UK Shared Prosperity Fund

Jake Berry Excerpts

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—

[Mr Clive Betts (Sheffield South East) (Lab)]

Here comes the money.

[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 ---

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

It is a privilege and an honour to have the opportunity to respond to this debate, and I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on proposing it. It presents us with a timely opportunity to update the House on the progress we are making.

I also congratulate the hon. Members who have spoken; I will not have time to name them or respond to all the points they have raised but this shows that across the House there is real passion for the communities that each of us represents, and I share that passion for my own constituency, of course, in east Lancashire.

Many of the Members who have contributed referred to our being the recipients of EU money, and I think it is really important that the point is made for people who may be watching our proceedings today at home and following our every word about the future of EU structural funding and the UK shared prosperity fund that this is not the EU’s money. This money belongs to the British taxpayer; it is taken into the EU and is sliced, diced and taken away. It is then returned to the British people wherever they may be in our United Kingdom with a whole load of strings attached.

In 2018, the UK contributed £13.2 billion to the European Union and it sent us back £4 billion—£4.3 billion to be precise. We know in this country better how to spend UK taxpayers’ money than the European Union does; many Members on this side of the House, if not the other side of the House, will certainly agree with that.

We in Government have a history of working with the devolved Administrations, metro mayors and local authorities across our United Kingdom, and that is why we are so pleased that we were able to commit over £500 million of Government funding to the Glasgow city region deal. Specifically in the Inverness and Highland city region, we are proud to have contributed £53 million, among other things, towards the funding of the University of the Highlands, about which the proposer of the debate spoke with such passion. I know he will let no opportunity pass him by to ensure that the Scottish Government, the European Union and the UK Government are all credited for the contributions they have made to that exciting growth deal.

[Jamie Stone]

An issue that I and others raised with the previous Secretary of State for Scotland is that, while we welcome the Inverness and Highland city region money, there is some evidence that the money is not going to some of the furthest corners of the highlands, such as Wick and Thurso in my constituency, where it has been badly needed.

[Jake Berry]

The hon. Gentleman makes an excellent point on behalf of his constituents. I know it is not the first time he has made it, and we should certainly continue to monitor that. I, like him, suspect that there may not be a completely even-handed approach to disbursing money around the highlands, but he will know more about that than I do. However, these growth deals across our United Kingdom in Wales, Scotland and Northern Ireland are an example of what we can achieve when we work together as four nations. The awesome foursome that makes up the United Kingdom is the most successful political partnership and Union that Europe has ever known, and that is why, despite what the separatists may say in today’s debate, we are stronger together.

Turning to the main points raised in this debate, I understand that recipient organisations of European funding have concerns about the certainty of the future of their funding, but it is important that we acknowledge—[Interruption.] Is the hon. Member for Aberavon (Stephen Kinnock) seeking to intervene?

[Stephen Kinnock]

Yes. I thank the Minister for giving way. He just referred to the funding as “European funding”, but I thought he said in his opening remarks that it was not European funding. Will he clarify that point?

[Jake Berry]

I am so pleased that the hon. Gentleman is listening closely to my response. What I would say is that if he, like me, is concerned about protecting the British taxpayer’s pound, perhaps he will reflect on the fact that the Bill passed by Opposition parties last night in this Parliament will cost the UK taxpayer £1 billion a month for every additional month we spend in the European Union. That will cost up to £24 billion. Maybe he should be committed, as I am, to leaving on 31 October, as the British people want, if he is concerned about spending money.

[Peter Dowd]

I am glad the Minister is telling us how much it costs—£1 billion a week or a month or whatever it happens to be. He is very good with his numbers, so can he give us an estimate of how much a no-deal Brexit will cost the country each month?

[Jake Berry]

It seems to me that the hon. Gentleman is suffering from a version of Stockholm syndrome. I happen to believe that the British people and this British Parliament are best able to determine the future for our country. The rebel alliance is going to Europe with its flag fluttering behind it—a white cross on a white background—surrendering British sovereignty, but I am proud to be part of a Government that will never support that.

[Peter Dowd]

This stuff about surrendering is bizarre, because this is the Government who surrendered last night to what is apparently the surrender Bill. That is the situation we are in. They should publish the Yellowhammer report and make it transparent, so that we can see how much a no-deal crashing out will cost us. Let us get the facts on the table, so that we can examine them—if they do not prorogue Parliament before then.

[Jake Berry]

I am sure the hon. Gentleman would like to have blamed the passing of his surrender Bill on the House of Lords. The Members of Parliament who voted for it know that the Opposition parties have passed a law meaning that we cannot leave the European Union on 31 October, deal or no deal. If we do get to an election—if the Labour party finally has the backbone to have a general election—I will be reminding lots of those constituencies in the north of England that it was the Labour party that stopped us leaving on 31October.

[Dr Whitford]

Will the Minister give way?

[Mike Amesbury]

Will the Minister give way?

[Jake Berry]

I am sorry, but I must make some progress, and I would like to briefly get on to responding to the debate.

Specifically, I want to deal with the two pertinent questions, which were repeated by many others, asked by the hon. Member for Aberavon in an extremely good speech. The first was about whether the UK shared prosperity fund will respect the devolution settlement, and the answer is absolutely yes. We are clear about that, and we want to work with the devolved Administrations and metro mayors as partners. We do not want to set the UKSPF up against the devolution settlement, which we will celebrate in the country.

The second question was about when the quantum will be clear, and it will not become clear until we have completed the comprehensive spending review. I will point out, however, that the quantum from the European Union would also not be clear until 2020. People have referred to the Conference of Peripheral Maritime Regions report, but that is of course a report by a think tank. It is not a report from the European Union setting out the quantum at this stage.

Finally, turning to the guarantee provided by the Government, it is quite right that areas are worried about the future of their funding, which is why the Government have set out a guarantee—deal or no deal. This week, I was involved in discussions approving new spending in the current period of European funding, and the guarantee enables commitments to be made until 2021, and it will apply to commitments that are paid out between now and 2023, so there is certainty for projects. Projects are still being approved. With the guarantee, there will be no gap, and clarity about the quantum and the form of the UK shared prosperity fund will become clear at the comprehensive spending review, notwithstanding the fact that we are already involved in deep consultation with both the recipients of the funding—British taxpayers’ cash—and the mayors and devolved Administrations. Official level consultation is ongoing between the devolved Administrations and the UK Government. The most recent meeting took place on 2 August, and additional consultations will happen later this month.

Madam Deputy Speaker, I would have loved to have said more, but—

[Sarah Newton]

Will my right hon. Friend give way?

[Jake Berry]

I am sorry, but I am unable to give way. I am bringing my remarks to a conclusion.

[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.