EU Structural Funds: Least Developed Regions

Jim Shannon Excerpts

Wednesday 26th June 2019 Westminster Hall

[Sarah Newton]

I will come to that in a moment. At the last debate, the Minister invited us to put forward our suggestions. We do not need to wait for a formal consultation; my hon. Friend the Member for St Ives (Derek Thomas) has demonstrated that. There have been consultation meetings with local enterprise partnerships and with the business community all over the country. It is up to us; we are leaders in our own communities. We should be making the most of these opportunities—today is one opportunity—so I will make some suggestions to the Minister, as he has invited suggestions about how we should go about allocating the funding.

First, we want to have designated funding for our regions. The EU funding that has been used so successfully is seldom the only source of funding. As other Members mentioned, it is often an opportunity to leverage additional funding. I want to get across the message that the huge investment in rail and buses in my constituency, where we have two universities, was enabled by European funding, but it was brought about by leveraging and working in partnership.

The way that the Treasury allocates funding and looks at gross added value often disadvantages areas with populations that are dispersed over large geographical areas. In the last five years, investment in cities and city regions has been successful, but those of us without cities—or even towns that meet the Government’s criteria of a population of 135,000—are disadvantaged. That geographical designation is really important for us to meet the opportunities of our local economy to grow, through the regional industrial strategies that feed into the national industrial strategies.

[Jim Shannon (Strangford) (DUP)]

Because of the processes that the Government and the EU structural fund have followed, Northern Ireland has been able to access the fund. The simple reason is that we have lower wages and higher energy costs, and therefore a higher cost of living. It has proven to be the case that Northern Ireland needs the structural fund, and it has been a success. If the Government were able to ensure that something happens in the future along the same lines, it would be positive.

[Sarah Newton]

I agree that it is important that the Government honour their commitment to provide regions with the same sort of money as they would have got had we remained in the European Union. That was a clear commitment made by our party at the last general election. We will be working hard to make sure that whoever leads our party honours that commitment.

We should have opportunities to make decisions about how that money is spent, and I want those decisions to be made locally. The great city regions—I know the hon. Member for Barnsley Central is doing a good job as the Mayor of the Sheffield city region—must work in partnership. When I was a Minister at the Department for Work and Pensions, I saw the opportunity for central Government Departments to work in partnership with the metro mayors to innovate in their regions; that is something Government should be proud of and advancing.

It is not only regions or metropolitan areas with mayors that can work with Government in that way. Single-tier authorities, such as Cornwall Council and the Council of the Isles of Scilly, in partnership with our local enterprise partnership, can work on greater devolution and have far more say about how the money should be spent in our region.

In my remaining time, I want to touch on the European social fund. Debates are usually about roads, bricks and mortar rather than about the ESF’s work helping people who have been out of work, and far from the labour market, into work. There has been a huge amount of innovation under this Government, particularly led by the Department for Work and Pensions, working with metro mayors. The hon. Member for Barnsley Central has been pivotal to that work, and there has been a great deal of learning.

I would like the big, national work programmes contracted by the DWP to stop at the end of this round, and I would like that money to be spent by devolving it into partnerships in regions. We have an excellent local enterprise partnership in Cornwall, with a good skills committee, which is addressing the issues that my hon. Friend the Member for St Ives articulated so well: the need to develop skills and get people into work for the economy of the future. The best approach would be to enable regions to commission employment services that meet the needs of their communities.

Obviously, we have to be mindful of the market. We have to have a thriving market in people who provide those services, but that could be done at the same time as enabling greater local partnership. Then we would see the real progress in our economy that we want to see, in Cornwall and in every part of our community, and closing the unacceptable gaps in people’s life chances.