UK Shared Prosperity Fund

Melanie Ward Excerpts

Thursday 12th September 2024 Commons Chamber

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

I, too, congratulate my hon. Friend the Member for Rochester and Strood on securing this debate and thank her for doing so. This is such an important moment. We heard from my hon. Friend the Member for Glasgow South West (Dr Ahmed) about the importance of the UK shared prosperity fund for his area. I was really glad to welcome the Deputy Prime Minister, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), to my constituency during the general election campaign, where she saw the need for that funding. Fife has benefited greatly from more than £13 million from the fund in recent years. In my constituency, that includes projects such as Step On, which is run by LinkLiving with Raith Rovers Community Foundation. It provides targeted help for young people to improve their mental health.

[Madam Deputy Speaker (Caroline Nokes)]

Order. I remind Members that interventions must be short.

[Melanie Ward]

It also helps employability and, crucially, access to work. Does the Minister agree that such cross-UK funding is hugely important for areas like mine, where inequality is an issue?

[Alex Norris]

I am very grateful for that intervention. I think I can probably speak for most colleagues when I say that the general election was, in many regards, quite a tricky one this time, but one of the few sources of joy was my right hon. Friend, the Deputy Prime Minister’s battle bus, which seemed to reach admirable distances up and down the country, including to Fife. I know, from having spoken to her, how much she enjoyed that visit. The model my hon. Friend the Member for Cowdenbeath and Kirkcaldy (Melanie Ward) mentions is a great example of the impact being made on people’s lives across Fife and in many different parts of the UK. We are very mindful of that.

I want to address the challenges mentioned by my hon. Friend the Member for Rochester and Strood. She started with timescales. Certainly, the tiny run-in in year one is not an example of good practice, and is something we would always seek to avoid. I do not think that the Government of the day thought it was a good idea, but I think they rather found themselves a victim of circumstance. We absolutely hear that point.

My hon. Friend mentioned the Local Government Association’s desire for a six to eight-year funding window. Again, I understand that very well. I have to say that that is quite challenging. Governments generally budget on a three-year cycle and often decisions are made on a one-year cycle. We have talked about wanting to give more certainty and a longer time period. I cannot commit to six to eight years, but I can commit to that principle. She mentioned the impact of single-year funding, and as I said, we very much understand that.

On my hon. Friend’s point about central restrictions and monitoring, that is one of the points on which the new Government intend to diverge from the old one. My view is that we need to give communities up and down the UK the tools and resources to use their expertise to improve their community within the framework set by the Prime Minister and his missions for the country. They are the experts in this case, not Ministers. We want a lighter touch on monitoring, and we want to be less directive on what the funding is for. UKSPF is actually a very good example of that, relative to other local growth funding, but I hear some of the challenges on that. They are important design challenges that I think we can engineer out as part of any future local growth funding programming.

Our model of local growth is reflected in the conversations we have had with local authorities and communities up and down the country. We know there is a desire to move to a more allocative settlement, with fewer beauty parades and a stronger focus on deprivation and need. We know there is a real desire for a lighter touch on monitoring, which can become a cottage industry in itself, and that is our view, too. Growth is at the heart of the things that will shape our future and growth. With local growth funding, the clue will be in the name. We want to ensure that the projects chosen by local communities drive growth.

Of course, we must see the fiscal picture in the context of the inheritance left by the last Government. This morning my hon. Friend penned an article on a well-known Labour-leaning blog, and what I took from that was the mutual desire of this Government and local government to reset the relationship to make it a better partnership, and to drive better outcomes. That will, I think, lead us to a more positive place. If local authorities are in the room and fully engaged, they may be able to use their creativity to combine funds with other funding streams, so that the money can go further. The shared prosperity fund has been a good model, but we will make changes, particularly in relation to short-term timescales and reducing some of the burdens. I have mentioned the importance of resetting the relationship with local government. Notwithstanding what we will be discussing on 30 October, those principles will guide everything we do to promote local growth.

We, as a Government, are committed to growth across the United Kingdom. We were elected on a manifesto that stressed the need to adopt a partnership approach with local authorities and an intention to stabilise the funding system, and we are going to do that. We are working closely with local authorities, stakeholders, the Scottish Parliament, the Senedd and the Northern Ireland Executive and will continue to do so, to ensure that there is a smooth transition to a new funding regime. I look forward to visiting Northern Ireland on Monday to talk further to colleagues who are interested in the UKSPF.

My hon. Friends are rightly seeking certainty. I know that they want that as soon as possible, and we have at least a bit of a pathway towards it, because, as always, important announcements will be made in the Budget statement and the ongoing spending review will shape the future. We hear the strong messages that my hon. Friends have conveyed. It has been brilliant to hear about the excellent work done in Medway and in other parts of the country, and I am keen to work with colleagues as we go forward to shape local growth funding.

Question put and agreed to.