Extracts from remaining stages (Commons) of the United Kingdom Internal Market Bill - Sep 29

‘(1) The Secretary of State must seek to reach agreement with the Scottish Government, the Welsh Government and the Northern Ireland Executive on a common framework on the United Kingdom internal market.

(2) A common framework under subsection (1) may cover—

(a) the functioning of the United Kingdom internal market;

(b) the effectiveness of market access principles; and

(c) drawing up a shared prosperity fund to balance economic development across the whole of the United Kingdom.

(3) The Secretary of State must take into account the common framework on the United Kingdom internal market in exercising any powers under Part 6 (Financial assistance powers) of this Act.’

This new clause would put the Common Framework process on a statutory footing.

New clause 3—Duty to consult, monitor, report and review—

‘(1) Within three months of the date on which this Act is passed, the Secretary of State must lay a report before each House of Parliament on the dates on which each section—

(a) was commenced; or

(b) is planned to commence.

(2) The Secretary of State must arrange for a review to be carried out within three months of the date on which this Act is passed, and thereafter at least once in each calendar year on the operation of this Act.

(3) The Secretary of State must invite the Scottish Government, the Welsh Government and the Northern Ireland Executive to contribute to the reviews in subsection (1).

(4) The reviews under subsection (1) must make an assessment of—

(a) the functioning of the United Kingdom internal market;

(b) the effectiveness of market access principles;

(c) progress towards agreeing common frameworks with the devolved administrations;

(d) progress towards drawing up a shared prosperity fund framework; and

(e) progress in resolving issues through the Joint Committee machinery in the Withdrawal Agreement.

(5) The Prime Minister must arrange for a report of any review under this section to be laid before each House of Parliament as soon as practicable after its completion.’

This new clause would ensure Ministers have a duty to report back to Parliament on the progress of the functioning of the internal market; market access; progress towards agreeing common frameworks; progress towards drawing up a shared prosperity fund; and progress in resolving issues through the Joint Committee machinery in the Withdrawal Agreement.

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully):...As I say, for this particular area, we already publish the report I referred to. However, we consider it right that any reporting on the Joint Committee machinery or the UK shared prosperity fund should be undertaken separately from that on internal market provisions. For that reason, I am not able to accept the amendment...

Lucy Powell (Manchester Central) (Lab/Co-op):...The Government have also said that this Bill will ensure more money for the nations and regions, as we heard again today, yet we still have no detail on how the shared prosperity fund will operate. They say they want to level up and invest in the regions and nations. “Trust us,” they say on this point, “because we have the right motives.” Yet last week, the mask slipped, didn’t it, with the breath-taking admission from the Chancellor of the Duchy of Lancaster that his Government were going to funnel this cash into the new Conservative seats—pork barrel politics at its worst...

Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP):...We heard about financial assistance. In case anyone is seduced by the spending promises, I have been calling for clarity on the so-called shared prosperity fund since 2017 along with my SNP colleagues. As the Financial Times reported, an individual close to the discussion said:

“The current plan is an odd combination of reserving state aid [for control from London] but then agreeing to a free-for-all. They just want to be able to bung money at things and do not want UK internal market legislation cutting across that.”

Grahame Morris (Easington) (Lab): It is a pleasure to follow the hon. Member for Wealden (Ms Ghani). I wish to speak about progress towards drawing up a shared prosperity fund because the English regions, and particularly communities such as mine, are in urgent need of investment. I want to focus my remarks on clauses 46 and 47 and on new clause 3, which relates to the replacement of EU structural funds with the UK shared prosperity fund.

The shared prosperity fund is a mechanism by which the Government can deliver their levelling up and building back better agenda. With all due respect to right hon. and hon. Members from Northern Ireland, Scotland and Wales, this is not an issue just for the devolved nations and regions, but a huge one for many of us in left-behind former industrial areas, and it is somewhat disappointing that, with three months until the end of the transition period, details of the scheme are still scarce.

Structural funds to promote economic growth and deliver infrastructure have never been more important. The divisions and inequalities that have been highlighted during the covid-19 pandemic are deeper and wider today, but they existed previously. As we have learned from previous crises, such as the global financial crash in 2008, it is the weaker regional economies that are hit first and hardest by any economic shock. We therefore need devolution for not only the nations of the United Kingdom but for the English regions that are, to a large degree, disadvantaged by central Government, and the ideal place to start is the shared prosperity fund.

If the fund is to work properly, effectively and in a timely fashion, it needs to be in the hands of town halls rather than Whitehall. In the little time I have, I want to give a practical example to illustrate the point, and that is housing in Horden, in my constituency. In 2015, the housing association Accent Housing abandoned its responsibilities. With the consent of Ministers and the former Homes and Communities Agency, the properties in Horden were auctioned off in a fire sale, with some going for as little as £10,000. That led to an influx of private absentee landlords, who have blighted the village and many others.

Five years later, the numbered streets in Horden have the highest concentration of crime in County Durham, as well as some of the worst housing conditions in the north-east. Durham County Council has consulted extensively and produced a plan, which has been presented to the Government time and time again. However, there are practical difficulties in discussing regeneration at a national level when the issues encompass several Departments—the Treasury, the Ministry of Housing, Communities and Local Government, the Department for Business, Energy and Industrial Strategy, and the Home Office. I raised the issue again this morning, but it is vital that we have cross-departmental working on these issues. I am confident that, if the resources were made available through the shared prosperity fund regeneration plans such as the one we have developed for Horden, would be given the green light...

Virginia Crosbie (Ynys Môn) (Con):...It is not only a matter of continuity. The new shared prosperity fund which replaces the EU structural fund, will focus on tackling inequalities within communities by raising productivity. In its written evidence to the Welsh Affairs Committee in May, the Isle of Anglesey County Council asked that the shared prosperity fund be less complex, more regionally focused and with faster response times than the EU structural funds. The UK Government are responding directly to those demands through the Bill...

Tracy Brabin (Batley and Spen) (Lab/Co-op):...New clause 3 would place on the Government a duty to consult, monitor, report on and review parts of the Bill, including the shared prosperity fund. That is incredibly important to my constituency, which is in desperate need of levelling-up opportunities. My constituents have grown weary of glitzy marketing campaigns such as the northern powerhouse or social mobility, which have failed to deliver meaningful and widespread opportunities for them and their families. New clause 3 would militate against the shared prosperity fund going the same way, because Ministers would have to return to the House to update hon. Members. That report would allow us to examine whether the internal market will deliver desperately needed opportunities across our country. Let us not forget that the Centre for Cities called the UK

“the most geographically unequal developed economy in the world”.

The new clause would also require oversight of any cynical attempt to use the shared prosperity fund as a reward for Conservative MPs in red wall seats.

There is an urgent need to bring new jobs and development out of the south-east and into communities that have talent, people, and enthusiasm but are in need of opportunities. If we are to spread growth around the country in a consistent way, the power to do that must be in the hands of local leaders. By the time the Government report back, we should not still be debating whether the Bill strips devolved authorities of power and undermines the Union. Instead, we should be talking about how it places opportunity in the hands of local representatives—the very people who work in those communities, and know them far better than centralised Whitehall Departments ever could.

The shared prosperity fund replaces the EU structural fund, which many parts of our country benefited from. In Yorkshire and Humber, that fund was about €796 million. Currently, when drawing down resources from that fund, priorities for support funding need to be set locally and delivered by those engaged in the projects locally. The Government should deliver the fund by building on that principle of engagement, and by empowering our devolved Administrations, local authorities and elected mayors. The Government must trust our regional leaders to do what is right for their communities...

Stephen Kinnock (Aberavon) (Lab):...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...

To read the whole debate, CLICK HERE