Wales: Regional Development Funding

Jessica Morden Excerpts

Tuesday 7th May 2019 Westminster Hall

[Stephen Kinnock]

I agree entirely. There are two key points. First, the big advantage of the current system is that it is depoliticised. The European Union works on the basis of data and facts and of a scientific analysis of what is required. There is a huge risk that the shared prosperity fund will be turned into pork barrel politics, where the fund gets used as a slush fund for, dare I say it, a Conservative Government in Westminster. Secondly, competitive bidding does not work. The shared prosperity fund needs to be embedded in an industrial strategy and a regional development strategy that works from a strategic point of view rather than being based on bidding.

The second key question is how this money will be divided across the country. The third question is what activities will be eligible for support. The fourth question is who will take the decisions on how the money is spent. We are still none the wiser on all those key questions.

It really is not just about the money. There is a real fear that this will be not just a financial grab, but a power grab: the Westminster Government will use this opportunity to reduce funding for areas that need it most and claw back powers that sit naturally with the devolved Administrations.

[Jessica Morden (Newport East) (Lab)]

This week is the 20th anniversary of the first elections to the Welsh Assembly. It is therefore important that, when we have this debate, we respect the role of the Welsh Government and devolution.

[Stephen Kinnock]

One of the key recommendations we in the all-party parliamentary group for post-Brexit funding for nations, regions and local areas have made in our report on the future of the shared prosperity fund—apologies for the plug, Sir Graham—is that the devolution settlement must be respected. Of course, the Westminster Government, the Assembly in Cardiff Bay and local authorities need to work as a team on this, but, fundamentally, the people on the ground know best how to spend this money and deliver maximum impact. Therefore, it is essential that the devolution settlement is respected in spirit and letter.

As I was saying, there is a fundamental worry that the shared prosperity fund will become a politicised slush fund, with a Conservative Government using it to buy votes in marginal seats. Those deep-seated concerns led to the creation of the all-party group, which I am proud to chair. The wide-ranging review we carried out heard from 80 organisations across the UK, including the Welsh Government, a wide range of local authorities in Wales and the Welsh TUC. Those representations were unanimous: the UK shared prosperity fund must comprise not a single penny less in real terms than the EU and UK funding streams it replaces. Westminster must not use Brexit as an opportunity to short-change the poorest parts of the UK and of our great country of Wales. Equally, the UK Government must not deny devolved Administrations the appropriate control over funds. Local decisions must not be made by an official or Minister sitting at the other end of the M4.

While it is deeply disappointing that the Minister with overall responsibility for the shared prosperity fund, the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry), has refused to meet with our APPG, I am pleased to report that its officers met with the Secretary of State for Wales last month to make these points to him, and then last week with the Chief Secretary to the Treasury. Both meetings were conducted in a positive and constructive spirit, but it is shocking that there is still no sign of the public consultation on the SPF being launched any time soon. In fact, in one meeting there was a suggestion that the consultation may even be delayed until the comprehensive spending review in the autumn. Given that the CSR will include information on the funding of the SPF, I am not sure how relevant bodies, such as the Welsh Government and our local authorities, will be able to contribute in a meaningful way to a debate over funding when the horse will have already bolted. However, I can assure the Minister that our APPG will be watching carefully to ensure that there is no sleight of hand from the Government on this point.

Our APPG report contains 19 specific and deliverable recommendations. I hope the Minister has had an opportunity to read it, and we look forward to his response. However, in the limited time available, we would be particularly grateful if he responds to the following requests. Will he guarantee that Wales does not receive a penny less and that the devolution settlement will be fully respected, and will he provide clarity on when the SPF consultation will be published?

Let us be clear, the Welsh are a proud, resilient people. They are not looking for special treatment or anybody’s charity. However, we are looking for a level playing field—an opportunity to compete without having one hand tied behind our backs. This is the essence of the Welsh spirit: an unrelenting commitment to community, fairness and the wellbeing of our future generations. With that spirit, every single Welsh MP on the Labour Benches will keep fighting to ensure that Wales gets the regional investment that it needs to thrive in this city-centric era of globalisation and fast-paced technological change.