PARLIAMENTARY DEBATE
Levelling Up - 20 November 2023 (Commons/Commons Chamber)
Debate Detail
Our recently announced long-term plan for towns is providing long-term investment for 55 towns, and the money is to be spent on local people’s priorities. We have launched our investment zone programme: 12 investment zones across the UK will grow key industries of the future and increase jobs. That includes west Yorkshire’s investment zone, announced earlier today, which will focus on life sciences.
We have also made excellent progress on freeports. All freeports in England are now open for business, and we have announced a further four in Wales and Scotland. As levelling-up Minister, I have been lucky enough to see at first hand how we are using this transformative funding to unlock the potential of local economies and improve the everyday life of people across the UK. We recognise the good that this funding can do, so we have embarked on an ambitious plan to simplify the funding landscape for local authorities, led by my right hon. Friend the Secretary of State.
Our simplification plan describes how this Government will deliver our levelling-up White Paper’s commitment to streamlining funds in three phases of reform. First, there will be an immediate simplification of existing funds. Secondly, we will establish a funding simplification doctrine, by which central Government will abide. Finally, we will implement further reforms at the next spending review. We have already delivered much of the first phase. For instance, we have given local authorities greater freedom to adjust their town deal, future high street and levelling-up fund projects. We have also invited 10 local authorities to become part of the fund simplification pathfinder pilot, which will give them greater flexibility to move money between different funds. By increasing local flexibility, we will reduce bureaucracy and inefficiency within the delivery process.
The second phase of our funding simplification plan will see the Government launch a new funding simplification doctrine, which will change how central Government give funding to local authorities. It is clear that funding competitions can drive value for money and help identify the best projects for certain programmes, so we will continue to deploy competitions where they make sense, but we also recognise that bidding into multiple competitions, especially in parallel, can place a dispro- portionate burden on local authorities. The new Government doctrine will therefore ensure that we consider fully the impact on local authorities when designing new funds. Finally, we have committed to further reforms at the next spending review, including giving our trailblazer mayoral combined authorities in Greater Manchester and the west midlands single Department-style, multi-year settlements.
Of course, our work to give local authorities the right levers to spend funding efficiently is only one part of the picture; of equal importance is the funding itself. As I mentioned earlier, since 2019 we have made more than £13 billion available to local places. As part of that, across rounds 1 and 2 of the levelling-up fund we committed £3.8 billion to 216 projects across the country. We have listened to feedback from the first two rounds of the fund, and my right hon. Friend the Secretary of State announced in July that we would take a new approach to round 3. As a result, we decided not to run another competition for this round. Instead, we have drawn on the impressive pool of bids that we were not initially able to fund through round 2.
Today, I am delighted to confirm the allocations of the levelling-up fund’s third and final round. We are investing £1 billion in 55 projects across England, Scotland and Wales. Copies of the successful allocations have been made available in the Vote Office. The sheer number of high-quality bids is testament to the enthusiasm for levelling up across our country and the hard work of so many hon. Members in supporting their local areas to develop strong plans for renewal. From Chorley, Mr Speaker, to Elgin, and from Doncaster to Rhyl, these local infrastructure projects will restore pride in place and improve everyday life for local people.
We have targeted funding at the places most in need, as identified through our levelling-up needs metrics. We have also ensured a fair geographic spread across Great Britain, including £122 million across six projects in Scotland and £111 million across seven projects in Wales. That means that across all three rounds we have invested more than £1 billion in Scotland, Wales and Northern Ireland, exceeding our original funding commitments. It also means that across all three rounds of the fund, the north-east and the north-west will have received more per capita than any other region in England. They are followed closely by the east midlands and by Yorkshire and the Humber.
Our round 3 investments double down on two of our key levelling-up missions—pride in place and improving transport—but we also recognise the key role that culture plays in levelling up. We invested £1 billion on projects with a cultural component in rounds 1 and 2, and as part of this round we are setting aside a further £100 million for culture projects to be announced in due course.
We want to get delivery happening quickly. We will work closely with local authorities to confirm that their projects remain viable, and we will provide ongoing support to ensure that local places are able to deliver. We are committed to giving local areas the funding and power they need to deliver transformative change within their communities. We have committed more than £13 billion of local growth funding for communities the length and breadth of our country. We have invested in pride in place and reversed decades of decline. We are taking long-term decisions for a brighter future for our country. I commend this statement to the House.
At least the Government appear to have finally accepted that local authorities were forced to spend disproportionate sums in previous rounds to get bids prepared, although we appear to have lurched from one extreme to the other: this time, councils have not been involved in any dialogue on the bids and were possibly not even aware that their bids were being considered. Will the Minister tell us what discussions have taken place with local authorities before decisions were made? Given that the proposals are approaching being a couple of years old, what assurances will he give us that they still reflect local priorities?
The Government’s methodology notes say the Department capped bids for regeneration projects outside priority areas by local authority and region. Did any projects that met the Department’s threshold not get funded for that reason, and which ones were they?
Please do tell us what on earth is meant by a “funding simplification doctrine”—is it an elaborate way of saying sorry? Does it apply to all Government spending decisions, or just to this Department because it has so patently failed to get a grip on spending that it has to have its own doctrine? Is it being done to address the concerns of the National Audit Office and the Public Accounts Committee that billions of pounds are being wasted because the Department has engaged in a programme without any understanding of its impact? As the IPPR North said, levelling up has been a
“litany of missed deadlines, moving goalposts and dysfunction”
although, to be fair, it could have been talking about any Government project when it said that.
Does the Minister accept that the new approach announced today means that the concerns levelled against the Department are, in fact, valid? With this latest iteration, how does the Minister expect anyone to keep up with what this Government want when they flit around so much? The Prime Minister announced five new priorities this morning. Were the projects selected in line with those priorities, or will they all be changed again to reflect this week’s prime ministerial thinkin
Of course, where does this leave the hundreds of projects that still have not been successful? There was no mention of any future rounds in the statement; in fact, I think the Minister said that this was the final round of bidding, so where does that leave all the places that have been unsuccessful so far? What is the plan to address those communities that are crumbling and those high streets that are emptying? Is this the end of any hope of levelling up for them?
Even in those areas that have attracted funding, we know that these crumbs from the table are not enough to reverse 13 years of neglect. Streets that were once bursting with pride are shutting down, rents are rising, mortgages are soaring, and insecurity is still baked into the workplace. Tackling those things would be genuine levelling up, and Labour believes in giving those communities the power, resources and flexibility to tackle such issues in the way they think best. That is a true way of allowing people to take back control.
The statement offers no path ahead to deal with those issues; it just rearranges the deckchairs of what has gone before. We have been left with a failed experiment—an illusion that lasted as long as the press release. It has not gone unnoticed that the number of Conservative MPs standing down at the next election has gone past 50. They know that after 14 years of stagnation, they do not have a record to defend. They are not levelling up; they are giving up.
The hon. Gentleman asked what conversations there were with local authorities ahead of any announcement. We have area teams on the ground in all local authority areas, which confirmed with councils that projects were still a priority. They also confirmed with councils whether projects could still be delivered by the deadline. No projects were identified through those conversations that did not qualify this time around.
Further to that, the hon. Gentleman asked about funding simplification and why we are embarking on that. He mentioned the NAO’s concerns. Some of its concerns are legitimate, but we looked at its report and many of the figures dated from March. We have spent £1.5 billion on local places since March. We announced the funding simplification plan in July, in response to the commitment we made in the levelling-up White Paper to simplify the funding landscape.
Finally, the hon. Gentleman described £13 billion of levelling-up funding as “crumbs”. That says it all about the Labour party. It does not recognise the value of anything. We are investing £13 billion in local priorities, and Labour describes that as crumbs. I leave it to the House to determine what it thinks of that.
However hard the Tories try to hide the truth, the fact is that these days, the word most people will apply before Britain is “broken”. Most people support genuine levelling up—who could argue with it?—but when the Prime Minister’s constituency got more than the whole of Glasgow last time around, and when most people think their high streets are getting worse rather than better, we have to ask what the real agenda is.
Will the Minister confirm how much of the money he boasts has been committed since 2019 has actually been spent? How does it compare to the overspend on HS2, for example?
The Scottish Government have decades of experience—Scottish Governments of various political persuasions, by the way—in successfully allocating EU funding, for example, in true partnership with local authorities. What discussions did the UK Government have with the Scottish Government, given their statutory role in culture and transport, and their role in pride in place, before he made today’s announcement? What discussions did they have with the Convention of Scottish Local Authorities to get a consensus view on what Scottish local authorities need? Or is this decision just being made by somebody in a ministerial office in Whitehall who is as out of touch with Scotland today as they will be out of office next year?
Finally, I am surprised there is no mention of the trailblazer projects in Manchester and Birmingham and their roll-out to the other mayoral combined authorities. I understand that they will be rolled out but with reduced powers for the rest of the combined authorities. Will the Minister tell us exactly what the situation is? Please do not ask us to wait for Wednesday’s statement. I read about it in the Financial Times on Saturday, and if the Financial Times can be told on Saturday, I am sure this House can be told today.
County Durham had one successful bid in the first round, which happened to be in Bishop Auckland—surprise, surprise—the constituency of the former levelling-up Minister. In round 2, Durham County Council was asked to put in bids and spent hundreds of thousands of pounds of taxpayers’ money doing so. Once the bids were in, it was told that they would not be considered because it had had a successful one in round 1. Will the Minister compensate Durham County Council for the money it has wasted, not through its own inefficiency but because he seems to chip, chop and change the rules when he likes?
The right hon. Gentleman talks about Durham. I simply say to him that the international territorial level region for the Tees Valley in Durham has received eight projects across the rounds of the levelling-up fund. That equates to £128 per capita in the region, which is one of the highest amounts. I would ask him to welcome that.
I invite the Secretary of State and his ministerial team to my constituency. We will drive around and look at all the sites of the projects that were funded by the European Union—roads, bridges, harbours, sports facilities. That money would have come if we had stayed in the European Union, as Scotland voted to do. We are missing out on €750 billion that the EU was investing in regeneration, and once again we are getting nothing—zip—from this Tory Government.
The Minister has been asked a number of times to reflect on the costs for local authorities in coming up with these bids, and I do not think that we have had an answer yet. As part of his review, will he look at those significant costs? I know that organisations in my constituency such as Clyde Gateway and South Lanarkshire Council spent huge amounts of time, expertise and money pulling together bids, which they then thought were dead; now they realise that the project has a second chance. Will he think about the total costs involved and reimburse local authorities for them?
After campaigning for an upgrade since 2018, the £48 million for the Penistone line is fantastic news for me and my constituents. This is on top of the £44.8 million secured for Dewsbury town centre and the £318,000 for Shelley football club. Will my hon. Friend agree to come to visit the Penistone line user groups, the Dewsbury town board and the team at Shelley FC to celebrate these amazing levelling-up successes?
Digital Markets, Competition and Consumers Bill: Programme (No. 2)
Motion made, and Question put forthwith (Standing Order No. 83A(9)),
That the Order of 17 May 2023 in the last session of Parliament (Digital Markets, Competition and Consumers Bill: Programme) be varied as follows:
(1) Paragraphs (4) and (5) of the Order shall be omitted.
(2) Proceedings on Consideration and Third Reading shall be taken in one day in accordance with the following provisions of this Order.
(3) Proceedings on Consideration—
(a) shall be taken in the order shown in the first column of the following Table, and
(b) shall (so far as not previously concluded) be brought to a conclusion at the times specified in the second column of the Table.
Proceedings | Time for conclusion of proceedings |
New Clauses and new Schedules relating to, and amendments to, Part 1 | Three hours before the moment of interruption |
Remaining proceedings on Consideration | One hour before the moment of interruption |
(4) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption.—(Mr Gagan Mohindra.)
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