Liverpool City Council Funding

Debate between Jake Berry and Stephen Twigg

Tuesday 29th October 2019 Westminster Hall

[The Minister for the Northern Powerhouse and Local Growth (Jake Berry)]

It is a pleasure to appear under your chairmanship, not for the first time, Sir George. With a general election looming, and given that there are marginal seats across north-west England, it might be the last time for a while.

I am proud to have been born in Aigburth, to have attended Liverpool College, and to have spent my entire life before the age of 18 living in the great city of Liverpool, so I was really keen for the opportunity to respond to the debate. I congratulate the hon. Gentleman on securing this debate, which is important not just for his constituents, but for north-west England. As a fellow north-west MP, I think a thriving Liverpool city region is about creating a thriving northern powerhouse.

I want to focus briefly on facts, because the hon. Gentleman talked a lot about the role Liverpool has played in cutting the deficit since the economic crash of 2007-08. I do not want to get into the politics of what might or might not have caused the crash, but it is absolutely clear that in an environment of reducing budgets, local government across our United Kingdom—but particularly in England, for the purposes of this debate—has played its part. However, the core spending power in Liverpool has increased every year since 2015; the increase this year will be some £9.2 million. I hope that reflects the fact that we are moving from a decade or thereabouts of recovery to one of renewal, in which local authorities must play their part, as an economic partner of Government, in driving the wider economy.

Wider investment in the Liverpool city region is so important to the hon. Gentleman’s constituents, and the constituents of other hon. Members; I am sure they would want me to focus briefly on that, before I address the two questions raised in the debate. I was really pleased that £172 million from the transforming cities fund went to the Liverpool city region. Having spent a considerable period of my life going around south Liverpool on a bike, and given that we are looking to address the climate emergency, which Liverpool City Council has been very forward-thinking in bringing to the fore, I was pleased to hear that £16 million of the fund will be invested in walking and cycling infrastructure in the city.

Another £460 million will be invested in the Merseyrail system—the Liverpool tube system, as it was described to me by a friend from London who recently visited the city. I went to school on those trains, sometimes via a slightly roundabout route. For my first job, I used to travel on the Merseyrail from Cressington station all the way to Moorfields. The trains were pretty terrible 20 years ago—or even 35 years ago, when I used to get them. I am very pleased that the money, which comes from a partnership between the council, the Liverpool city region and the Government, will be invested in the transport infrastructure.

Those of us who have spent long periods of our life sat on the Runcorn bridge will agree that the £1 billion invested in the new Mersey Gateway—£600 million was direct Government funding—shows the Government’s ambitions for the region. Many of those ambitions have been focused through the Liverpool city region devolution deal; the core funding for the devolution deal is some £900 million over the initial period. More importantly, it is about taking power, money and influence away from Whitehall and returning it to the great city of Liverpool. Those of us who grew up there in the 1980s know that Liverpool is rejuvenated, and has undergone a renaissance since the very dark days of deprivation, industrial decline and political chaos. The devolution deal is a really important step in ensuring that the renaissance continues.

I do not have to tell any MPs here who represent Merseyside seats, including you, Sir George, that Liverpool is the only city ever to have had its own Department in Whitehall. At one point, Liverpool contributed more to the Exchequer than the entire City of London. Arguably, Liverpool is the city that invented globalisation, and it certainly has always had the mercantile economy at its heart. Anything we can do to drive jobs and growth back into the city is something that we should work on together.

[Stephen Twigg]

I am a strong supporter of the city region devolution. The deal the Minister describes is welcome. However, the strong sense in Liverpool is that what the Government have given the city region with one hand does not make up for what they had taken away with the other, particularly from some of our most deprived communities. Does he recognise that concern?

[Jake Berry]

I will come on to address the hon. Gentleman’s specific points, but it is worth focusing on what happened in Liverpool. Across this House, we want to be optimistic for the people we represent, and there is real optimism in Liverpool. There are challenges, and have been for as long as I have known the city, which is my entire life, but on many occasions, sometimes in this building, people from across public life want to talk down to Liverpool. I want this debate to be an opportunity to celebrate everything that is fantastic about that city.

[Jake Berry]

It will come as no surprise to the hon. Lady that I disagree with her. Lots of what I am talking about—the £900 million devolution deal, the £1 billion for the Gateway crossing, the £330 million from the local growth fund, and the £140 million upgrade of Lime Street station, which I am pleased about, because it was awful when I was growing up, and it is a fantastic building now—is a partnership. I hope that this debate can be about what Liverpool, the Government, the mayors and the metro Mayor can do together to drive the city. I know that that is the spirit in which the hon. Lady would wish me to respond to the debate.

Liverpool City Council has some challenges with funding, as well as other issues. It has £100 million of uncollected council tax arrears, which it should do something about, because that is very high from a national perspective. Its chief executive’s remuneration package is £461,823, which is absurd and not something that should be supported by the council, although it is, because it will have been voted on by the council. In fact, the council has 57 employees across Merseyside who earn more than £100,000 each. The age of austerity might be writ large over many parts of the council, but it has not yet reached the chief executive’s remuneration package, and there are things that the council could do, such as recover some of the £100 million of council tax arrears.

The partnership approach, however, which I hope Members across the House support, is part of the story of renaissance in Liverpool. I agree with the spokesman for Liverpool City Council who, earlier this year, said that Liverpool is undergoing a regeneration boom, with £14 billion of development schemes being delivered or in the pipeline. I pay tribute to the work of the city council in transforming the city, despite having maybe played its part in the decade of recovery from the global economic crash. Despite reductions in the amount of money the city has to spend, it is thriving and booming. People do not need to take my word for it, because anyone can visit the city—in fact, I recommend that they do. And we have not even talked about having the best football team in Europe, although that might be controversial; I do not know whether any Evertonians are present.

Why does all that matter? It matters because the Government are serious about delivering a northern powerhouse—a growing northern economy for all our constituents, including mine and yours, Sir George. Liverpool must be at the heart of that regeneration, and of the renewal of the north of England. That is why I am so pleased that the Prime Minister recently set out his agenda to level up all the powers of the metro Mayors—to ensure that Steve Rotheram has the same powers as Andy Burnham—so that we can drive Liverpool’s economy. I fully support that, and I hope and believe that Steve Rotheram, who has had discussions with me and with the Prime Minister about that agenda, will come out in support of it.

That is also why we have levelled up education funding. The hon. Member for Liverpool, West Derby, started the debate by talking about a school in his constituency, and I echo his tribute to all those working in our public services in Liverpool, Merseyside, the wider north-west and our entire country. That is why we are increasing funding for the NHS and the number of police on our streets. It is the poorest in our society, wherever they may be in England, who rely most heavily on the NHS and public services. That is why I applaud the Prime Minister’s ambition to level up.

[Stephen Twigg]

I welcome the additional powers for the city region Mayor, and I pay tribute to Steve Rotheram for his work. I absolutely echo what the Minister said about the renaissance in the city centre, but I represent suburban east Liverpool, and it does not always feel that way in some of the communities that I represent. They are much more reliant on the council services that I focused on in my speech, so I am absolutely with him on the importance of the city region and investment in it, but we need to ensure that the basic services get their funding as well.

[Jake Berry]

I accept that. In my penultimate point, I will address the two points raised by the hon. Gentleman about the real purposes of the debate. First, on an urgent meeting, I am not able to promise that the Secretary of State will meet the hon. Gentleman and his colleagues urgently. However, I am more than happy to meet them myself, which is a promise that I can make. I am sure that he will be in touch, or my private office will be in touch—subject to the limited opportunity that might be available if the election motion passes today. If it is at all possible, I will certainly do that. I have always taken great pride in being from Liverpool. In fact, my grandparents lived in the hon. Gentleman’s constituency, in a place called Hayman’s Green, just behind the village centre in West Derby, so I know his constituency extremely well.

Finally, on the royal commission, the future of local government funding is something that would of course be set out in a Budget, but it appears that we will not have a Budget before 6 November. I suggest that the hon. Member for Liverpool, West Derby, keeps a close eye on what might be in a Budget. However, I reassure him on the point about the proportion of council tax properties in different bands. Since 2016-17, distribution of resources in the central grant system has taken into account the banding of council tax and business rates payers in the city. We believe that we have addressed that, which historically has been a major problem for cities such as Liverpool.

In conclusion, I hope that the hon. Gentleman, like me, occasionally gets the opportunity to visit the Pier Head. When I do, I look at the “Three Graces” buildings, including the Royal Liver building and the Cunard building, and all the fantastic architecture, and I am always struck by the fact that those buildings show their best face to the world. In fact, the back of the buildings, facing Saint Nick’s church, are relatively plain. Their best face looks out to sea, and that is what Liverpool has always done and will continue to do. After we leave the European Union, a global Britain can be led once again by a global Liverpool.