lots of people do not understand devolution. Devolution is about giving powers to those devolved nations to make the decisions for themselves, and that is where some Government Members struggle.

In Wales, the Welsh Government have, as we have heard, stated that the Bill is an attack on democracy and an affront to the people of Wales, not to mention Scotland and Northern Ireland, who have voted in favour of devolution on numerous occasions. As we have heard, one of the Conservatives’ long-standing Senedd Members has resigned as shadow Counsel General over the Bill, commenting that:

“The publication today of the Internal Market Bill has done nothing to lessen my anxieties about the dangers facing our 313-year-old Union. Indeed they have been gravely aggravated by the decisions made in the last few days by the Prime Minister.”

That is from a well-respected Member in the Welsh Senedd, and of course we have heard very clear concerns from three former Conservative Prime Ministers and two former Labour ones—in fact from all living Prime Ministers.

One of the foundations of the devolution delivered by the Labour Government for Wales and Scotland in 1997 and developed over the past 20 years has been the right of devolved nations to set their own priorities on key spending areas. The explanatory notes to the Bill state:

“Part 6 grants power to a UK Minister of the Crown to provide funding across…economic development, infrastructure, culture, sporting activities, and international educational and training activities and exchanges.”

Of course, I welcome any additional funding or assistance that would benefit Wales and my constituents. However, it is not for the UK Government to play Father Christmas and pull those pet projects out of the air. Any additional funding should be delivered by devolved Governments in line with what has been developed over the past 20 years, in a strategic way involving local authorities and local stakeholders. If the Government have their way, spending decisions previously made in Edinburgh, Cardiff and Belfast will now be made in London, and that flies in the face of devolution.

The Government argue that this Bill strengthens the Union on the grounds that it will give the UK Government new powers to spend across all four nations, but I believe that it will have exactly the opposite effect. A Government official reportedly told Politico that the spending powers would be used sparingly but demonstrated that the

“devolve and forget approach of the Blair/Brown years”

was over. But this Bill provides a risk that the UK Government will now be able to undermine the spending decisions and policy priorities of devolved Administrations.

It is no accident that we have yet to receive clarity on the UK shared prosperity fund, after almost two years of waiting. The Government stated that the consultation should have been held in 2018 and that Wales would not lose a penny compared with what we have received until now from the UK structural funds. That funding was based on genuine need, not on patronage or favour. It is essential that any funding Wales now receives is allocated in a similar way, involving the Welsh Government and local authorities in Wales in determining and delivering on local priorities.

On Second Reading, I supported the reasoned amendment tabled by my hon. and right hon. Friends declining to give the Bill a Second Reading and I voted against the Bill. I will continue to oppose this Bill until the Prime Minister and the Government reconsider and come up with a way to ensure that the devolved settlement is preserved and the Union is intact.

The Government must negotiate in good faith with the EU and devolved nations, instead of creating division and discord that puts getting a deal at risk. So my message to the Prime Minister is this: please get back around the table and negotiate properly and stop posturing. We do not have time for distractions like this when a deal is on the line. We need leadership from the Prime Minister, not theatrics.

[Sally-Ann Hart (Hastings and Rye) (Con)]

The United Kingdom of England, Ireland, Scotland and Wales is the most successful union of nations the world has known. The Bill will ensure that we continue to thrive as a United Kingdom and that unfettered trade across our four nations continues.

I oppose the Opposition amendments to clauses 46 and 47, although I hear the reasoned speech from my hon. Friend the Member for Belfast East (Gavin Robinson). It is essential that the UK Government have powers to provide financial assistance for economic development throughout the UK, as has been vital during coronavirus and our recovery from the pandemic. The existing clauses will help the Government to deliver on our commitments to replace EU funding programmes, including by delivering a shared prosperity fund to replace the bureaucratic EU structural funds.

The clauses are consistent with the Government’s levelling-up agenda throughout the whole UK. They better position England, Ireland, Scotland and Wales to take advantage of opportunities for future growth and develop our place in the world as a united and independent nation. Our nations—all of them—require investment in and support for our communities, businesses, infrastructure, sport, education and training, among many other policy areas. The Bill will create new opportunities for the Government to do that.