UK Shared Prosperity Fund

Kirstene Hair Excerpts

Thursday 5th September 2019 Commons Chamber

[Drew Hendry]

Yes—I am grateful to the hon. Gentleman for that comment.

Before I took those interventions, I was talking about the two icons, one of them being the Kessock bridge, which I will not go into now. It is there for everybody to see and is a monument to the fact that Europe has paid attention to the regions that need assistance. The other icon is the University of the Highlands and Islands. EU funding enables research capacity, new facilities and equipment and expert researchers, and it has enabled doctoral and post-doctoral students to support priority sectors such as life sciences, marine science, aquaculture, archaeology, Gaelic and the creative economy—all coming together to make the highlands the vibrant place it is. The University of the Highlands and Islands receives the largest Scottish grant of €7.17 million, out of €68.6 million throughout Scotland. The view of the University of the Highlands and Islands is that Brexit will reduce prospects in those areas.

Erasmus has enabled student and staff exchanges for more than 30 years. International collaboration and EU engagement are at the heart of the University of the Highlands and Islands, and have been since its inception. It was helped by the EU to achieve university status and title in 2011, and is a vital contributor to economic growth. More than £250 million of investment has been levered into the UHI through structural funding. Some 25% of the university’s non-teaching “other” income has come from the EU. If we were remaining in the EU, there would be much more potential for growth through the EU 2020-27 programmes.

Adam Haxell of MillionPlus, the Association for Modern Universities, said to me:

“On UHI itself, it is important to emphasis what a remarkable success story it has been. The idea of having a university that covered this area in the early 1990s seemed totally unrealistic to many, and it is thanks to the determination and perseverance of those involved combined with the spread of funds they were able to draw down on, namely European funding streams, that made it happen. Today, the university stands as a pillar of the regional economy of the Highlands and Islands and an important element of the modern social fabric. The range of courses that are offered through this institution, some of which relate directly to the regional culture and heritage, combine to create a unique local offer that reflects the needs and ambitions of local residents. Moreover, in the last Research Excellence Framework, 69% of research at the institution was deemed world-leading or internationally excellent. For an institution that only gained university title in 2011, this is a phenomenal trajectory and could not have happened without the support it got.”

He went on to say that

“Kate Louise McCulough has written on the historic framing of the ‘Highland problem’ in Scottish and UK public policy and how European funds played a critical role in its transformation from the 1980s to become ‘…an example of what a successful peripheral region looks like’.”

[Kirstene Hair (Angus) (Con)]

Will the hon. Gentleman give way?

[Drew Hendry]

I will not; I am going to make some progress, as I indicated. There is very limited time.

Communities and charities have used European funding to benefit people, especially the most vulnerable and disadvantaged. The Shaw Trust says:

“Without ESF—

European social fund—

“funding, Shaw Trust would not have been able to support 70,000 disabled people”

and

“offenders…to gain new skills, improve their wellbeing and find work”.

Equally Ours—formerly the Equality and Diversity Forum—says that EU funding has provided vital, dedicated support to individuals experiencing disadvantage, discrimination and abuse, as well as the voluntary and community organisations that support them. It says that the continuing lack of consultation on the UK shared prosperity fund is creating significant uncertainty for communities, organisations and disadvantaged people.

Communities and charities have now been waiting for years to find out what funding will be available post Brexit, yet so far there is nothing from the UK Government, other than a name, that the Union flag will be on it and that it will be administered by the Minister for local government in England. That is in spite of a recognition of how valuable the funds have been and a commitment made to replace them. The UK shared prosperity fund was promised by the Tories in their 2017 manifesto. They said that it would

“reduce inequalities…across our four nations.”

They said it would be “cheap to administer” and “low in bureaucracy”. Without a like-for-like replacement, inequalities will increase, and that is what we are now looking at. The Tories were right in the second part of what they said: the fund is cheap and there is no bureaucracy—because it does not exist.

The Library notes that many considerations are required for the fund, including priorities, objectives, amounts of money, allocation, method of model, length of planning and who administers funds. The latter role currently rests with the devolved Governments. All the organisations and charities that have contacted me agree with the conclusions of the all-party group on post-Brexit funding for nations, regions and local areas, which in turn received many submissions, including from the Welsh Government, the Convention of Scottish Local Authorities, Scottish local authorities directly, the Equality and Human Rights Commission and numerous educational and voluntary bodies. They all said, first, that the fund’s budget must be no less in real terms than the EU and UK funding streams it replaces, and, secondly, that the devolved nations’ share should not be reduced and that it should remain a devolved matter.

The UK Government must now respect the devolution settlement and UK Ministers should commit to work with all the devolved Administrations to agree funding arrangements that make sense for all the nations of the UK. As I have said, currently the biggest piece of concrete information we have is a written statement from July 2018 that largely consists of a future planning framework for England, with, as mentioned, the English Communities Minister, who is judged on English community improvement, in charge of UK funding distribution.

The groups and communities aided by the funds do not believe that Westminster knows best how to act in the interests of the parts of Scotland that need the most support. They do not want to see a Westminster power grab. There have been no assurances about devolved powers, despite numerous questions raised in the House. In mid-November last year, we were promised that a consultation on the UK shared prosperity fund would be published before the end of that year, but there is still nothing. All the while, the hard-working volunteers, charities and communities face rising concerns about the future of the people they selflessly serve and about their own futures. They need more than the new Secretary of State for Scotland saying that he will put Union flags on all projects, with the attendant suggestion of misplaced priorities and a desire to interfere with devolution by insisting on UK Government agreement on all UK shared prosperity funding. It is unacceptable.

The Scottish Government are determined to defend and maintain the benefits that EU funding has given them, to defend the organisations I mentioned and to defend their hard-won fiscal responsibility. How will the shared prosperity fund ensure the flexibility, which currently exists with EU funding, to allow organisations to fund different policy areas, from biotech to tourism and education? How will the new fund enable strategic planning within organisations over the longer term, as EU funding has enabled? Will the Minister guarantee like-for-like funding for the €13 billion that would have come from the EU? Will he guarantee no detriment to the Scottish Government as a result of Brexit? Will he commit today to respecting the devolution settlement? If he cannot do those things—if he cannot make those commitments—he should work with his Government to revoke article 50, so that the money is not lost to our communities. If he is not able to do that, all it will do is show the people of Scotland that they need to make a new choice about their future—to be an independent country, taking their own seat in Europe.