European Council

John Healey Excerpts

Monday 11th February 2013 Commons Chamber

[The Prime Minister]

I am very grateful to my hon. Friend for what he says. It is difficult to foresee net contributions coming down because it would not be right to keep trying to spend more on agriculture, where we do get a rebate, than to spend more on cohesion for the poorest countries in Europe, where we do not get a rebate. As I said, the best way to protect our net position which makes sense is to keep the rebate and keep the overall level of spending down. I absolutely agree with my hon. Friend that the key is to set the ceilings at a level where they are not just coming down but constrain the budget, and that is what we have managed to do.

[John Healey (Wentworth and Dearne) (Lab)]

Will the Prime Minister welcome the budget agreement to introduce transition regions, which should give a useful boost to economic growth and investment and should be worth an extra £300 million to us in South Yorkshire? Will he pay tribute to the local authorities, led by all political parties, that argued so strongly for this support? Will he explain why the Government remained opposed to transition regions right until the very end?

[The Prime Minister]

I can confirm that Britain will benefit in terms of transition regions. We always go into these negotiations arguing that we need to look at all levels of spending and all economies, because it is rather hypocritical to argue, “You’ve got to cut the overall spending but you’ve got to protect every single bit of what Britain receives.” The good news is that 11 regions are likely to benefit: Tees Valley and Durham, Lincolnshire, Merseyside, Shropshire and Staffordshire, Highlands and Islands, South Yorkshire, Lancashire, Cumbria, East Yorkshire, North Lincolnshire, Northern Ireland and Devon. Those will all, we hope, be transition regions under the new plans.