Shared Prosperity Fund

Paul Masterton Excerpts

Tuesday 14th May 2019 Westminster Hall

[Paul Masterton (East Renfrewshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Barnsley Central (Dan Jarvis) on securing this debate. There is no question but that European structural funds have played a huge role in many of our regions and constituencies—in fact, the building in which my constituency office is located was built on the back of European money—so it is really important that we get to grips with this new fund.

The hon. Gentleman drew out a lot of the difficulties and conflicting ideas very well. One of the difficulties is that we all have a slightly different idea of what the prosperity fund should be trying to target, how it should look and what sorts of projects would fit into it. That is one of the reasons why we need the Government to move much more quickly and set out their view of how it should look.

Although EU structural funds have some real benefits and strong points, we have an opportunity to do things a bit differently. The pre-allocation over a seven-year period is too inflexible for what we will need. We need more flexibility so we can react more quickly to what is happening in the economy and to local areas. We must also look at how funding is allocated, and we should have a discussion about exactly how we will do that. I do not want the UK prosperity fund to become effectively an England-only fund, with money passed on under the Barnett formula to the devolved nations under the current funding formulae, which are not ring-fenced. That money could be used for things that are completely unrelated to the aims and purposes of the prosperity fund or to plug holes in other budgets. That is not a political point about a Conservative UK Government and an SNP Scottish Government; that problem will exist whoever is in power in either location.

If we are serious about using the UK shared prosperity fund to reduce inequalities among communities across the four nations, we must ensure that each and every part of the United Kingdom can benefit from it fairly. The Barnett formula is a pretty good argument that the devolved nations would actually lose out, rather than gain, under that arrangement. I hope the Minister agrees that that means that the UK prosperity fund should be operated as a single fund, based on need and not on where people live in the UK.

The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) gave a good example of how European funds have been very good in the highlands and have been targeted. If that were just a block of money that went to the Scottish Government as part of the Budget, there is no guarantee that a penny of it would reach the highlands or be targeted at the initiatives that have benefited under European arrangements.

I hope we will get a few answers from the Minister about the timing, what shape the Government think the structural fund will be, and how much money might be put in. I look forward to the introduction of the fund, because it is hugely important, but we absolutely must get it right, for all the reasons that the hon. Member for Barnsley Central set out.