Exiting the European Union (Structural and Investment Funds) — House of Commons, 2019-02-19
Topic: Mixed Topics
Chinyelu Susan Onwurah (Labour, Centre-left): I thank the hon. Gentleman for his intervention. It is important that we look at the background to the statistics that we use. I can say to him very clearly that, for example, the statistics used by Transport for the North and other reputable bodies show consistently higher per head spending in London than in our regions, including in his and mine In the hon. Gentleman’s region, in my region and across the country, ESI funding supports our people, our businesses and our innovation. Those things are simply too important for us to leave questions about transition unanswered. Over the current 2014 to 2020 funding cycle, the European structural and investment funds are worth more than €19 billion to the UK, including €10 billion in direct investment. Wales alone, as one of the poorest regions in the UK, is receiving €2.4 billion in the current period. The impact of that funding is huge; the impact of losing it would be greater In the past 10 years, it is estimated that European Union investment has created more than 115,000 jobs and 25,000 businesses. In my constituency, funding from the European regional development fund supported the construction of The Core, part of the Newcastle Helix, and the growth of more than 800 local businesses through Supply Chain North East. Throughout the UK, EU funding has driven growth in the low-carbon economy, particularly through investment in research and innovation, and it has ensured that it is local economies that have benefited. It is not just income that the European Union funds provide: the security guaranteed by the seven-year funding cycle of structural funds allows economic planning in partnership across local authorities, the private and third sectors over a longer period than our domestic funding. That security is crucial to attracting the necessary match funding from donor partners The statutory instrument deals purely with projects that start before the Brexit exit day on 29 March and enables them to be administered according to pre-agreed frameworks. None the less, we need more clarity. Does that refer to projects that have been approved before 29 March, or just projects that have actually started, and how is started to be defined? What of projects started after exit? How are those to be administered We have been promised that funding for all projects up to 2020 is guaranteed and that projects will continue to be signed under the same terms until 2020. What we have not been told is anything about how these projects are to be run, how decisions are to be made and how funding is to be allocated. According to the instrument, these frameworks are still being drawn up. It states merely that delivery frameworks for future projects will be "based on the pre-exit framework and the same investment priorities as have been applied for existing Structural Fund projects." Who will make these decisions, and how do the Government intend to replace EU structural funding in the longer term The Government have committed to a successor fund—the shared prosperity fund—and to holding a consultation on that fund by the end of 2018. In case the Minister has not noticed, it is now 2019. We are just 38 days away from 29 March, but we have yet to hear a single detail about how that fund is supposed to work. How do the Government plan to replicate the security of the seven-year EU funding period, and how do they intend to administer the shared prosperity fund? The Minister said that that was not within the scope of this statutory instrument, but I think that to give confidence in the ongoing funding and the decisions that the Minister is taking, it is necessary that we understand that there is a strategic vision for what will happen after Brexit EU structural and investment funding has traditionally been focused through regional and sub-regional bodies and aligned to regional priority programmes. That has given our local areas a strong degree of direct influence and control over resources and the ability to align them with other local and regional investment—an ability that is all too often missing in relation to central Government funding. Unfortunately, because the coalition Government chose to abolish regional development agencies, the current ESIF programme lost much of that local knowledge. Instead we have a national approach with regional allocations, and leadership and administration of funds moving from regional development agencies to central Government Departments. Despite the committed work of local enterprise partnerships and their partners working in the regions, the loss of regional control over funds has resulted in their being targeted less effectively and subjected to significant delay in approvals and delivery, as well as being less responsive to local needs and aspirations How does the Minister intend to make the right decisions for regions, given the lack of regional development authorities? We need clarity; we need details, not just empty promises, because real jobs, businesses and communities are at risk. This Government’s continued failure to address regional inequality is the hallmark of a Tory party that places narrow party interests above the good of the country The absence of any plans that deal with projects started after exit day and the deafening silence about the shared prosperity fund leave our regional economies in jeopardy. While we are not opposed to the statutory instrument, we want to know how the Government will do more to safeguard the future of our communities. Labour has committed to matching European Union funding for regional development for at least the next decade. Why will the Minister not follow suit? A Labour Government would invest £250 billion in a national transformation fund to meet the infrastructural needs of every part of our country, and create a network of regional development banks to ensure growth in the areas that most need it We need a viable plan for sustainable and equitable regional development—one that reflects the needs of the region, one that empowers local people and grows local economies, and one that can guarantee funding for all our communities. It is evidently one that only a Labour Government can provide.