Commons Sense

House of Commons · Ministers' Questions

UK Shared Prosperity Fund

Monday 27 June 2022 · 9 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 5 Not answered 0

Key points

  • Ministerial discussions have been held with elected members in devolved Administrations regarding the equity and transparency of the levelling-up fund and UK shared prosperity fund.
  • The UK shared prosperity fund aims to deliver funding to all parts of the United Kingdom, matching EU funding for every region and nation, with details published on gov.uk.
  • The Minister emphasized the importance of working together with local governments in Wales, expressing disappointment with the Welsh Government's stance on UK government programmes.

Topics (select to filter)

Questions & Answers

Q1 Stuart McDonald SNP
Economy Parliamentary Procedure Local Government
Context

The question addresses recent discussions with devolved Administrations regarding the equity and transparency of funding allocations under both the levelling-up fund and the UK shared prosperity fund.

Question

What recent discussions has he had with elected members in the devolved Administrations on the (a) equity and (b) transparency of the (i) levelling-up fund and (ii) UK shared prosperity fund?

Answer from Michael Gove

The UK shared prosperity fund will deliver funding to all parts of our United Kingdom, and our allocation approach gives every region and nation a real-terms match with EU funding. Details are published on gov.uk. We have engaged with the devolved Administrations at all levels on the design of the fund, and their input has helped to inform the most appropriate mix of interventions and local allocations for each part of the United Kingdom.

Partly answered

Not addressed: Specific discussions about equity and transparency not addressed in detail.

How: Under Review

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Q2 Jamie Wallis
Wales
Context

The questioner highlights the importance of direct investments to ensure all regions, particularly Wales, benefit from levelling-up initiatives.

Question

Does my right hon. Friend agree that by directly investing in local communities, such as his Bridgend constituency, levelling up is extended so that all of Wales benefits?

Answer from Michael Gove

My hon. Friend puts it very well. The UK shared prosperity fund, the levelling-up fund and, indeed, the community ownership fund, which my right hon. Friend the Secretary of State for Wales is championing today, together help communities such as Bridgend, which my hon. Friend represents so effectively, to provide more opportunities to more citizens.

Answered
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Q3 Robin Millar
Wales
Context

The questioner mentions a Welsh Labour Minister's letter stating that the Welsh Government will not help deliver UK government programmes it deems flawed. He seeks assurance from the UK Government that this stance will not hinder shared prosperity.

Question

My right hon. Friend will share my surprise to hear that the Welsh Labour Minister for the Economy wrote to all council leaders in Wales on 14 June saying 'Welsh government will not help deliver UK government programmes in Wales we consider to be flawed.' Will my right hon. Friend assure the residents of Aberconwy that such directions will not be allowed to frustrate the sharing of prosperity in Wales?

Answer from Michael Gove

My hon. Friend raises a very important point, and I am disappointed. Vaughan Gething is a nice guy but it is a mistake, when we are decentralising power and resources to local government in Wales, for the Welsh Government and the Senedd to take that position. It is vital that we work together in the interest of the whole United Kingdom.

Partly answered

Not addressed: Specific assurance not provided.

How: Working With Local Government

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Q4 Mick Whitley
Economy Brexit
Context

The questioner points out a disparity between pre- and post-Brexit EU subsidies, challenging the Government's commitment to match EU support.

Question

This Government fought and won the last election with a commitment to ensuring that post-Brexit funding will, at a minimum, match European Union subsidies, but the shared prosperity fund allocated to the Liverpool city region is £10 million a year less than we previously received from the EU. Will the Secretary of State concede that this is the latest in a long line of broken Tory promises? And will he commit to reforming an out-of-date, inadequate and wholly arbitrary funding formula that has seen some of the most deprived communities in the country lose out on vital sources of funding?

Answer from Michael Gove

I respectfully disagree with the hon. Gentleman. If we look at not just the UK shared prosperity fund but the other investment in the Liverpool city region, we will see that this Government are absolutely committed not just to matching but to exceeding the support that was given under the European Union.

Partly answered

Not addressed: Specific commitment to reform funding formula avoided.

How: Disagreeing With Premise

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Q5 Stuart McDonald SNP
Scotland
Context

The questioner references a PAC report suggesting that decisions are now based solely on UK Government's assessment, contrary to decentralisation principles.

Question

The recent Public Accounts Committee report reminds us: 'Economic development is a devolved power', but decisions that would previously have been made according to Scottish Government priorities are now 'based entirely on UK Government's assessment of priorities.' In short, that is not decentralisation; it is a power grab. What will the Department do to address the PAC's scepticism about how closely devolved priorities have been accommodated within the shared prosperity fund and other policies?

Answer from Michael Gove

The hon. Gentleman will, I am sure, be aware that I had the opportunity of speaking to the Scottish Parliament's Finance and Public Administration Committee, which covers these questions. I was struck by the fact that Scottish National party MSPs and, indeed, a Green MSP were all eager for the UK Government to play an even more assertive role in deploying the levelling-up and UK shared prosperity funds.

Partly answered

Not addressed: Specific actions to address concerns not provided.

How: Referencing Committee Discussions

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Q6 Stephen Crabb Con
Wales Local Government
Context

The questioner highlights a successful bid to the levelling-up fund in Pembrokeshire and seeks agreement on the benefits of the direct relationship between local authorities and the UK Government.

Question

It has been very good to work closely with Pembrokeshire County Council over the last 12 months on a successful bid to the levelling-up fund to improve Haverfordwest town centre. Does my right hon. Friend agree that when it comes to Wales, local authorities really value the new direct relationship with the UK Government, and that the levelling-up fund creates new opportunities for partnership that do not exclude devolved Government and provide more opportunities for local Members of Parliament to get in and help their communities work on solutions?

Answer from Michael Gove

My right hon. Friend is absolutely right. When I talk on calls to local authorities in Scotland, as well as local authorities in Wales, it is striking how grateful they are that the UK Government are taking a pro-devolution, pro-decentralisation approach.

Answered
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Q7 Dan Jarvis Lab Barnsley North
Local Government
Context

The questioner points out a miscalculation in the previous round of funding that affects South Yorkshire's allocation, seeking fair treatment.

Question

Further to the question from my hon. Friend the Member for Birkenhead (Mick Whitley), South Yorkshire will also be disadvantaged because of a miscalculation in the previous round of funding that has been baked into the new allocation process. This means that while Cornwall will get £229 per head, South Yorkshire will get £33 per head. I do not begrudge Cornwall a penny of that money, but I am sure that the Secretary of State will understand why I want a fair deal for my constituents in South Yorkshire. Will he help me get it?

Answer from Michael Gove

I am grateful to the hon. Gentleman for his point and for reminding the House that we have stuck to our manifesto commitment to ensure that, as well as Scotland, Wales and Northern Ireland, Cornwall was absolutely protected. I take his point about the calculations for South Yorkshire. I look forward to working with him, South Yorkshire MPs and Oliver Coppard to ensure that appropriate resource is provided.

Partly answered

Not addressed: Specific fair treatment commitment avoided.

How: Working Together

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Q8 Mike Amesbury Lab
Economy Local Government
Context

The shared prosperity fund provides £371 million less per year for English regions compared to EU structural funds. Additionally, the Local Government Association argues that current council funding falls short by £2 billion annually due to high inflation.

Question

Despite a manifesto promise to match at least the size of EU structural funds, the shared prosperity fund means £371 million less per year for English regions. This comes as the Local Government Association argues that current council settlement is £2 billion short yearly because of sky-high inflation. How does the Secretary of State plan to respond urgently to this plea?

Answer from Michael Gove

It is important that we fund local government appropriately, and we can do so only because of the way in which our economy has been well managed by the Chancellor of the Exchequer. Labour Front Benchers plead for more spending but never explain where the money will come from. The last time there was a Labour Chief Secretary, he left a note saying that there was no money left.

Not addressed: The plea for urgent response to funding issues

How: Criticising Opposition, General Statement

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Q9 Patricia Gibson SNP
Scotland Democracy & Elections
Context

The Scottish Government Cabinet Secretary for Finance and the Economy wrote to the UK Secretary of State expressing concerns about lack of engagement during the drafting of the Levelling-up and Regeneration Bill, which cuts across devolved responsibilities.

Question

Despite the Secretary of State's bluster, he will be aware that the Scottish Government Cabinet Secretary for Finance and the Economy has written to him, expressing deep concerns about the UK Government's lack of engagement during the drafting of the Levelling-up and Regeneration Bill. Will the Secretary of State meet representatives from the Scottish Parliament specifically to discuss the democratic imperative of respect for the powers of that Parliament?

Answer from Michael Gove

I love to visit the Scottish Parliament; all sorts of wonderful folk serve in it, not least my hon. Friend the Member for Moray, and others who do such a brilliant job in holding the Scottish Government to account.

Not addressed: The specific ask about meeting representatives from the Scottish Parliament

How: Changing Subject

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