Wales: Regional Development Funding

Jo Stevens Excerpts

Tuesday 7th May 2019 Westminster Hall

[Jo Stevens (Cardiff Central) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Graham. I thank my hon. Friend the Member for Aberavon (Stephen Kinnock) for the opportunity to speak in the debate, although, frankly, I would rather we were not leaving the European Union and not giving up the £370 million a year that Wales receives from European structural and investment funds. I hope that, three years on, the public are soon asked to decide whether they now wish to accept whatever exit deal is available or retain the much better deal we have as a member of the European Union. Today’s debate encapsulates the Government’s failings with regard to Brexit. We were due to leave the European Union more than a month ago and they have failed even to open the consultation they promised on how regional development funding will work in Wales after exit.

The lack of information about the shared prosperity fund is stark. I have asked 18 parliamentary questions about the fund and I am yet to receive a clear response on a host of vital issues such as when the consultation will start, who will be eligible to apply and whether funding for Wales will be guaranteed. Perhaps the Minister will give us some information today—who knows?

Meanwhile, what happens to my constituents who would otherwise have continued to benefit from EU funding? What about the school leaver who could have obtained one of the thousands of apprenticeships that have been funded by the £71 million provided to the Welsh Government’s skills enhancement programme by the European social fund? What about the student who might end up helping to conduct cutting-edge research on the causes of dementia at Cardiff University’s revolutionary brain research imaging centre in my constituency? That centre exists only because of £4.5 million of funding that the European regional development fund provided to Cardiff University, but its work benefits dementia sufferers across the world. What about my constituent who just wants to drive across Cardiff bay to see family in Penarth, through the tunnel funded under the old objective 1 funding scheme?

Such opportunities and improvements to my constituents’ everyday life are there only because the EU has partnered with the Welsh Government and local communities and has consistently invested a net gain of more than £680 million per year in Wales. Is it any wonder that we on this side of the House are suspicious about what, if anything, is coming down the line? We have had prevarication and obfuscation about the fund. It has that mythical air about it, as do many of the promises made after 2016 about life after Brexit. We were told by the former Foreign Secretary, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), the Environment Secretary and the Defence Secretary that Wales would not lose a penny from voting to leave the EU, but since the referendum result all we have heard about is efficiencies and targeting.

That raises deep concern on these Benches, because we have been here before. We were told that cuts to policing budgets were just efficiencies, before crime started spiralling; we were told that councils having their resources cut was just targeting, before the homelessness crisis hit our streets; and we were told that help was being directed towards the neediest constituents, before terminally ill people started arriving at our surgeries having been declared fit for work. Given that track record, the people of Wales have every reason to think that there will be less money, fewer projects and fewer opportunities for our communities.

Like my hon. Friend the Member for Aberavon, I want the Minister to provide some guarantees to back up what his colleagues have said about match funding. The Government have failed to take decisive action to resolve the Brexit crisis. We have no clarity about future funding and we do not even have a date for the start of the consultation. It surely cannot be that difficult, because there is not much else going on, so perhaps the Minister could enlighten my constituents—they have been waiting long enough.

--- Later in debate ---

[Kevin Foster]

I thank the hon. Gentleman; I will come on to the shared prosperity fund in a moment. Of course, if he invited me to visit his beautiful constituency of Blaenau Gwent, I would be more than happy to add it to my list of travels.

At this point, it is important to look to the future and at what the Government have committed in regional funding. In our 2017 manifesto, which I am sure was a popular read for everyone in this room, we set out our proposals for a UK shared prosperity fund to reduce inequalities between communities across our four nations. The UK’s shared prosperity fund seeks to provide the opportunity to move away from the old bureaucratic EU model, and to design a future regional funding model that truly benefits people across our United Kingdom in a way that reflects the specific needs and strengths of its different parts.

[Jo Stevens]

Will the Minister give way?

[Kevin Foster]

Not for the moment.

We will achieve our objective by strengthening the foundations of productivity, as set out in our modern industrial strategy, to support people to benefit from economic prosperity. As a Government, we have already begun engagement on the fund with the Welsh Government and key stakeholders in Wales. That engagement will continue, both at official and ministerial levels. Of course, a benefit of debates such as this is that we can hear the views of right hon. and hon. Members. It is important to recognise that direct engagement with stakeholders has already taken place, including with the third sector, universities and local authorities in Wales. Official-led events were held in Cardiff in November last year, and more recently in St Asaph on 30 January.

As has been referenced several times, the Government have committed to holding a public consultation on the design of the fund. The consultation will build on the conversations and engagement on the fund that have already taken place. That includes engagement with the Welsh Government, because we will respect the devolution settlements as part of the fund, as requested by Opposition Members.

I recognise that right hon. and hon. Members are concerned about the delay in the consultation. I make this point in response: the delay should not be misunderstood as the Government not being fully committed to the fund—we are. The dynamics of EU exit, not least in this place, often mean there is a fast-changing situation, so it would not be appropriate to speculate on specific dates for when the consultation will be launched.

It is worth reflecting on how constructive work has taken place between the UK and Welsh Governments on city and growth deals in Wales. By the end of the Parliament, every part of Wales will be covered by a growth or city deal. Cardiff and then Swansea, as well as, most recently, north Wales and then mid-Wales, are or will be benefiting from that collaborative approach to turbocharge economic growth regionally in Wales.

I listened with interest to the points made by the hon. Member for Wrexham. He may be aware that I was in Wrexham last week talking with local authority leaders and other members of the North Wales Economic Ambition Board. I respect the fact that it needs to be a collaborative effort, but what is key is that the proposals come from the region upwards, not Westminster downwards. Although we have to ensure that we are satisfied that the money will be transformative, it is about what the region thinks.