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Shared Prosperity Fund: Devolved Administrations
01 March 2022
Lead MP
Claire Hanna
Belfast South and Mid Down
SDLP
Responding Minister
Neil O'Brien
Tags
Northern IrelandLocal Government
Word Count: 9307
Other Contributors: 9
At a Glance
Claire Hanna raised concerns about shared prosperity fund: devolved administrations in Westminster Hall. A government minister responded.
Key Requests to Government:
Hanna asks the Government to provide more detailed and transparent information regarding the Shared Prosperity Fund, especially concerning funding levels and governance arrangements in Northern Ireland. She suggests that the fund should be delivered in conjunction with the Northern Ireland programme for government and through existing delivery partners who have a proven track record.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Claire Hanna is concerned about the lack of clarity regarding the design, priorities, level of funding available, and governance arrangements for the Shared Prosperity Fund. She mentioned that Northern Ireland's Department for the Economy faces a £100 million gap in funding, which will lead to halving apprenticeship programmes and rolling back the skills agenda. Hanna cited an example of Orchardville, a charity facing substantial financial difficulties due to the lack of information on the fund. The Minister's approach of centralising power has led to fears about losing experienced partners who have been administering European funds for decades.
Ben Lake
PC
Ceredigion Preseli
Mr. Lake expressed concern about the lack of funding and structural reform for levelling up, urging the Government to increase ambition by committing 1% of GDP annually to the shared prosperity fund.
Deidre Brock
SNP
Cumbernauld, Kilsyth and Kirkintilloch East
Brock intervened to raise concerns about the absence of Interreg in the levelling-up White Paper. She noted its importance for organisations like the European Marine Energy Centre in Orkney. The MP questioned whether the Secretary of State for Levelling Up, Housing and Communities will guarantee that similar unannounced decisions about local initiatives like an innovation accelerator in Glasgow will not occur again.
Gerald Jones
Lab
Merthyr Tydfil and Aberdare
Mr. Jones highlighted concerns about a centralised Whitehall-led approach bypassing devolved Administrations, citing an example of a successful regeneration project in Wales that involved multiple stakeholders.
Jim Shannon
DUP
Strangford
Jim Shannon praised the shared prosperity fund and highlighted its importance for Northern Ireland, citing specific meetings with the Minister of State to discuss local high streets, education systems, tourism projects, and fishermen's concerns. He emphasized the need for dedicated funding in areas such as small businesses, fishing, agriculture, tourism, community development, and innovation.
Carmarthen East and Dinefwr
He congratulated the hon. Lady for securing a debate on an important issue regarding economic development in the devolved countries of the UK, criticising the Shared Prosperity Fund as an 'unashamed power grab' by the UK Government that undermines strategic regional planning.
Mike Amesbury
Lab
Wallasey
The MP expressed concern about the reduced funding of only 60% compared to EU funds, questioning how the Government reconcile this cut and claim levelling up. He highlighted that the scheme risks damaging trust between UK and devolved administrations and undermines the principle of devolution.
Patricia Gibson
SNP
North Ayrshire and Arran
I am concerned about the UK Government ignoring devolved Governments, such as the Scottish Government, in the distribution of the Shared Prosperity Fund. The Tory manifesto promised a fair share that would replace EU funding, but the Treasury Committee indicates the fund will be 40% less than expected, and there has been no meaningful engagement with devolved administrations. Scotland's allocation remains unclear, and levelling-up funding short-changed the Scottish Government by £400 million in Barnett consequentials. I also note that Scotland receives only 3.5% of all levelling-up funding despite having 8.2% of the UK's population. The MP asked the Minister to comment on the House of Lords Constitution Committee's report concluding that the UK Government have ignored and continue to ignore devolution and the devolved Governments in this process.
Stephen Farry
SDLP
Strangford
Just for the record, Millisle is in my constituency. He highlighted concerns over the governance and efficiency of the Shared Prosperity Fund, suggesting it could lead to inefficiencies compared to EU funding. He also mentioned potential financial losses for Northern Ireland, with a risk of losing up to £70 million per year. Farry raised issues about the nature of spending, particularly in skills development, apprenticeships, economic development, and inward investment.
Stephen Kinnock
Lab
Aberafan Maesteg
Mr. Kinnock agreed with Mr. Lake that the devolved Administrations' role in the development and delivery of local investment plans is vague, suggesting it undermines the project of devolution. The MP intervened to ask if the manifesto commitment had been broken given the figure of £2.6 billion, compared to a promised £1.5 billion per year over seven years.
Government Response
Neil O'Brien
Government Response
It is a pleasure to serve under your chairmanship. I congratulate the hon. Member for Belfast South on securing this important debate. The shared prosperity fund will provide £2.6 billion of new funding by March 2025; it will be provided through a funding formula rather than competition, ensuring certainty and fairness across all communities. We are engaging closely with devolved Governments in Scotland, Wales, and Northern Ireland to shape the programme. For example, we proposed delivering at a Northern Ireland-wide scale to ensure fair allocation of funds. The minister has reached out to various ministers from devolved Administrations for collaboration on the fund's design and operation. The inter-ministerial group will facilitate dialogue across the UK. The fund complements other initiatives like the levelling-up fund, community renewal fund, and city and growth deals, providing a total of £49 million in Northern Ireland alone via various sources. There is also a commitment to ensuring equality considerations under section 75 are respected. We aim to publish the full UK shared prosperity fund prospectus later in spring.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.