Shared Prosperity Fund: Wales

Debate between Ian C. Lucas and Anna McMorrin

Wednesday 14th November 2018 Westminster Hall

[Ian C. Lucas]

That is my next paragraph, which I shall read. As someone who believes in devolved decision making, I believe that decisions relating to investment in Wrexham and north Wales should be made by people who are close to our local economy and community. Historically, the EU’s structural funds system did not work well for my constituency of Wrexham.

Let me give one example. Wrexham Glyndwr University was established in 2008—the first time in our history that we had a university. That was a strategic moment for Wrexham and hugely important. As I said when I was a Minister within the Department for Business, Innovation and Skills, universities are at the centre of developing economies in the modern world. The establishment of Wrexham Glyndwr University was a really important period, but between 2008 and 2014 it received no structural funds at all. The Wales European Funding Office tells us that, in the same period, Swansea University received £89 million, the University of Glamorgan £41 million, Cardiff University £29 million and Bangor University £47 million. There was a lack of investment from the source that was supposed to be supporting the development of the economy in the area that I represent. That was a missed opportunity and will have had a negative impact on the university that we are developing as part of the local economy.

That lack of investment is mirrored in funding for north-east Wales generally. Neath Port Talbot Council received over £89 million between 2007 and 2014, while Flintshire received £3 million. Incredibly, Wrexham received only £446,000. After Brexit, we will need a new system of funding and a fair allocation across Wales. As the hon. Member for Aberconwy (Guto Bebb) said, we have shown the way in north Wales: from the bottom up, local government, MPs, Assembly Members and universities have worked together to produce a growth bid for north Wales to remedy the failings that we believe exist within our local economy. We put forward that growth bid on behalf of the community that we represent; it is very much devised and put together by the local players.

I still get frustrated at having to go with a begging bowl either to the Treasury across the road or to Cardiff Bay to beg for investment. I want those decisions about investment and the power to raise money to be devolved to places such as north Wales, because I have lot of confidence in the north-east Wales economy. Despite the fact that we have not benefited from a lot of the funding that other parts of Wales have had, the economy in north-east Wales has developed during the period that I have been privileged to represent Wrexham. We need to address the defects in our local economy in transport and digital infrastructure. In the future, we will have an insight into our local economy to see where the defects are and to begin to address them.

[Anna McMorrin (Cardiff North) (Lab)]

My hon. Friend is making an excellent speech. Do he and the Minister agree that we need to guard against reverse devolution? If we do leave the EU, we need to be guaranteed of those funds in Wales and across the UK. They must also be distributed by the Welsh Government, because they understand how our local communities work, and they can then further devolve such decisions to places such as Wrexham and local authorities across Wales.

[Ian C. Lucas]

Absolutely. I have already asked for an assurance that Wales should receive no less money. As I have just said, I do not want this decision made in Cardiff Bay or in the Treasury; I would like to see it made on a devolved basis. There needs to be more devolution. When I speak to my constituents in north Wales—my hon Friend knows the area well—I find that their perception is that we need to have more local decision making. The end of the restrictive and fixed rules that have previously existed could be an opportunity, as the Federation of Small Businesses in Wales has highlighted. It said:

“The removal of European boundaries also opens up geographical possibilities…Post-2020 there will be opportunities to refit the business support environment to modern economic boundaries, including…the emerging economic regions.”

I agree entirely with that. We need a structure that accords with the economic action plan of the Welsh Government, which is a very far-sighted document by the excellent Economy Minister, Ken Skates, who is contributing massively to creating a growth-driven, inclusive economy in north Wales. We need to develop that and work within the confines of that economic action plan, working with the Welsh Government rather than sticking to the outmoded geographical model that we had previously, which was restricted by inappropriate local government boundaries. Certain local government areas attracted funding, while others did not. For example, the journey to north-west Wales from north-west England requires going through north-east Wales, which could not attract funding for projects in that area, so the transport system in north-east Wales has not really developed in the way needed to develop the local economy.

I certainly want an assurance from the Government that under any new system they will commit to no less investment for Wales. I also want the new First Minister, when we know who that will be, to commit to a new funding formula that means fairer funding right across Wales. I have spoken many times before about devolution in Wales, the fact that north Wales sometimes feels left behind, and the need to create new structures by working with local government, local businesses and institutions such as universities across Wales to develop an inclusive economy. We must carry forward that devolved system of addressing economic failings in particular areas of Wales.

This is an important debate. We need to grasp and grapple with it in the weeks, months and years ahead. I will be listening intently to the Minister’s response, to try and get some flesh on the bones of what the prosperity fund will look like, and I will also be listening carefully to my Opposition colleagues to hear what they say on the matter. This is an overdue debate, but it is of enormous importance to our constituents.