UK Shared Prosperity Fund

Luke Graham Excerpts

Thursday 5th September 2019 Commons Chamber

[Luke Graham (Ochil and South Perthshire) (Con)]

I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on securing this debate. I thought we were going to be singing from the same hymn sheet today, because in previous debates on this topic we have agreed, but unfortunately he has, yet again, let nationalism get in the way of some of the facts and figures, and the actual impetus and help that these structural funds deliver. He is quite right that in the period 2014 to 2022 the funding arrangement for the EU structural fund is about £15 billion for the United Kingdom. That gets topped up to about £26 billion, I am informed by the Library, with UK match funding.

The hon. Gentleman raised a point about some of the roads being built in his constituency, as did the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone). In those constituencies—yes, they are right—the EU flag does fly, but why does the Union flag not fly proudly alongside the EU flag and the Saltire when the UK has made a contribution, as I believe my right hon. Friend the Minister will be able to confirm?

Scotland received around £1.2 billion from EU structural funds between 2010 and 2016, which is great, and I will come on to say why I want that to be secured and continued. The hon. Member for Inverness, Nairn, Badenoch and Strathspey parades and champions the EU structural funds, as will I, but he was less willing to recognise the £1.2 billion of additional funding awarded to Scotland by the Government in the spending round just yesterday, which will give our devolved Administration in Scotland over not a six-year or 10-year period but a one-year period the greatest settlement we have had in over a decade.

My constituency of Ochil and South Perthshire has only received £1.1 million to £1.3 million a year of EU funds between 2014 and 2020 so far. That is not enormous, but it is helpful. Although Scotland has 8% of the UK population, we receive around 14% of the UK allocation, so it is very important to us. I know from visiting companies such as the Loch Leven Equine Practice in my constituency that these funds can be very helpful to small businesses.

The funds are meant to help combat structural inequality and have a transformative effect on the economy, but from my constituency point of view, they have not been able to do that. In Clackmannanshire, we still have a job density of only 0.5 per head of population. We have higher rates of unemployment and youth unemployment than the Scottish and UK averages. In Perth and Kinross, on the other side of my constituency, we also see it reflected in some of the official figures in terms of deprivation and in the recent increase in the number of drug deaths per 1,000 people.

I am quite excited about the fact that the shared prosperity fund can be a fresh start. Unlike the SNP, Conservative Members will be requesting more funding and coming up with innovative solutions. [Interruption.] If the hon. Member for Inverness, Nairn, Badenoch and Strathspey would like to make an intervention, I will gladly let him. He certainly did not let anyone on the Government Benches intervene on him.

[Drew Hendry]

rose—

[Luke Graham]

I will let him intervene, but before I do, the House will be well aware that my hon. Friend the Member for Angus (Kirstene Hair) tried to intervene on the him, and he refused her multiple times. It is a friendly understanding among Scottish MPs, who have to get back to friends, family and constituencies on a Thursday, that we usually let one another intervene because travel is very restrictive. He failed to do that. However, I will extend the courtesy to him in the hope that it will be reciprocated to my colleagues in future.

[Drew Hendry]

I thought the hon. Gentleman was inviting me to intervene on him. He mentions extra money for Scotland, but he does not take into account the cumulative cuts of £12 billion that we have had over the whole decade.

--- Later in debate ---

[Luke Graham]

I secured a debate on Scottish funding and devolved funding just before the summer recess to which no SNP MP turned up. In that debate, I gave the opportunity to challenge those figures and have an in-depth, detailed discussion about them, because they are not recognised by the Library. If they are, I will be happy to welcome another debate on the topic, so that we can take it further.

I would like to go on to the positive things that we are trying to do. The shared prosperity fund allows us to formalise the process of applying for funds. It could also build and improve the city deal and growth deal projects that have already been awarded Scotland to the value of over £1 billion. The money in the city deals has been very welcome, but I think Members on both sides of the House would agree that the city deal and growth deal process could do with some improvement. We can have less bureaucracy, and central Government should provide support to not only the devolved Administrations but the local authorities and civic groups that are applying for these funds. So often, exciting and transformational opportunities are lost because local businesses and local groups do not have the skills to meet a Green Book or European set of qualifications to access the funding that they so require.

[Bob Stewart]

It seems to me that there is a requirement for the shared prosperity fund organisation to have a local office, particularly to help small businesses.

[Luke Graham]

I thank my hon. Friend for his suggestion. That is just the kind of innovative proposal that we should be putting forward and having a cross-party discussion about, to ensure that the shared prosperity fund works for the entire United Kingdom.

Although we could talk about this for a great many hours more, I am conscious of time, so I will conclude. I am pleased that the Government have guaranteed funding to 2022, which I am sure the Minister will confirm, so that we can give assurances to the charities, local government and businesses in our communities. We do not come with grievance; we come with solutions. Let us keep the central fund of around £1.2 billion plus inflation for the future, but let us also recognise that it has not delivered transformational change for our constituents in Scotland. Perhaps we could put some of the UK match funding into a new direct central fund that local authorities and businesses could bid into, along national lines, to provide greater clarity and guarantees for our local communities, so that they can access the funds they so badly need to thrive and survive.

I agree with colleagues in Wales, Scotland and England that these funds provide opportunities to all our regions. We want to combat structural inequality and improve the opportunities we have, and we want to do it through a fine United Kingdom system.

[Several hon. Members rose—]

--- Later in debate ---

[Alison Thewliss (Glasgow Central) (SNP)]

I thank the hon. Member for Brecon and Radnorshire (Jane Dodds) for setting out her stall for her constituency. In the short time that she has been here, she has been a strong advocate for her constituents. I also thank my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) and the Backbench Business Committee for granting us time to discuss this fundamentally important issue.

It is difficult to think of an area of Scotland’s economy that has not benefited from structural funds, and my constituency is no exception. Being part of the EU has been beneficial to Scotland in many ways, just as it has for Cornwall, as the hon. Members for North Cornwall (Scott Mann) and for Truro and Falmouth (Sarah Newton) set out, and for Wales, as the hon. Member for Arfon (Hywel Williams) and other Members said. There is no doubt that communities will be poorer as a result of leaving the EU—culturally, socially and economically. Organisations in Glasgow Central have received over £241 million in European structural funds since 2014 according to figures from the Library.

The aims of European structural funds are closely aligned with those of the Scottish National party—to grow the economy while tackling inequalities. Our Madame Ecosse, Winnie Ewing, MEP, fought for European funds when Westminster got its sums wrong and tried to deny them to the highlands of Scotland. The Scottish Government have set out a programme of sustainable inclusive growth in their national performance framework and we are working as a responsible Government to improve outcomes across a range of indicators. It is extremely important that any replacement fund does not diverge from the aims of our inclusive growth strategy.

European structural funds have been vital in the delivery of inclusive growth in Scotland. The European social fund has been used to increase the skills available in Scotland’s labour market and to help to lift people out of poverty into increased social inclusion. The European regional development fund is supporting small and medium-sized enterprises and is investing in Scotland’s transition to a low-carbon economy. There is still a lot to be done to tackle inequality and we cannot let these issues be overshadowed by the process of Brexit.

The Scottish Government value the European structural funds dearly, not just because of the monetary value, but because we have a shared vision of what we can achieve when they are used in a strategic way. I am not convinced that the UK Government share that vision. I agree with the hon. Member for Ellesmere Port and Neston (Justin Madders) that local areas do not want handouts on Westminster terms. It is difficult for anybody in Scotland to know precisely what the UK Government’s intention is. We have been waiting an inordinate amount of time for details on the UK shared prosperity fund. From the 2017 Tory manifesto until now, we still do not know. The hon. Member for Ayr, Carrick and Cumnock (Bill Grant) himself called it skeletal—I think that is being generous, frankly. It is not a trivial amount of money that we are dealing with here. Third sector organisations, which are delivering vital services in our communities, need to know what their future will be.

The hon. Member for Aberavon (Stephen Kinnock) set out well the questions that he and his APPG have been seeking and referred to the lack of answers and clarity that, shockingly, we still have. We need to know how the new fund will be drawn and whether there will be criteria to allow for the treatment of contaminated land, for example, such as in Shawfield in the Clyde Gateway area. Decontamination programmes are crucial to development but cannot go ahead until funding is secured. Opportunities to clarify matters have come and gone, with the spending review only yesterday failing to address the issue.

These are vital funds, and many of the organisations that depend on them are doing valuable work to mitigate some of the worst excesses of this UK Tory Government. Those on the Tory Benches could barely be providing a better argument for Scottish independence. We are once again seeing a tale of two Governments, with the Scottish Government working to increase equality and grow the economy in a sustained and sensible way, and the UK Government hellbent on pursuing a hard exit from the EU without adequate preparations for what will come next.

The Scottish Government have been clear on the five key principles that they would like any new funding scheme to adhere to. First, there should be no reduction in the level of funding that Scotland currently receives from the EU. Secondly, the devolution settlement must be respected, and there must be no reduction in the powers that the Scottish Parliament currently has. Thirdly, the Scottish Government should be an equal partner in the development of the shared prosperity fund. The hon. Member for Ochil and South Perthshire (Luke Graham) let the cat out of the bag when he talked about the bypassing of the Scottish Government—

[Luke Graham]

Will the hon. Lady give way?

[Alison Thewliss]

No, the hon. Gentleman has had his say.

--- Later in debate ---

[Luke Graham]

The hon. Lady is misinterpreting me. I did not talk about bypassing the Scottish Government. I specifically said—I am sure that Hansard will have recorded this—guaranteeing the £1.2 billion plus inflation, plus an additional fund that could be administered centrally so that they could work together in partnership, because that is what our constituents want: devolution plus central Government in a United Kingdom.

[Alison Thewliss]

The hon. Gentleman is talking about a United Kingdom system here. He is talking about the UK choosing Scotland’s priorities. That is not what our communities deserve, that is not devolution and that does not respect the devolution settlement, and he knows that just fine.

Fourthly, the current flexibility in the allocation of funds should not be reduced. Fifthly, the replacement scheme should be operational in time to be implemented in early 2021, so that communities, organisations and businesses in Scotland do not lose out on much-needed funding. There must not be any gap, and the Minister needs to be able to guarantee that today.