Levelling-up and Regeneration Bill

Baroness Taylor of Stevenage Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, first, I thank the Minister for the meeting she kindly arranged last week to enable questions on the Bill in advance of it coming before this House.

When I was growing up in the Sixties, we would occasionally speculate with our pocket money on something called a Jamboree Bag, I am sure that noble Lords are far too young to remember this piece of sweet shop nostalgia, but I say “speculate” because these bags offered far more in hope than they did in expectation. They generally contained about six sweets. Two would be sweets you really liked, two would be sweets you absolutely did not like, and the other two would be too stale to eat. They would also have a novelty or toy, which was inevitably disappointing—unless you got the fortune-telling fish we all longed for.

As I started the marathon read of this Bill, I had that same feeling of expectation. I am passionate about local government and the power of localism— I have spent half my life engaging in it—because I genuinely believe that only local solutions will work to solve some of the endemic inequalities our communities face. At the last general election this Government were elected on a promise to address geographical inequalities and regenerate and level up the UK. This Bill has the very noble aim of delivering that, but I am afraid to say that it lacks the ambition needed to address this mammoth challenge.

It is not just that the missions are not detailed in the Bill; it is difficult even to trace the link between them in some of the provisions, so the Bill is in danger of falling far short of expectations. This is exacerbated by weak reporting mechanisms, allowing for a bizarre pick-and-mix system whereby Government departments can choose which missions they will follow. The Bill as proposed allows Ministers to mark their own homework, so it should be accompanied by some sort of independent oversight and a clear role for Parliament to judge whether each department is adhering to its statutory responsibilities. If Ministers are able to revise, amend and delete missions at will, they absolutely must work with local leaders and representatives from across the UK on that.

On the issue of local voices, I want to turn next to the local government and devolution provisions in the Bill. The House will know that the UK today is the most centralised state in Europe. Stevenage, which I proudly call home, has twin towns in both Germany and France, and things are very different there. Ingelheim, on the west bank of the Rhine, is home to a global drugs company and keeps every euro of business rate that it raises. Autun, meanwhile, in the Morvan Forest, an area as protected as our Lake District, was able to build an agricultural conference complex from concept to first event within 18 months. My point is not that these exact policies are necessarily the right ones for the UK, but that we should be far more ambitious and open to ideas when looking to address the imbalance of power in our country. So I welcome the Minister’s accepting that national challenges require place-based solutions, but I feel strongly that Part 2 would better deliver this if accompanied by greater powers and fairer funding, so that leaders can support local recoveries according to the needs of their own areas.

I do want to welcome the implicit recognition that devolution can drive economic, social and environmental development in local areas, but questions remain over whether the specific model of county combined authorities is the right one for every area. Local residents and leaders will always know their own area best and the powers they need to deliver their ambitions, so we will be seeking amendments to allow greater flexibility for our towns, cities and counties to determine their own future.

Despite its omission, I also want to address the barriers to levelling up presented by the Government’s approach to local government finance. As a local government leader for 17 years, I can say from first-hand experience that the drastic savings imposed on local authorities since 2010 mean that their achievements during this time are all the more impressive.

All major projects coming before any council are always subject to detailed analysis of how the outcomes will be measured and monitored, including the environmental, legal and equalities impacts, and especially the financial impact. At a time when even the Conservative Hertfordshire County Council is announcing that it has “exhausted all options” in meeting its budget deficit, I hope the Minister will reflect on how the Government can better enable local councils to level up their areas.

Turning next to the planning provisions, I am sure I am not the first to suggest that the Bill might better be described as a planning and regeneration Bill. Despite the Government recognising the need for planning reform, Part 3 misses many of the proposals in the White Paper and lacks the ambition needed to address the housing emergency. Local communities deserve a greater say in the housing needs of their area, but I am concerned by clauses which seek to override local voices, particularly those involved in the creation of the national development management policies, and that these may take precedence over local development plans and diminish the local voice in favour of the mysterious “office for place”. That is potentially a retrograde step, making planning something done to, not with, a community. We will examine the clauses on street votes too, including seeking clarification on voting systems, consultation and the registration of interests.

I also encourage the Minister to consider new provisions on how housing and planning can deliver on levelling-up missions. In particular, I hope the Minister will consider amendments from this House urgently to tackle the provision of social housing and ensure the right financial instruments exist to empower local authorities and social landlords to deliver. We will seek further amendments to ensure that local businesses benefit from housebuilding and construction in their area by addressing questions over local procurement. As I will discuss in further detail later, we should also consider opportunities to incorporate our net-zero ambitions into planning policy and benefit from the economic opportunities that this can bring.

Serious concerns were raised in the Commons about the infrastructure levy proposals in Part 4—that the levy as proposed will fail to secure as much, let alone more, public gain from developers as the present Section 106 and community infrastructure levy system. I am sure there will be significant scrutiny of this part, and we will seek particular clarification of how the Government’s plans will address developers’ claims that the levy makes schemes unviable. I hope the Minister can also give greater detail on how the levy can contribute to social housing and schemes of mixed tenure.

Parts 6 and 7 broadly relate to the environment. Whether intentional or not, it is regrettable that the Bill does not take further steps to use the planning system to tackle climate change and its impact on the most deprived communities. I will be particularly interested to hear the Minister’s thoughts on how green jobs, new biodiversity targets and environmental planning challenges each relate to the levelling-up agenda. Unfortunately, the Bill does none of this, and we will explore amendments on these points.

I will be taking a particular interest in development corporations and Part 8, given my experience of growing up in a new town under the governance of a development corporation. I welcome the Minister’s commitment to work with the House to ensure that we benefit from lessons learned and are able to strengthen the Bill in this respect.

Determining ownership of land and property can be fraught with difficulty. I am sure the House would agree that local authorities and developers should be able to make better use of brownfield sites for development. However, decontaminating brownfield land too often requires considerable expenditure. Those costs can mean that developing the land is unviable, which then disincentivises developers. Does the Minister believe that Part 9 could help to address this?

The Bill was an ideal opportunity to set out a framework for the regeneration of high streets. While I am pleased that the Government recognise the issue, I am unconvinced that the minimal provision in the Bill for rental auctions and the letting of vacant premises anywhere near tackles the major issues of town centre regeneration set out clearly in the two reviews undertaken by Bill Grimsey. These include looking at the disparity in costs between online and high street retail; creating more workspaces and homes in town centres to drive footfall; ensuring a sound leisure, culture, sport and tourism offer alongside retail to add to dwell time; and incentives for independent businesses. Without looking at these factors, we will never see our high streets thrive.

The Bill before us had enormous potential to genuinely address the structural inequalities of our country. I am greatly encouraged by the interest from this House in ensuring that it meets the challenges facing our towns, cities, counties and villages. We must not let that potential be squandered. Levelling up should be more than a slogan; it must be a cross-governmental strategy. That is why it is essential that the mission statements are embedded in what is proposed in the Bill. The provisions on devolution are a step in the right direction, yet, as the Bill currently stands, they are undermined by the retention and creation of other powers. The emphasis on the future of high streets is welcome, but must be paired with more ambitious action.

Unfortunately, as it stands, the Bill is a wasted opportunity. However, given the interest from all sides of the House in improving it, I have every confidence that, as amended, it will provide much more. I look forward to the debate, particularly the maiden speeches from my noble friend Lady Anderson of Stoke-on-Trent and the noble Lord, Lord Jackson of Peterborough.