UK Shared Prosperity Fund — House of Commons, 2019-09-05
Topic: Macroeconomics
Justin Piers Richard Madders (Labour, Centre-left): As we know, the central aim of the shared prosperity fund is to reduce inequality and enable all our communities to share in the country’s economic growth. It could not be any more needed than it is now, because regional inequality has grown since 2010 My constituency is in the north-west, and it is no surprise to me that earlier in the year the Institute for Public Policy Research North published a report finding that the north has borne the brunt of the Government’s austerity drive. We have had a £3.6 billion cut in public spending, while the south has had a £5.1 billion rise in real terms. We have seen public sector employment fall by 2.8%, compared with 1.2% in London, and spending on transport rose by more than twice as much in London as in the rest of the country. We have seen weekly pay increase by only 2.4%, compared with 3.5% nationally, and the number of jobs that pay less than the living wage has risen by nearly 11% Of course, these cuts have had and continue to have a negative impact on our communities. There are now more than 200,000 extra children living in poverty in the north than there were five years ago, meaning that 800,000 children are now living in poor households. That is nothing short of a scandal. The economy has been growing consistently—very slowly, but consistently—throughout the last five years, so having such an extra number of children growing up in poverty during that period shows that the way the economy is working at the moment does not work for many in the north. The points that have been made about maintaining, at the very minimum, existing levels of expenditure are absolutely right. The budget for the UK shared prosperity fund must match, in real terms, what the EU has been paying, but we need to go much further. I am worried about the lack of transparency from the Government about how they are going to adopt this fund, because I believe we have good grounds to be worried Let us take the future high streets fund. It is potentially a good initiative, but one that I fear has already been hijacked for party political ends. Ellesmere Port put forward what I considered to be a good bid. Indeed, the Government seemed to think it was, because when it was rejected in the first round, the Department wrote back a very nice letter to say that it was impressed with the bid and that it was well placed for the second round that would be decided some time next year. However, somehow—out of the blue—another round of funding for successful bids was announced only last week. Sadly, Ellesmere Port missed out again, but when I saw that the majority of the lucky towns were in Conservative constituencies, I was overcome by a flush of cynicism. Could it be that the announcement was entirely connected to secret plans to hold a snap general election? I think that subsequent events have borne out my concerns in that area, which is why we cannot trust this Government to allocate these funds in a non-partisan manner Towns such as Ellesmere Port and Neston in my constituency have been struggling for a long time. The rise of the internet and changes in shopping habits are leading to shops closing on a weekly basis. The sums we need for a truly transformative approach will not come from one pot alone. If the shared prosperity pot is operated in tandem with other funding pots, as the Local Government Association suggests, there would be an opportunity for an integrated and creative approach that could lead to a better outcome for all. Although we must ensure that this does not reduce the scope for matching funds in relation to any other projects, it is vital that we can access as many funds as possible to ensure that the communities we represent are properly resourced, that the imbalances are shared out and that the inequalities across the country are actually eradicated altogether For too long, people have felt left behind and held back by a system that does not work for them. We do not want more platitudes from London. We need a new approach—one that really empowers our local communities by giving them the responsibility, power and resources to shape their own futures, in line with local priorities and local need, because decisions that impact on local communities are best made by those communities themselves. It does not make sense that, in 2019, London still controls all the resources and holds all the levers. It is time we realised that business as usual is not going to cut it, and that further Westminster handouts on Westminster terms are not what our communities want. We need this new prosperity fund to be really owned by local people so that it actually delivers for their priorities.