EU Structural Funds: Least Developed Regions

Nick Smith Excerpts

Wednesday 26th June 2019 Westminster Hall

[Paul Blomfield]

I thank the hon. Gentleman for his intervention, but that is not part of the CPMR analysis, nor has the House of Commons Library suggested that it is a factor that should be taken into account.

In South Yorkshire, we saw real transformation. The advanced manufacturing park at Waverley—a partnership led by University of Sheffield with Boeing and Rolls-Royce—was held up by the Government as a flagship of growth through innovation. It was dependent on that funding and would not have got off the ground without it. That is just one example of the work in developing clusters, alongside advanced manufacturing and metals, investment in bioscience, creative and digital industries and environmental and energy technologies.

The funding was involved in the remodelling of the primary gateway to Sheffield in my constituency, by developing the station and the main pedestrian route into the heart of the city, and played a key role in making the city a more attractive place in which to invest. There was improved access to finance for small and medium-sized enterprises, which supported start-ups, scale-ups and incubator units such as the Quadrant Business Centre. Community projects in my constituency, such as Matrec and Zest, were funded for programmes to build the skills needed in a changing work environment.

Across South Yorkshire, there was investment in new roads and transport infrastructure.

[Nick Smith (Blaenau Gwent) (Lab)]

In Blaenau Gwent, the structural funds have made a big difference, particularly for transport, with the dualling of the heads of the valleys road. However, there is still bags to do, such as improving the Ebbw Vale train line to get more services to Cardiff. Does my hon. Friend agree that the Minister needs to confirm how much funding will be available and by when, particularly in advance of the spending review, so that we can get not only better trains from Ebbw Vale to Cardiff, but a boost to the local economies of our regions?

[Paul Blomfield]

My hon. Friend is absolutely right, in particular about investment in transport infrastructure. Without that, the wider area of my hon. Friend the Member for Barnsley Central (Dan Jarvis) would have seen none of the road network in the Dearne valley that facilitated growth, with a whole series of new companies and the new jobs to go with them. My hon. Friend the Member for Blaenau Gwent (Nick Smith) is also right—he pre-empted my final question—to say that we need exactly that assurance from the Minister.

In South Yorkshire, the objective 1 funding worked: our economy grew by 8.5%. However, regional inequality has soared again since 2010. We are back in the same situation, qualifying as a least developed region and eligible for the highest level of EU funding had we been continuing as a member.

I know that the regional disparities concern both sides of the Chamber. Inner London is, unsurprisingly, our richest region, with GDP at 614% of the EU average—though I recognise that in London, too, there are pockets of deep poverty—but that figure falls to 69% for Cornwall and the Isles of Scilly. London is obviously represented overwhelmingly by colleagues from my party, but Cornwall and the Isles of Scilly by the Conservative party—this debate is about a fair deal for all our regions and about rebalancing our economy.