UK Shared Prosperity Fund

Jamie Stone Excerpts

Thursday 5th September 2019 Commons Chamber

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

I beg to move,

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.

I thank the Backbench Business Committee for allowing us the opportunity to bring this matter to the Chamber today. Scottish communities stand to lose millions of pounds from Brexit. Communities, charities and other organisations have been waiting for years to find out what funding will be available. There is also a threat to devolution. Long-term planning has been abandoned to Brexit.

We need clarity about the details of the so-called shared prosperity fund. We need to know whether the devolution settlement will be protected. Currently, until 2020, communities and charities can access funding worth £2.4 billion a year. Work by the Conference of Peripheral and Maritime Regions—the CPMR—shows that, for 2021-27, the UK would have received €13 billion in regional development funding. For Scotland, failure to replace that would mean a loss of €840 million. For the highlands and islands alone, that would be €130 million. It is therefore vital that that money is replaced.

That funding has underpinned further education, youth employment, smart cities, connectivity for islands and communities, small and medium-sized enterprises, apprenticeships, regeneration, innovation, productivity, social inclusion and much more. In Scotland, it has supported projects and development in West Lothian, the Orkney isles, Ayrshire, Fife, Argyll and Bute, Midlothian, East Lothian, Perth and Kinross, Aberdeenshire, West Dunbartonshire, Stirling, Western Isles, Inverclyde, Clackmannanshire, Moray, Shetland, Edinburgh, Dumfries and Galloway, Renfrewshire, Glasgow, Dundee and more.

In the highlands and islands, we would be hard pushed to find any town or village, let alone our city of Inverness, that has not had investment since we joined the European Community in the 1970s. Indeed, two specific and unavoidable icons stand testament to that. The Kessock bridge was built through Europe before devolution because Westminster ignored the highlands for decades.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

When the hon. Gentleman and I drive around the highlands, we cannot help but notice the signs with the stars on them on new bits of road that say that the development was funded by the EU. Without that funding, those roads would probably not have been built and transport across our vast constituencies would have been difficult for our constituents. Replacing the funding is essential. Notwithstanding the fact that the Minister has met me several times, tried to do his level best and knows the area, I am bound to say that we seem no further forward, which my constituents find not just frustrating but deeply worrying.

[Drew Hendry]

It is absolutely true that the money has had a massive impact on the infrastructure of the highlands and it must be replaced.

--- 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?