United Kingdom Internal Market Bill

Simon Baynes Excerpts

Wednesday 16th September 2020 Commons Chamber

[Alun Cairns]

The hon. Gentleman makes a fair point: we need to bring forward much more detailed proposals about how the shared prosperity fund will work. I hope—this is a call to the Minister—that these clauses will change the nature of the discussion, because they will enable the UK Government to play a more prominent part in how the shared prosperity fund develops. That is not the Government’s position yet, as I understand it, but certainly I hope it will be, and I will be calling for that.

The devolved Administrations receive their funding through the Barnett formula, but that delivers a capacity limitation to the interventions that they can make. Although the Welsh Government receive £120 for every £100 spent in England, which is a very fair settlement as a result of the relative poverty that many of us highlight regularly, that broadly equates to about 5% or 6% of spending in devolved areas according to the population. As a consequence of that relatively small sum of money, large infrastructure projects are much more difficult to deliver. They demand such capital sums that they are difficult to justify in any one community. The nature of devolution has caused resources to be spread far more thinly, and they do not have the impact that they could have in any one area.

[Simon Baynes (Clwyd South) (Con)]

I would like to pick up that point. As an MP for the border constituency of Clwyd South, I know that the importance of infrastructure projects is significant, but they are extremely difficult to implement as things stand. This Bill will enable the financial assistance that will facilitate those projects, which are vital for improving the wellbeing and the lives of people in Wales.

[Alun Cairns]

My hon. Friend is absolutely right, and he highlights, at a constituency level, the challenges because of the nature of the limitations of their funding the Welsh Government or any devolved Administration in any part of the UK face in having the greatest impact on constituencies. The might of the UK Government can support those large-scale projects.

The last major infrastructure project in Wales was in 1987, when the Cardiff Bay Development Corporation was formed. There has not been a major infrastructure project since then. That demonstrates that the nature of devolution has led to money being spread much more thinly across all communities. There is a good argument for that, but it removes the ability to have an impact in one specific community.