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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 6 May 2025
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Displaying 3226 contributions

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Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

That exhausts questions from members. I have a few more to wind up, but not too many, and I will give you the final word, secretary of state.

Following on from John Mason’s question about inflation, I note that the prospectus for the levelling up fund, which was published in March 2021, explained that

“Once funding awards are decided, relevant local institutions are responsible for their delivery.”

It states:

“Further contributions from the Fund will not be provided to meet cost overruns after funding has been agreed.”

That was in March last year. Is there an update on that position? You seemed to hint in your answer that there is a possibility of flexibility. We are now in a situation in which we could face 7 per cent inflation, and I am concerned about sustainability. We do not want to have projects that are 80 or 90 per cent complete and end up with white elephants because there is no money available to finish them. It would not help the UK Government, local authorities, the Scottish Government or whoever if that was the case.

Are you telling us that that position has softened? You talked about fiscal discipline, which we all accept is important. However, are you saying that that is no longer written in tablets of stone, as it appears to have been in March last year? I appreciate that the inflationary situation may not have been envisaged a year ago. We might say to people that they just have to manage 2 per cent inflation, but we are getting to 7 per cent, and who knows what the impact of today’s conflict will be? How will that be managed?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

I think that that is an important caveat. In effect, you are saying that you will look on an individual, project-by-project basis to see whether an increase is justified in certain circumstances.

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

We are now at the end of February and the fund is going to start from April, but the Scottish Government still says that there has been no consultation or meaningful engagement. That is echoed by other devolved Administrations. Why would they be saying that? If there is going to be constructive engagement, why has it been left so late—to the 12th hour, if you like?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

Again, I find your answer very positive, but my concern is that, up to today, with the UK shared prosperity fund about to launch in a matter of weeks, those organisations have not been kept up to date. Obviously, they have to be able to fund projects and they worry that there will be gaps and breaks in funding. Can you assure us that that will not happen?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

A local authority chief executive brought a question to me. He is keen to know how you anticipate levelling up will influence other local authority investment decisions, outwith the levelling up funds and the UK shared prosperity fund.

Concerns have been expressed that, unless levelling up becomes a cross-cutting policy, regional inequality will not be addressed. If two or three UK sites are deemed suitable for a specific type of investment—I was going to give an example, but I will not mention it just now unless you specifically ask me to—what weighting will levelling up carry? For example, will a priority 1 area always be approved over a priority 2 area? In the first disbursement of levelling up funds, five of the eight projects were in priority 1 areas and three were not. How will we ensure that the money goes to where it is most needed?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

If only you were a Highlands and Islands MSP, Ross, that would have been a great victory for you.

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

Okay. In today’s discussions, you have touched on things such as education, ferries and local government, all of which are devolved. As you will know, education, along with the legal system, was part of the Act of Union 1707, which preserved Scotland’s unique education system. However, we know that, for example, a £559 million adult numeracy fund will be managed by the Department for Education across the United Kingdom. Is that a first since 1707? Maybe I am just not aware of it, but my understanding was that, on such matters, you might allocate funding to Scotland, but the decision would be made here in Scotland.

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

It is about the funding being managed by the UK Government, not the funding being allocated.

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

Thank you very much for that. That is very positive.

We have 30 seconds of our 90 minutes left. As I said I would a minute or two ago, secretary of state, I will allow you to make any further points that you wish to make before we conclude the meeting.

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Kenneth Gibson

Good afternoon and welcome to the seventh meeting in 2022 of the Finance and Public Administration Committee. We have one item on today’s agenda, which is to take evidence on the replacement of European Union structural funds and levelling up from the Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations, the Rt Hon Michael Gove MP. We have up to 90 minutes for the session.

I warmly welcome the secretary of state to the committee. Good afternoon, Mr Gove. I understand that you do not wish to make any opening remarks, so we will move straight to questions, if that is okay with you.