EU Structural Funds: Least Developed Regions

Sheryll Murray Excerpts

Wednesday 26th June 2019 Westminster Hall

[Paul Blomfield (Sheffield Central) (Lab)]

I beg to move,

That this House has considered replacement of EU structural funds for least developed regions.

It is a pleasure to see you in the Chair, Ms McDonagh. I am grateful that this issue has been selected for debate. I thank colleagues across parties and regions for supporting the application, particularly the hon. Member for Truro and Falmouth (Sarah Newton), my right hon. Friend the Member for Cynon Valley (Ann Clwyd), who is not currently in her place, and my hon. Friend the Member for Redcar (Anna Turley).

The application for this debate followed a report by the Conference of Peripheral Maritime Regions that crystallised concern that our regions should not lose out as a result of the decision made in the 2016 referendum. I intend to speak relatively briefly because I want to give plenty of opportunity to colleagues from across the regions to make their points. I have only one question for the Minister, but I will come to it at the end.

The CPMR report estimated that if the UK had remained in the European Union, we would have been entitled to €13 billion, or £11 billion, of support from EU structural funds—primarily the European regional development fund and the European social fund—during the next period, from 2021 to 2027. However, five regions would be set to receive a bigger share of that funding based on our position as having some of the poorest areas in Europe. Those areas are defined as “least developed regions” because our GDP falls below 75% of the European average. Clearly, that is not something that we should be proud of and it needs to be addressed.

Cornwall and the Isles of Scilly, and west Wales and the valleys both already receive funding for that category.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

Does the hon. Gentleman accept that we have already contributed that money to the European Union and are getting it back?

[Paul Blomfield]

I agree. The European Union has demonstrated itself to be a very effective redistributive mechanism, taking from richer areas and redistributing to poorer ones. In my area of South Yorkshire, I imagine that we are a net beneficiary of that, although the UK as a whole is a net contributor.

Cornwall and the Isles of Scilly and west Wales and the valleys are already recipients of funding for that category, but have been joined by Tees Valley and Durham, Lincolnshire and my own region of South Yorkshire, because those three regions have now sunk below the 75% threshold, too.

In preparing for the debate, I consulted the House of Commons Library, which, as ever, provided excellent independent assessment and support—I commend those in the Library for the work that they always do for us—and confirmed the CPMR analysis. The Library said that, if anything, the CPMR report underestimated the position because it had not taken account of southern Scotland, which would have been eligible, and added that

“the ‘Outer London – East and North East’ region is also on the borderline”

for classification for support. The amount of funding for which UK regions could have been eligible may have been even higher than in the CPMR analysis.

--- Later in debate ---

[Mrs Sheryll Murray (South East Cornwall) (Con)]

It is an absolute pleasure to serve under your chairmanship, Ms McDonagh. I congratulate the hon. Member for Sheffield Central (Paul Blomfield) on securing this debate, which is important to my constituency of South East Cornwall as we prepare to leave the EU and seize the growth and trade opportunities that Brexit offers. I am grateful for the opportunity to make a brief contribution and am pleased to see that my hon. Friend the Minister will respond.

Cornwall may be a beautiful county of beaches, moorland and communities, but it lags behind the UK on many economic indicators. Its rurality is a blessing, but it puts a brake on growth and prosperity. We are closing the gap with other regions and nations, but we need to maintain that progress. European structural and investment funds have undoubtedly helped to boost the Cornish economy, creating jobs and boosting skills, higher education and inclusion. Better connectivity has also been a benefit. Just over 90% of my constituency now has access to superfast broadband, which is excellent news, but there is still work to be done for the remaining 10%. Local transport links, such as the A38, about which I had an Adjournment debate last week, need to be prioritised. Cornwall’s economic future is a positive one, from the development of the space sector to the growth of creative industries, tourism and high-quality food and drink production. I want to maintain the momentum after we leave the EU.

Brexit provides us with an opportunity to reassess how money is allocated and to make sure it is spent wisely and without the red tape of EU bureaucracy. Will my hon. Friend the Minister give an indication as to when we can expect the consultation on the shared prosperity fund? It has been promised and it would be good to know when it will happen. A refreshed approach to regional policy that is strategic and devolved will help to ensure that funding is targeted in the right areas, better reflecting the needs of my constituents. All hon. Members are fully aware that we contribute more to the EU budget than we get back each year. I ask the Minister to ensure that we receive a fair share of the Brexit dividend that reflects Cornwall’s unique economic and social challenges.