Shared Prosperity Fund: Wales

Nigel Adams Excerpts

Wednesday 14th November 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Wales (Nigel Adams)]

It is a pleasure, as always, to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Wrexham (Ian C. Lucas) on securing this debate. I know him from my time on the Select Committee on Digital, Culture, Media and Sport, but he probably does not realise that I visited Wrexham for the first time when I was eight, to watch my local non-league team, Goole Town, play Wrexham at the Racecourse Ground in the 1974 FA cup. We managed to get a one-all draw—sadly, we got stuffed in the replay.

[Jo Stevens]

With that remark, the Minister made himself what we call in Wales Western Mail Welsh.

[Nigel Adams]

It was my first visit to Wales, so I thought it was worth bringing up.

[Chris Ruane]

Has the Minister ever been to the Vale of Clwyd?

[Nigel Adams]

I do not think I have, but I am sure it will be on my agenda shortly. I am looking forward to going to north Wales, and I was in Cardiff on the second day of my appointment.

I thank all hon. Members for their contributions, and for their kind wishes on my appointment as Parliamentary Under-Secretary of State for Wales. It is a great honour to be asked to join the Department and to carry on the work of my predecessors. Although I have not yet been in the job a week, I understand and recognise many of the issues that have been raised. Someone said that they are a passionate lot in Wales; that has been exemplified this afternoon, and it is an incredibly important debate to have.

As the hon. Member for Wrexham pointed out, Wales has been a net beneficiary of funding from the EU. By the time the current cycle finishes in 2020, Wales will have received more than £5 billion. The hon. Gentleman’s constituency has benefited from that funding to the tune of more than £14 million between 2005 and 2016. Projects such as the community resource centre in his constituency, Coedpoeth Enterprise and Lifelong Learning Centre, and the west Wrexham learning project have received funding from Europe. It is understandable that they, like other organisations in Wales, both large and small, will want to know what comes next.

The hon. Member for Aberavon (Stephen Kinnock) mentioned that as part of our 2017 manifesto, we set out proposals for a UK shared prosperity fund, which would

“reduce inequalities between communities across our four nations”.

As part of that commitment, we recognise the role that the Welsh Government and other devolved Administrations have played in delivering structural funds over the last 20 or so years. We are absolutely committed to engaging with them as we develop the proposals. The Government have already begun discussions, which will continue, at official and ministerial levels.

Since 2016, we have worked together to agree deals; the Cardiff and Swansea deals are together worth £2.5 billion. We are working on a £120 million deal for north Wales, which I have already had a briefing on and am very keen to get involved in, to see what I can do to help deliver those projects. That was announced in the Budget, as Members will be aware, along with a commitment to start work on a deal for mid-Wales. Those are examples of our Governments working together across administrative boundaries to strike deals that will power economic growth throughout Wales.

The shared prosperity fund provides the UK with an enormous opportunity to redefine the way we invest our money in line with priorities unique to the people, communities and businesses across all nations of our Union, not least Wales. It is right that these groups be afforded the chance to express their views directly to all Governments on the priorities and most effective structures for future funding. Our forthcoming public consultation is an important first step in shaping those discussions, and will ensure that interested parties from across the UK are given the opportunity to inform the debate.

[Chris Ruane]

The Minister says that the consultation is upcoming; can he give us the exact date?

[Nigel Adams]

This debate is a starting point, but the consultation will begin before the end of the year. It will be for others in Government to announce the date, but given that we are halfway through November, it is probably easy to work out that the hon. Gentleman will not have long to wait for the consultation to begin.

[Albert Owen]

I am not criticising the Minister, because he has only been in the job a short time, but it is the duty of Wales Office Ministers to stand up for Wales. We are having this debate to put pressure on him, so that the Welsh voice is heard loud and clear in this debate. It is not for others to decide; it is for Government to decide, and he is our voice in that Government.

[Nigel Adams]

I completely agree. I see myself as a champion for Wales in Westminster. That is incredibly important and must be my priority. I cannot tell the hon. Gentleman the exact date, but I can say that it will be this year, which indicates that it will be incredibly soon. I hope he takes me at my word when I say that the consultation is about to start.

Given the significance of the shared prosperity fund, it is right that questions about the size, structure and priorities for investment develop as we approach next year’s spending review, which will determine the amount of money that will be discussed.

[Ben Lake]

On the spending review, should we be concerned that it seems that responsibility for this fund has been given to the Ministry of Housing, Communities and Local Government, rather than the Treasury? Might that suggest that it is not as big a pot of money as we would hope?

[Nigel Adams]

I certainly do not write the comprehensive spending review—well, not yet. I ask the hon. Gentleman to bear with, to coin a phrase. I do not think he has anything to be concerned about in terms of MHCLG being involved in this process—it is only right that it be involved.

In the time I have left, let me turn to specific points raised by hon. Members. In his eloquent speech, the hon. Member for Wrexham spoke passionately about his constituency and his area of north Wales. He asked whether the same rules would apply across the UK. We will absolutely respect the devolution settlement and work with the devolved Administrations. As I said, we are committed to consulting before the end of the year—in the next few weeks—and people will have that opportunity to set out their views on the fund.

The hon. Gentleman rightly commented that the system has not always worked as well as he had hoped. He said that investments had not always delivered the expected return in gross value added terms, that some EU funding had not worked particularly well for Wrexham, and that there had been a bit of a missed opportunity. That is absolutely right. That is why we should have this debate, and why we should all contribute to the consultation.

The hon. Gentleman and the hon. Member for Aberavon, whom I thank for his work on the all-party parliamentary group on post-Brexit funding for nations, regions and local areas, said decisions should be made locally. They both made very valid points in that respect. In my view and that of the Government, EU exit provides an excellent opportunity to reconsider how funding for growth is delivered across the UK. The consultation will be a great opportunity to start that conversation.

The hon. Member for Ceredigion (Ben Lake) and others asked when we would publish the details of the fund. As I said, we will do that in the next few weeks, before the end of the year. We are absolutely committed to that. That will give everyone across the UK the opportunity to contribute their views, and to help those views to form Government policy on this issue. Decisions on the actual spending will be made in the spending review next year.

I would have liked to respond to one or two other hon. Members, but I want to give the hon. Member for Wrexham the opportunity to respond to the debate. I thank everyone for contributing. We want an economically strong Wales in a prosperous United Kingdom. Working alongside the Welsh Government through the shared prosperity fund, we can ensure that becomes a reality.

--- Later in debate ---

[Nigel Adams]

rose—

[Ian C. Lucas]

I will give way to the Minister if he wants to give me that commitment.

[Nigel Adams]

The hon. Gentleman will appreciate that the exact amount must be considered as part of the comprehensive spending review in due course.

[Ian C. Lucas]

It is pretty fundamental that we do not want Wales to lose out. I think I speak for everyone who participated in the debate when I ask the Minister to convey to the Government, on behalf of Wales, that the sum must not be less than it is currently. As we heard, there are different views about how the fund—