PARLIAMENTARY DEBATE
Levelling Up - 16 March 2021 (Commons/Commons Chamber)
Debate Detail
Economic differences remain between places across the UK, and those economic differences have real implications. They affect people’s lives through their pay, their work opportunities, their health and their life chances. Tackling them, and driving prosperity as part of levelling up the UK, remains a priority for the Government. As set out in the spending review, the Government’s capital spending plans for the coming financial year, 2021-22, will total £100 billion—a £30 billion cash increase compared with 2019-20. That is part of the Government’s plans to deliver more than £600 billion in gross public sector investment over the next five years, delivering the highest sustained level of public sector net investment as a proportion of GDP since the late 1970s. In the Budget, we published the prospectus for the new £4.8 billion levelling-up fund. The fund will operate UK-wide, extending the benefits of funding for priority local infrastructure across all regions and nations. This cross-departmental fund represents a new approach to local investment and will end silos in Whitehall that make it difficult to take a holistic approach to the infrastructure needs in local areas.
The fund will invest in the infrastructure that matters to local areas, creating economic benefits and bringing communities together as we recover from the economic impact of the pandemic. The levelling-up fund will invest in regenerating our town centres and high streets, upgrading local transport and investing in our cultural and heritage assets across the UK. That could be repairing a bridge, investing in new or existing cycling provision, upgrading an eyesore building, regenerating key leisure and retail sites to encourage new businesses, or even maintaining museums, galleries and community spaces that are important to the local area.
The fund will create opportunity across the country, prioritising bids from those places in need of economic recovery and growth, improved transport connectivity and regeneration. In order to target those places in need, an index has put places in categories 1, 2 or 3, with category 1 representing places with the highest levels of identified need. However, it is important to stress that the bandings do not represent eligibility criteria, nor the bid amount or number of bids that a place can submit. Bids from categories 2 and 3 will be considered for funding on the merits of their deliverability, value for money and strategic fit.
We published the index, and the methodology used to develop the index, to help the fund to deliver its core objective of improving local communities by investing in local infrastructure that has a visible impact on people. The Government recognise the important role of Members in championing the interests of their constituents, and we expect them to be consulted as part of wider local stakeholder engagement on bids, although it is not a necessary condition for a successful bid. Members can have a positive role in prioritising bids and helping to broker local consultation. When considering the weighting given to bids, the expectation is that an MP will back one bid that they see as a priority, and any bid may have priority backing from multiple MPs and local stakeholders. Members may also want to support any bid that will benefit their constituencies in the usual way.
Where appropriate, the UK Government will seek advice from the devolved Administrations as part of bid assessments in their geographical areas on shortlisted projects regarding alignment with existing provision. The fund is part of a broad package of complementary UK-wide interventions. Along with the levelling-up fund, the UK shared prosperity fund will create a package of UK Government support, which invests in skills, infrastructure and innovation at local, regional and national levels, enabling the Government to provide the same support to communities in all nations as we build back from covid-19. To help local areas prepare for the introduction of the UK shared prosperity fund, the UK Government are also providing an additional £220 million of funding through the UK community renewal fund. This fund aims to support people and communities most in need across the UK to pilot programmes and new approaches. Through these funds, we will establish new ways of working between the UK Government and places right across the UK.
The UK Government will work more directly with local partners and communities across England, Wales, Scotland and Northern Ireland, which are best placed to understand the needs of their local area and more closely aligned to the local economic geographies to deliver quickly on the ground.
In the Budget we also announced the eight successful locations in England, which will move to the next stage of freeport designation. Teesside, Liverpool city region, Humber region, Plymouth, Solent, Thames, Felixstowe and Harwich and East Midlands Airport will benefit from this investment. Freeports will bring together ports, local authorities, businesses and key local stakeholders to achieve a common goal of shared prosperity and opportunity for their regions, and they will allow the UK to take advantage of the benefits of leaving the EU.
As part of the towns fund, 101 towns were selected to develop proposals for town deals. All towns have now submitted their proposals, and 52 towns have so far been offered town deals, meaning that we now have committed £1.28 billion to the programme. Assessment continues for the remaining towns, with further announcements expected in due course. Through the towns fund, we will invest up to £25 million in each town, or more in exceptional cases, to drive the economic regeneration of towns to deliver long-term economic and productivity growth. We are also creating a new £150 million community ownership fund to ensure that communities across England, Scotland, Wales and Northern Ireland can support and continue benefiting from the local facilities, community assets and amenities that are most important to them.
From summer 2021, community groups will be able to bid for up to £250,000 match funding to help them buy or take over local community assets that are at risk of being lost and run them as community-owned businesses. In exceptional cases, up to £1 million match funding will be available to help establish a community-owned sports club or to help buy a sports ground that is at risk of being lost without that valuable community intervention.
Working with Mayors and local enterprise partnerships, the £900 million Getting Building Fund will also deliver jobs, skills and infrastructure across the country, targeting investment at those areas that are facing the biggest economic challenges as a result of the pandemic.
We want to devolve and decentralise to give more power to local communities, providing an opportunity for all places to level up. Through an ambitious programme of nine devolution deals, £7.49 billion-worth of investment is being unlocked over 30 years. The recently implemented West Yorkshire devolution deal will give the newly elected Mayor control over an annual £38 million investment fund, as well as new powers over transport, education, housing and planning.
The Department has also recently announced plans for more homes in urban areas and on brownfield land, as well as changes to our funding rules to ensure that we level up all parts of England as we progress towards 300,000 new homes every year. The Prime Minister announced that seven mayoral combined authorities were each receiving a share of the £400 million brownfield housing fund. That will help unlock 26,000 homes by bringing under-utilised brownfield land back into use and contribute to levelling up our country.
I hope that hon. Members will agree that this demonstrates the importance that this Government attach to the levelling-up agenda and the many ways in which we are addressing the causes of inequality. I am confident that the measures that I have set out today will make a real difference to people and places across the whole of the United Kingdom. I commend this statement to the House.
Every region should get the funding it needs to recover, but instead the Government are pitting regions and towns against one another and forcing them to fight one another for funding. Council leaders are furious that millions of pounds are being wasted on consultancy fees for putting bids together. All that money could have been spent on actually levelling up areas that the Conservatives have held back.
Ministers have deprioritised areas that desperately need funding, such as Barnsley, Salford, Bolsover and Ashfield, in favour of wealthier areas such as Richmondshire that just happen to be represented by Cabinet Ministers. It looks very much as if the Government are fiddling the formula to funnel money into wealthier areas and away from the areas that need it most, and the methodology confirms that fear. Despite the Prime Minister’s promise that funding would be allocated to tackle poverty, the Conservatives have removed deprivation levels from the funding formula. That is how 14 areas that are wealthier than average appear in the highest priority category, while areas that need investment the most have been blocked. The Government will not fix regional inequalities by ignoring deprivation when they allocate funding. They are not levelling the country up; they are pulling it further apart and deepening the inequalities that they created in the first place.
I would be grateful if the Minister could tell us why the index of multiple deprivation was excluded from the funding formula, and why Barnsley, Salford, Ashfield and Bolsover were deprioritised in favour of Richmondshire in North Yorkshire. How much is being spent in total on red tape and consultants in the bidding process for these funds? How much of the levelling-up fund is recycled money that the Government have announced before from the local growth fund, the towns fund or other pre-existing funds? The Government only published the methodology after the Good Law Project threatened them with court action, so will the Minister come clean and publish all the data that underlies the methodology, so that taxpayers can see exactly what the Government are doing with their money?
The shadow Secretary of State says that some councils are unhappy about the amount of money that has been spent on consultants. Many councils do not have the capacity to build up a bid of the standard required for this funding, which is why we are providing £125,000 each for those in category 1, so that they can develop those bids.
The shadow Secretary of State says that the methodology has been twisted in some way to benefit one constituency over another; I say tell that to Oldham and Gateshead, which I strongly suspect are very grateful for the funding they are getting and the opportunity to develop bids.
The shadow Secretary of State asked why we excluded deprivation as one of the factors; I say that we decided to leave the criteria to civil servants. We set out the expectation—what we hoped to achieve—and left it to civil servants to decide the criteria so that we did not have any of the political influence that he suggests.
The shadow Secretary of State also asked us to publish all the data associated with the methodology; I am not going to do his homework for him. All that information is freely available. He might be able to get some of his research team to get to work on that.
Will my hon. Friend confirm that the levelling-up fund will welcome applications from rural areas, such as Ryedale in my constituency, which may look prosperous from the outside but whose average earnings are below the regional average, partly because of a past lack of infrastructure investment? The situation could be reversed if funds were provided to important projects such as the improvement of railway stations in Malton and in Thirsk.
Although additional funding for communities is always welcome, I am sure the Minister will understand that it is greeted with a degree of scepticism. Indeed, the much-vaunted towns fund continues to be mired in controversy and allegations of pork barrel politics that just will not go away. According to the Financial Times, with this new announcement we are seeing more of the same today and the bias in favour of Tory-held seats in respect of so-called levelling-up funding is “pretty blatant”.
The Minister does not want to talk about methodologies—and no wonder. The Tory priority list ignores additional poverty-related criteria based on sparse rural populations, meaning that rural populations and islands are bumped down the list. However, Tory-held seats in Scotland have been ranked among the most in need of help from the Government fund, while coincidentally the seats in Scotland that the Tories do not hold have been given a lower funding priority that is not borne out by deprivation levels. Perhaps the Minister could explain that.
It is also clear that the Tory priority list ignores additional poverty-related criteria. We in Scotland can see that this is yet another step on the road towards this Tory Government completely bypassing and disrespecting the Scottish Parliament as they seek to impose their Tory priorities on Scotland’s democratically elected Government in devolved policy areas, which they already intend to do through the shared prosperity fund.
If the real criteria for benefiting from levelling up are not simply to have a Tory MP or live in a Tory target seat, will the Minister set out clearly what the criteria for the fund are and how the awarding of funds will be made completely transparent? The awarding of funds does not seem to be related to areas of deprivation in Scotland, so how can we believe that it is truly about levelling up and not just more old-fashioned pork barrel politics?
“need for economic recovery and growth, need for improved transport connectivity and need for regeneration.”
I know that this is not quite what he asked, but I suggest to him that if we are going to determine the success of these projects, the British electorate will probably do that at the next general election. I look forward to seeing how that turns out.
We in Chesterfield were recently successful in the town deals fund and I know how important it is for councils to put in quality bids for support. Can the Minister assure us that anyone who wants to make a bid will get support from consultants to ensure that they can get a bid in front of the Minister?
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