Green Freeports in Scotland

Michael Gove Excerpts

Monday 16th January 2023 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

On 13 January, the UK and Scottish Governments jointly announced that the Firth of Forth, and Inverness and Cromarty Firth have been successful in their bids to establish two new green freeports.

Green freeport status will support the creation of over 75,000 new, high-skilled jobs, drive growth and level up areas that have been previously overlooked. These areas will be backed by up to £52 million in UK Government funding, and potentially hundreds of millions in locally retained business rates, to upgrade local infrastructure and stimulate regeneration. This is alongside a generous package of trade and innovation support for businesses locating there.

Inverness and Cromarty Firth, and the Firth of Forth are excellent locations for these new green freeports, ensuring the benefits are felt right across Scotland. I wish to share my congratulations with the successful locations. Their strong bids demonstrated how they will regenerate their local communities, deliver decarbonisation, establish hubs for global trade and pioneer industries of the future.

Freeports are at the vanguard of levelling up: driving growth, creating jobs and, in turn, transforming the communities that surround them. Green freeports in Scotland will build on the UK Government’s successful freeport programme in England, where all eight freeports are open for business, with sites in Plymouth and South Devon, Solent, Teesside, Liverpool and the east of England recently being granted final Government approval. Green freeports are a tangible example of what can be achieved and delivered when Scotland's two Governments work together.

This Government remain committed to ensuring that the whole of the UK can reap the benefits of our freeports programme. We will be making a freeports announcement relating to Wales shortly and we continue discussions with stakeholders in Northern Ireland about how best to deliver the benefits associated with freeports there.

[HCWS498]

Levelling-up and Regeneration Bill

Michael Gove Excerpts

Report stage
Tuesday 13th December 2022 Commons Chamber

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

I beg to move, That the Bill be now read the Third time.

What a great Bill this is—put together by a great ministerial team, passed by great majorities and improved by the great contribution of many great Back Benchers. I hope that the other place has a great time when it reviews it.

Local Government Finance Settlement: England

Michael Gove Excerpts

Monday 12th December 2022 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

Today the Government have published details on the Local Government Finance Settlement for the next two years for English councils, which prioritises protecting local taxpayers and vital core services. Local government has long called for greater certainty on funding following repeated one-year settlements, greater local control of finances, and a focus on social care. This two-year policy statement delivers on all of these fronts.

The Government estimate that on average councils will see an increase of around 9% in their funding next year. We have delivered on the sector’s requests for additional funding through the £2.8 billion announced at the autumn statement for social care. We are also ensuring that this year’s settlement provides support across all tiers of local government through a new, one-off funding guarantee that ensures all local authorities will see a minimum 3% increase in their core spending power before taking any local decisions on council tax levels. Councils are best placed to make local decisions to meet pressures and ensure that our most vulnerable in society get the support they need, and therefore it is for individual local authorities to determine the level of flexibility they use in setting council tax. The policy statement confirms a core referendum principle of up to 3% for both 2023-24 and 2024-25.

The Government’s manifesto commit to continuing to protect local taxpayers from excessive council tax increases, and it is for the House of Commons to set an annual threshold at which a council tax referendum is triggered. This is an additional local democratic check and balance to avoid the repeat seen under the last Labour Government when council tax more than doubled. This package of referendum principles strikes a fair balance. The council tax referendum provisions are not a cap, nor do they force councils to set taxes at the threshold level.

Councillors, mayors, police and crime commissioners, and local councils will rightly want to consider the financial needs of local residents at this challenging point in time, alongside the public’s support for action on keeping our streets safe and providing key services.

The Mayor of London has requested flexibility to levy an additional £20 on band D bills to the Greater London Authority precept to provide extra funding for Transport for London. The Government have expressed ongoing concern about the management of TfL by this Mayor, and it is disappointing that London taxpayers are having to foot the bill for the GLA’s poor governance and decision making. While the Government will not oppose this request, any decision to increase the precept is solely one for the Mayor, who should take into account the pressures that Londoners are currently facing on living costs and his decision to raise council tax by 9.5% last year.

This will be a settlement that also recognises the importance of funding adult social care by confirming significant additional funding for social care. Additionally, for social care authorities, the Government will consult on a 2% precept, for both 2023-24 and 2024-25. When taking decisions on council tax levels, local authorities should recognise the pressures many households are facing.

In addition, the policy statement has set out key assumptions behind the second year of the settlement. This includes confirming that the review of relative needs and resources and a reset to business rates growth will not be implemented in the next two years, to give councils more certainty for budget planning. For 2024-25, the policy statement refers to the significant new funding stream expected from the extended producer responsibility for packaging scheme.

Finally, we are encouraging local authorities to consider whether they can use their reserves to maintain services in the face of immediate inflationary pressures, taking account, of course, of the need to maintain appropriate levels of reserves to support councils’ financial sustainability and future investment. The Government note the significant increase in some local authority reserves over the two years of the pandemic.

All of the proposals set out in the policy statement will be subject to the usual consultation process within the Local Government Finance Settlement.

This written ministerial statement covers England only.

[HCWS437]

Called-in Planning Decision: West Cumbria

Michael Gove Excerpts

Thursday 8th December 2022 Commons Chamber

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

With permission, Mr Speaker, I would like to make a statement following the decision I made yesterday to grant planning permission for a new metallurgical coalmine at Whitehaven in Cumbria.

I think it is important to stress at the beginning of my statement that I am speaking with regard to a planning decision that I have taken in my capacity as Secretary of State in what is a quasi-judicial process. Members of the House will be aware that the decision may, of course, be subject to a legal challenge, so I urge all Members of the House who are interested in the decision to read the decision letter, which was published yesterday, alongside the detailed report of the independent planning inspector who oversaw the public inquiry into the proposals. Any mature and considered response needs to take account of both my decision letter and the planning inspector’s full report.

I would like to refer in my statement to some of the arguments that the planning inspector has entertained and some of the arguments that he has made in the course of his report, but nothing that I say at the Dispatch Box should be taken in any way as a substitute for full engagement with the inspector’s report.

It is important to note that it is rare that any planning decision is an open-and-shut matter. There are almost always competing elements for and against any planning scheme—particularly a substantial one of this kind, which can raise serious and passionate debate—but the open and transparent public inquiry system allows all those issues to be fully explored. It also allows all parties to put their case before an independent inspector.

The decision that I issued yesterday was in line directly with the recommendation of the inspector, who heard all the evidence for and against the scheme and was able to test that evidence through the participation of interested parties. This was a comprehensive and thorough process, lasting over a month and hearing from over 40 different witnesses. It is summarised in a report of over 350 pages, which, again, I urge all hon. Members to read.

I think it important to restate—as I think is well understood—that the proposal granted permission yesterday for the production of coking coal for use in steel production is not an energy proposal. Our net zero strategy makes it clear that coal has no part to play in future power generation, which is why we will be phasing it out of our electricity supply by 2024. Coal’s share of our electricity supply has already declined significantly in recent years. It was almost 40% of our energy supply in 2012, and less than 2% in 2020.

I took account of the facts in reviewing the planning application, as did the inspector, taking into particular account the Department for Business, Energy and Industrial Strategy industrial decarbonisation strategy of March 2021, which explicitly does not rule out the use of coking coal in an integrated steel-making process, and makes it clear that, together with carbon capture and storage, that can be part of a net zero-compliant option.

It is important to note, as the inspector makes plain on page 239 of the report, that it is clear all the scenarios and forecasts for the future use of coking coal which were put before the inquiry demonstrated a continued demand for coking coal for a number of decades to come. It is also important to state that the European Commission, as the inspector noted, recognised the indispensable role of coking coal during the steel industry’s transition to climate neutrality.

It is also important to note, as the inspector did on page 238, that the UK is currently almost wholly dependent on imports of coking coal to meet its steel manufacturing demand. In 2017, 98.8% of the more than 3 million tonnes of coking coal used in UK steel plants was imported. The main exporters of coking coal at the moment are Australia, the USA and, of course, Russia. European metallurgical coal demand is forecast to remain between 50 and 55 million tonnes per annum for the next 28 years, and in the UK demand is forecast to remain at the current level of 1.5 million tonnes per annum.

The coking coal that will be extracted from the mine in Whitehaven is of a particular quality. Coking coal is usually a blended product of soft and hard high volatile coals and low volatile coals. The coal from the proposed mine would have a low ash content of below 5%, compared with between 7% and 8% for US coal and 10% for Australian coal. It would also have a low phosphorus content, lower than that of Australian coal, and a high fluidity. It is also important to note that, while the sulphur content of this coal has been referred to, and it is relatively high, the evidence before the inspector suggests that the coal handling and processing plant will produce coal with an average sulphur content of 1.4 %, and the applicant has stated its acceptance of the planning condition to ensure the product leaving the mine meets this level.

It is also important to note that the applicant is making it clear that this will be the only net zero metallurgical coking coalmine in the world. It is vitally important that all of us recognise—as the inspector does on page 255—that the proposed development would to some extent support the transition to a low-carbon future specifically as a consequence of the provision of a currently needed resource from a mine that aspires to be net zero. I think it is also important that we recognise that, in any change of land use, there will always be a potential impact on biodiversity and on the local environment as well. Again, it is important to note that, on page 278 of his report, the inspector makes it clear that this mine would not cause any unacceptable impacts on ecology or result in a net loss of biodiversity. The inspector also makes it clear in paragraph 22.9 that the proposed development itself would have an overall neutral effect on climate change, and as such there would be no material conflict with Government policies for meeting the challenge of climate change.

Taking account of all these environmental considerations, we should also bear in mind the impact on employment and on the economy, locally and nationally. As the inspectorate notes on page 279, the mine will directly create 532 jobs, which will make a substantial contribution to local employment opportunities because they will be skilled and well-paid jobs. The employment, and indirect employment, that would follow will result in a significant contribution to the local and regional economy, with increased spending in local shops, facilities and services. In addition, the exportation of some of the coal to European markets will make a significant contribution to the UK balance of payments. It is therefore the case that granting the application is compliant with planning policy, and the social and economic benefits should be afforded substantial weight.

The inspector’s report makes a strong case, in a balanced way, for the granting of permission. After reading the inspector’s report in full, I am satisfied, in my role as Secretary of State, that it is the right thing to do to grant this planning application.

[Mr Speaker]

Order. The statement I received was the thinnest ever, but the Minister has gone long. Between that and what the Opposition and I have been provided with, there is something missing, which is not in accordance with the ministerial code. We do not work like that. The shadow Secretary of State has not been able to read what has just been said. I am going to suspend the House in order to try to find out what is in the statement.

Called-in Planning Decision: West Cumbria

Michael Gove Excerpts

Thursday 8th December 2022 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

I have one question for the Secretary of State: what on earth is he thinking? The decision to greenlight the reopening of the Woodhouse colliery is bad policy and bad politics. It is the latest in a string of absurd decisions from a Government in chaos, causing chaos in this Chamber and out there in the country. They are in office but not in power.

This mine will produce coking coal used for steel, not for electricity generation. So, as the Secretary of State has had to admit today, the claim it helps to safeguard our energy security is nonsense, but it gets worse. The two big steel producers, Tata and British Steel, are phasing out this coal in favour of lower-carbon production methods. By the mid-2030s, at best, the UK will use less than 10% of the mine’s output. Across the world, demand for coking coal is projected to fall off a cliff, by 88%, by 2050.

People in Cumbria deserve a long-term future, with lasting, well-paid jobs that power us through the next century. Instead, they are saddled with a weak, short-sighted and unambitious Government who, only two months ago, rejected a plan to bring new nuclear to Cumbria, which would have created not 500 short-term jobs but 10,000 jobs for the long term.

The right hon. Member for Surrey Heath (Michael Gove) is supposed to be the Secretary of State for Levelling Up. The Tories were once the party of conservation, and now they are the party of environmental vandalism. He can fiddle the figures all he likes, but the reality is that this mine is projected to increase emissions by 0.4 million tonnes a year, according to his own advisers. That is equivalent to putting 200,000 more cars on the road every single year.

This decision flies in the face of Britain’s net zero objectives, contradicts the aims of the UK’s COP26 presidency and undermines the 2019 Conservative manifesto. This is chaos. Successive Secretaries of State are contradicting each other and the Government’s independent adviser on climate change condemned the decision as “indefensible” even as the Secretary of State stands here trying to defend it.

The Secretary of State told us that coal has no part to play in future power generation. He cannot even agree with himself. No leadership abroad. No leadership at home. Unable to lead even in his own party. I hope he will at least reassure the House today that this bizarre decision, which he cannot even defend, was not part of a deal to buy off Back Benchers after his U-turn earlier this week on onshore wind.

People in Britain deserve better. Right across the country, communities such as mine in Wigan and across Yorkshire, Lancashire and Cumbria are proud of our mining heritage and of the contribution we made to this country, but we want a Government who look forward and match our ambition so that, through clean energy, our young people can power us through the next century like their parents and grandparents powered us through the last. Where is the ambition? Where is the leadership? Where is the government?

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

Mr Speaker, thank you for your ruling earlier. I apologise to you and to the House. No discourtesy was intended. I appreciate the importance of maintaining the courtesies of the House, particularly with regard to statements.

As I mentioned earlier, the context of this statement is a quasi-judicial process on a planning application. I always admire the rhetoric of the hon. Member for Wigan (Lisa Nandy), and she asks, “Where is the ambition? Where is the leadership?” I think we all know where the ambition and the leadership is: it is sitting right across from me.

The hon. Lady will have her own views on future demand for coking coal, but I fear she elides the difference between coking coal used for metallurgical purposes and coal used for energy generation purposes. The inspector’s report makes it clear that coking coal is used not for energy purposes but purely for metallurgical purposes, for the manufacture of steel. Of course, we will need steel for decades to come, including in the renewables sector. How else will we ensure that we supply all the materials necessary for onshore wind and other renewable energy without using steel? If she or anybody else in the House has an answer, I and millions of scientists would love to hear it.

It is important to look at the inspector’s report, as I have in detail. The inspector makes it clear on page 239, in paragraph 21.37, that in all the scenarios and forecasts presented to him there was

“continued demand for coking coal for a number of decades.”

He also made it clear that, at the moment, imports of coking coal come from Australia, the USA and Russia. As I pointed out in the statement, and as the inspector makes clear, no evidence has been provided to suggest that any other metallurgical coal mine in the world aspires to be net zero in the way the Whitehaven development does. Again, the inspector makes it clear that the

“development would to some extent support the transition to a low carbon future as a consequence of the provision of a currently needed resource from a mine that aspires to be net zero.”

The European Commission is clear that coking coal is a critical part of steel and that steel is necessary to the future of Europe. We recognise that the demand for this coking coal, both in the UK and in Europe, is better supplied from a net zero mine than from other alternatives. As the inspector makes clear, this decision will also be responsible for high-skilled, high-value jobs in Cumbria, alongside other jobs in the supply chain elsewhere, and that is without prejudice to the other investment that the Government are making in clean green energy sources alongside it.

The inspector’s report is clear and, in responding to the questions from the hon. Member for Wigan, I urge every Member of the House to read the inspector’s report in full, alongside my decision letter. Those 350 pages lay out the evidence. They present the arguments for and against the decision. The inspector, an independent planning expert, has concluded that this development should go ahead and I agree with him.

[Mark Jenkinson (Workington) (Con)]

I thank my right hon. Friend for the leadership he has shown on this matter, cutting through the noise from the Opposition and implementing the planning inspector’s decision, which acknowledges the ongoing need for coking coal and the lack of alternatives to it in steelmaking. My constituents and I cannot understand why today’s Labour party feels the need to campaign against the UK supply chain and local jobs, and for further emissions through the importation of this necessary coking coal. Can he?

[Michael Gove]

I am grateful to my hon. Friend for his comments. He draws attention to the importance of paying close attention to the inspector’s report. The inspector makes it clear that the industrial decarbonisation strategy, which the Department for Business, Energy and Industrial Strategy produced and which has been endorsed across the House, explicitly

“does not rule out the use of coking coal in an integrated steel making process together with CCUS as a net zero compliant option going forward”.

On the basis of existing policy and the inspector’s recommendation, I have made my decision. As my hon. Friend points out, others—indeed, others from other parties—may make the decision on a party political ground. The decision we have made is purely on the basis of the evidence in front of us.

[Mr Speaker]

I call the SNP spokesperson.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The decision has been condemned by the Chair of the Climate Change Committee. Chris Stark, chief executive of the committee, retweeted that this is

“climate vandalism and economic incompetence on a scale difficult to believe”.

The International Energy Agency previously stated that no further fossil fuel projects can be built if net zero is to be achievable by 2050 and OECD countries need to end use of coal by 2030, so why license this mine to 2049? Ron Deelan, a former chief executive of British Steel, called it

“a completely unnecessary step for the British Steel Industry”.

Chris McDonald, chief executive of the Materials Processing Institute research centre, previously advised that British Steel could not use this coal because it is

“not of the right quality”.

The reality is that 85% of this coal is going to be exported, so talking about cancelling imports is a complete red herring. What we are doing is increasing our carbon footprint to support industry in the EU. It is illogical and we know demand for coking coal will fall, as the EU is further ahead on the development of green steel. Where is the UK progress on green steel? Coking coal is not even identified on the UK’s critical mineral strategy or in the National Security and Investment Act 2021, although it is a critical mineral for the EU. But, clearly, this mine is not needed for the UK. Given this decision, what steps are being taken to rapidly accelerate the net zero pathway, for example, by changing the Scottish carbon capture and storage cluster to track 1 status?

The Secretary of State hides behind the recommendations of the Planning Inspectorate. Why did his Government override the Planning Inspectorate on Sizewell C? This coking coal is not critical for the UK. It is going to be exported, so why has he made this decision just to appease Tory Back-Bench climate change cynics?

[Michael Gove]

I am grateful to the hon. Gentleman for his questions. He quotes a number of individuals and draws explicitly—he was good enough to acknowledge this—party political conclusions. I relied on the inspector’s report and on the evidence in front of me. As I explained in my decision letter, no evidence was provided to suggest that any other metallurgical coal mine in the world aspires to be net zero, so the proposed mine is likely to be much better placed to mitigate greenhouse gas emissions than comparative mining operations around the world. On that basis, it is entirely in keeping with our net zero commitments, and indeed with the commitment to not only jobs, but the environment, to approve the inspector’s case.

[Lee Anderson (Ashfield) (Con)]

I speak as an ex-miner and a net zero champion in this place. I remember a time when the Labour party stood shoulder to shoulder, side by side with the coalmining communities in our great country, but Labour’s treachery has taken a new twist. It has turned its back on the red wall and the coalmining communities. Does my right hon. Friend agree with the right hon. Member for Doncaster North (Edward Miliband), who is not in his place, when he said in 2015, when his local Hatfield colliery was due to be closed, that we should not be importing coal for the Drax power station from places such as Russia and Colombia, and instead should be mining it on our own doorstep?

[Michael Gove]

My hon. Friend makes an important point. The right hon. Gentleman’s comments are on the record in Hansard and are a valuable contribution to this debate.

[Jon Trickett (Hemsworth) (Lab)]

The Secretary of State is probably aware of the statement made yesterday by the Secretary-General of the United Nations that multinational corporations are making ecosystems into “playthings of profit”. The Secretary of State has prayed in aid the inspector’s report, and I accept what the inspector has said. However, the Secretary of State provides the framework for the Planning Inspectorate, so will he not now at least say that he will review the whole of our planning framework to try to protect wildlife, ecosystems and biodiversity, as well as the green belt?

[Michael Gove]

Let me set aside specifically the decision here, where the inspector’s report speaks for itself—I urge the hon. Gentleman and others to read it in full. On the broader point he makes about planning policy, we are bringing forward changes to the national planning policy framework explicitly to defend the green belt, safeguard biodiversity and introduce biodiversity net gain. Those changes that we brought forward were shared in a “Dear colleague” letter that I sent to every Member of the House of Commons. They attracted widespread support from Conservative MPs, but were denounced from the Dispatch Box yesterday by the Leader of the Opposition. I have enormous affection and respect for the hon. Member for Hemsworth (Jon Trickett) and I am grateful for his commitment to the environment. Perhaps he could have a word with the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) and encourage him to take a greener approach towards planning and development overall.

[Holly Mumby-Croft (Scunthorpe) (Con)]

I really welcome this news and the fact that the Secretary of State has found that he does agree with the views of the independent Planning Inspectorate. I warmly congratulate my hon. Friend the Member for Workington (Mark Jenkinson) and others who have campaigned so effectively on this issue. I, for one, will sleep easier in my bed knowing that we have recovered a UK-based capability to supply an incredibly important specialist kind of coal. Does my right hon. Friend agree that the Government must always keep in the forefront of their mind the importance of certain industries and materials for our national resilience and our strategic capabilities? He knows that, as always, I am talking about steel.

[Michael Gove]

On this side of the House, we have had iron ladies, but there is no better champion of steel than my hon. Friend. Whether in Scunthorpe or Port Talbot, jobs depend on the future of our steel industry. Steel is a critical strategic component of our future economy; it will be necessary as we make the transition to net zero. In that context, following the inspector’s report and following the need for coking coal, as he points out, according to experts, for decades to come, I have agreed with the inspector and am convinced that his recommendation for this mine is right.

[Kerry McCarthy (Bristol East) (Lab)]

In recent weeks, we have had the Minister for Energy, Clean Growth and Climate Change almost literally gaslighting the public by claiming that fracking and the new oil and gas licences for extraction in the North sea are green measures. Now the Secretary of State is trying to make the same claim about opening a new coalmine. He tries to claim that this is a net zero coalmine, but will he confirm that that does not take into account the actual burning of the coal?

[Michael Gove]

There are two separate points and the hon. Lady is absolutely right. There is both the operation of the mine itself and the future usage of the coal. The inspector analyses both, and the recommendations that he laid out weighed with me as I made the decision.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

My right hon. Friend has been clear about the distinction between metallurgical coal and coal for power production. Colleagues have spoken about the wisdom of using domestically produced products rather than imported products, as just highlighted by my hon. Friend the Member for Ashfield (Lee Anderson). Will my right hon. Friend take this opportunity to reconfirm the Government’s commitment to net zero by 2050 and the rapid phasing out of coal for power production?

[Michael Gove]

Yes, and I am grateful to my hon. Friend for making that point. We have succeeded, in the past decade or so, in dramatically reducing our reliance on coal for energy generation. It constitutes, I think, only around 2% of the current mix in energy generation, of which renewables constitute an increasing part. As he quite rightly points out, and as I know Members across the House appreciate, the coal that is being produced is metallurgical coal, which is specifically to be used in the steel-making process.

[Sammy Wilson (East Antrim) (DUP)]

I welcome this common-sense and economically sound decision. It is one that will create jobs, will ensure that we do not have to import necessary coal, and, as the inspector has said, will have significant national and regional economic advantages for our economy. Does the Minister agree that, where we have indigenous resources, which this economy needs, it is economically better and more honest to use those rather than import from countries with lower environmental standards and also that might not be relied on? Does he not find it ironic that some of those who are complaining today are the first to complain about not doing enough for poor regions of this country and would be the first in line to complain if steel jobs were lost?

[Michael Gove]

As ever, my right hon. Friend makes his case very eloquently. He is quite right to point out that the inspector gives appropriate weight to the high-skill, high-quality jobs that will be created as a result of this development going ahead.

[Katherine Fletcher (South Ribble) (Con)]

Madam Deputy Speaker, you know me to be a biologist and an environmentalist—I should confess to the House that I also get called a tree hugger by certain hon. Members of this House—but does my right hon. Friend agree that it is the “net” in net zero that is the crucial thing here? We have heard today from the Opposition that this development is not green, but they are wrong. It is better to do this mining on our shores and in a responsible way. Does he agree that the north-west of England has the pride, the heritage, the skills and the future to deliver not only this coking coalmine, but the future industries of 4.0?

--- Later in debate ---

[Michael Gove]

I am tempted to say that any tree that is hugged by my hon. Friend is a very lucky tree.

On the substance of the very important point that my hon. Friend makes, yes, in order to ensure that we have a transition to net zero we do need to reduce our reliance on a variety of different materials. However, as the inspector makes clear, and as my hon. Friend quite rightly points out, the economic benefits that this development brings to the north-west are also entirely consistent with our broader environmental ambitions.

[Clive Efford (Eltham) (Lab)]

The right hon. Member for Reading West (Alok Sharma), the former President of COP, says that 85% of this coal will be exported. Is he wrong?

[Michael Gove]

The inspector makes it clear in his report that, by sourcing coal from this mine, there will be a beneficial effect in terms of greenhouse gas emissions.

[Bob Blackman (Harrow East) (Con)]

Cumbria planning committee, after careful consideration, approved this planning application. The Secretary of State then called it in for an independent review. The independent planning inspector, after careful consideration of all the evidence, recommended approval. Given my confidence that my right hon. Friend is a rational man, does he not agree that it would be completely irrational to override the recommendations of the planning inspector and refuse this planning application, which has great benefit to the United Kingdom?

[Michael Gove]

My hon. Friend has a matchless knowledge of the planning process. Again, I urge all colleagues to read my decision letter and also the inspector’s report, which gives a full account of all the evidence that was placed before him. As I said in my statement, this planning application has given rise to strong feelings on both sides, but the inspector’s report lays out a particular case and, as I read the inspector’s report and saw the conclusions that he drew, so my decision letter followed. I hope that all colleagues will have the chance to read the report and make their own judgments.

[Wera Hobhouse (Bath) (LD)]

This decision makes a travesty of the word “transition”. It is a full-blown backward step to more fossil fuel in the UK. In June, the Government overturned a local planning decision not to allow drilling at Horse Hill in Surrey. Now we have mining in Cumbria. This is a trend, and as we have heard, most of the coal is for export, not for local or UK need or use. Industry needs to make a profit, hence the vast quantity that it wants to export for profit for the fossil fuel industry. If the issue is that the Government are stuck with a quasi-judicial planning decision, is it not high time for root and branch reform of the planning system to put net zero at the core of every decision, rather than bending to the fossil fuel industry?

[Michael Gove]

Again, I urge the hon. Lady, who I know takes environmental issue seriously, to look at the inspector’s report in full. She should look, for example, at paragraph 21.127, where the inspector outlines that there will be

“some, but unquantifiable, likely reductions in GHG emissions from transportation”

as a result of domestic production. Looking at the report in full and in the round, she will see that all the environmental arguments, which she takes seriously, are rehearsed, considered and then an appropriate conclusion is made.

Entirely separate to the planning inspector’s report, I would welcome her and her and party’s contribution to the consultation on the national planning policy framework that we have put forward. I am sure that she will find in that a number of measures that will meet the concerns that she and others have expressed in order to safeguard our environment more effectively.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

Bassetlaw has a proud mining history. Along with many of my constituents, I praise my right hon. Friend for the leadership and the pragmatism that he has shown on this issue. There has been concern about importing our coking coal from countries with lower environmental standards than ourselves. We need metallurgical coking coal for making steel, as has already been said, but now we can mine to our high environmental standards, and, of course, also cut out the need for transportation halfway across the world. Does my right hon. Friend agree that, far from having a negative effect on our own net zero ambitions, this decision actually reinforces them?

[Michael Gove]

My hon. Friend will know how rare it is that I quote from the European Commission approvingly. However, in the inspector’s report he quotes from the European Commission and says that it recognises

“the indispensable role of coking coal during the steel industry’s transition to climate neutrality.”

As my hon. Friend has pointed out, expertise cited by the inspector all points to the wisdom of allowing this mine to go ahead.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

The world is currently meeting in Montreal for COP15 to deal with the pressing climate and nature crisis that we are facing. A common message from there is that coal should be kept in the ground. It will be incredibly difficult for the Government to convince the public at home and abroad that opening a new coalmine is dealing with that urgent climate crisis in a progressive way. His colleague, the former COP26 President, described this decision as an “own goal”, so may I ask the Secretary of State whether he thinks approving a new coalmine in the middle of a climate crisis will enhance or damage Britain’s reputation as a global green leader?

[Michael Gove]

Again, I stress the importance of looking at what the inspector says. The hon. Gentleman quite rightly points out that international partners are meeting in Montreal, alongside the UK, in order to uphold the importance of biodiversity and to help protect species. I should point out that in paragraph 21.163 of the inspector’s report the inspector specifically addresses the question of biodiversity and says that he

“is satisfied that the Supplemental Undertaking”—

given by the applicant—

“would ensure that the proposed development would provide for a minimum net gain”—

in biodiversity—

“of 10% prior to the commencement of production and further net gain to be achieved on restoration.”

The inspector took account of biodiversity in coming to his judgment, and so have I.

[James Daly (Bury North) (Con)]

Does my right hon. Friend agree that the evidence before the inquiry pointed to the fact that blast furnace-basic oxygen furnace production is likely to continue in the UK and Europe until at least 2040 and probably 2050? If we need coking coal up to 2050, what on earth are other parties in this Chamber doing arguing we should import it from Russia rather than creating 500 high-paid, high-skilled jobs in Cumbria, transforming our economy, supporting the steel industry and delivering on our levelling-up promises?

[Michael Gove]

My hon. Friend makes a very important point. As the inspector notes, new alternative technologies being developed will mean that reliance on coking coal can be reduced over time. However, on the evidence put in front of the inspector, there will be a need for coking coal for decades to come and it is better that it comes from a net zero metallurgical mine, of which this is the only one that the inspector is aware that exists in the world.

[Claire Hanna (Belfast South) (SDLP)]

This is a backwards step and hon. Friends have rightly laid out the regressive environmental impact and what that says about the Government’s seriousness on net zero. My party colleagues in the Assembly used the devolved powers they had to ensure a moratorium on fracking in Northern Ireland, but there is genuine concern about the potential for this Government to make similar unwanted and damaging decisions in our region, in the absence of the protection of devolution. Can the Secretary of State confirm that any extraction decisions are for devolved Ministers in Northern Ireland, where a majority of people want to keep fossil fuels in the ground and want instead to see investment in renewables and their huge potential for green jobs?

[Michael Gove]

I appreciate the hon. Lady’s position. If she will forgive me, I shall not be drawn into the question of Executive formation in Northern Ireland. I know everybody wants to make sure we can make progress there and I take into account the importance she rightly places on devolved decision making; that is an aspiration I share.

[Chris Green (Bolton West) (Con)]

The Opposition have no concern over European and other countries burning lignite to power their industries and rarely distinguish between thermal and metallurgical coal. Will my right hon. Friend renew his commitment to evidence-based policymaking and the ongoing revival of British mining and manufacturing?

[Michael Gove]

Again, the 350-page report looks at all the evidence and the competing arguments before coming to that conclusion. I know my hon. Friend, like many colleagues, looked closely at that report before coming to his own judgment, and I urge all colleagues across this House to do so.

[Richard Burgon (Leeds East) (Lab)]

The hon. Member for Bolton West (Chris Green) talks about the ongoing revival of coal mines. Not only is this decision an act of climate vandalism, but steel industry experts say it is completely unnecessary and that the British steel industry needs green investment. We know that solving the energy crisis and securing good, local, well-paid jobs across the country are important, but is not investing in renewables and the national programme of housing insulation the real way to do that?

[Michael Gove]

The Government are investing in renewables, and the leadership that has been shown by the UK Government and partners across the UK in the provision of offshore wind is a demonstration of that. As I pointed out, when it comes to offshore and onshore wind, steel is a critical component in the manufacture of the turbines that we rely on. If we are to continue to produce steel in future, we will need coking coal for decades to come, and the inspector concludes it is better that it comes from a mine that is net zero.

[Scott Benton (Blackpool South) (Con)]

I commend the Secretary of State on taking this bold decision, which will help to create hundreds of high-skilled, high-value jobs in a part of the country long forgotten by the Labour party. Does he agree that it would be foolish to leave strategic industries such as steel production reliant on materials sourced from our economic competitors, when we can source the materials we need here at home?

[Michael Gove]

My hon. Friend makes a very good point. Again, I refer back to my decision letter, in which I acknowledge that the inspector makes the point in paragraph 21.121 that the effects of downstream emissions as a result of the extraction of this coal

“may well be considered neutral or slightly beneficial when compared with other extractive sources.”

He is referring to the foreign sources of coal that my hon. Friend refers to.

[Margaret Greenwood (Wirral West) (Lab)]

I think the Secretary of State has just admitted to my hon. Friend the Member for Bristol East (Kerry McCarthy) that when he talks about net zero, he does not factor in the use of the coal extracted. Does he not respect the expertise of the right hon. Member for Reading West (Alok Sharma), the former COP26 President? He said:

“Opening a new coal mine will not only be a backward step for UK climate action but also damage the UK’s hard-won international reputation, through our @COP26 Presidency, as a leader in the global fight against climate change”.

This is an important issue. People are really concerned about climate change. I ask the Secretary of State to think again.

[Michael Gove]

I am grateful to the hon. Lady for making her point. Again, the inspector makes clear that, whether we use coking coal from the UK or elsewhere, there will automatically be emissions. However, taking every piece of evidence in the round, given the continued reliance upon coking coal—the inspector makes clear that that is likely for decades to come—it is better that it comes from this mine rather than from other sources abroad.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for his comprehensive and detailed statement. Can he confirm, and is he satisfied, that all steps will be taken and have been taken to protect the surrounding environment, that health and safety will also be paramount, and that local people living nearby have been closely and fully consulted?

[Michael Gove]

I am very grateful to the hon. Gentleman for making all those points. On one level I am sorry to keep returning to the inspector’s report, but it is important to return to it, and it deals with all those issues and more. I will use the opportunity of the hon. Gentleman’s question to say to the House and to other interested parties that of course I have sought to answer every question put to me as fully as possible, with reference to the inspector’s report, but nothing I have said in this Chamber in response to questions should be taken account of without also taking account of all the arguments in the inspector’s report and my decision letter. I am grateful to so many colleagues for taking this important issue seriously, and I urge all interested parties to read the full inspector’s report in order to understand the arguments that were put to him and that he eventually judged.

Devolution: England

Michael Gove Excerpts

Thursday 8th December 2022 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

The levelling-up White Paper set out the Government’s ambition that, by 2030, every part of England that wants one will have a devolution deal with powers at or approaching the highest level of devolution and a simplified, long-term funding settlement. Stronger, more empowered, and more accountable local leadership is core to our levelling-up mission, to delivering on the ground, to growing our local economies and to improving public services.

In summer 2022, the Government concluded devolution deals with York and North Yorkshire, and that part of the east midlands which includes Derby, Derbyshire, Nottingham, and Nottinghamshire. Subject to the ongoing local consultations and satisfactory completion of the statutory processes, including local consent by the councils and parliamentary approval of the secondary legislation to implement the deals, the inaugural mayoral elections are planned for May 2024. The east midlands deal is also dependent on the enactment of provisions in the Levelling Up and Regeneration Bill necessary for the establishment of the proposed East Midlands mayoral combined county authority.

The Government have now concluded three more devolution deals with Cornwall, Norfolk and Suffolk. These are the first set of the new county deals that extend devolution to more of England. Each deal will result in the election of a Mayor or directly elected leader to champion the area with Government and business. These deals are subject to locally run consultations, resolution by each of Cornwall Council, Suffolk County Council and Norfolk County Council to change their governance models so that electors directly elect the council leader, and to the satisfactory conclusion of the statutory processes, including local consent from the councils and parliamentary approval to the secondary legislation to implement the deals. Inaugural elections for a Mayor or directly elected leader in each of the areas are planned for May 2024. They will have the choice of alternative titles to “Mayor” for these elections, subject to provisions in the Levelling Up and Regeneration Bill being enacted.

These five new devolution deals will drive forward improved outcomes for the 5 million people that live in those areas. Taken together, they take the proportion of England now covered by a devolution deal to above 50% for the first time. They will deliver new funding including long-term investment funds to invest in local priorities that drive growth and levelling up, totalling over £3 billion over 30 years.

The Government are also in advanced negotiations on a north east devolution deal that will supersede the current North of Tyne combined authority that covers only Newcastle, North Tyneside and Northumberland. A deal is expected to be concluded shortly and further details will be announced.

Negotiations on trailblazer deeper devolution deals with the west midlands and Greater Manchester combined authorities are progressing well and expected to conclude early in 2023. These deals seek to devolve further powers in areas such as skills, transport, housing and net zero, alongside potential department-style single funding settlements and stronger accountability focused on outcomes. They will act as a blueprint for other areas to follow. We are interested in other MCAs coming forward with ideas for new functions. We will begin talks with other MCAs on deeper devolution from next year. The Government will set out more on plans for those talks soon.

Effective devolution requires local leaders and institutions that are transparent and accountable. This is why the Government will be publishing the devolution accountability framework in early 2023, alongside a funding simplification plan, setting out the accountability mechanisms for MCAs, the Greater London Authority and other institutions that have agreed a devolution deal. It will set out how they are scrutinised and held to account by the UK Government, local politicians and business leaders and above all by the residents and voters of their area. This work will be supported by planned improvements to the broader local government accountability framework including the establishment of the office for local government.

The Government will step ahead in extending devolution in England further. We will continue to work with local government in England to roll out further mayoral combined authorities, combined county authorities, and county deals. Discussions with places to identify potential candidates for the next set of new devolution deals will start in early 2023. The Government are particularly interested in exploring opportunities for devolution deals that will empower local leaders and communities where places want a directly elected leader, in line with the devolution framework published in the levelling-up White Paper.

The above demonstrates strong progress towards achieving the 2030 local leadership mission, which is essential to levelling up. In these areas across England, more of the decisions which matter to people—on transport, housing, and skills—will be taken by locally elected, democratically accountable leaders rooted in their place and empowered to level up.

[HCWS424]

National Planning Framework: Onshore Wind Development

Michael Gove Excerpts

Tuesday 6th December 2022 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

By the end of this year, the Government will undertake a technical consultation on the national planning framework for onshore wind development in England. That consultation will conclude by the end of March next year.

The Government recognise the range of views on onshore wind. We believe that decisions on onshore wind are best made by local representatives who know their areas best and underpinned by democratic accountability. To deliver this, and our commitments in the British Energy Security Strategy, we will consult on a more localist approach that provides local authorities more flexibility to respond to the views of their local communities.

Through consultation with local authorities, communities and businesses, we intend to make changes to the National Planning Policy Framework by the end of April 2023 so that:

Permission is predicated on demonstrating local support for the project and satisfactorily addressing the project’s planning impacts as identified by local communities, learning from best practice and using new digital engagement techniques.

Local authorities can demonstrate their support for certain areas in their boundaries to be suitable for onshore wind to enable us to move away from the overly rigid requirement for onshore wind sites to be designated in a local plan.

In the consultation, we also want to consider how the planning framework best:

Supports communities to have a say on the necessary infrastructure to connect wind farms to the grid.

Encourages the upgrading of existing wind farm sites.

We will also consult on developing local partnerships for supportive communities who wish to host new onshore wind infrastructure in return for benefits, including lower energy bills.

Legislation from the Conservative Government in 2016 ensured that all onshore wind applications are considered by local councils rather than through the Nationally Significant Infrastructure Projects regime. This will continue to be the case.

We recognise the concerns expressed by local communities on the appropriate siting of onshore wind farms, which is why the Conservative Government in 2015 strengthened planning protection.

We should continue to ensure our valued landscapes are protected, particularly National Parks, Areas of Outstanding Natural Beauty and the Green Belt. This will continue to be the case, and the combination of robust national and local planning policies will give sufficient weight to be able to rebuff unwanted speculative ‘development by appeal’.

[HCWS416]

Planning System and Levelling-up and Regeneration Bill

Michael Gove Excerpts

Tuesday 6th December 2022 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

I will be making further changes to the planning system, alongside the Levelling Up and Regeneration Bill, to place local communities at the heart of the planning system.

I will set out more detail on the following approach in an upcoming National Planning Policy Framework prospectus, which will be put out for consultation by Christmas.

Community Control

I will retain a method for calculating local housing need figures, but consult on changes. I do believe that the plan-making process for housing has to start with a number. This number should, however, be an advisory starting point, a guide that is not mandatory. It will be up to local authorities, working with their communities, to determine how many homes can actually be built, taking into account what should be protected in each area—be that our precious Green Belt or national parks, the character of an area, or heritage assets. It will also be up to them to increase the proportion of affordable housing if they wish.

My changes will instruct the Planning Inspectorate that they should no longer override sensible local decision making, which is sensitive to and reflects local constraints and concerns. Overall this amounts to a rebalancing of the relationship between local councils and the Planning Inspectorate, and will give local communities a greater say in what is built in their neighbourhood.

Local Plans

We will end the obligation on local authorities to maintain a rolling five-year supply of land for housing where their plans are up-to-date. Therefore for authorities with a local plan, or where authorities are benefitting from transitional arrangements, the presumption in favour of sustainable development and the ‘tilted balance’ will typically not apply in relation to issues affecting land supply.

I also want to consult on dropping the requirement for a 20% buffer to be added for both plan making and decision making—which otherwise effectively means that local authorities need to identify six years of supply rather than five. In addition, I want to recognise that some areas have historically overdelivered on housing—but they are not rewarded for this. My plan will therefore allow local planning authorities to take this into account when preparing a new local plan, lowering the number of houses they need to plan for.

Places with existing plans will benefit from the changes above, as they will be free of five-year land supply obligations provided that plan is up to date. However, I am aware that those with local plans at an advanced stage of preparation will not benefit from these changes so I will also put in place transitional arrangements. Where authorities are well-advanced in producing a new plan, but the constraints which I have outlined mean that the amount of land to be released needs to be reassessed, I will give those places a two year period to revise their plan against the changes we propose and to get it adopted. And while they are doing this, we will also make sure that these places are less at risk from speculative development, by reducing the amount of land which they need to show is available on a rolling basis—from the current five years to four.

I will increase community protections afforded by a neighbourhood plan against developer appeals—increasing those protections from two years to five years. The power of local and neighbourhood plans will be enhanced by the Bill; and this will be underpinned further through this commitment. Adopting a plan will be the best form of community action—and protection. Furthermore, we will clarify and consult on what areas we propose to be in scope of the new national development management policies, and we will consult on each new policy before it is brought forward by the Government. National development management policies will also not constrain the ability of local areas to set policies on specific local issues.

I will consult on the detail of proposals increase planning fees, including doubling fees for retrospective application where breaches of planning have occurred, as soon as possible. I will also consult on a new planning performance framework that will monitor local performance across a broader set of measures of planning service delivery, including planning enforcement.

Build Out

I already have a significant package of measures in the Bill to ensure developers build out the developments for which they already have planning. I will consult on two further measures:

on allowing local planning authorities to refuse planning applications from developers who have built slowly in the past; and

on making sure that local authorities who permission land are not punished under the housing delivery test when it is developers who are not building.

I will also consult on our new approach to accelerating the speed at which permissions are built out, specifically on a new financial penalty.

Character of a Developer

I have heard and seen examples of how the planning system is undermined by irresponsible developers and landowners who persistently ignore planning rules and fail to deliver their legal commitments to the community. I therefore propose to consult on the best way of addressing this issue, including looking at a similar approach to tackling the slow build out of permissions, where we will give local authorities the power to stop developers getting permissions.

Brownfield First

The new infrastructure levy will be set locally by local planning authorities. They will be able to set different levy rates in different areas, for example lower rates on brownfield over greenfield to increase the potential for brownfield development. That will allow them to reflect national policy, which delivers our brownfield first pledge by giving substantial weight to the value of using brownfield land.

I will consult to see what more we can do in national policy to support development on small sites particularly with respect to affordable housing and I will launch a review into identifying further measures that would prioritise the use of brownfield land. To help make the most of empty premises, including those above shops, I am reducing the period after which a council tax premium can be charged so that we can make the most of the space we already have. I will also provide further protection in national policy for our important agricultural land for food production, making it harder for developers to build on it.

The Housing Market

I intend to deliver a new tourist accommodation registration scheme as quickly as possible, working with DCMS, starting with a further short consultation on the exact design of the scheme. I will also consult on going further still and reviewing the Use Classes Order so that it enables places such as Devon, Cornwall, and the Lake District to control changes of use to short term lets if they wish.

I have also asked the Competition and Markets Authority to consider undertaking a market study. I believe the case is clear for it to take this forward, but respect its independence as it comes to a decision.

These reforms will help to deliver enough of the right homes in the right places and will do that by promoting development that is beautiful, that comes with the right infrastructure, that is done democratically with local communities rather than to them, that protects and improves our environment, and that leaves us with better neighbourhoods than before.

[HCWS415]

Homelessness Prevention Grant: Additional Funding

Michael Gove Excerpts

Monday 5th December 2022 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

The Government understand the pressures people are facing with the cost of living and have taken decisive action to support households. This includes the energy price guarantee, to support households with their energy bills over the winter, and a further £37 billion of support for the cost of living this year. At autumn statement the Chancellor also unveiled £26 billion of support to protect the most vulnerable households in 2023-24.

I recognise that some vulnerable households may find themselves at risk of homelessness and may need additional support. The Government want to make sure councils are able to respond effectively to support households and prevent homelessness.

Homelessness Prevention Grant—winter 2022 financial support

I am therefore announcing an additional £50 million that will be made available to local authorities in England in 2022-23 through a top-up to the homelessness prevention grant. The additional funding will support local authorities to help prevent vulnerable households from becoming homeless. Local authorities will target this funding to those who need it most to help manage local homelessness pressures.

The details of individual local authority allocations can be found here: https://www.gov.uk/government/publications/homelessness-prevention-grant-2022-to-2023. This additional £50 million investment builds on the £316 million in funding already available to local authorities through the homelessness prevention grant for 2022-23, bringing total spend through that grant to £366 million. This is part of £2 billion of Government funding to tackle homelessness and rough sleeping over the next three years.

[HCWS410]

Oral Answers to Questions

Michael Gove Excerpts

Monday 21st November 2022 Commons Chamber

[Dame Angela Eagle (Wallasey) (Lab)]

4. What recent assessment he has made with Cabinet colleagues of the potential impact of increases in (a) interest rates and (b) inflation on regional inequality.

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

It is because we are concerned about the impact of inflation and increases in interest rates that this autumn statement protected the most vulnerable by uprating benefits and pensions with inflation, strengthening the energy price guarantee, and providing cost of living payments.

With your permission, Mr Speaker, I would also like to update the House on the score in Qatar: it is now 5-1 to England. I feel it is appropriate for me to do this because the hon. Member for Nottingham North (Alex Norris) has been providing a running commentary on the answers being given from the Treasury Bench, so it is only fair that we provide a running commentary that the country actually wants to hear.

[Mr Speaker]

Excuse me! Secretary of State, I thought you were in charge of levelling up—it doesn’t look that way with that score!

[Dame Angela Eagle]

I would have informed the House of that, had the Secretary of State not got there before me. After promising to match EU structural funds in the Government’s manifesto, and then taking £1 billion a year out of them for the replacement shared prosperity fund, how can the Secretary of State claim to be levelling up when his Government have presided over a net loss in funding across the country, including in the north-west, which stands to lose £206 million under the shared prosperity fund, which the Government have failed even to inflation-proof?

[Michael Gove]

It is not just the UK shared prosperity fund, but the levelling-up fund that has seen money go to not just Liverpool city region, but all those areas we are targeting that have been overlooked and undervalued in the past. Specifically, the UK shared prosperity fund has provided £52 million for the Liverpool city region—money that I know will be well invested by Steve Rotheram and others.

[Michael Fabricant (Lichfield) (Con)]

May I pay tribute to the Iranian team, who refused to sing their national anthem, which was very brave of them?

In areas such as Lichfield, which have very high property prices, people who hold mortgages will also be affected by high interest rates. Although Lichfield is generally regarded as an area to which others might wish to level up to, we do have areas of deprivation. For that reason, may I urge my right hon. Friend to look at our levelling-up bid because it is desperately needed for Lichfield’s people—not those in expensive houses, but those who are in more difficult positions?

[Michael Gove]

Lichfield is the jewel of Staffordshire, but even the most glittering jewels sometimes have flaws and, as a rough diamond himself, I know that my hon. Friend will appreciate that. I recognise that there is a need to help all those parts of the United Kingdom and the west midlands where, even though there may be prosperity, there is inequality that needs to be addressed.

[Mr Speaker]

I call the shadow Secretary of State, Lisa Nandy.

[Lisa Nandy (Wigan) (Lab)]

I welcome the update on the football scores; it foreshadows what we intend to do to the Government side at the next general election. The truth is, before they crashed the economy, they were already struggling. Twelve months; 12 directors not in post; 12 missions going backwards. Only a third of the levelling-up funds has been allocated, and after wasting our time with the short-lived investment zones, the second round is months behind schedule. According to a circular, a local planning department performing at this level would have been put into special measures by now, by the Secretary of State. Can we bring some sense to this madness, end the “Hunger Games”-style competition, and allow all our communities—not just his favourites—to decide how their own money is spent?

[Michael Gove]

I welcome the questions from the Marcus Rashford of the Labour party—the person coming on at the last minute may actually change the fortunes of the team for the better, who knows? I wish the hon. Lady good luck in all future penalty shoot-outs. If it is “The Hunger Games” we are talking about, it is the Labour party leadership contest that is closer to that than any other contest in this House. On the substantive point that she makes, it is important that we look at how we fund local government overall. There of course needs to be competitive funding to make sure we can learn from the best, but we need to look at formula funding as well, and we shall.

[Lisa Nandy]

I am more than happy to be compared to Marcus Rashford, feeding our kids when the Government let them go starving hungry. We have almost as many funding pots in the Secretary of State’s Department as we have had Ministers in the past 12 months. Can he not see the problem? We both know that the only way out of this crisis is to get local and regional economies growing, so how can it be that the key Department responsible for that was the biggest loser in last week’s autumn statement? It makes no sense, unless the Government have collectively decided to abandon attempts to level up our regional economies. Can he clarify this for the House: when they came for his budget, was he just ignored by the Chancellor, or did he not put up any fight at all?

[Michael Gove]

The autumn statement was at a time of challenging news for the global economy. It was absolutely the right response and, again, not only did we secure a significant, record increase in funding for local government at the previous spending review, but we, as my hon. Friend the Member for North East Derbyshire (Lee Rowley) pointed out, secured billions additionally for adult social care and for children’s services. Once more, local government is securing the funding it needs under a Conservative Government who are putting stability and growth first.

[Matt Warman (Boston and Skegness) (Con)]

6. What steps he is taking to support mixed-use developments.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

24. What recent discussions he has had with his counterparts in the devolved Administrations on the potential impacts of (a) levels of Government spending and (b) the cost of living on the levelling-up agenda.

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

Ministers meet their counterparts in the devolved Administrations regularly, and on 10 November the Prime Minister and First Ministers met in Blackpool to discuss the economic outlook and working together on the cost of living. The Chancellor of the Exchequer joined that meeting virtually. The Chief Secretary to the Treasury met with Finance Ministers in the context of the autumn statement, and officials in all Departments remain in constant contact in the interests of all of the people across these islands.

[Gavin Newlands]

This Government like to talk levelling up, but implementation delays have robbed poorer areas of £1.5 billion, with an additional £0.5 billion lost due to spiralling inflation. The Tories de-industrialised west central Scotland in the 1980s. We are bringing it back with the advanced manufacturing innovation district, including the National Manufacturing Institute Scotland and the medicines manufacturing innovation centre in my constituency. When might we hear that this Government will play their part by ensuring that the stand-out Clyde Green freeport bid and the Renfrew community hub levelling-up bid will be successful?

[Michael Gove]

We will announce shortly the details of levelling-up bids and freeport bids. But when it comes to delays in implementation and the industrial investment that the west of Scotland needs, I simply and gently draw the hon. Gentleman’s attention to the divergence between a UK Government who have recently delivered six new warships on the Clyde and the Scottish Government who in the meantime could not even finish painting the windows on a ferry.

[Alan Brown]

We are supposed to be eternally grateful for the £1.5 billion of Barnett consequentials over two years, but that is easily dwarfed by the £1.7 billion of inflationary pressures on the Scottish budget this year. When the Secretary of State discussed with the Scottish Government Scotland’s needs, such as the need to cover that £1.7 billion inflation cut, the additional money for pay and their other spending priorities, did he just ignore what they were saying?

[Michael Gove]

No, we never ignore what the Scottish Government are saying. We have fruitful relationships with Ministers in not just the Scottish but the Welsh Government. I gently point out to the hon. Gentleman that, although he rightly acknowledges the Barnett consequentials—the Union dividend—that the Treasury pays to the people of Scotland, when he talks about inflation, he does not acknowledge that, if we were to follow the Scottish National party’s approach to a separate currency for an independent Scotland, we would see a flight of capital, massive interest rate increases and galloping inflation there. There would be no worse consequence for working people in Scotland than the currency folly that his colleagues put forward.

[Virginia Crosbie (Ynys Môn) (Con)]

I am delighted to support the Isle of Anglesey County Council’s £17 million levelling-up bid, which includes excellent representation from the Holyhead Town Council, Môn CF, the Ucheldre Centre and the Church of Wales. Does the Secretary of State agree that the levelling-up fund can transform places such as Holyhead? Can we have an update on timing? Will he accept my invitation to see first-hand how transformational the fund could be to Holyhead?

[Michael Gove]

Yes. Every time I visit Wales, I am continually impressed by the superb advocacy that Conservative MPs bring to bear for their communities, not least in Ynys Môn. I look forward to making that visit, I hope, early in the new year after the levelling-up fund bids will have been confirmed.

[Mr Speaker]

I call the SNP spokesperson, Patricia Gibson.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

It has been quite something to listen to hon. Members on both sides of the House arguing for more powers for councils in England while they conspire to prevent powers for the Scottish Parliament—they are better together. After several tumultuous and wasted months while the Tories fought with each other as households struggled, I welcome the Secretary of State back to his place. During the autumn statement, levelling up did not merit a single mention, yet we are told that it is the Government’s flagship policy. With deeper austerity cuts slated for after the next election, the future of the levelling-up agenda is more in doubt than ever. Does he agree that levelling up requires a long-term commitment and that a levelling-up agenda cannot credibly survive the planned Tory austerity on stilts?

[Michael Gove]

The hon. Lady knows that I have enormous affection for her. As one of the first and most effective advocates for levelling-up funding going to her constituency, alongside the Holyrood representative for that constituency, I look forward to working with her and her colleagues to make sure that the levelling-up fund bids from Scottish authorities, which are enthusiastically supported by many SNP colleagues, are delivered on time. It is wonderful to see so many people in the Scottish National party arguing for more UK Government spending in their constituencies—long may it be so.

[Patricia Gibson]

Despite what we have just heard, the Office for Budget Responsibility estimates that there will be a 7.1% fall in real-terms wages over the next two years in the sharpest fall in living standards since the second world war. That is before the Government implement their new rocket-charged austerity agenda, which will reduce living standards significantly more—so much for levelling up. With Scotland short-changed and suffering from a Brexit-inflated recession as part of broken Britain, can the Secretary of State explain if that is why the Government are reduced to seeking to deny democracy to Scotland, because Scots now know that, with all the powers of an independent country, we could do better?

[Michael Gove]

It is certainly the case that there are many talented politicians in the Scottish Government and on the SNP Benches, including the hon. Lady. I gently point out, however, that in England, there has been a devolution of powers to local government, and there has been cross-party consensus between Labour and the Conservatives that we should have that. Sadly, while the Scottish Government have been in power, we have seen no similar devolution of powers to local authorities in Scotland; quite the opposite: we have seen centralisation, with business rates hitting the north-east of Scotland and Police Scotland centralising powers in a way that goes against the spirit of trusting local people. I know from the many conversations I have with people in the north-east, the highlands, the islands and the Borders, that they wish to change the central belt centralisation of the Scottish Government—and I know that she agrees.

[Grahame Morris (Easington) (Lab)]

10. When he plans to announce the successful bids from the levelling-up fund round 2.

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[Simon Jupp (East Devon) (Con)]

T2. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

The House will, of course, be aware that following the tragic death of Awaab Ishak, the chief executive of Rochdale Boroughwide Housing stood down at the weekend, but there is still so much more to do to ensure that the lessons from that tragedy are learned. I have written to local authorities and registered social landlords, to ensure that the dangers of damp and mould are at the front of all our minds, and further action will be taken in due course.

[Simon Jupp]

Colleagues across the House are eagerly awaiting the results of the latest round of the levelling-up fund, and I obviously want to draw the attention of my right hon. Friend to Devon County Council’s bid to cut congestion in Exmouth. Does he agree that levelling up must make a real difference in every region, including mine in the south-west?

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[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is almost five and a half years since the horror of Grenfell, yet the building safety crisis remains unresolved for the vast majority of affected leaseholders. Will the Secretary of State tell the House when the overdue developer remediation contract will be published? When will Ministers finally resolve the problems relating to mortgages and buildings insurance, and when will those leaseholders who are currently excluded from protections learn whether their Government intend to help or abandon them?

[Michael Gove]

Across the House there is a determination to ensure that the terrible tragedy of Grenfell is met with appropriate steps, both legislatively and in regulatory terms, and also that those who are trapped in buildings through no fault of their own are given the opportunity to move on with their lives. We will shortly be publishing the details of those contracts. We are meeting lenders to discuss moving away from the situation in which so many people have found themselves, and we are also talking to the insurance industry about the steps we need to take.

[Damian Green (Ashford) (Con)]

T3. In the care White Paper the Government committed to investing £300 million in supported housing for people with long-term health conditions, the numbers of whom are likely to go up by 125,000 this decade. In the wake of the autumn statement, will the Secretary of State assure me that that money is still available?

[Richard Burgon (Leeds East) (Lab)]

T8. Tory austerity has hit councils hard. Under the Tory Government, Leeds City Council has been hit by cuts of £2 billion, which is money needed for key local services. Would not another round of austerity be an act of Government vandalism punishing the poorest areas in our country?

[Michael Gove]

No.

[Bob Blackman (Harrow East) (Con)]

T5. I thank my hon. Friend for her support on Friday in the debate on my private Member’s Bill. Has she seen in today’s Inside Housing that last year exempt accommodation cost 174 of 333 councils a staggering £883.5 million, with 100 authorities who provide it not reporting anything? Given that huge amounts of money are going out the door—potentially to rogue landlords—will she commit to closing the loophole as fast as possible?

[Tony Lloyd (Rochdale) (Lab)]

I strongly welcome the Secretary of State’s letter to local authorities over the weekend. It is right and proper that mould should be seen as a serious hazard to health. Does he agree that we also need regulatory powers, with resources to allow local government to implement those powers? Without that, we are simply using words and not action.

[Michael Gove]

The hon. Gentleman makes an important point. We do place responsibilities on local authorities—the letter reinforces that—but they do need to be appropriately resourced. I look forward to working with them to ensure that the personnel and resources are there to keep everyone safe.

[Sir Christopher Chope (Christchurch) (Con)]

T6. May I ask the Secretary of State direct how he believes it is either compassionate or conservative to be increasing council tax poverty? What message does he have for thousands of households in Dorset who next year will have to pay more than £90 every week in council tax as a direct result of his failure to reform the grant funding system?

[Michael Gove]

I say to my hon. Friend, who is a brilliant advocate for his constituents, that we face a need for economy across the board and, funnily enough, as Opposition MPs have reminded us, the council tax base is often broader in areas that are relatively more prosperous such as those that he represents. Of course, I recognise the strains and pressures faced by his constituents. However, at a time when belts are having to be tightened everywhere, although it is a terrible thing to say, I actually feel sorrier for some people not in Christchurch but in other parts of the country because the relatively wealthy and the relatively older in our country already have it relatively better.

[Rachael Maskell (York Central) (Lab/Co-op)]

Since I met the Secretary of State, the pace of short-term holiday lets in my constituency has exploded, with the flipping of private rented homes and the hoovering up of homes to purchase meaning that people in my constituency have nowhere to live. When will he bring forward legislation to license short-term holiday lets? Will he support my private Member’s Bill, which aims to do that?

[Michael Gove]

The hon. Lady raises an important issue also raised by Members from North Devon, North Norfolk and elsewhere. Through the Levelling-up and Regeneration Bill and other measures, in co-operation with the Department for Digital, Culture, Media and Sport, we are looking at what we can do to alleviate some of the pressures that her constituents and others face.

[Maggie Throup (Erewash) (Con)]

T7. Our precious green belt should never be prioritised over brownfield sites. However, local authorities are coming under increasing pressure to include green belt in their core strategies because of unfair housing targets. Will my right hon. and learned Friend help councils to better implement a “brownfield first” policy by reforming the formula used to set housing targets? Will she meet me and representatives from Erewash Borough Council to discuss the matter further?

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[Michael Gove]

The hon. Gentleman makes an important point. Organisations in the private sector, such as the one in his constituency, are contributing to dealing with the building safety crisis. It is the responsibility of Homes England and indeed my Department to make sure that small and medium-sized enterprises that are making a contribution are promptly paid. I have raised the issue with Homes England and in the Department, and I hope that prompt payment will follow. I am grateful to the hon. Gentleman for speaking up for small business in his constituency.

[Sir Paul Beresford (Mole Valley) (Con)]

T9. Will my right hon. Friend take steps to ensure that green-belt sites set aside for housing in local council draft plans are removed prior to plan adoption?

[Daisy Cooper (St Albans) (LD)]

Taxpayers in St Albans district are shelling out £3 million a year to subsidise big developers because the Government’s cap on planning fees prevents my local councils from charging the full amount for processing a big application, and last week I tabled the presentation Bill to scrap that cap. Given the enormous pressures on household budgets, will the Secretary of State meet me to discuss how we can urgently address this issue, perhaps through the Levelling-up and Regeneration Bill?

[Michael Gove]

I sympathise with the position in which the hon. Lady’s constituents find themselves, We can certainly do more to ensure that developers pay their way when dealing with applications of this kind. One of my colleagues would happily meet her.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

There is overwhelming evidence that the building blocks for lifelong emotional and physical wellbeing are laid down during the first 1,001 days of human life. Does my right hon. Friend agree that supporting that is the best piece of levelling up we could possibly do? What more can he do to ensure that family hubs and joined-up start for life services are rolled out right across England as soon as possible?

[Michael Gove]

My right hon. Friend is absolutely right, and her impassioned advocacy of better support for children and families in the first 1,001 days of a child’s life has helped to shape Government policy. The wider roll-out of family hubs, support for children’s services and, in particular, targeted intervention when children are at risk of abuse or neglect will, when taken together, help to ensure that we level up opportunities across this country. I am grateful to my right hon. Friend for all her work on this issue.

[Stephen Farry (North Down) (Alliance)]

European social fund projects in Northern Ireland face a financial cliff edge. Over 1,000 jobs are at risk and over 17,000 service users fear for their future. Can the Secretary of State give me an assurance that there will be an investment plan and a process in place to give those organisations the chance to apply for shared prosperity fund support ahead of next April?

[Michael Gove]

I am grateful to the hon. Gentleman for raising this issue, and I will work with the Secretary of State for Northern Ireland to make sure that there is an investment plan in place.

[Mary Robinson (Cheadle) (Con)]

The renters reform Bill will make private tenancy arrangements fit for the 21st century. Will my right hon. Friend set out what steps the Government are taking to ensure that such tendencies are also up to a decent standard? How will that be backed up with monitoring and enforcement?

[Marsha De Cordova (Battersea) (Lab)]

Awaab Ishak’s death was shocking, and such things should not be happening in our country in 2022. Everybody deserves a warm, safe and decent home to live in. His case shows what happens when people living in social housing are disregarded, as has been the case in my constituency after decades of Conservative control of Wandsworth Borough Council, which has allowed social housing stock to go into decay. What is the Secretary of State’s Department doing to assist investment in social housing?

[Michael Gove]

The hon. Lady raises an important issue. I should say that Wandsworth under Conservative leadership was an outstanding and exemplary council in so many ways, but I understand that she has to make that point—the constituency Labour parties have to be kept happy and so on. The key thing is that all local authorities have an obligation, as do all registered social landlords, and we want to work with them to tackle the issue that she rightly raised.

[Vicky Ford (Chelmsford) (Con)]

In Chelmsford we badly need more social and affordable housing. When new housing developments are built, the local authority can set a rule that a certain proportion of the new homes must be affordable. I urge my right hon. Friend to consider enabling local authorities to put in place similar rules when large commercial buildings such as office blocks are converted from commercial to residential properties.

[Michael Gove]

That is an important issue that relates to permitted development rights. My right hon. Friend is on to something, so I look forward to working with her.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

As private sector rents continue to rise in west London, more and more of my constituents on low incomes and dependent on benefits are having to pay rent well above the levels of the local housing allowance. They cannot afford it and are having either not to eat or not to heat their homes. Will the Secretary of State make a statement about the urgent need for the Government to uprate local housing allowance?

[Michael Gove]

The hon. Lady makes an important point about local housing allowance, but I gently remind her that one thing we can do is to improve the supply of housing in west London, and I think I am right in saying that she has not always been an energetic supporter of every development that has come forward in her constituency.

[Duncan Baker (North Norfolk) (Con)]

In June, the Prime Minister announced plans to extend the right to buy to housing association tenants to enable them to purchase their own homes. Will my right hon. Friend update me on the progress of this initiative and confirm whether a tenant who has purchased an initial equity stake in a housing association home on shared-ownership terms will be able to use a right-to-buy discount to purchase the remaining equity stake through staircasing?

[Michael Gove]

That is the direction in which we wish to move, yes.

[Helen Morgan (North Shropshire) (LD)]

I have been proud to support a very good levelling-up bid in Oswestry in my constituency. With North Shropshire being such a large rural area, public transport is a really important part of levelling up the whole region, so will the Secretary of State look favourably on both Oswestry’s bid and Shropshire’s bid to improve bus services across the county?

[Alicia Kearns (Rutland and Melton) (Con)]

Rutland and Melton councils have put forward a brilliant blueprint for rural innovation in our levelling-up bid, focused on health and transport. The context is an urgent need to put social mobility into funding formulas for those areas of deprivation otherwise hidden by affluence. Will my right hon. Friend do what he said he would do back in February: take up an offer that is too good to be true by coming to Rutland and Melton to discuss the bid and the future of social mobility funding?

[Michael Gove]

What an alluring invitation—and yes. As my hon. Friend the Member for South Leicestershire (Alberto Costa) pointed out earlier, Leicestershire and Rutland are relatively poorly funded in comparison with other local authorities, which is why the particular plight of deprived communities in my hon. Friend’s constituency and elsewhere is at the forefront of our minds.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

Recent analysis has found that £1 in every £13 allocated through the two levelling-up funding rounds will be lost to inflation—that is more than £560 million—so how will Ministers ensure that complex bids such as that for the remediation of hexavalent chromium at Shawfield in my constituency do not miss out on funding opportunities as a result?

[Michael Gove]

We will do everything possible to work with local authorities, particularly to make sure that every pound goes further. The hon. Lady quite rightly raises the whole question of bearing down on inflation; I hope that she and others will be in the Division Lobby tomorrow evening to support the Government in the measures we have taken in the autumn statement that will bear down on inflation. I note that Members on the Labour Benches have not yet criticised those measures; they appreciate, as we do, that we need to work together to tame inflation.