Shared Prosperity Fund: Wales

Nick Thomas-Symonds Excerpts

Wednesday 14th November 2018 Westminster Hall

[Ian C. Lucas (Wrexham) (Lab)]

I beg to move,

That this House has considered Wales and the Shared Prosperity Fund.

It is a pleasure to see you in the Chair, Mr Hollobone. I welcome the new Minister from the Wales Office; I think this is his first official appearance at the Dispatch Box. He will find us a welcoming but challenging bunch in Wales. I am sure that we will have a good debate, and that his noble Parliamentary Private Secretary, the hon. Member for Montgomeryshire (Glyn Davies), will look after him just as well as he has looked after the Minister’s many predecessors.

One of the extraordinary aspects of the Government’s approach to Brexit is their failure to address some of the fundamental reasons for the leave vote before the act of leaving. Obviously there is a lot happening as we speak on that issue, but on major areas of policy—such as immigration policy—we still do not know what the Government propose for the post-Brexit world. A hugely important area that they are not speaking about is regional funding, which we will address today. I hope that this will be the beginning of a debate about changes to regional funding that takes into account the views of Members right across the United Kingdom and right across Wales—this is a very important subject in Wales.

It is true that Wales has been one of the major beneficiaries of EU structural funding. Between 2014 and 2020, west Wales and the valleys will have benefited from investment of more than £2 billion from the European Union.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing this important debate. My constituency in the valleys has benefited enormously from structural funding. Does he agree that one of the problems with UK priorities, and with the shared prosperity fund, is that areas that have benefited have no guarantee of benefiting to the same extent in the future?

[Ian C. Lucas]

Absolutely. Certain areas of Wales have benefited much more than others. East Wales received £406 million in investment between 2014 and 2020—a lot less than west Wales and the valleys. Investment is determined by rules set at EU level that govern the distribution of state aid and are intended to compensate for regional disparities.

Since the 1980s, one of the fundamental drivers of the UK national economy has been the inexorable rise of south-east England. The huge investment that it has received at the expense of the rest of the country has had a long-term negative effect on many of the areas that we represent. EU structural funds have gone some way towards compensating for its dominance, but have failed to check it altogether or to bring about a fairer long-term distribution of wealth and investment across the UK. If we are leaving the EU, we need that move to achieve a benefit for our constituents in the future. It is imperative that a system is put in place to benefit the regions of the UK that have been left behind by economic development.

It is unfortunate that notwithstanding the importance of the issue, the Government have given very little indication of how the UK regional prosperity fund will operate. I do not believe that they have even given a commitment that the amount of money distributed to Wales will not fall. I have asked the Secretary of State for that assurance and for more detail on what the fund’s rules will be, but I have had very little information from the Government. It is high time for it, because we are at a hugely important moment and lots of businesses and organisations in all our constituencies are interested in exactly what will happen. Will the Government please answer some of our questions?