PARLIAMENTARY DEBATE
Plan for Neighbourhoods - 4 March 2025 (Commons/Commons Chamber)
Debate Detail
The defining mission of this Government is delivering economic growth and driving up living standards. In that pursuit we are determined that nowhere is left behind, because, as every Member of this House will know, when our economy has prospered in the past, not everywhere has benefited. Over the past 14 years, decisions taken by the Conservatives have seen too many neighbourhoods fall into decline, with the most deprived areas suffering more than others.
As we deliver our mandate for change, the £1.5 billion plan for neighbourhoods means that in 75 places across the UK, which for too long have been underestimated and undervalued, this Government will support the delivery of growth and access to opportunity and raise living standards, because when our local neighbourhoods thrive the rest of the country thrives too.
Our new plan for neighbourhoods marks the turning of the page on levelling up. This Government will not repeat the mistakes of the past: no more micromanaged pots of money or pitting communities against one another to bid for them. The truth is, for all the promises about levelling up, the Tories’ instinct was to hoard power and hold our economy back. Some 75 towns were promised funding that did not exist, with inflexible restrictions on how that money could be spent. Our plan for neighbourhoods stands in contrast with the Conservatives’ unfunded and failed approach. Unlike the Tories’ list of restrictive options for how towns could spend funding, we have doubled the policy activity that can be considered by neighbourhood boards and put communities at the heart of making these changes.
The money will be spent on a broadened set of interventions and has completely different objectives, aligned with the missions that the Prime Minister set out in our plan for change. For example, communities can now spend funding on the things that really matter to them, such as the modernisation of social housing, community-led housing, skills support, cohesion, childcare and much more. We are making good on commitments to deprived communities, giving each of the 75 places the certainty that they will receive up to £20 million of funding and support over the next decade.
In many communities, work has already been undertaken, and we want to build on that rather than undo it. That is why in each area, we will support new neighbourhood boards, bringing together residents, local businesses and grassroots campaigners to draw up and implement a new vision for their area. For the first time, that will include representatives from social housing and workplace representatives and, in Scotland, Wales and Northern Ireland, the representative in the devolved legislature. In consultation with its community, each board will be given the freedom to decide how to spend the £2 million a year to deliver the priorities of local people, ranging from repairs to pavements and high streets to setting up community grocers, co-operatives or even neighbourhood watches.
These new, broadened objectives will give communities the tools to make informed decisions, with a list of interventions aligned with this Government’s central missions. Those interventions have already been assessed as demonstrating good value for money, so they can be pursued without delay. We have also published a toolkit outlining the wide-ranging powers available to communities and local authorities in England, with similar powers for Scotland, Wales and Northern Ireland to come following consultation with the devolved Governments. This is about giving communities autonomy and about people designing and delivering the change that they want to see.
Our new approach puts communities at the heart of delivery, which is why we have introduced three new objectives to guide the plan. First, there is the importance of building thriving places. People take immense pride in their local area, but too many of our high streets and estates have been neglected and left behind. This funding can be used to ensure that town centres and neighbourhoods better reflect the needs of their community, giving residents a say in how they are designed. It will deliver change that people can see and identify with, so that at the end of this Parliament, people can look out from their doorsteps and see a better neighbourhood. We also want the UK to be a country with world-class public services that work for everyone, which is why this objective will support services that are accessible, responsive and tailored to local need, because investing in young people’s futures and in preventive measures now will ease pressure on services over the long term.
The second aim is to build stronger communities. We want to empower neighbourhood boards to tackle the root causes of disengagement and division and to bring people together so that they can feel proud of their area and safe in their neighbourhood to restore a collective sense of belonging to their community. That is about understanding how division is not only an impediment to growth, but a barrier to driving up living standards.
Our third aim is to empower people to take back control. Everybody should be in the driving seat of their own life and should feel in control of their future, but that can feel like a distant prospect when people are living from payslip to payslip, stuck on a waiting list or just not listened to. It is quite right that people want to have a say over the future of their community, with enough to get by and the opportunity to make the most of their lives. We want to make sure that children have the best start in life and that adults can live the life that they want.
I will finish by talking about the inspiration for this programme, which can be traced back through six decades of community politics. We have drawn enormously from John Prescott and the noble Baroness Armstrong’s new deal for communities, which provided the stability of long-term funding backed by the support of central Government. Like them, our aspiration is to empower local people to drive the renewal of their neighbourhood and to deliver the transformational change that they want to see. This announcement also has its origins in the community development policies of Wilson and Callaghan, who drew the link between social deprivation and social division, and now we are looking to the future.
The Prime Minister has been clear that the task before us requires a decade of national renewal, and our country has all the necessary raw ingredients, untapped talent and potential across every town, city, village and estate, but we also have people without enough to get by and places and public services that have been hollowed out. Addressing that is the central driver of our plan for neighbourhoods, and that is just the start. We have already begun to deliver a real shift of power, aligned with the Deputy Prime Minister’s broader work on devolution, making work pay, fixing the foundations of local government and building decent homes, but this is also a down payment on what we know that communities can achieve. We will give people and places the resources and powers that they need to succeed.
Today’s announcement is a response to anyone in these 75 places who wants to see change. It sends a message that the full force of Government will be there to help them to deliver it, and that is why I commend this statement to the House.
EU cohesion funds, which were the predecessor of the UK shared prosperity fund, were directly accountable to both the UK Government and local representatives. In the short timeframe in which the previous Government’s levelling-up strategy was in effect, it sought to bring to bear a wide variety of national resources on exactly the challenges that the Minister referred to in his statement. There was a £2.6 billion fund allocated for regeneration and communities; the £4.8 billion levelling-up fund, which was specifically designed to support treasured assets such as pubs and theatres, where there was strong community support; and the £1.5 billion long-term plan for tax. We know that local leaders welcomed that investment, and many Members across the House spoke very warmly of the benefits to their constituents, so the challenge to the Government today is to set out how this very small and limited project sits against that much broader levelling-up ambition and, in particular, where it sits against the £3.6 billion towns fund set out under the previous Government.
The House will acknowledge that this statement comes at a time when this Government’s financial decisions are bearing down very heavily on our communities. The massive rise in national insurance contributions, the increases in business rates on pubs, retail businesses and hospitality, the changes to business property relief and the multibillion-pound funding gap that opened up in council budgets as a result of the Government’s Budget last October all weigh very heavily in the balance against this modest announcement. That leaves aside the impact of the loss of things such as the rural services grant and the community ownership fund, which were specifically targeted at delivering support to communities that needed it.
While we welcome this rebadging and rehashing of a scheme that we progressed when we were in office and its allocation to largely the same list of recipients, we have some questions to put to the Minister. The first is about the accountability of the proposed neighbourhood boards. It is a significant concern that the Minister finds time to say that the boards will include trade union representatives, but not to mention the democratically elected representatives of those local communities—a trend that sits alongside the changes in the proposed planning White Paper. Local democracy is vital if these boards are to work effectively.
The second question is about the lack of a clear purpose for these resources. While it sounds like a positive thing to broaden the range of areas in which they can be spent, it is a serious concern that the Government again choose refurbishment and modernisation of social housing, which is already allocated for in other areas of local government funding. It begs the question of whether these funds will, in fact, go towards making up shortfalls that the Budget created in other areas of Government spending.
Finally, there is real concern that broadening the criteria, and choosing to use generalised national statistics rather than local understanding of need to decide how to allocate funding, will mean that the resource is allocated in a way that simply does not reflect needs and local circumstances. A bidding process allows local authorities—which lead and represent their areas, and can identify particular needs—to come forward to Government and present a plan. The process of allocation that is being suggested creates a serious risk that those who can do the most to regenerate and benefit our high streets and communities will lose out in favour of those who are simply able to meet the criteria of Whitehall box-ticking.
The hon. Gentleman talked about the plan’s place in the wider environment. Of course, we committed to the transition year of shared prosperity funding in the Budget. We are now in a spending review period, and as I said in my statement, we are committed to getting communities the tools and resources that they need in order to shape place.
To respond to the hon. Gentleman’s questions on accountability, of course local councillors are still involved. We are talking about changes to broaden neighbourhood boards. We want local councillors to be involved; we would like local Members of Parliament to be involved; and in the areas where they exist, we would like devolved representatives to be involved. However, we think that the voices of people who work in the communities are also valuable, and I am surprised that the hon. Gentleman does not.
The hon. Gentleman talked about a lack of clear purpose. I think this is where we are in different spaces, because I believe in freedom to make decisions locally. I believe that expertise is held locally; the wisdom about communities across this country is held by the local community, rather than the Minister. That might perhaps be revelatory for a Minister to say. I believe that changing a community—whether through what we call local growth, levelling up, or any of the other things that it has been called over the past 60 years—is an inside job, best done by local communities, and that my role as Minister and our role as Government is to get communities the tools and resources that they need. We differ on that point.
Even the previous Government moved away from their affection for the bidding process by the end of the last Parliament. They understood that it did not work—that a debilitating beauty parade that pits communities against each other was not a very good way of getting money to those communities. However, another point of difference is that I believe in a longer-term allocative settlement that is more flexible and guided by people locally, whereas the Opposition believe in shorter-term bidding and central prescription.
I want to press the Minister to give us a bit more of an understanding of how the neighbourhood boards will be set up and how they will function. Will there be a clear recruitment process to get the local buy-in that is critical? As the Minister said, it is important that we bring communities along with us. If there is conflict between local authorities and the boards—for example, over a regeneration plan—will one have the power to veto the other, and will the Department have oversight, so that it can intervene, should there be serious concerns about interventions and operation?
The Minister said that it was important for communities to have a say in their future, so is the Department looking at the community right to buy? I declare my interest as a Labour and Co-operative MP. Through the community right to buy, we have seen local pubs, libraries, leisure centres and so much more saved. When can we expect to see that new light, and when will that legislation come forward?
Turning to the establishment of boards, I suspect that one of the themes of discussion over the next few minutes will be our not wanting to hold back areas that are making great progress. Areas with established boards may take advantage of the opportunity to add more people to those boards, and may move on at pace, while other areas may want to treat this moment as a chance to reboot their board. Either way, the basic principle is that the local authority will be the ring-holder, supported by the local Member of Parliament, but once that board has got going, we expect it to be in leadership. We do not want boards to have significant tensions with their councils, and we would expect any tensions to be resolved in the usual way, but those boards will have the power to get on with the job.
The community right to buy was a component of the White Paper. We are looking forward to delivering the community right to buy, because we know that it would be greatly valued, whether we are talking about buying pubs or other buildings in communities. We are very keen on that, and as a fellow Labour and Co-op MP, I am particularly keen on it.
The Liberal Democrats are committed to allowing communities to take action to improve their area. Given sufficient powers and resources, local authorities can play a major role in responding to climate and nature emergencies, whether through the insulation of homes, enhancing green spaces or improving air quality. However, the Conservative Government forced councils to do more and more with less and less, plunging many into financial crisis. As a result, councils have gone bankrupt around the country, and many are feeling the strain of cuts to public services and a lack of investment in community assets.
No community can flourish without proper powers and resources, so we welcome the plan’s commitment to ensuring that new neighbourhood boards work with local authorities to implement new funding. However, we urge the Government to confirm that local authorities will be funded and resourced substantially to take on this additional workload.
The financial burden on councils has forced many to make impossible choices on funding. In my council of Somerset, for example, nearly 70% of council tax receipts go on care for vulnerable adults and children, which many believe should be a national responsibility. Until we have a national solution to the care crisis, councils will continue to be held back from reaching their full potential. We welcome the Government’s commitment to investing in community-led improvement.
We also welcome the new neighbourhood boards, which should provide community engagement throughout the process. We urge the Government to reconsider their decision to remove district council-level scrutiny from the planning process. Where Whitehall takes power and decisions out of the hands of local councillors, it also takes decisions out of the hands of local people. That is undemocratic and will ultimately slow up the process of getting the homes that we need. We also call on the Government to confirm that nature and climate specialists will be included on the neighbourhood boards. Finally, can I ask the Minister—
“is about giving communities autonomy and about people designing and delivering the change that they want to see.”
I am sure that all communities in the UK would wish to have that autonomy, so how could the principle of neighbourhood boards be rolled out, even if the funding is not there to begin with?
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