Oral Answers to Questions

Stephen Kinnock Excerpts

Monday 22nd April 2024 Commons Chamber

[Michael Gove]

The new national planning policy framework, as enacted by this Front-Bench team, will ensure that local voices determine the shape of local communities.

[Stephen Kinnock (Aberavon) (Lab)]

My constituents who live on the Abbottsmoor estate in Port Talbot are locked into paying unjustified and extortionate ground rent fees and charges for poor maintenance. Will the Secretary of State commit to strengthening the Leasehold and Freehold Reform Bill by ensuring that all leaseholders have the right to vary their lease, setting ground rents to a peppercorn, ensuring that premiums are as cheap as possible, regulating managing agents, and abolishing forfeiture?

[Michael Gove]

I always listen with respect to arguments made by a Kinnock, and in this case, I think the hon. Gentleman is broadly—broadly—in the right territory.

Budget Resolutions and Economic Situation

Stephen Kinnock Excerpts

Tuesday 21st March 2023 Commons Chamber

[Michael Gove]

I look forward to the intervention from the hon. Gentleman who represents the energy-intensive steel town of Port Talbot.

[Stephen Kinnock (Aberavon) (Lab)]

I thank the Secretary of State for giving way; he is being very generous. He talks about the importance of jobs and energy-intensive industries. Is he aware that Labour has committed to a steel renewal fund, which will facilitate the transition from blast furnace technology to electric arc furnace technology, which is vital for the future of the Port Talbot steelworks in my constituency? Can he set out whether his Government have anything like that sort of plan? Is he aware of the fact that Tata Steel has said that if the Government do not make up their mind as to whether they will support our steel industry by July, it will close down one of the blast furnaces?

[Michael Gove]

First, the hon. Gentleman is a fantastic advocate for his constituency and the steel sector. Secondly, as far as I know, the Labour proposals that have been put forward, which we welcome, are not funded. [Interruption.] No, I do not believe they are. Thirdly, it is the case that if we are to have a sustainable steel industry, we need to move towards its decarbonisation and a bigger role for hydrogen, but no scientist and no one in the steel industry thinks that will be an answer tomorrow.

As has been pointed out, we will need, alongside the development of those technologies, to ensure diversity of supply of the different types of energy needed in steel production. That is why the independent planning inspector said to the Government that we should go ahead with a new coalmine producing coking coal in Cumbria, and it is why the Opposition, without even having read the planning inspector’s report, once again put ideology before jobs and growth in rejecting it. I will always listen to the hon. Gentleman when it comes to the steel industry, but I will not take lectures from Opposition Front Benchers when they set their face against precisely the type of jobs that will help sustain steel for the future.

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[Stephen Kinnock (Aberavon) (Lab)]

The United Kingdom was the cradle of the first industrial revolution. The opportunity for us to be the cradle of the green industrial revolution is there for the taking. But there is absolutely nothing in this Budget that supports that goal. Labour’s game-changing green prosperity plan is the ultimate example of a policy that will deliver on that opportunity, and will pay for itself in the long term by driving growth and creating good jobs, thereby expanding the tax base. We will double onshore wind, triple solar power and quadruple offshore wind. We will launch Great British Energy, making Britain energy secure and creating as many as 1 million good jobs across the UK in the process. We will insulate 19 million homes and invest in a £3 billion transition for green steel.

The Labour party knows that every leading economy has a strong and healthy steel industry, so it is deeply concerning that of the leading economies, only Britain has a declining steel industry. It is deeply troubling that there is nothing for steel in this Budget. We know that more steel will be required in the net zero economies of the future than there is today. That creates a huge market opportunity for British steelmakers across the globe. We know that UK steel companies employ 35,000 in good, well-paid jobs well above regional pay averages, and 45,000 more in our supply chains. We know that steel underpins our defence sector and our nation’s economic resilience, in an age of turbulence where authoritarian regimes are a threat to our supply chains and our democratic values. We know that if the Government continue to sit on their hands, tens of thousands of jobs could be lost and our country’s resilience will be in tatters.

We on the Labour Benches recognise the scale of the challenge. Steel companies in Canada, Germany and Spain are receiving up to £1 billion per plant to decarbonise, yet the British Government’s offer to our steelmakers is a fraction of that. It is therefore unsurprising that Tata Steel, owners of the biggest steelworks in the UK in my constituency, has reportedly given the Government until July to approve its investment offer, due to growing concerns that competitors in mainland Europe are getting ahead of us in the drive towards green steel. If the Government continue to dither and delay, we could see the closing down of one of the blast furnaces, which would be truly a hammer blow for our Port Talbot steelworks.

Labour’s message to Tata is clear: the cavalry is coming. A Labour Government will deliver on the clean steel fund. Perhaps there is not time to wait. Our message to the Conservative Government is also unambiguous: we need action now. They must not once again betray industrial communities such as the one in my constituency. They must step up to the mark, deliver for green steel and make up their mind. Do they believe that the UK should have a steel industry, or do they not?

We need a growing economy that can deliver good jobs that people can raise a family on. We need a single-minded commitment to investing for growth and a proper industrial strategy that will enable us to stand as a country more firmly on our own two feet, rather than being over-reliant on authoritarian regimes and dictators across the world. That is how Labour’s mission-driven Government will deliver. No more sticking-plaster solutions. Our steelworkers, who make the best steel that money can buy, are just asking for a level playing field. The Government need to step up to the plate and do the right thing.

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[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Let me begin by paying tribute to all the right hon. and hon. Members who have taken part in this Budget debate, not only today, but throughout its four days. Today, many Members from across the House, including my right hon. Friend the Member for Walsall South (Valerie Vaz), and my hon. Friends the Members for Newcastle upon Tyne North (Catherine McKinnell), for Ilford South (Sam Tarry), for Bolton South East (Yasmin Qureshi) and for Leeds East (Richard Burgon), have raised the issue of the cost of living crisis. Other Members have spoken about individual measures in the Budget, such as investment allowances and devolution deals.

Some Members, such as my hon. Friend the Member for Vauxhall (Florence Eshalomi), called this Budget a missed chance, whereas others, such as my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones), talked about the number of Labour policies adopted by the Government in the Budget. My hon. Friend the Member for Lewisham East (Janet Daby) and the hon. Member for Newbury (Laura Farris) talked about childcare. The hon. Member for Basildon and Billericay (Mr Baron) rightly warned the Government against being left behind by the measures being taken in the US and the EU to ensure the green transition.

The right hon. Member for North West Hampshire (Kit Malthouse) urged us all to have more children. Perhaps when all other growth plans have failed, that is all that is left.

The Budget is a critical part of our economic and political framework, and I congratulate the Chancellor on surviving long enough in his post to deliver one. Here we are a few days later and he is still in his post. That is a rare achievement among Conservative Chancellors of modern times.

Outside this House—indeed, on the day that the Chancellor spoke—there is significant turbulence in the financial system. Even though we debate these measures, it is imperative that the Treasury and the regulators are alive to the risks elsewhere in the system and to what other risks may be there.

The Budget was billed by the Chancellor as a Budget for growth. He opened his statement last week by asking us to give thanks that, this year, the economy is expected to shrink, but just not by quite as much as was previously thought. A flatlining economy is now defined by the Government as success.

[Stephen Kinnock]

My right hon. Friend is making an excellent speech. The Secretary of State for Levelling Up, Housing and Communities said earlier that this was a Budget for growth and that it would deliver more economic prosperity, but the reality is that the OBR said that we will not see a rise in living standards for another decade. Does my right hon. Friend agree that the Government have had their chance?

[Mr McFadden]

My hon. Friend is absolutely right. After 13 years, there really is nowhere left to hide.

Despite the Budget being billed as a Budget for growth, the UK is still experiencing the slowest recovery from covid in the G7. All the countries that make up this group had to cope with the pandemic. All of them have suffered the consequences of Russia’s invasion of Ukraine, yet Britain’s recovery is the slowest.

What is it about Conservative stewardship of the United Kingdom that makes us stand out in this way? Is it the political chaos inflicted on the country by the Conservative party, which makes a Chancellor who gets to deliver a Budget such a rarity? Is it the fact that, since 2010, our productivity growth has been the second lowest in the G7? Is it the disastrous Tory mini-Budget last year, which they would like to bury under 10 feet of concrete, but which people will not forget? It caused borrowing costs to soar, put our pension system on life support and rocked international confidence in the UK economy. Is it the former Prime Minister’s Brexit deal, which was supposed to give us global Britain but instead gave us the problem of how to send a sandwich to Belfast?

It could be all those things, but whatever the reasons, the overriding fact for our constituents is that they are still living through the biggest fall in living standards in living memory. Their money goes less far, their incomes have been squeezed and they are living in a country that is poorer than it was four years ago.

Shared Prosperity Fund: Devolved Administrations

Stephen Kinnock Excerpts

Tuesday 1st March 2022 Westminster Hall

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Belfast South (Claire Hanna) on securing this debate. I declare my membership of the all-party parliamentary group on the shared prosperity fund.

Since we heard about the shared prosperity fund way back in 2017, the whole thing has been shrouded in confusion. The Government have been less than forthcoming with clarity and detail. While we now have some more information about the fund, there is still too much uncertainty.

Then there is the top-down, Whitehall-led approach that the Government have insisted on using. Welsh local authorities such as my own in Merthyr Tydfil and Caerphilly County Borough Council, which covers the Upper Rhymney valley part of my constituency, have 20 years’ experience of working together through the Welsh Local Government Association and alongside the Welsh Government to deliver strategic regeneration projects. It is deeply concerning that, instead of a strategic joined-up approach to investment to tackle the urgent issues affecting our communities, we now seem to see a centralised Whitehall-led approach administered by Departments with no real understanding of the needs of Welsh communities. They have limited experience of working with communities in Wales and little understanding of the priorities of those communities. There is also the complete bypassing of devolution.

[Stephen Kinnock (Aberavon) (Lab)]

My hon. Friend is making an excellent speech. I also declare an interest: I chair the APPG on the shared prosperity fund. The pre-launch guidance to the fund simply says that the devolved Administrations

“will be invited to play a role in the development and delivery of local investment plans.”

Does my hon. Friend agree that that is an incredibly vague statement, which could mean absolutely nothing, and that the fund is also part of a broader project being pursued by the UK Government of dismantling the entire project of devolution?

[Gerald Jones]

I very much agree. We are seeing an opportunity to bypass devolution, which is a very real threat to what has been built up over the last 20 years. This is not the partnership approach we all could have supported; I fear that it is a real step backwards.

I am deeply concerned, as I know others are, that Wales and areas across the UK are going to lose out as a result of the withdrawal of EU funds, despite the promise that we would not lose a penny. The Chancellor’s Budget for next year shows some £400 million across the UK as opposed to the £1.5 billion that was earlier mentioned. For the purposes of comparison, Wales alone used to receive £375 million. Next year, for the whole of the UK the figure will be barely that.

The lack of clarity from the Government on the amount of funding, how it will be used and the involvement of devolved Administrations has been hugely disappointing from the start, and it saddens me that it shows no sign of improvement. Hopefully, the Minister will give us further clarity and address the points that have been raised for so long.

I want to give a short, quick example to the Minister. Some years ago, prior to entering this place, I was a local councillor heavily involved in regeneration in my local community. A hugely significant regeneration project had £6 million of EU funding allocated to it, but that was just a catalyst. That funding also unlocked funding through the Welsh Government, the private sector, the lottery and other charitable partners, and not least the local community, meaning a significant investment of around £26 million all told. Those projects are still going strong almost 20 years later and are going from strength to strength. I use that example as an illustration because of the nature of the partnership between agencies, not least local government and the Welsh Government. We should learn from such examples.

Finally, what measures is the Minister taking to ensure that we can move forward in a spirit of collaboration involving all partners? As I said previously, any investment is welcome, but it should be in partnership with regional and local government and the Welsh Government, who have had significant experience in these areas. Speaking as somebody who was very much pro-Union, we achieve much more when we work together in partnership for the good of all.

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[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Belfast South (Claire Hanna) on securing this important and timely debate. It was also good to welcome the Minister of State for the Northern Ireland Office, my right hon. Friend the Member for Bournemouth West (Conor Burns), who was listening to all the extremely important points being made as closely as I was.

Given the short time available, I will come directly to the important points made by hon. Members. I am not here to argue the toss with them, but to try to start to set out how we will work together to do all these things. As hon. Members know, the shared prosperity fund will provide £2.6 billion of new funding for local investment by March 2025; it is a significant scheme. It will be provided through a funding formula, rather than a competition, which is important. While there are advantages in funding competitions, because they get people sharpening their pencils, there are a lot of advantages in formula allocations, because people have the same certainty that places used to have through some of the European structural funds.

[Stephen Kinnock]

On the point about funding, the Minister has just mentioned the figure of £2.6 billion. Does he therefore accept that the manifesto commitment has been broken? The manifesto commitment was to match the previous funding, which would mean £1.5 billion per year over a seven-year planning cycle. The comprehensive spending review is only a three-year time horizon, so will the Minister accept that the manifesto pledge has been broken?

[Neil O'Brien]

I will come to quantums later in my speech, but no, we will keep our manifesto promises.

The hon. Member for Belfast South raised really important points, and I hope I can start to set Members’ minds at ease. The hon. Member for Strangford (Jim Shannon), whose health I would have feared for had he not been here today, was right when he said that we are all on this journey together.

I agreed with the hon. Member for Ceredigion (Ben Lake) when he said that we must work with devolved Governments and local people, not over their heads. I also agreed with the sensible speech made by hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), who said that we must use the experience of local partners who know what is needed and how to run these kinds of schemes.

In Scotland, Wales and Northern Ireland we are very clear that we want local partners, at all levels, to be able to shape what is done to this funding and how it is allocated. In Northern Ireland, we have a unique local government landscape in our work on the UKSPF, so we proposed to deliver at a Northern Ireland-wide scale, which will enable us to have an allocation that is felt to be fair by all communities and that will make the most of all the fantastic opportunities that there are across Northern Ireland.

The development of that single Northern Ireland plan will draw on the insight and expertise of local partners, including the Northern Ireland Executive, local authorities, businesses, the community and the voluntary sector, in order to maximise all the local intelligence, insight and knowledge that they have. We have engaged with the Northern Ireland civil service, the Northern Ireland Local Government Association and Solace on UKSPF.

I have also reached out to the Northern Ireland Executive’s Minister for Finance and I plan to discuss the UKSPF further with him on Thursday. I had a very useful meeting with Minister Lochhead from the Scottish Government on Friday, and I am setting up a meeting with Vaughan Gething of the Welsh Government, as well. We are keen to work with all of the devolved Administrations to shape the way this funding is used.

Levelling Up

Stephen Kinnock Excerpts

Wednesday 2nd February 2022 Commons Chamber

[Michael Gove]

My hon. Friend is absolutely right. She grew up in Accrington. Members like her, who know what it is to grow up in an industrial town, know what happened in the past, including under Labour, and know that we need investment, business and ambition. That is what this White Paper has.

[Stephen Kinnock (Aberavon) (Lab)]

The all-party parliamentary group on the UK shared prosperity fund, which I am proud to chair, has been calling on the Government to ensure that not a single penny is lost in the transition from the European structural funds to the SPF, but calculations by the Welsh Government confirm that the SPF will leave the UK close to £1 billion worse off and that Wales will get £750 million less. Will the Secretary of State meet our APPG to discuss how to ensure the nations and regions of our country do not get short-changed?

[Michael Gove]

That is a fair point. On this occasion, I think that the calculations made by the Welsh Finance Minister, Vaughan Gething, for whom I have great respect, were wrong, but I would be more than happy to meet the hon. Gentleman and others to take them through our approach.

Community Renewal Fund and Levelling Up Fund in Wales

Stephen Kinnock Excerpts

Tuesday 8th June 2021 Westminster Hall

[Stephen Kinnock (Aberavon) (Lab)]

It is a pleasure to serve under your chairship, Ms Rees. I congratulate my hon. Friend the Member for Newport West (Ruth Jones) on securing this vital debate.

In 2018, the all-party parliamentary group on the UK shared prosperity fund, which I am honoured to chair, set out our expectations of the SPF. One point that we wanted to make very clearly was that we fully accept, and indeed welcome, the transition from the EU role in the structural funds to the shared prosperity fund. We are completely agnostic on the source of the funding and the management of it. We are interested in outcomes and results, and that is what today’s debate is about. I ask colleagues on the Tory Benches, please stop propagating the myth that this is about sour grapes on our part. It is not. We all want the best for our communities. It would be helpful if Members stopped using that damaging rhetoric.

Then and now, our clear message was that it is not a penny less and not a power lost. We have urged Ministers to ensure not only that the EU development funding be replaced pound for pound, but that decisions be taken by those who know our communities best, rather than by remote control from Whitehall and Westminster. Fast-forward three years to this debate on what is effectively the pilot for the SPF—the community renewal fund—and unfortunately it is becoming increasingly clear that the APPG’s recommendations have fallen on deaf ears.

Our disappointment in the Government’s response is based on five central concerns. First, the Government’s use of spin, smoke and mirrors means that the announcements are not what they seem. Money is moved and funds are rebadged to give the impression of extra resources, but the reality is that there is no new money.

Secondly, it is clear that the programmes are being used for nakedly political purposes and not directed to communities with the greatest need. Perhaps the most egregious example of this pork barrel politics came when a chunk of the towns fund was siphoned off to the Chancellor’s wealthy constituency. Now we see the same shenanigans with the UK community renewal fund, which includes so-called priority areas such as Derbyshire Dales, Herefordshire and Richmondshire, yet excludes the likes of Caerphilly and Bridgend. It is precisely the same story with the levelling-up fund and there could be more trouble ahead. If the community renewal fund is anything to go by, the £1 billion shared prosperity fund will be a veritable bonanza of pork barrel politics for Conservative MPs.

Thirdly, the bidding process seems to have been designed to hinder effective delivery. Its competitive nature is not only inconsistent with the stated purpose of targeting on the basis of greatest need, but wastes precious local authority time and resources and is too short term. The community renewal fund is allocated money for only a one-year cycle, whereas the EU funding stream was allocated on the basis of seven years of funds to communities that fell below a certain level of deprivation. Will the Minister therefore please commit today to scrapping the inefficient competitive bidding process for the shared prosperity fund and replacing it with a system based on the strategic allocation of resources over a multi-annual period?

Fourthly, the Conservative Government’s centralised approach betrays the basic principle of devolution. Until recently, spending on regional and local economic development was a devolved matter, or, in the context of EU funding, undertaken by the devolved nations within a framework agreed between the UK and the EU. The Scottish and Welsh Governments are major players, with responsibility for agencies that play a big part in local and regional development. The UK Government must therefore bring the devolved Administrations into the heart of the decision-making process. The Welsh Labour Government know Wales, its economy, its needs and its people far better than a civil servant in Whitehall can ever do.

Finally, the delivery timescale of the community renewal fund and the levelling-up fund is frankly shambolic. Already overstretched council teams, who are dealing with the demands of a pandemic, are being asked to meet unrealistic deadlines with incomplete information on the funds. Neath Port Talbot Council has done a fantastic job in putting proposals together at the last minute, but it could better serve residents if it were given more time and information.

The terms “levelling up” and “community renewal” should have real meaning—to the constituents we represent, to the areas that have been hit hardest by 11 years of austerity, and to the industries and sectors that have been hardest-hit by the pandemic. Unfortunately it appears that, for the UK Government, they are little more than slogans.

Coronavirus: Supporting Businesses and Individuals

Stephen Kinnock Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab) [V]]

In the past few days, Governments across the UK have outlined the first tentative steps out of lockdown and towards the reopening of our economy, but this will clearly not happen overnight, so the Government must avoid cliff edges and must also help businesses and individuals to get back on their feet. That is why Labour’s British recovery bond proposal is so crucial.

The hospitality sector has been particularly hard hit by this crisis. Speaking to pubs and restaurants in my Aberavon constituency, they tell me that the uncertainty over future economic support packages is making a difficult situation intolerable. They do not know whether they will have the money to pay bills and they cannot give their employees assurances over whether they will be furloughed because they are waiting for the UK Government to decide. The UK Government need to provide businesses and employees with clarity by extending and reforming the furlough scheme so that it lasts for as long as restrictions are in place and while demand is significantly reduced. Pubs and restaurants have not been able to take advantage of the reduced VAT rate, as for large parts of the year they have been shut, and when they have been able to operate, it has been at reduced capacity. Decisive action by the UK Government is therefore needed. Extending the temporary 5% reduced rate of VAT for the hospitality, tourism and culture sectors would allow businesses to plan for survival and invest in safeguarding jobs.

The UK Government also desperately need to address the gaps in support schemes. It is a travesty that after almost a year the Government continue to ignore the plight of so many who have been excluded from the support schemes and have not received support they desperately need. My Aberavon constituency is a hotbed of creative talent, following in the footsteps of Anthony Hopkins, Michael Sheen and Richard Burton. For many in the creative arts industry, it has been horrendous: their industry is closed down, their work has dried up, their income has fallen off a cliff and because of the nature of their employment, they have not qualified for any of the support schemes and their savings preclude them from universal credit.

Others outside the creative industries have also found themselves in difficult positions, for example, a driving instructor in my constituency, who was not eligible for any of the self-employment support schemes, received support through furlough, which only managed to cover his national insurance contributions.

The UK Government have been consistently slow in responding to the crisis and have failed to provide the long-term clarity about economic support that is required. We need to do the right thing, plug the gaps in the schemes and support hard-working people in Aberavon and across the country.

United Kingdom Internal Market Bill

Stephen Kinnock Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Aaron Bell (Newcastle-under-Lyme) (Con)]

It is a pleasure to follow the hon. Member for East Renfrewshire (Kirsten Oswald), although I fear there is very little common cause between her speech and mine. The internal market is a shared asset, and we all want it to work effectively. As we recover from covid, we must ensure that our economy becomes stronger than ever. That is why the Government have introduced this legislation: to guarantee the continued functioning of that internal market, to ensure that trade remains unhindered in the UK. That is why I support the Government amendments and the Bill as a whole, and I urge the House to reject the Opposition amendments.

It is apparent that we need a clear state aid policy that resides in Westminster, because, as much as the SNP likes to pretend this is the English Parliament, all parts of the UK are represented here, and this place is the only place with the legal and moral authority to act on behalf of the whole of the United Kingdom. Also, our ability to develop trade relations with other countries depends on our having a co-ordinated approach to state aid across our own country, the United Kingdom.

I do not believe that the Bill, or any of the specific provisions in question, undermine our commitment to the Good Friday agreement. Rest assured that those of us on this side of the House remain fully committed to the provisions of that agreement. We will not allow it to be undermined by any possible failure of negotiations, nor by any bad faith interpretations of clauses in the Northern Ireland protocol, and I pay tribute to the speeches from my hon. Friends earlier in the debate.

I will touch on the controversy over the key clauses in part 5: clauses 42, 43 and 45. I am no lawyer, and there are many Members in this House more learned than I am, but it seems to me that international law is breached all the time. The recent actions of the French navy in the channel breached the UN convention on the law of the sea. Where was the pearl clutching from the Opposition Benches then? The German Constitutional Court ruling in May set aside a ruling of the European Court of Justice and brought that international law into question. The European Union itself was only too happy to set aside its own treaties when the stability of its own union was put at risk during the financial crisis.

It seems, as my constituency neighbour, my hon. Friend the Member for Stone (Sir William Cash), put it earlier, international law is, in fact, a mixture of law and politics; I think he said it was 40% the former and 60% the latter. That does not mean that we should not be mindful of our international reputation, but our friends and allies around the world would not expect us to accept bad faith interpretations of the Northern Ireland protocol. They would not expect us to impose unreasonable restrictions on our own internal sovereignty.

That is why the clauses are in the Bill. They are, as my right hon. Friend the Minister for the Cabinet Office said, a safety net in the event of a failure of negotiations. I believe, too, that they strengthen our hand in those negotiations. The people of Newcastle-Under-Lyme expect their representative to stand up for them, but they also expect him to stand up for Britain, and that is what I am doing by backing the Bill.

I do not believe, therefore, that Government amendment 66, which is now incorporated in clause 54, was strictly speaking necessary, though I pay tribute to my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), whose amendment inspired it. However, I believe that incorporating that amendment was wise, because by leaving the final decision about these matters in the hands of this Parliament we are making it clear where sovereignty in these matters, and in this country, truly resides.

[Stephen Kinnock (Aberavon) (Lab)]

Every once in a while, a piece of legislation comes that goes to the very heart of our character as a country. The internal market Bill is one such piece of legislation. It goes to the very heart of our economy, our national identity and our constitution. There is no doubt that the legislation is necessary. We need a strong internal market so that businesses can trade freely across the UK’s four nations, which will be vital for our shared prosperity, and we want the Government to get on and deliver what they promised: an oven-ready Brexit deal in place for 1 January, so that we can get on with tackling the coronavirus crisis.

However, whether seen through the prism of the economy, of our national reputation or of our constitution, the Bill is fundamentally flawed. On the economy, it creates the conditions for a race to the bottom. Mutual recognition of standards without common frameworks in place simply opens the back door to hormone-injected beef and chlorinated chicken becoming the norm.

Internationally, the Bill will severely damage Britain’s standing in the world. The Government have freely and openly confirmed that the Bill will breach international law by overriding elements of the withdrawal agreement signed only nine months ago by the Prime Minister himself. As the Foreign Secretary himself stated in January:

“global Britain is…about continuing to uphold…our heartfelt commitment to the international rule of law…for which we are respected the world over.”—[Official Report, 13 January 2020; Vol. 669, c. 768.]

Our country’s reputation is on the line. Surely, we want to be seen as a trustworthy nation with which other countries can do business in good faith. Surely, we want to strike good trade deals across the world. Surely, we want to be able to stand up to the world’s authoritarian regimes with credibility. I know many Government Members are extremely concerned about the damage the Government are doing to Britain’s standing in the world. I hope that that concern will be reflected in the Division Lobby this evening.

As a Welsh MP who believes passionately in a strong Wales within a strong United Kingdom, I am profoundly concerned that the Bill risks the integrity of our Union. Devolution is based on the principle of informed consent, but the UK Government are hellbent on cutting the devolved Administrations out of the conversation. Surely, one of the lessons of the covid crisis is that the overcentralised control freakery of this Government is simply not working. The days of being able to sit behind a desk in Whitehall, pull a lever and expect it to deliver the desired outcomes in places such as Aberavon are over. Modern Government should be built on consultation and co-operation, not top-down diktat. As chair of the all-party group on post-Brexit funding, I am profoundly concerned that this approach will be applied to the shared prosperity fund. There is a risk that the UK will undertake both a money grab and a power grab from the devolved nations with regard to how that development funding will be spent. Further still, we hear that the Government plan to funnel money directly into Conservative seats in what can only be described as the worst sort of pork-barrel politics.

The Prime Minister loves to present himself as a Churchillian patriot, but is it patriotic to divide our country? Is it patriotic to tarnish our country’s reputation overseas? Is it patriotic to undermine our economy and the standards we hold so dear? Absolutely not. The key elements of the Bill are holding our country back. We need competence and consensus, not bluster and bullying. We need to deliver on this deal and move forward.

[Taiwo Owatemi (Coventry North West) (Lab)]

I am pleased to be able to contribute to the debate.

This House and all our constituents were promised an oven-ready deal. Now, it seems as though the Government are not only failing on that promise, but increasingly showing that there was nothing in the oven at all. Britain’s greatness is built on our values and the fact that we have long stood up for the rule of law. However, the Bill represents the disregard of an international treaty the Prime Minister himself personally negotiated and signed up to. If the UK Government can break international laws with their former friends and allies, what will they do to others? Is that the basis and dreadful reputation on which we are seeking to negotiate and agree trade deals with others?

The Government promised to get Brexit done and indeed they should: not by any means necessary, but with the strongest protections in place for my constituents in Coventry North West and for constituents across the UK; and not through a no-deal Brexit, which would decimate jobs and businesses across the country, causing untold harm to our own communities. We need a Brexit deal that will protect jobs and safeguard our health and social care sector. Research from the University of Sussex estimates that the failure to secure a Brexit deal would reduce exports in the manufacturing industry by up to 20% and reduce jobs. The Prime Minister promised to protect our manufacturing industries, which are crucial to our economy and any recovery we hope to see in Coventry. Even a former member of his own Government, Margot James, appealed to the Government to support manufacturers in Coventry, which are already strained by the coronavirus pandemic. How can the Prime Minister safeguard jobs and commit to job creation in manufacturing in my constituency if he is committed to selling the UK short on delivering a Brexit that my constituents are proud of?

Coventry North West and the west midlands in general stand to lose the most from the Government playing fast and loose with both UK and international law. A University of Oxford study found that car production could halve by the middle of the next decade if the UK crashes out of the EU with no deal. We are already losing manufacturing jobs in Rolls-Royce Annesley, so what is next? We have so many thriving small businesses in Coventry North West, but the Bill does not serve them and makes a catastrophic no-deal Brexit more likely. Nor does it serve our health and social care sector, and my caseload attests to the fact that the Government do not have their eye on the ball. Breaking international law will severely impact the UK’s ability to negotiate trade agreements with countries that set a higher bar, as well as to protect the health sector and public health in the UK and to enhance health globally.

Despite what the Government would like people to think, Labour wants a Brexit deal negotiated so that we can press ahead with tackling issues such as the coronavirus, securing important trade deals—

EU Structural Funds: Least Developed Regions

Stephen Kinnock Excerpts

Wednesday 26th June 2019 Westminster Hall

[Paul Blomfield]

My hon. Friend is absolutely right, in particular about investment in transport infrastructure. Without that, the wider area of my hon. Friend the Member for Barnsley Central (Dan Jarvis) would have seen none of the road network in the Dearne valley that facilitated growth, with a whole series of new companies and the new jobs to go with them. My hon. Friend the Member for Blaenau Gwent (Nick Smith) is also right—he pre-empted my final question—to say that we need exactly that assurance from the Minister.

In South Yorkshire, the objective 1 funding worked: our economy grew by 8.5%. However, regional inequality has soared again since 2010. We are back in the same situation, qualifying as a least developed region and eligible for the highest level of EU funding had we been continuing as a member.

I know that the regional disparities concern both sides of the Chamber. Inner London is, unsurprisingly, our richest region, with GDP at 614% of the EU average—though I recognise that in London, too, there are pockets of deep poverty—but that figure falls to 69% for Cornwall and the Isles of Scilly. London is obviously represented overwhelmingly by colleagues from my party, but Cornwall and the Isles of Scilly by the Conservative party—this debate is about a fair deal for all our regions and about rebalancing our economy.

[Stephen Kinnock (Aberavon) (Lab)]

I congratulate my hon. Friend on securing this important debate. Given those regional imbalances and the question of how funding should be spent, is it not completely outrageous and unacceptable that we were promised a consultation on the shape of the shared prosperity fund, which should have started in late 2018, but have still not had one? My colleagues and I on the all-party parliamentary group for post-Brexit funding for nations, regions and local areas are sensing that there will not be a consultation before the comprehensive spending review. Does he share my view that that is completely unacceptable? Will he ask the Minister to confirm that he too thinks it is completely unacceptable?

[Paul Blomfield]

My hon. Friend is absolutely right. A feature of the wider debate on Brexit is that so many critical issues that will shape the outcome—structural funds, immigration and others—are just being kicked down the road. I hope that the Minister will respond directly to my hon. Friend’s point.

--- Later in debate ---

[Sarah Newton (Truro and Falmouth) (Con)]

I congratulate the hon. Member for Sheffield Central (Paul Blomfield) on securing this debate, which builds on the excellent debate about the shared prosperity fund led by the hon. Member for Barnsley Central (Dan Jarvis).

All of us here would like to be evidence-based policy makers. There is inconclusive data about how successful the European funding programmes have been; the London School of Economics study and the excellent House of Commons studies all show that. It is important that we learn the lessons about how that money has been invested. From my own constituency, and Cornwall more widely, I can see that this money has been absolutely essential, but we need to draw the right conclusions from previous programmes so that the Government’s commitment to regional growth funding is done right and builds on the success we have seen.

[Stephen Kinnock]

How does the hon. Lady propose that the lessons be learned and things be improved if there is no consultation exercise?

[Sarah Newton]

I will come to that in a moment. At the last debate, the Minister invited us to put forward our suggestions. We do not need to wait for a formal consultation; my hon. Friend the Member for St Ives (Derek Thomas) has demonstrated that. There have been consultation meetings with local enterprise partnerships and with the business community all over the country. It is up to us; we are leaders in our own communities. We should be making the most of these opportunities—today is one opportunity—so I will make some suggestions to the Minister, as he has invited suggestions about how we should go about allocating the funding.

First, we want to have designated funding for our regions. The EU funding that has been used so successfully is seldom the only source of funding. As other Members mentioned, it is often an opportunity to leverage additional funding. I want to get across the message that the huge investment in rail and buses in my constituency, where we have two universities, was enabled by European funding, but it was brought about by leveraging and working in partnership.

The way that the Treasury allocates funding and looks at gross added value often disadvantages areas with populations that are dispersed over large geographical areas. In the last five years, investment in cities and city regions has been successful, but those of us without cities—or even towns that meet the Government’s criteria of a population of 135,000—are disadvantaged. That geographical designation is really important for us to meet the opportunities of our local economy to grow, through the regional industrial strategies that feed into the national industrial strategies.

Shared Prosperity Fund

Stephen Kinnock Excerpts

Tuesday 14th May 2019 Westminster Hall

[Stephen Kinnock (Aberavon) (Lab)]

I congratulate my hon. Friend the Member for Barnsley Central (Dan Jarvis) on an outstanding speech and on securing this debate. As things stand, we still do not know how much funding will be available, how it will be divided across the country, what activities will be eligible for support and who will decide how the money is spent. But this is not just about money—there is a real fear that it will be not only a financial grab, but a power grab, and that the Westminster Government will use this opportunity to reduce funding for the areas that need it most, and to claw back powers that sit naturally with devolved Administrations and other local areas.

Those deep-seated concerns led to the creation of the all-party group for post-Brexit funding for nations, regions and local areas, which I am truly proud to chair. Our wide-ranging review of 80 organisations across the UK heard clear and unanimous representations that the UK’s shared prosperity fund must comprise not a single penny less in real terms than the EU and UK funding streams it replaces. Westminster must not use Brexit as an opportunity to short-change the poorest parts of the UK. Equally, the UK Government must not prevent local areas from having appropriate control over the funds.

Although it is disappointing that the Minister has so far refused to meet our group, last month officers from our APPG met the Secretary of State for Wales to make those points, and last week they met the Chief Secretary to the Treasury. Both meetings were conducted in a positive and constructive spirit, but it is shocking that there is still no sign of the public consultation on the SPF being launched any time soon. In fact, there was a suggestion that the consultation may be delayed until the comprehensive spending review in the autumn. Given that the CSR will include information on the funding of the SPF, I am not sure how the relevant bodies are supposed to contribute meaningfully, when the horse will have already bolted. I assure the Minister, however, that our APPG will be watching carefully to ensure there is no sleight of hand from the Government on that point.

We need a guarantee that the SPF budget will not be a penny less than current and projected EU funding, and that the devolution settlement will be fully respected. We need clarity about when the SPF consultation will be published. The great advantage of the current system is that it is data driven and evidence based, thus guarding against pork barrel politics. There is a fundamental worry that the SPF will become a politicised slush fund, with a Conservative Government using it to buy votes in marginal seats. I hope that the Minister’s response today reassures us that our constituencies will not be left short-changed by a sleight of hand in Westminster.

--- Later in debate ---

[Jake Berry]

I am not able to give that commitment today, because we are going to have an active consultation.

[Stephen Kinnock]

When?

[Jake Berry]

If Members give me the opportunity to say when, I may try to provide an answer. One of the points we heard was that we must respect the devolution settlement across our United Kingdom. For me, as the Minister with responsibility for the northern powerhouse and devolution, that means respecting the devolution settlements that this Government have brought forward, by which I mean mayoral devolution in England, which now covers 48% of the north of England.