European Structural and Investment Funds Common Provisions and Common Provision Rules etc. (Amendment) (EU Exit) (Revocation) Regulations 2020

Lord Foulkes of Cumnock Excerpts

Wednesday 16th September 2020 Grand Committee

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I welcome the opportunity to speak on these regulations. Particularly as a Scottish Peer—indeed, a former Minister of State for Scotland—I am only too aware of the important role that ESIFs have played in reducing disparities across Scotland over the past four decades. Indeed, under the current 2014-20 programmes, Scotland benefits from more than £780 million of funding through the European Regional Development Fund and the Social Fund, in addition to £1.5 billion through the European Agricultural Fund for Rural Development. Indeed, more than two years ago, I spoke here about the importance of continuing these funds to support communities and regions not just in Scotland but throughout the UK, saying that I was concerned that they would be lost in the Brexit void.

Nevertheless, while I welcome the UK shared prosperity fund as the domestic successor to ESIF for new programmes after 2020, I am concerned that with government cuts, it is in danger of becoming a shared austerity fund rather than a shared prosperity fund. Indeed, we are still no clearer on how the funding will be allocated or when a final decision will be made. The Government have said that they will not confirm the allocation until after the cross-departmental spending review in the coming months. However, these are challenging times and we need to provide both Scotland and the whole of the UK with clarity on the allocations from this scheme, so will the Minister explain why we are having to wait and how soon after the spending review the Government will make the announcement on this? Will it be by the end of 2020, or will they kick the can down the road into 2021?

Finally, the Explanatory Note says that BEIS originally laid an SI in March 2019, as we know: SI 625. That removed the EU regulations for structural funds from UK law in the event of a no-deal exit. However, as the UK signed the withdrawal agreement, which maintained the EU regulations for ESIF until programme closure, as the Minister said, SI 625 contradicts the intent and purpose of the withdrawal agreement, which is why it is now being revoked. However, is it not ironical that the Government are now considering overriding parts of the withdrawal agreement, so will we have another SI in a few weeks’ or months’ time? Perhaps the Minister could tell us. No wonder the noble and learned Lord, Lord Keen, could not stand the heat in the kitchen and has left it—going back, no doubt, to make some money at the Bar. Nevertheless, I support the regulations.