Hansard

I touched on that issue in response to Mr Briggs. It is clear that the Scottish Conservatives do not want to stand up for the powers of the Scottish Parliament.

A key example of our concerns is provided by the UK Government’s recently announced multiply programme, which aims to improve adult numeracy across the UK. That programme will be top sliced from the UK prosperity fund and will focus on education and skills, which are policy areas that clearly fall within our devolved competency. The UK Government cannot tell us how that programme will work or how it will interact with the existing landscape in Scotland. Today, we are faced with the stark realisation that the internal market act has enabled the UK Government to undermine the delivery of policy in areas of devolved competency in the way that I have just illustrated.

What else do we know of the illusive UK shared prosperity fund? Not a lot, as it turns out. Back in 2018, Westminster claimed that the shared prosperity fund would be a full replacement for EU structural funds. It also told us that it would be at least comparable in value to the funds that were being lost.

From the outset, the Scottish ministers set out a number of red lines on replacement funding, one of which was that Scotland should not lose out financially, compared with the level of funding that it received from the EU at that point. Another red line related to the expectation that we would be afforded the status of equal partner in the process, rather than that of consultee.

On the first of the red lines, we have been promised further detail for more than three years, yet all that we have learned since 2018 is that the shared prosperity fund will be worth a little over £2.5 billion. As COSLA noted in its paper “Replacing EU Structural Funds”, the quantum that the Chancellor of the Exchequer has offered confirms that the UK shared prosperity fund

“will only meet the previous ministerial Commitment of £1.5bn per annum in 2024-25, only issuing £400m in 2022-23 and £700m in 2023-24.”

COSLA also stated:

“It is worth noting that to meet the UK Ministerial commitment of £1.5bn per year from 2022, the Autumn budget proposal amounts to a net loss of £1.9bn for 2022-2024.”

From COSLA’s calculations, there is no way that we can agree that the shared prosperity fund is a replacement for EU funding, and we absolutely reject the UK Government’s claim that it will keep its promise that Scotland will not lose out.

On the second of the red lines that I mentioned in relation to being an equal partner, several times, we have had to raise our deep disappointment at the lack of engagement. As the UK Government has slowly worked through the details of the funding in devolved areas, it has made no attempt to seek advice on how best to deliver the funding and on how it ought to be used and structured. Instead, officials have been told about decisions after the fact, as a statement of intent. This is not a partnership of equals.

While we were still under the impression that Scotland would decide for itself how to use the funds, we set out our plan for the shared prosperity fund in November 2020. That plan was developed in consultation with 171 organisations and in partnership with Professor David Bell of the University of Stirling and with Professor John Bachtler of the University of Strathclyde.

The plan envisaged approximately £180 million per annum being devolved to the Scottish Government to provide comparable funding to replace that from the European regional development fund, the European social fund, the LEADER programme and the European territorial co-operation programme. Under European structural funds, and under that plan, Scotland had long-term certitude on our future funding. However, under the UK Government’s approach, we still have not even been told whether the allocation to Scotland will be an appropriate sum or whether it will match our expectations. That means that we cannot plan the best use of the funding.

I am here, of course, to advocate for the Scottish Government and for the recipients of the funding. We need details in order to make the strategic decisions and plans that are necessary to deliver benefits. With only months left, the chances of that being realised are being reduced daily by the UK Government. Indeed, the Royal Society of Edinburgh shares our position. It highlights that the

“continued uncertainty means it is not possible for national and local governments along with other potential delivery partners to make firm plans on how the funding will be used.”

Today, I have demonstrated that the UK Government’s unilateral and paternalistic approach to levelling up through the SPF has reduced the potential benefit of such investment. The Scottish Government wants our communities and businesses to thrive, so we will take the opportunity to stress to the UK Government that we expect to be treated as a full and equal partner in the development of the UK shared prosperity fund. We have said that, and we will reiterate it. We retain the belief that Scotland’s share of the funding ought to be fully devolved so that we can target it in a manner that best suits the needs of Scotland’s people, communities and businesses.

The Parliament must ensure that the devolution settlement is not encroached upon further. The UK’s levelling up agenda has only complicated policy development in Scotland. Ultimately, it has infringed on the sovereignty of this Parliament, to the detriment of the Scottish people. It is vital that Scotland retains control over any new arrangements that are put in place. Otherwise, the UK Government’s approach threatens to represent a significant power grab over Scotland’s autonomy. If we are to be able to target investment and make decisions based on transparent evidence that shows what will bring greatest benefits to the people, businesses and communities involved, the UK Government must have a change of heart.

I move the motion in Richard Lochhead’s name,

That the Parliament agrees that the UK Government’s Spending Review plans for Levelling Up and the UK Shared Prosperity Fund not only fall well short of Scottish expectations and needs, but also infringe the sovereignty of the Scottish Parliament by circumventing the devolution settlement to deliver policy in areas that are clearly and firmly within the ambit of the Scottish Government, and calls on the UK Government to keep the promises made to Scotland, and to work in full partnership with the Scottish Government and local communities on the development of these programmes going forward to ensure they support job creation and a just transition, and meet the needs of Scotland’s citizens.