Local Government Finance (England)

Lord Gove Excerpts

Wednesday 9th February 2022 Commons Chamber

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

I beg to move,

That the Local Government Finance Report (England) 2022–23 (HC 1080), which was laid before this House on 7 February, be approved.

[Mr Deputy Speaker]

With this we shall consider the following motion:

That the Referendums relating to Council Tax Increases (Principles) (England) Report 2022–23 (HC 1081), which was laid before this House on 7 February, be approved.

[Michael Gove]

The House should also note that the Local Government Finance Report has since been updated with a small correction on page 14. Like you, Mr Deputy Speaker, I am grateful to the Select Committee on Statutory Instruments for its careful consideration of these reports.

Before I turn to the details of the reports, may I say a brief word of thanks to my right hon. Friend the Member for Tamworth (Christopher Pincher), who until very recently served as Minister for Housing and Planning? We will be starved of his eloquence at the Dispatch Box, because he has been translated to the Whips Office, but I know that that eloquence will not be wasted on my right hon. and hon. Friends, who will benefit from his wisdom and gentle guidance as they consider which Lobby to enter in the light of all the delicate matters that we discuss.

I should add that it was on the watch of my right hon. Friend that the number of first-time buyers in the country reached a record level, and that the stewardship he displayed, and also the imagination and attention to detail, were those of a model Minister. He will be missed. I should also add that although his shoes are both difficult to fill and always highly polished, we are nevertheless very fortunate to have in the Minister for Housing, my right hon. Friend the Member for Pudsey (Stuart Andrew), an excellent new addition to our departmental team. We welcome him to his place, and we know that he is a doughty defender of the interests of the north of England, of local government overall, and of those who aspire to live in and to own a decent home. I am therefore grateful for the fact that he has joined the team.



The local government finance settlement makes available, to local government in England, core spending power of £54.1 billion for 2022-23. This is an increase of £3.7 billion on 2021-22, a real-terms increase of 4.5%.

It would be remiss of me not to acknowledge that the considerable eloquence of the hon. Member for Wigan (Lisa Nandy) will be deployed inter alia in drawing attention to the years from 2010 to 2017-18 when there were necessary economies in local government spending. I suspect, although I cannot be certain, that she will for partisan reasons, entirely fairly, seek to contrast the restraint in public spending during those years with the increases that we are now making to suggest that the increases do not make up for the previous restrictions on public spending, but it is impossible to consider those restrictions without appreciating the context of the economic circumstances that the coalition Government inherited in 2010—I do not wish to make any partisan points—and that required us to deal with the inevitable consequences of the financial crash.

[Ms Lyn Brown (West Ham) (Lab)]

I am not going to delve into history; I would just like to talk about the pandemic of the last couple of years. In my constituency, Newham Council is about £10 million shy because of covid spending, which will have ongoing consequences. Much of it has come from revenue accounts for temporary accommodation. Newham has the largest housing list in the country and the second highest rate of child poverty, yet we are still having to cope with covid costs of £10 million and counting without any respite from the Treasury.

[Michael Gove]

The hon. Lady makes a series of important points. Newham Council faces serious pressures for a variety of reasons, as do so many in local government. This provides me with an opportunity to draw attention to, and to praise, the efforts not only of elected councillors but of those who work in local government in Newham and elsewhere who, in dealing with the strains of covid over the past two years, have shown immense determination, energy and forbearance.

Whichever party had been in power, these covid costs would have been inevitable because of the nature of the pandemic. I would argue that the big choices made by the Prime Minister on the vaccination programme and the approach we took immediately before Christmas in the wake of the omicron wave have been vindicated by events. I would also argue that the Chancellor of the Exchequer’s adoption of the furlough programme ensured that our economy weathered the storm more effectively than other economies did. Because of those big decisions made by the Chancellor and the Prime Minister, we are now in a position where the spending review can increase expenditure by 4.5% in real terms.

[Ms Brown]

I am grateful to the right hon. Gentleman for mentioning how very difficult it has been to be a councillor or officer in local government over the past two years. They have had a terrible job, but it is not made easier when they were told that their costs would be covered only to find themselves £10 million shy and counting. I hope he will take that away and think about how he can give respite.

[Michael Gove]

Absolutely. The position of those who are served by Newham Council has been very clearly outlined by the hon. Lady. Within the context of the settlement we are debating today, we will look at all the additional support we can give to those who are dealing with the consequences of covid.

[Chris Loder (West Dorset) (Con)]

Boroughs such as Newham will benefit from £38 million under the settlement, compared with rural areas such as Dorset, which will receive nothing. Does my right hon. Friend agree that should be borne in mind?

--- Later in debate ---

[Michael Gove]

My hon. Friend makes an important point, but it is vital not to pit urban against rural or Dorset against London. In the debate on the police grant report, he and my hon. Friend the Member for South Dorset (Richard Drax) drew attention to particular crime challenges that Dorset faces, with major cities such as Bournemouth in the broader Dorset area, issues of county lines and rurality, and pressure on public services overall. They were absolutely right to do so. We have sought to ensure that in the settlement we provide Dorset’s police and fire and rescue service with appropriate resource, but of course we keep things constantly under review.

For the benefit of the House, I will briefly run through the details of the funding settlement. Overall, the settlement funding assessment—in essence, what used to be the revenue support grant allocation—comes to some £14,882,000,000, a truly significant amount and a significant increase. In the local government finance settlement, we are also increasing our compensation to local authorities for under-indexing the business rates multiplier. We are making sure that local authorities have the opportunity to raise the council tax precept by 2% on the social care precept and that they benefit from an improved better care fund from the new homes bonus. The rural services delivery grant, which helps to address some of the issues that my hon. Friend the Member for West Dorset (Chris Loder) so ably raised, is being held at £85 million.

Perhaps the two most substantial changes are the increase in the social care grant, to take account of the particular pressures on local authorities as a result of the challenges that adult social care services face, and the additional £822 million that has been made available in a specific services grant. That money is unringfenced, and it is in keeping with the direction of our “Levelling Up” White Paper and of the Government overall in recognising that, wherever possible, those in local government are best equipped to meet local needs. That principle of devolution and local discretion will be in our mind as we consider how to reform local government finance further in future.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

The right hon. Gentleman is being generous in giving way. He will know that Salford City Council has faced budget cuts of £232 million since 2010 and has stated that the approach to funding that he outlines does not adequately reflect the demand that it faces. Does he agree that true levelling up requires funding to meet actual demand, and that it requires differentials for poverty, inequality and council tax payers’ ability to pay to be effectively factored into Government grant methodology?

[Michael Gove]

The hon. Lady makes an important point. As we review future reforms to local government finance, I look forward to working with her and other colleagues to make sure that her point about deprivation, which affects a considerable number of her constituents, is reflected in our overall approach. It is important to say that the most relatively deprived areas of England—those in the upper decile of the index of multiple deprivation —will receive 14% more per dwelling in available resource through this year’s settlement than the least deprived areas. The settlement serves the cause of social justice with a redistribution towards poorer areas, but of course we keep these things under review.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Why does the Secretary of State think that the Conservative chair of the Local Government Association, James Jamieson, has criticised the settlement for not including sufficient funding to tackle the considerable additional pressures on local services, particularly with respect to vulnerable adults and children?

[Michael Gove]

I talked to James Jamieson this morning, as I do most weeks. One reason why he leads the LGA is that he is a brilliant Conservative council leader. If James were here, I think he would say he was not criticising but encouraging us, as any friend would, to do even better. It is striking that the welcome that the local government sector gave this year’s funding settlement was broader, deeper and more cordial than it has been for some years. Politics being politics, any sector will always, entirely understandably, want its champion to be someone who can ask for more.

[Mr Kevan Jones (North Durham) (Lab)]

I note that the Secretary of State does not want to talk about what has happened in the past, but my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey) raised a point about need. It was no accident that the Government took the needs formula out of the local government settlement, meaning that areas such as mine and hers, which have high demand for social services—County Durham has over 900 looked-after children in care—have been the net losers. I am sorry, but it is not about pitting cities or areas against one another; it is just a matter of fact that certain areas have higher demands because of their demographics. That has to be taken into consideration, but the Secretary of State’s Government took the needs formula out during the coalition era.

[Michael Gove]

The right hon. Gentleman makes a number of points and ensuring that I addressed them all would mean that I would be here well after the moment of interruption. We could discuss the difficult economic situation that the coalition Government inherited in 2010. We could discuss the way that we unringfenced funding to ensure that local authorities could respond to that. We could discuss the particular way in which some local authorities, irrespective of political colour, were able to use their resources more effectively. We could discuss the way in which interventions beyond direct local government funding under the coalition Government sought to address deprivation. It is striking, for example, that between 2010 and 2014 the Education Secretary—whoever he was—managed to introduce a pupil premium that saw millions flowing to the very poorest students, an initiative that had not been introduced under the previous Labour Government and that helped to close the gap between advantaged and disadvantaged children.

The right hon. Member for North Durham (Mr Jones) is an brilliant campaigner for citizens in Stanley and North Durham. He makes his case effectively and he is right to remind us that when we look at local government finance it is important to bear in mind need and deprivation. That is what we are doing as we look overall at how we can review local government funding later on.

[Mr Jones]

rose—

[Michael Gove]

I can never resist the right hon. Gentleman, so I am happy to give way again.

[Mr Jones]

The Secretary of State just does not get it. Those were not options; they were political choices taken by the coalition Government. The point that my hon. Friend the Member for Salford and Eccles and I are making is that on issues such as looked-after children and adult social care—he should remember that in County Durham life expectancy has gone down in the past 10 years—it is not optional for councils to intervene. They have a statutory obligation to do so and if that is not taken into account in the formula, councils in areas such as County Durham and Salford and Eccles will always be at a disadvantage because the right hon. Gentleman’s Government, of which he is a part, took that out of the funding formula.

[Michael Gove]

Again, the hon. Gentleman—my apologies, the right hon. Gentleman, and quite right too —makes three important points. On looked-after children, the whole position that we have had to take over the past 10 years on children in social care has been driven by a variety of factors that mean that we deal with the challenges of looked-after children and children at risk of abuse and neglect in a more intense fashion. That is why Josh MacAlister’s review of children in social care is so important and I hope that when it is published the right hon. Gentleman will welcome it.

On adult social care, the right hon. Gentleman is absolutely right that there is a greater degree of pressure, not just because we have an ageing population, although I note his important point about life expectancy in County Durham, but because we have more people moving into adulthood who, thanks to advances in medical care, also require social care. That is why in this settlement local authorities can make use of more than £1 billion of additional resource specifically for social care. On top of that funding, as was outlined in the presentation of the White Paper earlier today by my hon. Friend the Minister for Health, £162 million in adult social care reform funding is also being allocated to help local authorities.

[Mr Clive Betts (Sheffield South East) (Lab)]

I could recognise the valuable approach the coalition Government took under the then Secretary of State in removing ringfences, but we can contrast that with the number of pots that are being created that local authorities have to bid into, which seems like ringfencing by another name. The Secretary of State mentioned Councillor Jamieson, the chair of the LGA, who said at the Select Committee that we cannot sort out local government finance until we sort out social care funding. The LGA is looking for a big solution and it is disappointed that the levy highlighted as solving the problem actually gives no mainstream money to local councils to deliver important social care services.

[Michael Gove]

The Chair of the Levelling Up, Housing and Communities Committee makes two very important points. First, there is the tension, which always exists, between ensuring that we devolve as much funding as possible and simplify the funding landscape. There is also the need from time to time to respond to specific challenges. The one relates to the other, because local government, as he made rightly clear in his second point, wants additional funding for adult social care made available to it, and worries, for well-rehearsed reasons, that much of the additional funding will be devoted to the NHS’s immediate needs rather than long-term reform. I believe that the White Paper introduced earlier today on the integration of adult social care between the NHS and local government to an even greater degree will help address those issues. However, I recognise that they are serious ones and that the House will want to examine both the White Paper and any legislation that we introduce in due course.

I am conscious that many Members across the House will want to use the debate both to praise those in local government and to make specific cases for future funding reform. However, the settlement that we have secured marks a real recognition of the importance of local government and the Government’s determination to ensure that we strengthen its hand in dealing with the social ills that our country faces. That is why I commend the increase in the local government finance settlement to the House.

--- Later in debate ---

[Mr Jones]

Yes, I am, and the hon. Member for Redcar (Jacob Young) called me an anorak, so possibly I am both.

The White Paper’s analysis is not bad in that it raises the issue that we should be tackling, but it offers no solution to enable us to do that. I really enjoyed the undergraduate thesis on the Venetian city state and how Babylon was built, but again it did not reach any conclusions. Nevertheless, we have a Government who talk in terms of levelling up. My hon. Friend the Member for Sheffield South East is right: you cannot have levelling up if you exclude the way in which local government is financed.

The other sad thing is that the Government’s approach has mainly been around capital projects. I think it is because the Prime Minister has a fixation—he has a fixation on quite a few things—on projects where you can see that something is being built. No doubt a Minister or local Conservative Member of Parliament can unveil a plaque and say, “This is what we have achieved.” As my right hon. Friend the Member for Knowsley (Sir George Howarth) said, if it was a fair process, fine.

I used to have a saying, when I was in local government, that any idiot can spend capital, which they can. The more difficult thing is to get the revenue streams into the future. Like my right hon. Friend, distantly I used to understand local government finance, but no doubt my knowledge is a bit out of date. What I do recognise is that we can spend as much capital on projects as we like, but what is needed is the revenue funding to go alongside it for the day-to-day needs of our local communities.

My right hon. Friend the Member for Knowsley covered the bidding process very well, but the point is that, if it were a fair process, then fine, but it is not. Quite clearly, it is a pork barrel approach to the doling out of money to certain Conservative seats. Let me give an example in County Durham. Which constituency has either got new towns funding or levelling-up funding? The answer is Bishop Auckland.

[Michael Gove]

A great place.

[Mr Kevan Jones]

I do not disagree with the Secretary of State. County Durham is a wonderful county. It has some great towns and, more importantly, great people. But why did Bishop Auckland get that money as opposed to any of the other towns in County Durham? Well, it has a Conservative Member of Parliament. I doubt that it will be getting much funding in the future, following the recent antics of the hon. Member for Bishop Auckland (Dehenna Davison), with her criticism and plotting against the Prime Minister. She will be on the naughty step for a while, and will not get any future funding. The important thing is that this must be clear. I also question the bidding process. The problem with the process, as my right hon. Friend has said, is that it takes a lot of time and effort to take this through. Officer time is taken up, and councils are limited in the amount of officer time that they have. Then they have to go into some beauty parade, which is clearly rigged by the Government. The real issue in terms of levelling up is this—

Local Government Finance Settlement for England: 2022-23

Lord Gove Excerpts

Monday 7th February 2022 Written Statements

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

Today, I am laying before the House “The Local Government Finance Report (England) 2022 to 2023” and “The Referendums Relating to Council Tax Increases (Principles) (England) Report 2022/23”, which together form the local government finance settlement for local authorities across England for 2022-23.

Having considered representations made by stakeholders across the country on the provisional settlement announced on 16 December, I am pleased to put before the House a settlement that focuses on stability and certainty. Indeed, no council will see a reduction in core spending power in cash terms for 2022-23 compared to 2021-22. The consultation received 148 representations from organisations, individuals and businesses, which have been diligently considered before finalising the settlement.

The settlement I have announced today:

Makes available an additional £3.7 billion for councils, an increase in funding for councils of over 4.5% in real terms for 2022-23. It will ensure councils have the resources they need to continue delivering key services for their communities. Overall, this means up to £54.1 billion of funding will be available for core services;

Provides a new, one-off grant to support all services delivered by councils worth £822 million;

Makes available over £1 billion of additional funding specifically for social care; and

Protects hard-working taxpayers from unfair hikes in rates, with a 2% core threshold and additional flexibilities for certain authorities, including 1% for councils responsible for adult social care services.

2022/23 Services grant

Over the spending review period, local government will have access to around £1.6 billion in additional grant per year for the next three years. This includes funding for supporting families and cyber resilience, which will be distributed outside of this settlement.

I intend to proceed with the creation of a one-off 2022-23 services grant worth £822 million, distributed using the existing settlement funding assessment. This funding will be excluded from any proposed baseline for transitional support in future years.

Adults and children’s social care

I recognise that social care, for most councils, continues to be a key priority and therefore an area that incurs increased and sustained cost pressures. This Government remain committed to supporting local government in providing a good quality of care to the most vulnerable.

This is why I intend to make available an additional £1 billion for social care in 2022-23. This includes putting £636 million more into the social care grant, which includes funding for equalisation against the 1% adult social care precept. The Government are committed to allocating funding in line with our assessment of where relative need is, and that is exactly what equalisation does. We are also providing a £63 million inflationary uplift to the improved Better Care Fund, which supports integrated working with the NHS.

This, alongside deferred adult social care precept flexibilities of up to 3% from last year’s settlement, forms a package of additional resource, specifically for social care, potentially worth over £1 billion.

On top of this funding, £162 million in adult social care reform funding will be allocated in 2022-23 to support local authorities as they prepare their markets for adult social care reform and to help move towards paying a fairer cost of care.

Council tax

This Government recognise the importance of high-quality local services and believe in empowering local decision makers to shape thriving communities. This includes ensuring they have the flexibility to generate their own income through council tax, while protecting residents from excessive increases.

This settlement means: a core council tax referendum principle of up to 2%; an adult social care precept of 1% for all authorities responsible for ASC; a principle of up to 2% or £5 for shire district councils, whichever is higher; a referendum principle of £10 for police and crime commissioners; and a £5 referendum principle for the eight lowest-charging fire and rescue authorities. This settlement proposes no other council tax referendum principles for mayoral combined authorities or town and parish councils.

The Mayor of London has requested flexibility to levy an additional £20 on band D 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.

The Government’s manifesto commits 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 a repeat of what was 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, and 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.

Last week, the Government also confirmed a £150 non-repayable council tax rebate to households in England in bands A to D to help with rising costs. The rebate to bills will be made directly by local authorities to households from April. Local authorities will also have a share of the £144 million discretionary funding that can be used to target additional support at those most in need. Local authorities are best placed to do this, which is why the Government have given this flexibility.

Stability of funding

This is a settlement that is designed to provide stability to the sector by rolling over much of last year’s settlement. This includes:

Increasing the revenue support grant in line with inflation, which means an increase of £70 million;

Rolling over the current approach to the new homes bonus, worth £556 million;

Rolling over the current approach to the rural services grant, worth £85 million;

Maintaining the lower tier services grant, at £111 million, with an updated funding floor; and

Continuing with the 100% retention authorities in the five devolution deal areas and 67% for Greater London overall.

Looking ahead, the Government are committed to ensuring that funding allocations for councils are based on an up-to-date assessment of their needs and resources. My officials and I will work closely with local partners and take stock of the challenges and opportunities they face before consulting on any potential funding reform.

Finally, in recognition of the unique circumstances facing the Isle of Wight Council and its physical separation from the mainland, we are providing an additional £1 million for 2022-23.

Conclusion

This settlement is one that makes available an additional £3.7 billion to councils. In total, core spending power is expected to rise from £50.4 billion in 2021-22 to up to £54.1 billion in 2022-23, which will enable local government to continue providing key services to their local residents.

Councils are the frontline of public services within local communities and are the first port of call for so many people, from delivering critical social care services at every stage of people’s lives, to making sure we have efficient and effective waste services in place. This Government recognise the vital role they play in our society. This is a settlement that recognises that role.

[HCWS597]

Levelling Up

Lord Gove Excerpts

Wednesday 2nd February 2022 Commons Chamber

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

Madam Deputy Speaker, I would like to make a statement on the Government’s plans to level up and unite our country.

The White Paper we are publishing today sets out our detailed strategy to make opportunity more equal and to shift wealth and power decisively towards working people and their families. After two long years of covid, we need to get this country moving at top speed again. We need faster growth, quicker public services and higher wages, and we need to allow overlooked and undervalued communities to take back control of their destiny.

While talent is spread equally across the United Kingdom, opportunity is not. Our country is an unparalleled success story, but not everyone shares in it. The further a person is from one of our great capitals—whether it is London, Edinburgh, Cardiff or Belfast—the tougher life can be. For every local success, there is a story of scarring and stagnation elsewhere, and that must change. We need to tackle and reverse the inequality that is limiting so many horizons and that also harms our economy. The gap between much of the south-east and the rest of the country in productivity, in health outcomes, in wages, in school results and in job opportunities must be closed. This is not about slowing down London or the south-east, or damping down animal spirts, but rather about turbocharging the potential of every part of the UK. This country will not achieve its full potential until every individual and community achieves everything of which they are capable. Our economy has been like a jet propelled by only one engine, now we need to fire up every resource that we have.

The economic prize from levelling up is potentially enormous. If underperforming places were levelled up towards the UK average, unlocking their full potential, this could boost aggregate UK GDP by tens of billions of pounds each year. So, how do we achieve success? First, we do so by backing business. The economic growth that we want to see across the UK will be generated by the private sector, by businesses and entrepreneurs investing, innovating, taking risks and opening new markets. We will support them every step of the way, by cutting through the red tape, by making it easier to secure investment and, as our White Paper today outlines, by creating the right environment on the ground for business.

As the Chancellor laid out in our Plan for Growth, we need to invest in science and innovation, improve infrastructure and connectivity, and extend educational opportunity to underpin economic success. This White Paper makes clear our commitment to improve education, investment and connectivity fastest in those parts of the country that have not had the support that they needed in the past. We have set out clear, ambitious missions, underpinned by metrics by which we can be held to account to drive the change that we need.

On productivity, science and innovation, our mission one is that, by 2030, we pledge that pay, employment and productivity will have risen in every area of the UK, with each containing a globally competitive city; closing the gap between top performing areas and the rest. Mission two will see a massive increase in domestic public investment in research and development outside the greater south-east, increasing by at least a third in the next three years, and we will use the shift in resources to leverage private sector investment in the areas that need it most.

On infrastructure and connectivity, we will have better local transport, bringing the rest of the country closer to the standards of London’s transport system. We will also improve digital connectivity, with billions of pounds of investment, bringing nationwide gigabit-capable broadband and 4G coverage to the whole UK, and we will expand 5G coverage to the overwhelming majority of the population.

On education and skills, we will effectively eradicate illiteracy and innumeracy, with investment in the most-underperforming areas of the country. There will be 55 new education investment areas in England alone, driving school improvement in the local authorities where attainment is weakest. Our sixth mission is to have new high quality skills training, targeted at the lowest skilled areas, with 200,000 more people completing high quality skills training annually.

We know that, to achieve these missions, we will need smart, targeted, Government investment. That is why we are investing more than £20 billion in research and development to create a science and technology superpower. Today, we are allocating £100 million specifically to three new innovation accelerators in the west midlands, Glasgow and Greater Manchester. It is also why we are investing £5 billion in bus services and active travel, with new bus investment today in all our mayoral combined authorities and the green light for bus projects in Stoke-on-Trent, Derbyshire, Warrington and across the country. It is also why we are investing in new academies, new free schools and new institutes of technology. Today, we are establishing a new digital UK national academy—just as the UK established the Open University to bring higher education to everyone, we are making available to every school student in the country high quality online teaching, so geography is no barrier to opportunity.

We will also use the freedoms that we now have outside the EU to reform Government procurement rules to ensure that the money that we spend on goods and services is spent on British firms and British jobs. We will unashamedly put British workers first in the global race for investment. Economic opportunity, spread more equally across the country, is at the heart of levelling up, but levelling up is also about community as well. It is about repairing the social fabric of our broken heartlands, so that they can reflect the pride we feel in the places we love. That is why we are investing in 20 new urban regeneration projects, starting in Wolverhampton and Sheffield and spreading across the midlands and the north, with £1.8 billion invested in new housing infrastructure to turn brownfield land into projects across the country like Stratford and King’s Cross in London.

By regenerating the great cities and towns of the north, we can relieve the pressure on green fields and public services in the south. A more productive, even prouder and faster-growing north helps improve quality of life and wellbeing in the south, which is why we are refocusing housing investment towards the north and midlands.

Our housing mission is clear: we will give renters a secure path to greater home ownership, we will drive an increase in first-time buyers and we will deliver a tough focus on decent standards in rented homes. A new £1.5 billion levelling-up home building fund will give loans to small and medium-sized builders to deliver new homes, the vast majority of which will be outside London and the south-east. Our housing plans will set a decent minimum standard that all rented properties must meet.

Our White Paper this spring will include plans to cut the number of poor-quality rented homes by half, address the injustice of “no fault” evictions and bear down on rogue landlords, thereby improving the life chances of children and families up and down the country.

We will also take action in law to tackle the problem of empty properties and vacant shops on our high streets. Building on the work of my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis), we will ensure that properties cannot remain unloved and unused for months, dragging down the whole high street. Instead, we will put every property to work for the benefit of the whole community.

Also central to improving quality of life for all will be further investment in sport, culture, nature and young people. That is why we are investing £230 million extra in grassroots football and using the community ownership fund to help fans take back control of clubs such as Bury FC. It is also why every extra penny of Arts Council spending will now be allocated outside London, from celebrating ceramics in Stoke to supporting pride in British history in Bishop Auckland. There will also be another £30 million allocated to improving parks and urban green spaces, as well as plans to re-green all of our green belt.

We will also invest an additional £560 million in activities for young people, and we will invest in reversing health disparities, tackling obesity and improving life expectancy. We will also ensure that the communities in which we are investing are safer and more orderly. Fighting crime and antisocial behaviour is essential to giving communities new heart, so we will invest an additional £150 million in our safer streets fund and ensure that those who drag down our communities through vandalism, graffiti and joyriding pay back their debt to those communities. They will be set to work on improving the environment, cleaning up public spaces, clearing away the drug debris in our parks and streets and contributing to civic renewal.

Critical to the success of our missions will be giving communities not just the resources but the powers necessary to take back control. That is why our White Paper sets out how we will shift more power away from Whitehall to working people. We will give new powers to outstanding local leaders such as Andy Street and Ben Houchen—[Interruption]—and, indeed, Dan Jarvis. We will create new Mayors where people want them, we will give nine counties including Derbyshire and Durham new powers as trailblazers in a programme of county deals and we will strengthen the hand of local leaders across the country.

We will also take back control of the money that the EU used to spend on our behalf, ensuring that local areas can invest in their priorities through the new UK shared prosperity fund. With power comes responsibility, so we will also ensure that data on local government performance is published so that we can hold local leaders to account.

Central Government will report back to this House on our progress against our missions and on the impact all our policies have on closing geographical inequalities. Because building long-term structures matters, we will also create the institutions, generate the incentives and supply the information necessary to drive levelling up for years ahead.

This White Paper lays out a long-term economic and social plan to make opportunity more equal. It shifts power and opportunity towards the north and midlands, Scotland, Wales and Northern Ireland. It guarantees increased investment in overlooked and undervalued communities, in research and development, in education and skills, in transport and broadband, in urban parks and decent homes, in grassroots sport and local culture and in fighting crime and tackling antisocial behaviour. It gives local communities the tools to tackle rogue landlords, dilapidated high streets and neglected green spaces, and it demonstrates that this people’s Government are keeping faith with the working people of this country by allowing them to take back control of their lives, their communities and their futures.

I commend this statement to the House.

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I think you are preventing the Secretary of State from speaking. I suggest that a modicum of silence from those on the Back Benches would be welcome.

[Michael Gove]

I have enormous respect and affection for the hon. Lady, but at the end of her response, I do not think I heard a single question, nor did I hear her disagree with a single policy that we have put forward. She is in distinguished company; she joins other Labour colleagues who have welcomed the White Paper, such as Tracy Brabin, the Mayor of West Yorkshire, who said there is

“lots to be pleased about”

in it, and the Mayor of South Yorkshire, who said on Sunday that he warmly welcomed the support that we were giving to Sheffield and that it was

“much needed recognition of the potential”

of that great city. I am glad that the hon. Lady is in good Labour company in welcoming the White Paper.

The hon. Lady mentioned Bury FC, and she suggested that this Government had stood aside. I am sorry, but this Government provided £1 million to the fans of Bury FC so that they could take back control of the club. It was not Labour Bury Council but Tory Ministers who saved that football club for its fans.

She asks where we have been over the past 12 years and about my time as Education Secretary. My mother said self-praise is no honour, but since the hon. Lady asks, there were more good and outstanding schools as a result. We closed the gap between rich and poor, we extended opportunity and we ensured that illiteracy and innumeracy were tackled.

The hon. Lady also says that we need more good jobs. I completely agree. That is why we have a plan for growth and she has no plan. She says that we need to revive our high streets. I completely agree. That is why we have a plan for investment, and the Opposition have no plan. She says that she wants improved connectivity. That is why we have ensured that gigabit connectivity has gone from 10% to 60% in the past two years, and they have no plan. She says that she believes in devolution. We have nine county deals and powers for Mayors. The only devolution in England that Labour ever offered was to London. It did nothing for the north and midlands when it came to devolution. She said she wants safer town centres. Why is it, then, that every time we have brought forward policies for tougher sentences in this House, Labour has voted against? It has no plans, no idea and no answers.

The Opposition also ask about new money. Do they not remember that Liam Byrne wrote in 2010 when the Labour Government left office that there was no money left? Now, they are so fiscally inconstant that they say they want simultaneously not to have a national insurance increase and to cut other taxes, and at the same time to increase public spending. Our commitment to abolish innumeracy cannot come quickly enough, starting with the Labour Front Benchers. My right hon. Friend the Chancellor has committed £500 million to tackling adult innumeracy; we know where that funding should go first. If they had their way, borrowing would go up, interest rates would go up, and the poorest in the north and midlands would lose out; instead of levelling up, they would bring the economy crashing down. That is why we never need to have those Front Benchers in power in this country ever.

[Several hon. Members rose—]

[Sir Peter Bottomley (Worthing West) (Con)]

I say to my right hon. Friend the Secretary of State that those in the south-east hope this will be successful, giving individuals opportunity and changing the economic geography of the parts of this country that need to be connected to the thriving country we hope to create together. Will he heed council leaders such as Councillor Kevin Jenkins in Worthing, who wants Ministers to pay attention to things that they could do that would help and to stop doing things that do not help, because all over the country we need Ministers to pay more attention to local leaders?

[Michael Gove]

My hon. Friend is absolutely right, and in the levelling-up White Paper there is a commitment to ensure greater devolution all round. I signalled the county deals we are green-lighting for Derbyshire and Durham, but we are also devolving more power to local authorities across the country, including through the new UK shared prosperity fund. He is also right to remind us that, while deprivation is concentrated disproportionately in the north and midlands, there are pockets of genuine poverty in communities such as Worthing and Hastings that we need to pay close attention to.

[Tommy Sheppard (Edinburgh East) (SNP)]

This is somewhat underwhelming, is it not? Not so much a dead cat as a damp squib. This might have been an opportunity to bring forward proposals for the modernisation of government in these islands, to devolve further powers and competence to the national Administrations, and to do something about the asymmetric and centralised mess that is the government of England, but, no, what we are promised is that in eight years’ time we will get a better bus service. It is, frankly, insulting given the amount of political capital that the Government have invested in this. This is a Government who have broken trust with the British people, and getting it back will require people and policies of substance, rather than glib soundbites and photo opportunities for Ministers in hard hats and hi-viz vests. The statement literally has nothing in it for the people I represent in this House, but we will watch with interest as this con is perpetrated on the people of the north of England.

Meanwhile, in Scotland we have another Brexit betrayal: the replacement funds for the EU structural funds are falling £900 million short, and control is being centralised to Whitehall. That is what we are receiving from this Government, and that is why more and more people are turning to the option of political independence for their country.

My central question is this: how does this square with the rest of the Government’s policies? We have a chronic and increasing problem with inequality in Britain, yet everything this Government do seems to make it worse: the decision to cut universal credit and the below-inflation increases in other benefits are driving the gap between rich and poor even higher; so, too, is the decision to increase basic rate taxes and not to increase taxes for those who can most afford them; and so, too, is the Government’s inaction and unwillingness to do anything about the cost of living and spiralling energy bills. So my question, Secretary of State, is this: given all of that—given the Government’s policy in the round—is this not just a piece of meaningless window dressing?

[Michael Gove]

The short answer is no. The longer answer is this: we work in partnership with the Scottish Government, and we recognise their devolved responsibilities, but people in Scotland pay their taxes to have two Governments working together for them, and that is what we have done. The levelling-up fund has ensured that there has been investment in North Ayrshire, in Edinburgh and in Aberdeen, to help communities and councils led by Scottish nationalist councillors, and that has been backed by SNP MPs. The UK shared prosperity fund has also guaranteed funds going to Scotland, ensuring that Scotland, Wales, Northern Ireland and Cornwall receive every bit as much outside the EU as they ever did within it, but with our control of that funding, not the European Union’s.

Today, we have announced additional funding for an innovation accelerator in Glasgow. In Glasgow University and the University of Strathclyde, Glasgow has two of the United Kingdom’s leading research universities. We are supporting and backing them. I explained to the First Minister last night how important it was that we worked together, and we will seek to work together.

When it comes to inequality, the Scottish Government have presided over growing inequality in education outcomes in schools in Scotland. We want to work with them to reverse that. When it comes to devolution, rather than devolving more powers to local government in Scotland, as we are doing in England, the Scottish Government have centralised powers. The Convention of Scottish Local Authorities has been eloquent in complaining about that. Again, that is a devolved matter, but if the critique from the hon. Gentleman is to carry force, it is vital that he recognises the beam in his own eye before pointing out the mote in others.

[Greg Clark (Tunbridge Wells) (Con)]

What the towns and cities of our country need is ambition, investment and encouragement, not the negativity and neglect that I am afraid they have experienced under the Labour party over the years. As a Teessider born and bred, and as someone who negotiated and signed the devolution deal with Teesside six years ago, I am proud to see it leading this White Paper thanks to the great progress it has made under Ben Houchen.

Does the Secretary of State recognise that building on such successful policy innovations is the best way to go, rather than needing to start from scratch in every case? In that context, does he recognise that the role of universities and scientific institutions, which are strong in the regions, is a good place to invest and to drive further prosperity across the UK?

[Michael Gove]

My right hon. Friend was a brilliant Secretary of State both for Communities and Local Government and for Business, Energy and Industrial Strategy. He was, more than anyone else—apart from the former Chancellor, the former right hon. Member for Tatton—responsible for extending devolution across England. He is absolutely right: this is a model that works and on which we can build. He is also absolutely right to say that higher education is critical to the economic future of the north and the midlands, where we have outstanding universities. The increased research and development spending that we are announcing today will be directed towards those excellent institutions. Whether for life sciences in Newcastle, renewables in Teesside or materials in Manchester, we will be working with those universities to revive the north and the midlands.

[Madam Deputy Speaker]

I call the Chair of the Levelling Up, Housing and Communities Committee.

--- Later in debate ---

[Michael Gove]

It is a typically fair and informed question from the hon. Gentleman. What the framework does lay out is how local authorities that have fewer powers can acquire more, and how we can have a convergence towards a model, which not every part of the country will necessary want to adopt, that is closer to the level of power and autonomy that the Mayor of London exercises. We are completely open, and we have said so, to negotiating with local areas on the acquisition of further powers.

I should also say that the UK shared prosperity fund prospectus that we are publishing today makes it clear that lower-tier local authorities especially will have additional resources, through the UKSPF, to enhance their ability to serve their citizens.

[Anne Marie Morris (Newton Abbot) (Ind)]

I congratulate the Secretary of State on his “Levelling Up” paper, but particularly mission 7 to level up health outcomes and wellbeing. Will he meet me to discuss levelling up health and care provision in rural areas as part of that mission, a blueprint for which was published yesterday in a report co-authored by the all-party parliamentary group on rural health and social care, which I chair, and the National Centre for Rural Health and Social Care?

[Michael Gove]

Yes, I absolutely will. The hon. Lady makes an important point. Of course improving economic productivity is at the heart of levelling up, but we also need to tackle unfair health outcomes. Within the White Paper, we have details of how we are proposing to do so, not least taking forward some of the recommendations of Henry Dimbleby’s national food strategy, which outlines how we can effectively tackle obesity—one of the greatest drivers of diabetes, which is one of the greatest drains on NHS resources.

[Naz Shah (Bradford West) (Lab)]

I wrote to the Secretary of State on 19 January and I have not had a response to that letter, but in it I cited research from Utopia, which, after analysing 34 cities and towns, found that Bradford needed the most development and infrastructure support. We have lost out on Northern Powerhouse Rail, stifling £30 billion-worth of investment over the next 10 years. We have been given crumbs. What is he doing for my constituents in Bradford West—he has mentioned nothing in his statement today—after failing them time and again with the NPR?

[Michael Gove]

The hon. Lady is right. Bradford is a fantastic city—it has seen significant investment, not least in cultural renewal, and it has a wonderful university—but it also has areas of real deprivation, not least in the constituency that she represents. I look forward to working with her, and with Tracy Brabin and municipal leaders in Bradford, to ensure that the policies in the White Paper can deliver for her constituents.

[Damian Green (Ashford) (Con)]

I very much welcome this White Paper—a genuinely one-nation Conservative document. I particularly commend my right hon. Friend and his colleagues on the health commitment it makes. Five years’ extra healthy lifespan will be absolutely critical in spreading opportunity not just to disadvantaged people but to disadvantaged communities, because health inequalities hold people back almost more than anything else. Frankly, we can have all the transport infrastructure we like, but if people in middle age are too unhealthy to lead full lives and to stay in work, they cannot benefit from it. Will he go into a bit more detail about how he will achieve that ambition?

[Michael Gove]

Absolutely. My right hon. Friend is right: this is a one-nation document that is in that Conservative tradition. He is also absolutely right that addressing health inequalities is vital, not just to relieving pressure on the NHS for taxpayers but to giving people the full lives that they deserve. We outline in the White Paper some of the steps that we are taking, not least to deal with obesity, but, in addition, my right hon. Friend the Health Secretary will be bringing forward a health inequalities White Paper a little later this year, and I will be working with him to take forward some of the insights of Professor Michael Marmot and others about what the drivers of health inequalities are and how we can tackle them.

[Dan Jarvis (Barnsley Central) (Lab)]

I thank the Secretary of State and the Under-Secretary, the hon. Member for Harborough (Neil O’Brien), for the briefing that they gave to the Mayors and myself yesterday. However, it is a shameful indictment of our country that, for too long, where you grow up has determined where you end up. We all know that to address these challenges requires transformational resources. What more can the Secretary of State do and how can we help him to get the Chancellor to provide additional resources to deliver on the plan that he has brought forward?

[Michael Gove]

I am grateful to the hon. Gentleman for making that point. I hope to have the chance to visit him in Sheffield before too long to discuss how we can use some of the funding that was allocated in the spending review more effectively on his behalf, and how we can ensure that future spending commitments from the Chancellor and from others serve the people whom he serves.

[John Redwood (Wokingham) (Con)]

I welcome the emphasis on personal journeys and improvement of free enterprise. Freeports can make a great contribution to that, so will the Government bring forward a freeport for Northern Ireland to show that it is properly part of the United Kingdom and, with it, to see off the EU threat to our Union?

[Michael Gove]

My right hon. Friend makes an important point. The Government are committed to ensuring that we have two additional freeports in Scotland, at least one in Wales and one in Northern Ireland, and announcements on those should be forthcoming shortly.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the White Paper and the Government’s paying attention to levelling up across the United Kingdom—as a Unionist, I see that as important to assure citizens they are considered part of the United Kingdom. However, many people in Northern Ireland will say that new red tape as a result of the Northern Ireland protocol is strangling our economy. How do the proposals in the White Paper benefit people in Northern Ireland in terms of education, jobs, research, housing, crime and so on? How does the Secretary of State seek to level up Northern Ireland through that?

--- Later in debate ---

[Michael Gove]

The right hon. Member makes a series of good points. First, I absolutely understand the problems with the protocol, and my right hon. Friend the Foreign Secretary is working incredibly hard to tackle them. Secondly, we recognise that the Northern Ireland Executive exercise devolved responsibilities in a number of areas, but we can help: additional funding for research and development means that Queen’s University Belfast and the University of Ulster can get additional funding to create the jobs that Northern Ireland requires. The broader economic strategy that we outline in the White Paper is designed to help every part of the United Kingdom, and, through the UK shared prosperity fund, there will be additional funding. UK community renewal funding and levelling-up funding has been distributed to communities in Northern Ireland, but we need to do better in ensuring that it reaches those who deserve it most, not least those in areas such as Larne and Glenarm in the right hon. Gentleman’s constituency.

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

Leicestershire and Rutland councils were some of the worst funded in the entire country—until today. Thanks to the Secretary of State, Leicestershire is one of the nine counties that will be negotiating a county deal. Will he please reassure me that when he negotiates a deal for Leicestershire, he will include Rutland, which cannot go for its own county deal? It needs a sidecar deal. Will he also help us level up pride by coming to visit our wonderful area?

[Michael Gove]

That is an offer too good to resist. I will say two things. First, Leicester and Leicestershire have much to offer, but there are also significant pockets of deprivation not just in the city but in rural Leicestershire that we must tackle. My hon. Friend is right that the county deal that we are proposing will—I hope—help. Secondly, I know that Rutland’s independence is cherished by its people and its Member of Parliament, but on this occasion there can be—how can I put it—a fruitful union between Leicestershire and Rutland, and I would like to see that advance.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

The Secretary of State will know the impact of growing up poor on health, education and life chances, because it is well documented. But, even before the pandemic, two in five children and young people in the north-east were growing up in poverty, so it is hard to understand why the White Paper does not address the lack of cross-Government strategy to tackle child poverty. If levelling up is to mean anything, surely it must address that issue in the north-east.

[Michael Gove]

The hon. Lady makes a good point. Indeed, there is a commitment in the White Paper to additional funding for the supporting families programme —previously the troubled families programme—which helps to address many of the drivers of child poverty. Of course, I would be the first to acknowledge that there is more to do, and in communities in Newcastle—in Longbenton and elsewhere—there are real challenges that we need to work with Newcastle City Council to overcome. The council’s Labour leader is someone with whom I think we can do business.

[Jake Berry (Rossendale and Darwen) (Con)]

I welcome the White Paper. I am sure that the Secretary of State would acknowledge that delivering foreign direct investment is key to levelling up the north and beyond. Would he consider a 13th mission: to double FDI in the north of England by 2030?

[Michael Gove]

May I thank my right hon. Friend? Many of the best ideas in the White Paper are the fruit of work that he and the Northern Research Group of Conservative MPs have conducted. The paper that he co-wrote for the Centre for Policy Studies, “A Northern Big Bang”, has influenced our thinking in a number of areas, not least unlocking additional private sector investment. My noble Friend Lord Grimstone, the Department for International Trade Minister, now leads the Office for Investment, and one of his missions is to increase FDI, particularly in the north and midlands. I look forward to working with Lord Grimstone and my right hon. Friend to ensure that east Lancashire is at the front of the queue for that investment.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I thank the Secretary of State for his statement and for the White Paper, which is very thoughtfully put together—not least because the foreword by the Prime Minister is on a detachable page. That is great.

One page that appears to have already been detached, however, is the bit that refers to rural Britain. I am really concerned that there is very little concern in the document for levelling up the rural parts of our country. In Cumbria, we have three-hour round trips for cancer treatment and a threat to our local A&E department, and our villages and communities are being cleared by second homes and Airbnb. I would be delighted to work constructively with the Secretary of State, and I would love if it he agreed to meet me so that we can talk about some answers to the housing catastrophe affecting not just Cumbria, but the rest of rural Britain.

[Michael Gove]

I have to say, I agree with almost everything the hon. Gentleman said. First, it is important that we focus on rural poverty; secondly, there are unique issues in Cumbria. Local government reorganisation, with the creation of one new authority in Cumberland and one in Westmorland and Furniss, will contribute to ensuring that we have a proper focus on those, but we need to go further. He is also right that the issue of second homes and their impact on local economies is a complex one. We are not in the right place yet, and I want to work with him and other colleagues to address it.

[Lia Nici (Great Grimsby) (Con)]

It was wonderful to be able to welcome my right hon. Friend to my constituency this week to see the amount of levelling up that is needed and the work we are doing with our local council to achieve it. Does he agree, however, that it is about not just school education, but technical education for our young and older people—something new Labour was able to decimate very effectively when it was in power, but which is vital to matching up jobs and opportunities to level up areas such as Great Grimsby?

[Michael Gove]

My hon. Friend is absolutely right. If we think about the technical institute in Grimsby, which was a source of pride and high-quality further education, some of the changes that the new Labour Government made undermined that centre of excellence. One thing we are clear about in the White Paper is the importance of ensuring that further education is aligned with the needs of local employers. In Grimsby and north-east Lincolnshire, as part of the renewables revolution led by the Business Secretary, there is now a chance to ensure new jobs, investment in FE and a recognition of the link between the two, so that in Grimsby people can stay local, but go far.

[Christian Matheson (City of Chester) (Lab)]

I always enjoy listening to the Secretary of State, who is always very articulate and performs well at the Dispatch Box. I wish him well in the forthcoming Tory leadership election. There is an obsession, which he has illustrated today, with elected Mayors; I understand he has briefed them, but not the leaders of local authorities. In Cheshire West and Chester, the Government have taken £466 million since 2010 from our local authority, and the only way we can win funding back is by bidding to this pot or that pot, which is decided by Ministers. If he is going to increase funding for local authorities, will he please remember those areas that are not covered by directly elected Mayors, but nevertheless have outstanding leaders such as Louise Gittins?

[Michael Gove]

I thank the hon. Gentleman. Been there, done that, got knocked back twice, so I am afraid I am not going round that course again. I will agree that it is important that we talk to all local leaders. I personally think the devolution of power to mayoral combined authorities has been a good thing, but it is not right for everywhere in this country. There are ways we can strengthen the hands of local leaders, and I look forward to doing so in Cheshire.

[Sir Edward Leigh (Gainsborough) (Con)]

Gainsborough South West ward is the 24th most deprived ward in the country. I thank the Secretary of State for awarding us £10 million in levelling up, but does he agree, looking at the overall picture, that the prosperity of northern industrial towns was built not with Government money, but by entrepreneurs in the 19th and early 20th century, when regulation and taxation were a fraction of what they are now? What plans does he have, with his colleagues, to try to reduce the burden of regulation and taxation on towns in the north of England?

[Michael Gove]

My right hon. Friend is correct; that is why I sought in my statement to emphasise that levelling up can only succeed if British business and private enterprise succeed. That means the right regulatory framework, outside the European Union, as we spelled out on Monday. There are steps we have taken and can take to ensure that we have smarter and leaner regulation.

More broadly, I think that if we look at the success of great industrial towns in the past, we see that figures such as Joe Chamberlain were driven by the spirit of private enterprise, but by civic pride as well. Chamberlain provided an example of great local leadership, and also of ambition to improve education. The mission that he led in Birmingham to ensure that universal education was extended even to the poorest was the perfect complement to the drive that he showed in generating wealth through the market.

[Hilary Benn (Leeds Central) (Lab)]

One of the great inequalities in my constituency is the gap between those who are able to feed their families and those who are not. In every year since the Government took office the use of food banks has increased, and last year 2.5 million food parcels were given out to people who had gone up to a complete stranger and said, “Can you help me to feed my family?” What are the Government going to do to bring an end to this scandal?

[Michael Gove]

The right hon. Gentleman makes a very important point. We have taken, and continue to take, a series of steps through the supporting families programme. We are also outlining in the White Paper some of the proposals that we are taking forward as part of Henry Dimbleby’s national food strategy, which explicitly addressed some of the particular challenges to which the right hon. Gentleman has rightly drawn attention, to ensure that people have the resources and the capacity to put healthy food on the table for their children. I look forward to perhaps visiting Leeds with Henry Dimbleby to talk to the right hon. Gentleman about exactly how we can achieve the change that we need.

[Siobhan Baillie (Stroud) (Con)]

I am saddened by the characteristic doom and gloom on the Labour Benches. We should be welcoming confirmation that we will be turbo-charging every single part of the UK, including the south-west, and recognising the importance of the private sector to achieving those goals will be key. In Stroud we have a fantastic town centre regeneration plan, which is backed up by recent private investment in previously long-standing empty buildings such as the Imperial Hotel and Five Valleys, and buildings in King Street. Will my right hon. Friend dispatch his levelling-up Minister to Stroud so that he can see how far the marriage between private and public money that we are hoping to achieve could go for local people?

[Michael Gove]

The Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Harborough (Neil O’Brien), is hereby dispatched to Stroud—first class.

[Lilian Greenwood (Nottingham South) (Lab)]

How can we take seriously the Secretary of State’s promise to turbo-charge places such as my city when his Government have spent 12 years draining the fuel tank and slashing the tyres? If his offer of a county deal is to deliver meaningful change, does it not need to start with restoring the £100 million that Nottingham has lost through cuts in council funding?

[Michael Gove]

Nottingham has a bright future, and Nottinghamshire has an even brighter one, with my hon. Friend the Member for Mansfield (Ben Bradley) as leader of that council, leading a programme of urban development and regeneration. I look forward to working with the hon. Lady, and with my hon. Friend the Member for Mansfield, to ensure that we make Nottinghamshire great again.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

The Secretary of State will know that Herefordshire has one of the smallest and sparsest populations and some of the lowest gross value added in this country. He will also know of my passion for the New Model Institute for Technology and Engineering, which promises to offer entirely new forms of learning and teaching, lower drop-out rates, lower levels of mental ill health, and much greater inclusiveness for young people in skills-based higher education—it is the small modular nuclear reactor of higher education. Will the Secretary of State encourage this model, and will he consider, call for and initiate a review of higher education in order to regenerate cities and towns across the UK?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. It is important for Members to be very brief, because otherwise we will not get everyone in.

[Michael Gove]

My right hon. Friend’s new model institute is a perfect model of what was envisaged by the former Member of Parliament for Orpington when he was the higher education Minister and introduced reform to ensure that we improved access to higher education, but with a particular focus on skills and jobs. I look forward to working with him and the Education Secretary to spread this model through across the UK.

[Mr Kevan Jones (North Durham) (Lab)]

I thank the Secretary of State for his statement. He announced a county devolution deal for County Durham, which has lost £224 million in Government grants since 2010. At the same time, his own county council’s spending powers have gone up. Will the devolution deal replace anywhere near the £22.4 million a year that County Durham has lost?

[Michael Gove]

I am looking forward to working with the new Conservative and Liberal Democrat Administration in Durham county—the first non-Labour Administration for many years, following on from the success of my hon. Friends the Members for North West Durham (Mr Holden), for Bishop Auckland (Dehenna Davison) and for Sedgefield (Paul Howell) in winning their seats at the last general election. Sadly, the Labour Administration of Durham County Council were responsible for significant maladministration and the waste of resources. I am convinced that the new Administration will spend taxpayers’ money better.

[Johnny Mercer (Plymouth, Moor View) (Con)]

I commend my right hon. Friend for his statement. Since 2015, Plymouth has been on an amazing journey, with more inward investment than it has seen for decades. I echo the plea of my right hon. Friend the Member for Ashford (Damian Green) that the levelling up of opportunities—an extension of the life chances agenda that we started back in 2015—becomes a defining issue for this Government. Will he remember the seats in the south-west? We talk about the red wall, which is all brilliant, new and exciting, but we have a real job of work to do to improve life chances in the south-west.

[Michael Gove]

My hon. Friend is absolutely right. There are real pockets of poverty that we need to address in the south-west, particularly around Plymouth. The same is true in parts of the south, particularly in Portsmouth and Southampton. Although there is understandably a focus on the north and midlands, our broader focus is on moving prosperity and investment outside of London and the south-east, precisely to communities such as the one he serves so well.

[Stephanie Peacock (Barnsley East) (Lab)]

The Coalfields Regeneration Trust, based in Wombwell, is the only organisation dedicated to supporting former mining towns in the UK. Its vital work includes improving health outcomes, providing employment support and boosting skills for communities where levelling up is needed most. Will the Secretary of State agree to meet the trust to learn more about its work?

[Michael Gove]

Of course, I would be delighted to.

[Mr Philip Hollobone (Kettering) (Con)]

I welcome the designation of North Northamptonshire as an education investment area. Would the Secretary of State be kind enough to explain to my constituents what that will mean for educational outcomes in Kettering?

[Michael Gove]

Children in Kettering deserve the very best start in life. First of all, that means a relentless focus on standards and discipline. It means ensuring that we have systematic synthetic phonics in primary school, and that children are fully literate, numerate and capable of going to secondary school by the time they reach the end of key stage 2. It means multi-academy trusts, which are delivering higher standards where existing schools have failed. It can also mean—I would be happy to discuss this with my hon. Friend—a new 16 to 19 sixth form like Brampton Manor or Harris Westminster, providing children from working-class backgrounds with the chance to go to the very best universities.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I welcome the creation of the “Islands Forum” referred to on page 132 of the White Paper, and the news that the Secretary of State is to chair its first meeting—it is in his hands to ensure that it is not a talking shop. Item No. 1 on the agenda for that meeting has to be “Island future transport infrastructure needs”. The communities in Shetland are desperate to see the construction of tunnels and fixed links, and he could be the person to get the Scottish Government and the Treasury together to deliver that. Is he up for the challenge?

[Michael Gove]

I am completely up for it. There are issues of connectivity and access to good quality services and investment in Orkney and Shetland, the Western Isles, Anglesey and the Isle of Wight. Although they are very different communities, they have shared interests. I will absolutely do what the right hon. Gentleman says.

[Selaine Saxby (North Devon) (Con)]

I thank my right hon. Friend for his statement and—I say this as a former maths teacher—for his enthusiasm for numeracy. Will he clarify how his plans will deal with large and mostly rural counties such as Devon? On average, we can look as if we do not need much levelling up, but that hides a large variance, with huge disparities in opportunity within the county.

[Michael Gove]

My hon. Friend is absolutely right; parts of Devon are relatively economically successful, but there are also areas, not least in South Molton and Barnstaple, in her constituency, where there is real poverty. One thing we are doing with the roll-out of gigabit broadband and better digital connectivity is making sure that businesses in those areas can provide better jobs and greater investment, but we will explore with the local authority in Devon what more we can do to give local leaders the powers they need to make a difference.

[Mohammad Yasin (Bedford) (Lab)]

The Tories have been in power for 12 years, so does the Secretary of State agree that these vague plans to raise school standards in a third of local authority areas, including Bedford borough, is an admission of unforgivable failure and that any promised investment will never make up for the cuts started when he was Education Secretary, which blighted a generation of our children?

[Michael Gove]

As the hon. Gentleman mentions my time at Education, let me say that we protected, in real-terms, funding for schools from five to 16; we introduced a pupil premium, which meant that £250 million of additional funding was targeted on the poorest; and in Bedford we opened Bedford Free School, an outstanding school that brought opportunity to disadvantaged children in his constituency. What did the Labour party in Bedford do? It fought it every step of the way. So if he wants opportunity for people in Bedford, he should come to this side of the House, because we are the real crusaders.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

May I urge my right hon. Friend not to be downcast by the negativity of those on the Opposition Benches, but to be uplifted by the support he is receiving for his statement today from those on the Government Benches? In the west midlands, we are particularly pleased about the innovation accelerators and the smart city region programme, which can both be really effective through the galvanisation of the private sector. I am also pleased about the brownfield remediation money, which will stop the iniquitous building of houses on the green belt. May I say that we are awaiting transport money desperately needed for the royal town’s centre plans, which are being driven forward by the determination and vision of the Conservative-led Royal Sutton Coldfield Town Council?

[Michael Gove]

My right hon. Friend is absolutely right on that. I know that he was instrumental in the success of Andy Street’s election as Mayor of the West Midlands Combined Authority, and Andy has shown what a pro-business, pro-free market Conservative Mayor can do. My right hon. Friend is absolutely right to say that the innovation accelerator in the west midlands will be a way of harnessing all of the talent in his constituency and beyond. I listened carefully to his plea for better transport to the royal borough of Sutton Coldfield. In my view, the quicker people can get to Sutton Coldfield, the better it is for everyone. It is a beautiful royal borough with a fantastic Member of Parliament.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

I note the intention to pilot an innovation accelerator in Glasgow. It is to be led by the Department for Business, Energy and Industrial Strategy, the Scotland Office and other UK Government Departments, from the Department for Levelling Up, Housing and Communities to the Department for International Trade, but no mention is made of the Scottish Government. Can he tell me what consultation there has been with the Scottish Government on the proposal?

[Michael Gove]

Yes. I talked to the First Minister about it last night.

[Bob Blackman (Harrow East) (Con)]

My right hon. Friend will be aware that, despite the regeneration programmes in London over the past 30 years, the deprived wards in London are the same ones as they were 30 years ago. Will he assure the House that this will not be used as a reason to deprive London of money, despite the inaction of the do-nothing Mayor at the moment, but that it will be new investment in the north, midlands and across the UK?

[Michael Gove]

Yes, my hon. Friend is absolutely right; levelling up is not about dampening down the success of London or overlooking the needs of disadvantaged communities in London. It is striking that when my right hon. Friend the Prime Minister was Mayor of London the gaps in life expectancy and health outcomes between the wealthiest and the poorest parts of London narrowed. He was a one nation Mayor and he is a one nation Prime Minister.

[Kim Leadbeater (Batley and Spen) (Lab)]

I thank the Secretary of State for meeting me recently to discuss this subject. Sadly, it was a virtual meeting so we were unable to share a packet of Fox’s biscuits together—they come from my constituency. After 12 long years, I welcome any announcement that could result in much-needed, long overdue investment in the towns and villages in Batley and Spen. Does he agree that when it comes to levelling up, it is the reality on the ground that matters and the real-world, tangible differences it makes to communities? With that in mind, will he confirm that he will accept my invitation to come to Batley and Spen, so that I can show him at first hand not only the challenges we face, but the unique opportunities that levelling-up funding could provide?

[Michael Gove]

First, we have set out clear missions, but the hon. Lady is absolutely right to say that we need to deliver on them. We want to be held to account for that delivery and it needs to be concrete. Secondly, she has been a great champion for community organisations and their capacity to bring people together. A new approach is outlined in the levelling-up White Paper on just that, which is inspired by her work and that of my hon. Friend the Member for Devizes (Danny Kruger), so of course I will accept.

[David Morris (Morecambe and Lunesdale) (Con)]

Eden Project North gained planning permission on Monday. Five long years, but we got there in the end. I will put it bluntly: how can my right hon. Friend help Eden Project North? The sooner he helps me, the sooner I will shut up about it and the sooner I can get on to the next project in my constituency.

[Michael Gove]

Eden Project North has two brilliant advocates: my hon. Friend and the Prime Minister. I know I will not be long in this job if I do not deliver for both of them.

[Ian Lavery (Wansbeck) (Lab)]

The levelling-up programme should not just be about shiny infrastructure projects. It should be about real people and life opportunities. Life expectancy is not addressed in this hefty document. Life expectancy in Windlesham in the Secretary of State’s constituency is 86.7 years; in parts of my constituency it is 72.5 years. That is staggering and grotesque. What will he do about that?

[Michael Gove]

I completely agree with the hon. Gentleman that it is staggering and grotesque. One of the things we need to do is learn from Professor Michael Marmot and others about the drivers of health inequalities. I know that, in many cases, people such as the hon. Gentleman who worked in mining or heavy industry, even though it is a proud and amazing manufacturing sector, sometimes bear long-term health scars. We need to do more, and I look forward to working with him and others to address it.

[Derek Thomas (St Ives) (Con)]

It is brilliant news that small and medium-sized builders will get support to build 42,000 homes. Will the Secretary of State meet me and my Cornish colleagues to make sure those homes are retained by people who live in Cornwall?

[Michael Gove]

Yes, absolutely.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The recording that emerged today of the Secretary of State talking of “dirty, toothless northerners” certainly deserves an apology, but is today’s statement not a continuation of that abuse? Having taken away £500, on average, from everyone in the north-east, we get little pots of recycled money and ambitions such as:

“By 2030, local public transport…will be significantly closer to the standards of London”.

That is eight years not even to catch up with London buses. What kind of ambition is that?

[Michael Gove]

Speaking as an Aberdonian and as someone who was born further north than most people in this House, I can say there is no one more northern than me. Thinking particularly about this situation, one of the things we outlined in the White Paper is our proposal to ensure that the current North of Tyne Mayor can work with local authorities in the south of Tyneside, Gateshead and elsewhere to achieve precisely the goals that the hon. Lady wants.

[Sara Britcliffe (Hyndburn) (Con)]

I grew up in a northern industrial town, and I politely say to the hon. Member for Wigan (Lisa Nandy) that a plan for levelling-up opportunity is exactly what such towns need. Delivery is key, so will the Secretary of State make sure that we get shovels in the ground?

[Michael Gove]

My hon. Friend is absolutely right. She grew up in Accrington. Members like her, who know what it is to grow up in an industrial town, know what happened in the past, including under Labour, and know that we need investment, business and ambition. That is what this White Paper has.

[Stephen Kinnock (Aberavon) (Lab)]

The all-party parliamentary group on the UK shared prosperity fund, which I am proud to chair, has been calling on the Government to ensure that not a single penny is lost in the transition from the European structural funds to the SPF, but calculations by the Welsh Government confirm that the SPF will leave the UK close to £1 billion worse off and that Wales will get £750 million less. Will the Secretary of State meet our APPG to discuss how to ensure the nations and regions of our country do not get short-changed?

[Michael Gove]

That is a fair point. On this occasion, I think that the calculations made by the Welsh Finance Minister, Vaughan Gething, for whom I have great respect, were wrong, but I would be more than happy to meet the hon. Gentleman and others to take them through our approach.

[Dr Luke Evans (Bosworth) (Con)]

Levelling up in Bosworth uniquely looks like millions of pounds into Hinckley Academy, £28 million into Leicestershire broadband and £19.9 million into Twycross Zoo. On page 235 of the White Paper, the next level of levelling up is about the county deal, which is drastically needed by the seven MPs in Leicestershire. Will my right hon. Friend meet all seven of us to make sure that we can rocket fuel that by autumn 2022?

[Michael Gove]

We absolutely will. I commend my hon. Friend for getting to page 235 of the White Paper so quickly.

[Clive Efford (Eltham) (Lab)]

When he was Mayor of London, the Prime Minister commissioned a report that asked for more tax-raising powers and the ability to borrow money for London, but that was rejected. The current Mayor is asking for powers to be able to raise money. If London cannot pay for its transport system, which city in this country can? Why are the Government standing in the way of devolution in London? Is the Secretary of State not just cherry-picking schemes across the country and standing in the way of devolution in the same way that he is in London?

[Michael Gove]

No. There are two things. The first is that I had a good conversation with the Mayor of London yesterday. I stressed to him that we wanted to explore what potential there was for further devolution across all the mayoral combined authorities. There is a party political argument about the management of Transport for London which I will not revisit now, but simply saying that greater borrowing powers would solve all of London’s transport problems does not do justice to the scale of the issue. To be fair to the Mayor of London, I want to work with him in order to make sure that we can solve those problems.

[Martin Vickers (Cleethorpes) (Con)]

I thank my right hon. Friend for his visit to my constituency on Monday. He will recall the excellent fish and chip lunch that we shared. During that lunch, a number of points were raised. First, can he ensure that LNER delivers on its promise of a direct rail service from Cleethorpes through to King’s Cross? Urgent decision making was also referred to, and the way to help delivery of that would be to create a level 3 authority in the county.

[Madam Deputy Speaker (Dame Rosie Winterton)]

One question at a time.

[Michael Gove]

Those are very good points. We do need a direct train service to Grimsby and Cleethorpes. My hon. Friend’s other points are absolutely well made and well understood. I enjoyed the delicious fish and chips from Papa’s, with a side order of what I understand is called guacamole à la Mandelson.

[Kate Green (Stretford and Urmston) (Lab)]

I was interested to read about the national youth guarantee. A total of £500 million was announced by the Government in 2019 for the youth investment fund, but the first £10 million of capital funding was opened to bids only just a few weeks ago. Will the Secretary of State kindly urge his colleagues to turbo-charge the delivery of that funding so that our young people do not have to wait until 2025 to enjoy better opportunities and facilities?

[Michael Gove]

That is a very fair point and I will look into it.

[Alun Cairns (Vale of Glamorgan) (Con)]

I congratulate my right hon. Friend on taking back control and on his strategic approach to levelling up across the whole of the United Kingdom. This contrasts so favourably with the billions of pounds of European aid that the Labour party wasted in Wales over the past 20 years. May I ask him to pay particular attention to those areas in Wales that did not qualify for European aid, so that we can be levelled up at last?

[Michael Gove]

My right hon. Friend is absolutely right. We need to make sure that the additional funding available through the UK shared prosperity fund goes to all the communities in Wales that deserve it.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

The Secretary of State bursts with enthusiasm today, yet his plans are not bursting with much new funding. Even the director of the Northern Powerhouse Partnership says that

“the government is planning to spend less on English regional development than was the case under Theresa May or David Cameron.”

It said that true levelling up would need long-term financial backing from the Chancellor. When will we see that?

[Michael Gove]

We saw it at the spending review.

[Jason McCartney (Colne Valley) (Con)]

I really welcome this statement. I welcome that Kirklees will be an education investment area. I welcome that Kirklees will get extra support from the high streets task force, but can we make sure that it is not just the swanky cities of the north like Leeds that are levelled up, but it is also our towns such as Huddersfield, Milnsbridge, Holmfirth, Marsden, Slaithwaite and, of course, Doncaster, Madam Deputy Speaker?

[Michael Gove]

I could not agree more. I have nothing against Leeds; I love Leeds. [Hon. Members: “That’s not what it says about you!”] My name is hymned by children in Leeds streets, I know. The serious point is that there is cultural investment in Kirklees, not least in Huddersfield, and my hon. Friend is absolutely right that more needs to be done for all the authorities in Kirklees and for the towns in West Yorkshire surrounding them.

[Imran Hussain (Bradford East) (Lab)]

The stark reality is that someone who lives in the inner city of Bradford is likely to live 10 years less than someone who lives in an affluent suburb. Although I accept that the Government plan commits to raising health and life expectancy, it does not go far enough. One of the issues is the top-down approach. I sincerely and constructively ask the Secretary of State to meet me to discuss transformative new proposals that are being put forward by local grassroots community groups in Bradford to change health inequalities and to address the real issue.

--- Later in debate ---

[Michael Gove]

I will make sure that, if it is not me, another Minister definitely talks to the hon. Gentleman.

[Gary Sambrook (Birmingham, Northfield) (Con)]

I remember as a schoolboy watching Tony Blair and Gordon Brown fly into Birmingham by helicopter to say that every job at Longbridge would be saved. Seventeen years on, it is this Conservative Government who have given West Works six million quid to provide the new jobs that are needed locally. This Conservative Government will be helping St Modwen and other developers to make sure that we build on the land at Lowhill Lane. Will the Secretary of State visit, with me, the biggest levelling-up project in Birmingham and the west midlands?

[Michael Gove]

The west midlands is succeeding at last under Conservative leadership, such as that provided by Andy Street and my hon. Friend.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We really cannot have long preambles: one question to the Secretary of State, please.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

In South Shields: freeport bid—rejected; levelling-up bid—rejected; towns fund bid—rejected; transport funding—rejected. We have suffered Tory cuts of nearly £200 million. Tinkering with our governance alone will not change a thing. The Secretary of State once praised policies that, in his own words, meant

“the happy south stamps over the cruel, dirty, toothless face of the northerner”.

Is he proud that he has managed to do exactly the same again today?

[Michael Gove]

I think that South Shields does deserve better. That is why we are going to work with the North of Tyne Mayor to ensure that across Tyneside, both north and south, we have the right structures and the right investment in place.

[John Stevenson (Carlisle) (Con)]

In Cumbria, if there is support for a mayoral model but some opposition to it, will the Government take statutory powers to ensure that the mayoral model prevails?

[Michael Gove]

Yes, and I cannot think of a better mayor for Cumbria than my hon. Friend.

[Ben Lake (Ceredigion) (PC)]

Six of the nine areas in Ceredigion rank in the bottom 10% of areas across the UK for decent broadband coverage. How will the hardest-to-reach premises, such as those in Ceredigion, be targeted for public investment?

[Michael Gove]

I will work with the hon. Gentleman and, indeed, with the Senedd and the Welsh Government to ensure that we can roll out broadband. I recognise that lots of small businesses in Ceredigion—in Aberystwyth and all the way up to Machynlleth—need that support, and we will be there for them.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests. Following this excellent document and having recognised the value of cultural investment, will my right hon. Friend meet me to discuss some of the exciting ways in which some of our major arts organisations, including those based in London, are prepared to participate in the levelling up throughout the whole country?

[Michael Gove]

I absolutely will. My hon. Friend is a keen champion of arts, culture and, in particular, music. The institutions that we have in London are fantastic, but they can play a real part with institutions such as the Hallé and others in the north to improve cultural opportunities for all.

[Paul Blomfield (Sheffield Central) (Lab)]

Since 2010, Conservative Governments have cut £2.1 billion in funds to Sheffield City Council. Our annual grant is £288 million lower in real terms. Today, the Secretary of State announced £13 million and described it as transformational. If that is transformational, how would he describe the money we have lost? When will he restore it?

[Michael Gove]

I do not think that I described it as transformational; I think it was the Labour Mayor of South Yorkshire, who said that it had the “potential” to be transformational. I am looking forward to working with the Labour Mayor of South Yorkshire in order to achieve that transformation.

[Mary Robinson (Cheadle) (Con)]

I welcome this White Paper and the multi-billion pound investments in brownfield regeneration, connectivity, research and development, and especially the innovation accelerators, which in Cheadle and across Greater Manchester will make a real difference to all those businesses that want the extra help to start up. Will my right hon. Friend say whether, as well as civic leaders, business leaders will be part of the design of the accelerator?

[Michael Gove]

Absolutely. I had the opportunity, thanks to my hon. Friend, to visit Cheadle and indeed other parts of Greater Manchester just a fortnight ago. Thanks to her advocacy, I was also able to meet some of the business figures most interested in making sure that innovation in Manchester succeeds, and I want to continue to work with them because the business voice is critical to the success of the north-west.

[Patrick Grady (Glasgow North) (SNP)]

How are people in Scotland supposed to see the UK Government making spending and policy decisions in areas that are supposed to be devolved as anything other than a power grab?

[Michael Gove]

The hon. Gentleman is a graduate of Glasgow University—

[Patrick Grady]

Strathclyde!

[Michael Gove]

Oh, the hon. Gentleman did not make it to Glasgow—never mind. He is a graduate of another great university in Glasgow. We are investing money in that university to recognise that the constituency he represents has incredibly talented young people, and we want them to succeed, just like him.

[Andy Carter (Warrington South) (Con)]

I thank the Secretary of State for his statement and welcome the radical shake-up contained in this White Paper. My ears pricked up when I heard him mention Warrington and funding for better public transport—120 new electric buses for Warrington. Thank you, Secretary of State. Does he agree that, if we want to get people into jobs, we have to provide the public transport to help them get there?

[Michael Gove]

That is absolutely, totally, 100% correct, and it is my right hon. Friend the Transport Secretary who deserves all the credit.

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

Hounslow is in the second most prosperous UK sub-region by gross value added, but thanks to 11 years of Government policies, 40% of Hounslow’s children live in poverty, so when will levelling up address inequality within communities as well as between them?

[Michael Gove]

That is a very important point. What we need to do is to make sure that we work with the Mayor of London, but also with Hounslow Borough Council and those who are involved in providing opportunity for young people in the communities the hon. Member represents, to give them a better chance in the future.

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

We are under way, levelling up in Scunthorpe and we are unashamedly ambitious to do more. Can I offer a very strong invitation to my right hon. Friend to come to visit us, so we can show him what we are doing and have a chat about future opportunities?

[Michael Gove]

Absolutely. I enjoyed visiting Grimsby and Cleethorpes earlier this week. North-east Lincolnshire is great. It is time I visited north Lincolnshire as well.

[Mick Whitley (Birkenhead) (Lab)]

Wirral Council is facing a budget black hole of more than £20 million. I have pledged to do whatever I can to save the fantastic public services that so many of my constituents rely on, and I am grateful to the Secretary of State for kindly agreeing to meet me and my hon. Friends from the Wirral to discuss this very serious situation. Levelling up will remain nothing more than an empty catchphrase as long as local authorities such as mine are forced to consider closing libraries, leisure centres and swimming pools. Ahead of our meeting, can he tell me if he thinks this White Paper comes anywhere close to undoing the enormous damage done to local authorities’ finances since 2010?

[Michael Gove]

I am looking forward to a meeting. I recognise that there are real issues in the Wirral, which I hope we can work together to resolve.

[Bob Seely (Isle of Wight) (Con)]

I thank the Secretary of State so much for taking forward the islands forum idea. Sadly, I did not get beyond page 132, because that is where it was. Can he assure us that the forum will give a voice to islands such as the Isle of Wight to be part of the prosperity agenda in education and high-quality jobs, as well as in landscape and seascape protection for some of the most unique and beautiful parts of Great Britain?

--- Later in debate ---

[Michael Gove]

Absolutely. The islands forum is an idea developed following conversations with and advocacy from my hon. Friend. We recognise absolutely, as he has consistently pointed out, that island communities face particular challenges as a result of distance and dispersal, and we need to tackle them.

[Margaret Greenwood (Wirral West) (Lab)]

I welcome the Secretary of State’s commitment to meet me, my hon. Friend the Member for Birkenhead (Mick Whitley) and other Wirral MPs. Woodchurch leisure centre and swimming pool and libraries in Greasby, Irby, Hoylake, Pensby and Woodchurch are all under threat of closure because of Wirral Council having to make up to £27 million of savings as a direct result of brutal cuts from Conservative Governments since 2010, so can the Secretary of State make sure that he provides emergency funding to save these vital services?

[Michael Gove]

I look forward to discussing that at a meeting with the hon. Lady and the hon. Member for Birkenhead (Mick Whitley).

[Robert Largan (High Peak) (Con)]

I welcome the enhanced bus service on its way to Derbyshire, the Derbyshire county deal and the fact that Derbyshire is going to be an education investment area, on top of the future high streets £10 million for Buxton, the £137 million for the Hope Valley upgrade and the £228 million Mottram bypass, but there is a democratic deficit I am worried about. The Mayor of Greater Manchester takes decisions that have a huge impact on High Peak, but we have no say in them. What can we say to having more collaborative working, ensuring that levelling up works for everyone across regional boundaries?

[Michael Gove]

My hon. Friend makes an important point. High Peak contains some of the most beautiful and important parts of Derbyshire, but it is also part of the greater economic area around Greater Manchester. I therefore want to ensure, with him, Derbyshire leaders and the Mayor of Greater Manchester, that we are working together in the interests of my hon. Friend’s constituents.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

With this scheme, the highlands are set to lose out on tens of millions of pounds compared with EU funding. The highlands have been placed in category 3—the lowest of all the categories—and face significant financial challenges in accessing the cash. This is the largest local authority area in the UK. Why are the highlands so low on this Government’s agenda?

[Michael Gove]

The highlands are at the top of the Government’s agenda. The UK shared prosperity funding that we are guaranteeing will ensure that highland communities get the investment that they need, but more than that, the roll-out of 4G and 5G will also help highland communities. It is the case that the Scottish Government have not necessarily rolled out broadband as quickly as those communities would want, as colleagues such as Donald Cameron in the Scottish Parliament have pointed out. I want to work with him and the Scottish Government to serve the people whom he represents.

[Rob Butler (Aylesbury) (Con)]

I know that my right hon. Friend believes that local leaders know best when it comes to regenerating local areas, and when it comes to Buckinghamshire, he is absolutely right. Buckinghamshire Council, which effectively created the concept of county deals, is very disappointed not to be one of the first nine, so will he tell me how soon the second tranche will be announced, because Bucks is poised to not just negotiate, but spring into action?

[Michael Gove]

I absolutely appreciate that and Martin Tett, the leader of Buckinghamshire Council, is a first-rate local authority leader. I cannot give a timescale at the moment. We want to make sure that the first nine county deals are successful, but we want to move on rapidly thereafter to expand the scope of county deals.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

My constituency is repeatedly overlooked for funding, whether that is for the future high streets fund, the towns fund or the levelling-up fund, but at the same time, bids from other areas that score lower on the Government’s criteria are successful. The Secretary of State will appreciate that there is little trust that the White Paper will deliver anything for my community, so what assurances can he give me that any future bids for funding will be judged fairly and that my constituency will finally get the cash that it deserves?

[Michael Gove]

There are clear and objective criteria for funding, but it is also the case that some local authorities may need help with building capacity to make sure that their bids are as effective as possible. I extend the resources of the Department to the hon. Gentleman and his local authority to make sure that they put in the best bids possible.

[Jane Hunt (Loughborough) (Con)]

This is a plan that provides opportunity and growth throughout every part of our country; I am looking particularly at mission 6, on skills training. Does my right hon. Friend agree that it is the Conservatives who really help people to get on in life?

[Michael Gove]

My hon. Friend is absolutely right. Of course, she represents a constituency with one of the finest universities in the country and she recognises the vital importance of higher education, further education and schools working together to extend opportunity.

[Stephen Farry (North Down) (Alliance)]

Speaking as a former Minister in Northern Ireland, our Executive had far more control over the allocation of structural funds when we were in the EU than they do over levelling-up funds today. Does the Secretary of State recognise that the UK’s approach to levelling-up funds, particularly the shared prosperity fund, means only reduced resource for Northern Ireland and risks duplication and waste, as well as competition in the shared public space over the scarce resources that remain?

[Michael Gove]

I respectfully disagree, but I recognise that the hon. Gentleman has a wealth of experience in this area, so I want to work with him, his party and his party’s Minister in the Executive to make sure that we minimise bureaucracy and maximise effectiveness.

[Mike Wood (Dudley South) (Con)]

The west midlands has some world-leading, innovative companies as well as universities and research institutions doing ground-breaking research, but public research and development investment in the west midlands has been low compared with other areas, even though for every £1 of Government investment, we have seen a private sector return of £4. How will the innovation accelerator help to close that gap?

[Michael Gove]

My hon. Friend brilliantly encapsulates the challenge. The innovation accelerator will bring together representatives from the private sector—from business—as well as those in the outstanding universities that, as he rightly points out, are a feature of the west midlands in order to ensure that its manufacturing strengths can be leveraged more effectively. I look forward to working with him and others to achieve that.

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

The broken housing market is the bigger driver of inequality across York, with the boom in second homes and holiday lets. Therefore, the aspiration of the people of York is being denied. Rather than throwing us dead cats with the House of Lords, will the Secretary of State throw us a proper agenda to address the housing crisis in York?

[Michael Gove]

Three important points. First, the hon. Lady is absolutely right that there are things we need to do to tackle the housing market, in particular the second homes issue. It is complex, as she understands, but there is more that needs to be done. Secondly, I hope she will support the proposed mayoral deal for York and North Yorkshire, which I think will give some of the powers necessary to deal with the problems she mentioned. Thirdly, the House of Lords in York, or for that matter Glasgow, would be a great thing.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Can my right hon. Friend confirm that, as we look forward, levelling up applies to need not geography, and that the most deprived areas in Basildon and Thurrock will see the benefits to allow south Essex to reach its full potential?

[Michael Gove]

Yes, absolutely. We need to target need. We need to recognise that, in the south-east, London, Oxford and Cambridge are the three crown jewels generating wealth, but that there are communities that do not share in that prosperity. I should point out that one of the poorest areas, if not the poorest, in the country is Jaywick in the borough of Tendring, represented by my hon. Friend the Member for Clacton (Giles Watling). It is critically important that we work with local government leaders to address poverty wherever we find it.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

If the British Government were serious about levelling up and using Brexit freedoms, as they call them, would they not be devolving key economic levers to Wales, such as powers over VAT and corporation tax?

[Michael Gove]

That is an interesting idea, but I am not sure the hon. Gentleman’s friends in Plaid Cymru would necessarily take an approach to VAT and corporation tax that was as pro-enterprise as I would like. The key thing is that we need to make sure the UK remains competitive overall. His constituents in Carmarthen East and Dinefwr will benefit thereby.

[Damien Moore (Southport) (Con)]

I welcome my right hon. Friend’s statement today and thank him for Southport’s £38.5 million town deal. But will he ensure that jobs, growth and investment are at the heart of his levelling-up agenda and that vanity projects, such as those proposed under the active travel scheme, do not supersede them?

[Michael Gove]

My hon. Friend makes a very important point. We of course want to encourage cycling and walking, but we need to balance that with the need to ensure that thriving economic areas such as Southport, which are at the heart of the success of not just Sefton but Greater Merseyside and Lancashire, are given the opportunity to provide the economic growth for which he has been such an effective champion.

[Beth Winter (Cynon Valley) (Lab)]

The Secretary of State talks about shifting power and resources to communities. I think he made one mention of Wales. In the case of Wales, the opposite is true. These proposals ride roughshod over devolution, override our democratically elected Government and short-change us to the tune of £1 billion by 2024. The truth of the matter is that the proposals will result in further hardship and poverty for my constituents in Cynon Valley and throughout the UK. So I implore the Secretary of State to listen to my constituents and the people of this country, respect devolution and restore the missing £1 billion to Wales.

[Michael Gove]

I respectfully disagree. When I was recently visiting Merthyr and Pontypridd, I found that actually the investment we are making through the levelling-up fund was welcomed by Labour and independent councillors in south Wales. Obviously, we need to do more not just for south Wales but for north Wales, which is why there is a commitment in the White Paper to ensure more civil service jobs move to Wrexham.

[Nigel Mills (Amber Valley) (Con)]

I, too, welcome the investment in education and public transport in Derbyshire. While my right hon. Friend is negotiating county deals in Nottinghamshire and Derbyshire, will he perhaps give a little shove towards full proper devolution and a mayor for the east midlands?

[Michael Gove]

That is definitely worth exploring. I recognise that there are particular geographical—what is the word?—issues across the east midlands, but I think the success of Andy Street in the west midlands has meant that more options are opening.

[Paula Barker (Liverpool, Wavertree) (Lab)]

Since 2010, £465 million has been cut from Liverpool City Council, with £34 million in this coming financial year. Local government staff have had their pay cut by 20% since 2010 in real terms. Will the Secretary of State, if he is genuinely committed to tackling and reversing inequality, tell us when local government workers can expect a 50% pay increase like the commissioners in Liverpool City Council, or will he agree to meet me and my colleagues to look at that eye-watering decision?

--- Later in debate ---

[Michael Gove]

Liverpool City Council has had a troubled past recently, but it has a new leadership committed to change and reform. The commissioners are a vital part of that process. I am more than happy to talk to the hon. Lady and other Liverpool MPs—[Interruption.] If we did not have those commissioners there, we would not be dealing with the legacy of corruption and incompetence, and whether the hon. Member for Wigan (Lisa Nandy) wants to defend that past or be part of a brighter future is her choice.

[James Wild (North West Norfolk) (Con)]

Levelling up is as relevant in North West Norfolk as it is in the north, so I welcome the invitation for Norfolk to negotiate a county deal, which I hope will see more local powers and resources. Education is at the heart of spreading opportunity, so will my right hon. Friend confirm that Norfolk’s selection as one of the new education investment areas will mean extra support and dedicated action to give more young people a good start in life?

[Michael Gove]

Absolutely. For example, we want to ensure that the sort of model used at Sir Isaac Newton Sixth Form in Norwich, which provides an excellent opportunity for children denied it in the past, is spread across Norfolk as part of our EIA initiative.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

Wales is set to be denied £4.6 billion as a result of the Government classifying HS2 as an England and Wales project, despite the Treasury finding that Wales would lose out on £150 million per annum as a result of HS2. That does not sound like levelling up to me. Does the Secretary of State agree?

[Michael Gove]

I do not think Wales loses out as a result of HS2. I think north Wales in particular benefits significantly because of increased connectivity. However, I respectfully say to the hon. Gentleman that the Labour party needs to sort out its position on HS2. When the Leader of the Opposition was campaigning to be elected in Camden, he said that one of top priorities was to oppose HS2, and then when we brought forward proposals to extend HS2, he criticised them. There is an inconsistency in the Labour party’s position on infrastructure investment. I know that the hon. Gentleman’s heart is in the right place, but the Labour party’s HS2 policy currently is not.

[Felicity Buchan (Kensington) (Con)]

I represent a London constituency with two of the most deprived wards in the entire country. Does my right hon. Friend agree that levelling up is also about deprived areas in our inner cities? Will he back my campaign for step-free access at Ladbroke Grove tube station?

[Michael Gove]

Absolutely. My hon. Friend is right. One of the things that the White Paper brings out in a look at the borough of Kensington is the fact that it contains both some of the wealthiest areas in the country and some of the poorest. Without wanting to stray into another important area—although it is important to refer to it—the suffering of Grenfell families and the community around them is a reminder of our need to ensure that opportunity and security are extended to those who have suffered in the past, and they have had no better champion in this House than my hon. Friend.

[Several hon. Members rose—]

Oral Answers to Questions

Lord Gove Excerpts

Monday 24th January 2022 Commons Chamber

[Alexander Stafford (Rother Valley) (Con)]

22. What steps he is taking to level up Rother Valley constituency.

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

I am grateful to the hon. Member for Bootle (Peter Dowd) for the brief, tantalising preview of what is to come. The levelling-up fund is allocated according to objective criteria, including value for money, strategic fit, deliverability and the characteristics of place. I am therefore delighted that places such as Rotherham, Liverpool and Newcastle upon Tyne have already secured funding through our levelling-up funds, which include the towns fund, the levelling-up fund itself and the previous local growth fund.

[Peter Dowd]

A bit more tantalisation here: how can the Government’s levelling-up allocations possibly be equitable and transparent when the Government’s own index of multiple deprivation indicates that the constituencies of the Secretary of State for Digital, Culture, Media and Sport and the Secretary of State for Health and Social Care—numbers 254 and 268 of the 310 on the index—received £27 million and £14.5 million respectively, while an area in the top 0.5% of the index, which includes my constituency, where my constituency office is based, received nothing? The question is: is that equitable, transparent and fair? Will the Secretary of State or a Minister meet me and my neighbour, my hon. Friend the Member for Sefton Central (Bill Esterson), to discuss our concerns?

[Michael Gove]

It is certainly equitable, transparent and fair, and should the hon. Member wish, there is an explanatory memorandum on gov.uk, which would take him, as it would any hon. Member, through the process by which funds have been allocated. I should say that the whole Liverpool city region received £37.5 million through the levelling-up fund, but I would be delighted to talk to him and the hon. Member for Sefton Central (Bill Esterson) to ensure that future bids can land carefully, safely and successfully.

[Chi Onwurah]

In Newcastle, we have been waiting seven years—seven years—for real-time integrated bus information of the type that Londoners take for granted. Now we hear that the £3 billion bus improvement funding is less than half that, and much of that is going on zero-emission buses, meaning even less money for our bus improvement plan, which includes real-time information. Will the Secretary of State commit to levelling up bus transport in the north so that we are no longer under-served, overcharged and underinformed?

[Michael Gove]

Having spent some of the happiest months of my twenties on buses in Newcastle, I can absolutely sympathise with the hon. Member. It is the case that her constituency received £20 million from the levelling-up fund, but I look forward to working with her, the North of Tyne Mayor and Newcastle City Council to see what more we can do to improve public transport.

[Alexander Stafford (Rother Valley) (Con)]

I welcome the £11 million from the levelling-up fund that has already gone to Rother Valley, including £4.5 million to transform Maltby, and I am glad that Rotherham Council is again putting in another bid for Rother Valley to get another £9 million for Dinnington High Street. Can the Secretary of State tell me what future funding pots will be available for other parts of Rother Valley, so that the whole of the constituency can be levelled up, especially the likes of Thurcroft, Swallownest and Kiveton Park?

[Michael Gove]

My hon. Friend is right that there has already been significant investment in Rotherham. Of course, one of the beneficiaries of that is the shadow Defence Secretary, whose impassioned advocacy on behalf of his constituents has not gone unheard; however, there are a number of communities in Rother Valley. The community ownership fund, which we will be expanding, is just one route, and I hope that my hon. Friend will be able to take it with me to ensure that the villages and communities that he serves get the services they deserve.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Does my right hon. Friend share my concern that smaller and rural local authorities often do not have the capacity to deal with complex application processes? What steps will he take to address that concern?

[Michael Gove]

My right hon. Friend is right. He represents, I think, the largest, and certainly the second-most attractive constituency in Scotland, which covers three excellent local authority areas. There are excellent local councillors in all of them but, essentially because they lack the economies of scale, we need to work with those local authorities to ensure that, from Lockerbie to Moffat, the communities that deserve investment secure it.

[Mr Clive Betts (Sheffield South East) (Lab)]

I am sure the Secretary of State will agree that the success of levelling up will depend in large part on how much money is available and how it is distributed. I do not know whether he has had a chance to look at the recent research by Teesside University, which shows that over the past seven years the amount of money coming through EU funding and the local growth fund has been £2.1 billion a year, while the amount for the next few years from the shared prosperity and levelling-up funds is projected to be only £1.5 billion a year—a significant cut. In addition, the cuts in his own Department’s funding have hit the poorest local authorities the hardest, so when he produces his levelling-up White Paper, will he produce a comprehensive list of spending per head by region for each Department and show how the policies he is advocating will change those funding levels for the benefit of the poorest areas, which have suffered most in the past 10 years?

[Michael Gove]

I would gently contest the argument that the poorest areas have suffered most in the past 10 years, but the Chairman of the Select Committee makes an important point about transparency in the allocation of funding, and I look forward to working with him to ensure just that.

[Andrew Bridgen (North West Leicestershire) (Con)]

Given current media speculation about the allocation of levelling-up funding, and given that I am a Member of this House who has unfortunately had to vote against the Government on several occasions recently, will the Secretary of State reassure me on whether there is any point in North West Leicestershire reapplying for levelling-up funding? Does he agree that, were Coalville to be successful in the next round of bidding, it would demonstrate that the Government are not engaging in pork barrel politics?

[Michael Gove]

My hon. Friend, like me, abjures the whole idea of pork barrels. What we both believe in is allocating funding on the basis of merit and need. I can assure him that he has been in the same Division Lobby as me more often, I believe—although I stand to be corrected by the Whips—than the deputy leader of the Labour party, the shadow Defence Secretary, the shadow Work and Pensions Secretary, the shadow Culture Secretary or the shadow Social Care Secretary, all of whom have benefited from levelling-up funds. If a requirement for Government funding were voting with the Government, I fear that the deputy leader of the Labour party, my dear friend, would have lost out. However, I am delighted that her constituents in Ashton-under-Lyne have benefited from our funding, because we are committed to levelling up and uniting the country, irrespective of political colour.

[Alex Norris (Nottingham North) (Lab/Co-op)]

Analysis of levelling-up funding published recently by NPC—New Philanthropy Capital—found that, despite strong public support, homelessness is not being properly addressed. It found that communities with the highest concentrations of black, African and Caribbean communities fared poorly, and that four of the most deprived communities missed out entirely. Both the Secretary of State and the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Harborough (Neil O'Brien) have sought to make a supposed joke of this, but I do not think it is laughing matter that while poorer communities have missed out, the constituencies of at least three Cabinet Ministers, which are considerably more affluent, were successful in their bids. Beyond the jokes and the spin, does the Secretary of State honestly expect the House to believe that the Government have acted equitably rather than defaulting to the usual approach of pursuing narrow self-interest?

[Michael Gove]

I cannot see how it would be in the narrow self-interest of the Government, if operating on partisan lines, to have given the hon. Gentleman’s constituency £18 million for transport improvements from the levelling-up fund. These are not jokes; these are serious matters. We work with people across this House, including and especially in the Labour party, to ensure that funding goes where it is required. Lying behind the allegations made by him and others is a suggestion that somehow civil servants would conspire with Ministers deliberately to favour constituencies on the basis of political colouration.

My new opposite number, the hon. Member for Wigan (Lisa Nandy)—I offer her my congratulations on her elevation—recently wrote to me to ask whether we would make transparent the basis on which we allocate that funding. We have: it is published on a website called gov.uk. Google can sometimes be helpful to all of us.

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

Notwithstanding the Secretary of State’s earlier comments, I am sure that he would never accuse a fellow Tory MP of misleading the House. Will he therefore comment on the veracity of the specific remarks made by the hon. Member for Hazel Grove (Mr Wragg) about threats made to Tory MPs to withdraw investment from their constituencies and release negative press stories as punishment for supporting a no-confidence vote in the Prime Minister? Will he outline what investigations he intends to undertake to look into the abuse, or possible abuse, of levelling-up funds?

[Michael Gove]

There is no evidence of any abuse of levelling-up funding. If anyone has it, I hope that they will bring it to the House’s attention. As for any suggestion that someone may be on the receiving end of lots of negative press stories for voting against the Government, as someone who is solid, 100%, totally behind the Prime Minister and yet also on the receiving end of a plethora of negative press stories, I can tell the hon. Member that there is no correlation between the two.

[Dame Caroline Dinenage (Gosport) (Con)]

On every single criterion, my Gosport constituency should qualify for levelling-up funding, but our recent bid for funds was unsuccessful. Quite simply, we have a small council that lacks the resources to compete with the big guys for the funding, and there is also a strong feeling that our south coast location could disadvantage us. If, as the Secretary of State said, impassioned advocacy is a recipe for attracting funding, can he please give me a glimmer of hope for the future? Will he tell me that the levelling-up White Paper will also offer us hope, and when it will be published?

[Michael Gove]

Few people put more passion into their advocacy than my hon. Friend. While in levelling up we must have a proper focus on the midlands and the north, other parts of the United Kingdom, including the area around the Solent—Gosport, Portsmouth and Southampton—also require investment. I will work with her to ensure that that investment is forthcoming.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

8. What plans his Department has to increase devolution across the UK.

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

The Government are committed to ensuring that devolution works across the United Kingdom. We hope to deepen and extend devolution within England.

[Dr Whitford]

Unfortunately, the levelling-up fund is already being used to bypass the devolved Governments, and the United Kingdom Internal Market Act 2020 could enable UK Ministers to overrule the Scottish and Welsh Parliaments’ policy decisions. Does the Secretary of State not recognise that riding roughshod over devolution will force the people of Scotland and Wales to choose between a return to direct rule by Westminster and controlling their own future through independence?

[Michael Gove]

I appreciate the point and the way in which the hon. Lady makes it, but it is the case that a number of constituencies in Scotland received money from the levelling-up fund, and that money was allocated on the basis of bids supported by Scottish National party MPs and championed by Scottish National party-led councils. I enjoy working with the Scottish Government to ensure that we can work collectively together. Whatever our views on constitutional questions, the fact that we can work together on such issues is a credit to those Ministers in the Scottish Government who want to take that pragmatic approach and to her parliamentary colleagues who champion funding for their constituencies.

[Virginia Crosbie (Ynys Môn) (Con)]

Freeports are one of the ways this Government are levelling up across the devolved Administrations, and I am delighted that there is to be at least one freeport in Wales. Can the Secretary of State update the House about ongoing discussions with the Welsh Government and when we can expect the Welsh freeport bidding prospectus to be published?

[Michael Gove]

I can confirm that we have had very fruitful negotiations not just with the Scottish Government, but with the Welsh Government. I want to place on record my thanks to Vaughan Gething and other Ministers in the Welsh Government, and I hope that we will be able to make an announcement shortly about the process by which we will allocate freeports in Wales. At the moment the proposal is for one freeport in Wales, but I recognise that both south Wales and north Wales have significant potential for freeports in the future, and there are few better advocates, in particular for Anglesey, than my great hon. Friend.

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

The current Tory leader in Scotland and two former Tory leaders in Scotland, alongside every single Tory MSP, are calling for the Prime Minister to resign after their Scottish branch office leader was sneered at by the Secretary of State as just a man “in Elgin” and the Leader of the House decried him as a “lightweight”. In view of this, can the Secretary of State clarify how the self-declared Prime Minister of the Union will increase devolution while Scots calling for his resignation believe he is actively harming the Union?

[Michael Gove]

I am terribly sorry but I did not realise or appreciate that saying someone came from Elgin was an insult as far as the SNP is concerned; in my view, it is a compliment.

[Mr Richard Holden (North West Durham) (Con)]

9. What steps his Department is taking to ensure that housing supply increases in line with the needs and wishes of local communities.

--- Later in debate ---

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

We welcome and encourage the steps the Church is taking to make more of its land available for affordable housing. Since the Archbishops’ debate in March 2021 and the publication of the report from the Archbishops’ Commission on Housing, Church and Community, my officials have engaged with representatives to consider how we can provide support for that, and that is expected to continue.

[Richard Graham]

The Secretary of State will know that the Diocese of Gloucester has been doing a lot to help implement the important report from the Archbishops, “Coming Home”. I particularly want to thank Bishop Rachel and all involved for their work in funding the national housing executive and delivering projects such as St Aldate’s and Hardwicke. The Secretary of State will however also know that housing is a complicated issue for the Church and the draft legal reforms on ownership are stuck with the Church Commissioners and the Archbishops’ Council, so what more can my right hon. Friend do, perhaps in conjunction with the Second Church Estates Commissioner, to make sure that the Church of England lives up to its leaders’ social mission and helps provide more space for homes for some of those most in need?

[Michael Gove]

I am tempted to quote from the Gospel, John 14:2:

“In my Father’s house are many mansions”,

and it is certainly the case that we want to work with the Church of England to unlock more land and support its drive to secure greater access to affordable housing. I have recently been in touch in particular with the Bishop of Kensington, Graham Tomlin, and I know he will be taking forward further conversations in order to achieve the goals he and I and the Second Church Estates Commissioner share.

[Wera Hobhouse (Bath) (LD)]

13. What role active travel will have in the forthcoming levelling-up White Paper.

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

Active travel is central to levelling up the nation’s health, air quality, social connectedness and prosperity. The Government committed £710 million of new active travel funding at the spending review and are establishing active travelling to support places. The White Paper will discuss transport’s contributions to levelling up, including of course active travel.

[Wera Hobhouse]

I thank the Secretary of State for that answer. He knows of course that travel accounts for nearly a third of the UK’s carbon dioxide emissions, with the majority coming from petrol and diesel vehicles. In my constituency of Bath the council is working very hard to get to net zero by 2030, and active travel is a key part of that. So in the upcoming planning reforms will the Secretary of State include the 20-minute neighbourhood principle, which ensures that people can access services and goods within a 20-minute return walk?

[Michael Gove]

That is a very good principle—I completely agree with it. For those who do not follow our proceedings with the same intensity as top political commentators and all the rest of it, active travel refers to walking and cycling. I completely agree with hon. Lady. What we want to do is create communities where people can walk or cycle to all the facilities and amenities that they need. That is one reason why I am such a great fan of the work of His Royal Highness the Prince of Wales and the developments for which he has been responsible, as they embody that principle more effectively than the work of almost anyone I know.

[Tom Hunt (Ipswich) (Con)]

Grassroots sports clubs and facilities are crucial to levelling up in some of the most deprived parts of Ipswich, whether it is a BMX club in Gainsborough, a boxing club in Nacton or Ipswich Vale Exiles FC: Maidenhall and Chantry. Will the Secretary of State confirm today that that is something that will be acknowledged in the White Paper and that when it comes to the second tranche of the levelling-up fund there is a possibility for it to be a grassroots clubs and facilities fund to back levelling up in such an important way?

[Michael Gove]

My hon. Friend is absolutely right. It is the case that the levelling-up fund and the community ownership fund are oriented towards ensuring that cultural and sporting activities can be supported. I should remark that just over a week ago I had the pleasure of visiting Bury where, through the community ownership fund, we could give the fan-led consortium the resources needed to take Gigg Lane back into its ownership. Only a few days later, the hon. Member for Bury South (Christian Wakeford) defected to the Labour party. Once a Shaker, always a Shaker, I was told in Bury, but there are some people who are steady on parade and there are some people who shake it all about. I think in Bury we prefer those who are steady on parade, rather than those who wobble under pressure.

[Mr Speaker]

And Gigg Lane has the finest playing surface. We now go to topicals, with Paul Blomfield.

[Paul Blomfield (Sheffield Central) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

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

On Thursday this week, it is, as the House knows, Holocaust Memorial Day. My hon. Friend the Minister for Levelling Up Communities will lead a debate on that day. It is important that we all recognise that the work of the Holocaust Memorial Day Trust and the Holocaust Educational Trust are absolutely invaluable, not just in challenging the unique evil of the holocaust and the poison of antisemitism but in reminding us that we need to be vigilant against prejudice of all kinds: anti-Muslim hatred, the persecution of Christians and any prejudice that is based on religion, ethnicity or any of our protected characteristics.

[Paul Blomfield]

I certainly endorse the comments by the Secretary of State in relation to Holocaust Memorial Day.

The latest figures for Sheffield from February 2020 to April 2021 show a 46% increase in the number of private renters claiming housing benefit, because wages are simply not keeping up with rising rents. Some 28% of private rentals in the city contain category 1 hazards, which involve serious risk of harm, compared with just 4% of social housing. As the cost of living crisis deepens and energy bills rise, what are the Government doing to alleviate pressure on private renters and when this year will the Secretary of State publish the rental reform White Paper?

[Michael Gove]

The hon. Gentleman makes a very good point. It is the case that there are a number of people in the private rented sector who are not getting the deal that they deserve, both regarding the level of rent and the decency of their homes. I look forward to working with the hon. Gentleman on that.

[Mr Laurence Robertson (Tewkesbury) (Con)]

T2. Will the Minister consider changing building regulations to require all new buildings to be self-sufficient in energy, which would have the triple benefit of securing supply, helping us towards net zero and reducing fuel poverty?

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

Would the Secretary of State give the House a clear and categorical assurance that if he cannot ultimately extract enough money from industry finally to fix the building safety crisis he will not allow the Chancellor to raid his Department’s budgets, including funding already allocated for new affordable homes, to make up the shortfall?

[Michael Gove]

I am grateful to the hon. Gentleman for giving me an opportunity to update the House on the conversations we had with developers last Thursday. Those conversations were cordial and constructive, but we were also clear about the obligation developers have. I am confident that they will meet it.

[Marco Longhi (Dudley North) (Con)]

T5. There are currently no statutory requirements for a planning authority to consult immediate neighbours in another planning authority, nor are there any in relation to the issuing of certificates of lawful use. As a result, green belt development by the back door is happening right now between my constituency and neighbouring South Staffordshire. Will the Secretary of State agree to meet me to discuss those complexities in more detail?

--- Later in debate ---

[David Johnston (Wantage) (Con)]

T6. I warmly welcome the Future Homes Standard, but in the meantime many homes are being built to the environmental standard of several years ago purely because of when their planning permission was granted. They will need to be retrofitted. Will my right hon. Friend consider requiring companies to build to the latest environmental standard, rather than the one in place when permission was granted, after a certain time has elapsed?

[Michael Gove]

We absolutely will consider that. I know there are innovators in my hon. Friend’s constituency who are leading work in that precise area, so I look forward to working with him and those in his constituency to achieve just that goal.

[Jessica Morden (Newport East) (Lab)]

T4. Do Ministers agree that the western gateway partnership, of which Newport is a part, deserves the same level of recognition and visibility in Government as other pan-regional partnerships, such as the northern powerhouse and the midlands engine? If so, will Ministers appoint a ministerial champion?

[Michael Gove]

Yes, and let me consider it.

[Martin Vickers (Cleethorpes) (Con)]

T7. Barton upon Humber, a market town in my constituency, is, like many up and down the country, having to contend with many residential planning applications. Public services such as school places and dentistry are unable to cope with existing pressures. Will Ministers consider strengthening the guidance to planning authorities and to planning inspectors to ensure that the availability of public services is paramount in dealing with those applications?

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

T8. I am sure the Secretary of State will have read the latest report from the all-party parliamentary group on left behind neighbourhoods, which highlighted that there is a cost to the economy of £30 billion due to health inequalities in our poorest areas. Would the Secretary of State be willing to hold a meeting with the authors of the report and the officers of the group to discuss what more needs to be in the White Paper on levelling up around health inequalities?

[Michael Gove]

I absolutely will do that. Although the White Paper will include a number of proposals to help to reduce health inequalities, as Professor Michael Marmot’s report and work—alongside the all-party group’s work—have demonstrated, significant work is required to be done on everything from obesity to cramped housing in order to deal with those issues.

[Dr Luke Evans (Bosworth) (Con)]

Almost a year ago, the Minister for Housing, who has responsibility for planning, wrote to Liberal Democrat-run Hinckley & Bosworth Borough Council to say that it does not have an up-to-date local plan and to ask it to do more to get it updated. In his answer to my hon. Friend the Member for North Wiltshire (James Gray), the Minister said that part of the problem is that areas become open to speculative developments. One way to strengthen the position is by having a neighbourhood plan, as in vanguard places such as Market Bosworth. The problem is that they are being ridden roughshod over. Will he look to strengthen the role of neighbourhood plans in future, and failing that, in the meantime, will he encourage Hinckley & Bosworth Borough Council to get its plan sorted and up to date?

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

Will the Secretary of State take steps to make sure that when we build very large new housing developments, it is easy for new residents to get into their local surgery or new health centre?

[Michael Gove]

My hon. Friend makes a very important point. We absolutely need to make sure that easy access to infrastructure and public services is part of significant housing developments, and I look forward to working with him to ensure that that is true in South West Bedfordshire and elsewhere.

[Clive Lewis (Norwich South) (Lab)]

In my city of Norwich, we have had less levelling up and more vital services simply levelled. Will the Secretary of State stop fobbing us off with insufficient, ad hoc pots of money and ensure that sustainable, long-term funding is given to my city and county councils, the real engines of any levelling-up agenda?

--- Later in debate ---

[Ronnie Cowan (Inverclyde) (SNP)]

The Secretary of State cannot fail to have noticed the number of questions in this session that have centred on the White Paper. Councils around the UK want to know what the timetable is, what the criteria are and when it will be published. Inverclyde wants to apply for this levelling-up funding. Will he help me? Does he want to visit Greenock, so I can show him the projects?

[Michael Gove]

I have spent many happy hours in Greenock and am looking forward to many more. I imagine that time there can only be enhanced, whether in Cappielow or anywhere else, with the hon. Gentleman. The key thing about the levelling-up fund is that constituencies across the United Kingdom, including in Scotland, have benefited. I look forward to working with him and others to ensure that—[Interruption.] As a Morton fan, he will appreciate that patience is a virtue.

[Richard Fuller (North East Bedfordshire) (Con)]

The forthcoming levelling-up White Paper is an opportunity to undo the imbalance in investment in active travel networks between towns and urban areas, which get the lot, and villages, which get very little to connect them. Will my right hon. Friend arrange for a meeting between me and one of his Ministers, together with members of Potton Town Council and Sandy Town Council, to talk about their active travel network?

[Michael Gove]

Yes.

[Matt Western (Warwick and Leamington) (Lab)]

The Secretary of State will be aware that Warwickshire County Council is keen to have some sort of county unitary deal, but he will also be aware that Warwick District Council and Stratford-on-Avon District Council recently voted for a combined council—probably with the intent of a unitary one as well. Should it not be down to not the councillors or the Secretary of State, but the public to decide the future of local government across our country?

[Michael Gove]

I welcome the moves across Warwickshire to consider how services can be delivered even more efficiently as part of the economic success story that is the greater west midlands. In particular, I commend the leadership of Izzi Seccombe, the leader of Warwickshire County Council. The fact that she and her group continue to be re-elected with ever greater levels of support indicates that she is in a strong position to help bring people together across the constituency.

[Dr Neil Hudson (Penrith and The Border) (Con)]

Volunteers who serve on our parish councils do an amazing job. In rural communities such as mine, there are significant challenges to attending meetings, such as transport, adverse weather, work and caring responsibilities. In the pandemic, we have seen that the virtual or hybrid format works well. Moving forward, will the Secretary of State look to allow parish councils to sit in virtual or hybrid format to increase and widen access and to help them work to the best of their ability?

[Michael Gove]

If during the pandemic we had not allowed councils to meet virtually, not only would we have impaired the effective working of local government, but we would never have known about Jackie Weaver and the country would have been the poorer for it. I commend the work of parish councils and others. I am strongly in sympathy with the view that hybrid meetings should continue in order to ensure the maximum amount of efficiency. There is a case for saying that certain significant local authority meetings should occur with all councillors present, but I want to proceed with the maximum amount of consensus to reflect the maximum level of efficiency and in particular of sensitivity to those who serve in constituencies such as my hon. Friend’s, where the rurality and dispersed nature of representation are important.

Review of Intergovernmental Relations

Lord Gove Excerpts

Thursday 13th January 2022 Written Statements

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

Today the UK Government have published an update on how the UK Government and the devolved Administrations intend to conduct formal intergovernmental relations with each other. All four Governments have agreed to work under these new arrangements. I will be depositing the Review of Intergovernmental Relations in the Libraries of both Houses.

The Review of Intergovernmental Relations, developed jointly by all four Governments, provides an up-to-date and fit-for-purpose system, introducing new structures for more regular, formal intergovernmental engagement and new processes to increase impartiality and to avoid, resolve and, where necessary, escalate disputes. It is a commitment to a co-operative spirit and to constructive collaboration with the devolved Administrations, through more transparent and accountable arrangements, and will be to the benefit of citizens in every part of the UK.

[HCWS536]

Building Safety

Lord Gove Excerpts

Monday 10th January 2022 Commons Chamber

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

With permission, Mr Speaker, I would like to update the House on building safety. Before I do so, I can confirm that I have asked the permanent secretary in my Department to conduct a leak inquiry. It was a matter of considerable regret to me that details of the statement that I am about to make were shared with the media before they were shared with Members of this House, and indeed with those most affected.

It is worth pausing at the start of any statement to reflect on why building safety is an issue of concern to all of us in this House today. It took the tragedy at Grenfell Tower on 14 June 2017, as a result of which 72 innocent men, women and children lost their lives, to put building safety properly on the political agenda. Families were living in a building that was literally a death trap because of failures of enforcement and compliance in our building safety regime. This Government must take their share of responsibility for those failures.

Over four years on from that terrible tragedy, it is clear that the building safety system remains broken. The problems that we have to fix have been identified by many across this House, from all parties. I would like at this point to register my appreciation of the work that the late Jack Dromey did on this issue. He was shadow Housing Minister for three years and he did a great deal, both as a trade unionist and as the Member of Parliament for Birmingham, Erdington, to bring to light the plight of those affected by this crisis.

As we know, there are still a small number of high-rise buildings with dangerous and unsafe cladding that have to be fixed. We know that those who manufacture dangerous products and develop dangerous buildings have faced inadequate accountability so far, and shown insufficient contrition. We also need to ensure that we take a proportionate approach in building assessments overall. There are too many buildings today that are declared unsafe, and there are too many who have been seeking to profit from the current crisis.

Most importantly, leaseholders are shouldering a desperately unfair burden. They are blameless, and it is morally wrong that they should be the ones asked to pay the price. I am clear about who should pay the price for remedying failures. It should be the industries that profited, as they caused the problem, and those who have continued to profit, as they make it worse.

Mr Speaker, we will take action on all of these fronts. To ensure that every remaining high-rise dangerous building has the necessary cladding remediation to make it safe, we will open up the next phase of the building safety fund early this year and focus relentlessly on making sure it is risk driven and delivered more quickly.

We will also ensure that those who profited, and continue to profit, from the sale of unsafe buildings and construction products must take full responsibility for their actions and pay to put things right. Those who knowingly put lives at risk should be held to account for their crimes, and those who are seeking to profit from the crisis by making it worse should be stopped from doing so.

Today, I am putting them on notice. To those who mis-sold dangerous products, such as cladding or insulation, to those who cut corners to save cash as they developed or refurbished people’s homes, and to those who sought to profiteer from the consequences of the Grenfell tragedy: we are coming for you. I have established a dedicated team in my Department to expose and pursue those responsible. We will begin by reviewing Government schemes and programmes to ensure that, in accordance with due process, there are commercial consequences for any company that is responsible for this crisis and refusing to help to fix it.

In line with this, just before Christmas, I instructed Homes England to suspend Rydon Homes, which is closely connected to the company that refurbished the Grenfell Tower, from its participation in the Help to Buy scheme, with immediate effect. I also welcome the decision by the Mercedes Formula 1 team and Toto Wolff to discontinue sponsorship from Kingspan, the cladding firm, with immediate effect. The voices of the families of the bereaved and the survivors of the Grenfell Tower were heard, but this is only the start of the action that must be taken.

We must also restore common sense to the assessment of building safety overall. The Government are clear—we must find ways for there to be fewer unnecessary surveys. Medium-rise buildings are safe, unless there is clear evidence to the contrary. There must be far greater use of sensible mitigations, such as sprinklers and fire alarms, in place of unnecessary and costly remediation work.

To achieve that, today I am withdrawing the Government’s consolidated advice note. It has been wrongly interpreted and has driven a cautious approach to building safety in buildings that are safe that goes beyond what we consider necessary. We are supporting new, proportionate guidance for assessors, developed by the British Standards Institution, which will be published this week.

Secondly, we will press ahead with the building safety fund, adapting it so that it is consistent with our proportionate approach. We will now set a higher expectation that developers must fix their own buildings, and we will give leaseholders more information at every stage of the process.

Thirdly, before Easter, we will be implementing our scheme to indemnify building assessors conducting external wall assessments, giving them the confidence to exercise their balanced professional judgment. We will audit those assessments to ensure that expensive remediation is being advised only where it is necessary to remove a threat to life.

I will be working closely with lenders over the coming months to improve market confidence, and I have asked my colleague Lord Greenhalgh to work with insurers on new industry-led approaches that bring down the premiums facing leaseholders.

Further, we will take the power to review the governance of the Royal Institution of Chartered Surveyors, to ensure that it is equipped properly to support a solution to this challenge. Those in the industry who refuse to work with us in good faith to take a more proportionate approach should be clear that our determination is to fix the problem for all those caught up in this crisis.

Finally, we must relieve the burden that has been unfairly placed on leaseholders. I want to pay tribute to all those across the House who have campaigned so passionately on this subject. They know the injustice of asking leaseholders, often young people who have saved hard and made sacrifices to take their first steps on the housing ladder, to pay money they do not have to fix a problem they did not cause, all while the firms who made a profit on those developments sit on their hands. We will take action to end the scandal and protect leaseholders. We will scrap the proposal for loans and long-term debt for medium-rise leaseholders.

I can confirm to the House today that no leaseholder living in a building above 11 metres will ever face any costs for fixing dangerous cladding and, working with Members of both Houses, we will pursue statutory protection for leaseholders and nothing will be off the table. As part of that, we will introduce immediate amendments to the Building Safety Bill to extend the right of leaseholders to challenge those who cause defects in premises for up to 30 years retrospectively.

We will also take further action immediately: we will provide an additional £27 million to fund more fire alarms, so we can end the dreadful misuse of waking watches; we will change grant funding guidance so that shared owners affected by the crisis can more easily sub-let their properties, and encourage lenders and landlords to approve sub-letting arrangements; and in the period before long-term arrangements are put in place, I will work with colleagues across Government to make sure that leaseholders are protected from forfeiture and eviction because of historic costs. Innocent leaseholders must not shoulder the burden.

We have already committed £5.1 billion of taxpayers’ funding from the Government, but we should not now look to the taxpayer for more funding. We should not ask hard-working taxpayers to pay more taxes to get developers and cladding companies making vast profits off the hook. We will make industry pay to fix all of the remaining problems and help to cover the range of costs facing leaseholders. Those who manufactured combustible cladding and insulation, many of whom have made vast profits even at the height of the pandemic, must pay now instead of leaseholders.

We have made a start through the residential property developer tax and the building safety levy, both announced last February, but will now go further. I will today write to developers to convene a meeting in the next few weeks, and I will report back to the House before Easter. We will give them the chance to do the right thing. I hope that they will take it. I can confirm to the House today that if they do not, we will impose a solution on them, if necessary, in law.

Finally, we must never be in this position again, so we are putting the recommendations of the Hackitt review on building safety in law and we will shortly commence the Fire Safety Act 2021. We are also today publishing new collaborative procurement guidance on removing the incentives for industry to cut corners and to help stop the prioritisation of cost over value. We will legislate to deliver broader reforms to the leasehold system, and also bring forward measures to fulfil commitments made in the social housing White Paper. When parliamentary time allows, we will have legislation on social housing regulation so that social housing tenants cannot be ignored as those in the Grenfell community were for many years.

Four and a half years on from the tragedy of Grenfell, it is long past time that we fix the crisis. Through the measures that I have set out today, we will seek redress for past wrongs and secure funds from developers and construction product manufacturers, and we will protect leaseholders today and fix the system for the future.

[Lisa Nandy (Wigan) (Lab)]

May I thank you, Mr Speaker, for your kind words about Jack Dromey, who should have been with us here today? There is a space over there that I know Jack would have occupied. Back in the 1970s, horrified by the spectacle of a skyscraper in London that lay empty while people slept rough underneath it, Jack was one of those who occupied Centre Point tower in protest. He was never afraid to speak truth to power, and I hope that today marks the start of all of us across the House invoking his spirit.

Four and a half years after the appalling tragedy at Grenfell, and with a road paved with broken promises and false dawns, hundreds of thousands are still trapped in unsafe homes, millions are caught in the wider crisis, and the families of 72 people who lost their lives are waiting for justice. It is a relief that we finally have a consensus that the developers and manufacturers who profited from this appalling scandal should bear greater costs, not the victims, and that blameless leaseholders must not pay. After a year of hell of the prospect hanging over leaseholders, we welcome the decision to remove the threat of forced loans, but can the Secretary of State tell us what makes him think that he can force developers, who have refused to do the right thing for four years, to pay up? We have been told there is a March deadline and a roundtable, but there is not a plan. If he has one, can we hear it? He will find an open door on the Opposition side of the House, if he has a credible proposal to bring.

Today the Secretary of State warned developers that if negotiation fails,

“our backstop…what we can do…is increase taxation on those responsible”,

but that is not quite right, is it? I have in front of me the letter from the Chief Secretary to the Treasury. May I remind the Secretary of State what it says? He was told that

“you may use a high-level ‘threat’ of tax or legal solutions in discussions with developers”

but

“whether or not to impose or raise taxes remains a decision for me”

—the Chief Secretary—

“and is not a given at this point.”

If I have seen the letter, I am fairly sure that the developers have too. Furthermore, it appears that what the Secretary of State has told the public—that tax rises are the backstop—is not what he has told the Treasury. The letter says that

“you have confirmed separately that DLUHC budgets are a backstop for funding these proposals in full…should sufficient funds not be raised from industry.”

That is not what the Secretary of State told the House a moment ago, so can he clear this up? Has the Chancellor agreed to back a new tax measure if negotiations fail, or is the Secretary of State prepared to see his already allocated budgets—levelling-up funding, or moneys for social or affordable housing—raided? Or is his plan to go back to the Treasury, renegotiate and legislate, if he fails in March? If that is the case, it will take months, and there is nothing to stop freeholders passing on the costs to leaseholders in the meantime. Does he even have an assessment of how many leaseholders will be hit with whacking great bills if he delays?

If the Secretary of State is serious about going after the developers—I hope that he is—why is he not putting these powers into the Building Safety Bill now? The only trick that he has up his sleeve, as he just confirmed to the House, is to ban them from Help to Buy, and we know that the impact of that, though welcome, will be marginal. Can he see the problem? He will also know that there is a gaping hole in what he has proposed. A significant number of buildings have both cladding and non-cladding defects, and leaseholders in them face ruinous costs to fix things such as missing fire breaks and defective compartmentation. One cannot make a building half safe. Given that the Secretary of State recognises the injustice of all leaseholders caught up in the building safety crisis, why is he abandoning those who have been hit with bills for non-cladding defects, and why will he not amend his Bill so that all leaseholders are protected from historical defects in law?

The truth is that the pace of remediation has been painfully slow. The Secretary of State is now on track to miss the deadline to fix all Grenfell-style cladding by over half a decade, and there are huge delays when it comes to building safety fund applications, so will he get a grip on what is going on in his own Department and ensure that the progress of remediation is accelerated markedly? As he knows, this has been a living nightmare for affected leaseholders, and we owe it to them to bring it swiftly to an end.

What the Secretary of State has given us today is a welcome shift in tone and some new measures that the Opposition very much hope will succeed, but the harder I look at this, the less it stands up. We were promised justice and we were promised change, to finally do right by the victims of this scandal, and that takes more than more promises. It takes a plan.

[Michael Gove]

I am grateful to the shadow Secretary of State for her questions. First, I entirely agree with the generous and fitting words that she had for Jack Dromey. As I mentioned briefly in my statement, he was a relentless campaigner for social justice throughout his career. Indeed, the role he played in highlighting the plight of the homeless, and the need to act in order to ensure that they had a safe and decent place to live, is one of the many achievements that we will all recall as we think of his contribution. I also welcome the consensual approach that the shadow Secretary of State and her Front-Bench colleagues are taking in seeking to ensure that we place responsibility where it truly lies, and she had a number of appropriate questions to follow up in order to ensure that we deliver effectively.

The shadow Secretary of State made the point that the allocations from the building safety fund so far have been slow and are behindhand, and that is true. I think it is always better to be honest about those areas where the Government have not performed as well as they should, and one of the first things I did as Secretary of State was to ask for all necessary steps to be taken to ensure that that money was spent effectively. Of course, one of the problems we have had is that it is a demand-led system, so we have relied on many of those who have been responsible as the individual owners of buildings to come forward. However, what we are also hoping to do is ensure that, working with the National Fire Chiefs Council, we have the most extensive analysis of all the buildings that need our support and that we accelerate work on the BSF. So her concerns are not misplaced, and it is certainly my intention to ensure that we accelerate and make comprehensive that work.

The shadow Secretary of State also made the point that non-cladding costs do need to be met, and I agree. She specifically requested that we provide amendments to the Building Safety Bill to ensure that there is statutory protection for leaseholders. That is our intention—we intend to bring forward those amendments—and I look forward to working with her and colleagues across the House to provide the most robust legal protection.

The shadow Secretary of State doubted—again, I can understand the basis of her scepticism—whether developers and others in industry, given their past behaviour, would necessarily come sweetly to the table, and that is why it is so important that we have a range of tools available. I think it is important to recognise that there are some developers and some in the industry who have done the right thing, and it is also important to recognise that a spokesman for the Home Builders Federation, Stewart Baseley, today struck a very a constructive and open tone.

However, we do need to have additional backstops, and it is clear that taxes can, if necessary, play a part. I do not want to move there, but we do have the absolute assurance that we can use the prospect of taxation to bring people to the table. All taxation decisions are made by the Chancellor, and no Chancellor or Chief Secretary would ever say anything other than that, but the fact that the Chief Secretary and the Chancellor have authorised me to use the prospect of taxation, and the fact that we already have taxation through the residential property developer tax, shows that we are prepared to take every step necessary.

The final point that was implicit—perhaps explicit—in everything the shadow Secretary of State said is that we will be judged on our actions, and I think that is entirely fair. I recognise, given the scale of the frustration that so many have felt in the past, that ultimately there can only really be satisfaction when we bring this matter to a conclusion. I believe that today marks a significant step forward, but there is more work to do, and I hope that we can conclude that work on a cross-party basis in order to bring justice to those who deserve it.

--- Later in debate ---

[Sir Peter Bottomley (Worthing West) (Con)]

I will co-operate, Mr Speaker, and may I say, through you, to the Mother of the House, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), that the tributes to her husband Jack Dromey for his work on people’s interests at work and at home will be long remembered, together with that of David Amess, who for 20 years worked on the all-party group on fire safety and rescue with Ronnie King and others?

I believe that this is another step forward that is greatly welcomed and greatly needed, but I think the extension of the liability to 30 years is wrong for those who knew that what they were doing was wrong: 30 years may be fine for those who did it by mistake, but for those who knew what they were doing, there should be unlimited liability both in time and in money.

I hope that the Secretary of State will have a roundtable. If he wants to take over the all-party group roundtable for a summit on this, he can pick up some of the other issues that no doubt he has been working on, but which, to keep his statement reasonable, he may not have covered today.

One problem is the insurance premiums paid by leaseholders for a property they do not own, which may have gone up from an illustrative £300 a year to £3,000 a year. I believe that the Association of British Insurers should be told that the Competition and Markets Authority will look to see whether there is price gouging, in simple terms, and, that if there is some kind of catastrophic reinsurance needed, the Government should help them to make communal arrangements to deal with that, because insurance premiums should come down to the £300 they were before.

The last point of very many I would like to make is that the Treasury will expect to get the benefit of the levy and tax towards the £5 billion already announced, and the contributions that will come in from developers will relieve burdens on residential leaseholders, but the Government should also get the VAT on money that is spent, which is 20% of the total cost. If the total cost comes down from £15 billion to, say, £12 billion, my right hon. Friend can calculate and discuss with the Treasury how much extra the Treasury is getting. The Treasury should not be making a profit out of all this catastrophe.

[Michael Gove]

I thank the Father of the House for his questions. He is quite right that Sir David Amess, before his sad death, was one of the most prescient and most effective campaigners for improved building safety. His memory is very much in my mind.

The Father of the House makes a point about the need to potentially look at unlimited liability for those who consciously and deliberately operated in a reckless fashion. I will consider that and I am sure it will be considered during the passage of the Bill. On his point that we should work with others, particularly the broad leasehold community who have done so much to identify the way forward, we absolutely intend to do that. The point he makes about insurance premiums is absolutely right. That is why my noble Friend Lord Greenhalgh will be talking to Baroness Morgan of Cotes and others in the Association of British Insurers to ensure that more insurers, like Aviva, do the right thing. I very much note his point about VAT and Treasury contributions. In the ongoing conversations we have with the Chancellor of the Exchequer, I will reflect on the very important point that he made.

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

I wish to echo the sentiments from across the House on the work Jack Dromey did on this issue and his campaigning to get justice for those affected.

It has been almost five years since the Grenfell fire. In that time, we have had four Housing Secretaries and several different policies and approaches to this issue. First the Government would pay, then leaseholders would pay and now developers will pay, all because the Treasury has for so long refused to act further on this issue. The confusion is not only harming homeowners facing a Tory cost of living crisis, but affecting the ability of devolved Governments to plan their responses appropriately. Can the Secretary of State guarantee that this latest policy will be acted on, and will he commit to working with the devolved Governments to provide further clarity? Additionally, can he make it clear when already promised funding will fully and finally be delivered to the devolved Governments for this matter?

[Michael Gove]

I am very grateful to the hon. Lady for her points. We certainly will work with the devolved Governments. Of course, the residential property developer tax, like all UK-wide taxes, is distributed appropriately in line with the Barnett formula and other requirements, but we will certainly work with devolved Governments. I should say that I am very grateful to the Scottish Government, the Welsh Government and the Northern Ireland Executive for the work they have already done on this issue. We all have much to learn from one another.

[Felicity Buchan (Kensington) (Con)]

I welcome the direction of travel in the statement, specifically that leaseholders will not have to pay for cladding remediation. I am also glad that building product makers are now coming within the scope of Government, not only property developers. I have been personally shocked by some of the revelations coming from the Grenfell inquiry and I think that potentially we need to address the building products sector. May I stress to my right hon. Friend that speed and delivery here is critical? It is now four and a half years since the tragedy in my constituency. What is important is not only having a good plan, but executing it quickly and efficiently.

[Michael Gove]

My hon. Friend is absolutely right and I am very conscious of the need for speed. I quite agree. If we look at the behaviour of some of the cladding firms, the behaviour of people who work for Kingspan and Arconic, and the evidence presented to the Grenfell inquiry, we see that it is truly dreadful. The individuals concerned must take responsibility. She represents a constituency in which there are many, many people who are effectively trapped because of the failure of the property market to effectively address all these problems. In the interests of her constituents and so many more, and in particular in the interests of the Grenfell community and its fight for justice, I am very conscious of the need to move as fast as we possibly can.

[Mr Clive Betts (Sheffield South East) (Lab)]

I thank the Secretary of State for his statement. I am sure he will welcome an invitation from the Select Committee to come and discuss these matters further in detail. Just two important issues. First, will he clarify that leaseholders will not have to pay the cost of remediation, including non-cladding work, because that is not exactly what his statement says? Secondly, will he clarify that, apart from the removal of aluminium composite material cladding, the Government will give social housing providers no help whatsoever? If developers do not pay for the measures that he announced today or taxes are not raised, and there are cuts to his budget as a result, will that come off social housing provision as well? What assessment has he done of the total impact on the future building of social housing?

[Michael Gove]

These are three very important points. First, we will make sure that we provide leaseholders with statutory protection—that is what we aim to do and we will work with colleagues across the House to ensure that that statutory protection extends to all the work required to make buildings safe. Secondly, to ensure that there is not an adverse impact on social housing or on the work that Homes England is leading to bring together and remediate brownfield land for new private-sector development, we will do absolutely everything possible so that, ultimately, those with big balance sheets and big bucks discharge their responsibility. He and I will know that the seven major housing developers do much good work but that in the last three years they made profits of £16 billion. Understandably, people are prompted to ask that those significant sums be devoted to ensuring that the building safety crisis is met, alongside the building supply pipeline of the future.

[Robert Jenrick (Newark) (Con)]

I welcome these further measures to provide critical support to leaseholders and to restore a greater degree of confidence to the housing market. In particular, may I welcome the future support for those in medium-rise buildings? It is a pity that the Treasury did not agree to that proposal in January of last year, but such is the way with this issue. May I ask my right hon. Friend about two particular points? First, he has agreed a backstop with the Chief Secretary to the Treasury whereby the ultimate risk will be borne by the provision of social housing. I am sure that he would agree that it would be quite wrong for social housing tenants and the homeless to pay the price for solving this issue, so will he say that that will not be the case? Secondly, I see that the Royal Institution of Chartered Surveyors has failed to make good on the conversations we have been having for several months, if not years, to instil a more proportionate and sensible approach into the assignment of risk. What further steps—he alluded to some in his remarks—can he take against RICS, because its behaviour is now bordering on scandalous in not taking this issue seriously?

[Michael Gove]

First, I pay tribute to my right hon. Friend, my predecessor. I have had the opportunity since joining the Department to see just how hard he worked, facing a number of frustrations, to secure justice for those who are our first concern. I heard some comments from some Opposition Members seeking to decry that. If they knew what I know about how hard Robert had worked to try to secure justice, they would not be trying to make a cheap point about it. We all care about this issue, but few care about it as much, and certainly no one currently in this Chamber has worked as hard to try to help those people, as my right hon. Friend. So I am not having it.

The second point that m right hon. Friend made is absolutely right; we need to ensure both that there is more social housing provision and that we improve the quality of social housing—that is a core mission for the Department. His third point, about RICS, is right. There have been all sorts of difficulties with that organisation in the past, but I am now hopeful that we are on a more positive footing. We have the potential to take steps to improve the governance of the institution, but I am hopeful now that, given some of the conversations we have had, including with lenders and others, we can be on a more positive footing. Let me once again underline and affirm my gratitude to my right hon. Friend for his incredibly hard and dedicated work to try to bring this situation to a satisfactory conclusion.

[Catherine West (Hornsey and Wood Green) (Lab)]

My constituents in Eclipse House, Station Road, Wood Green have been suffering for more than a year with astronomical costs to deal with gaps relating to fire doors and external wall insulation. Can the Minister confirm that that is not covered in today’s statement? Secondly, what voice will tenants have in the future? One of the worst things about Grenfell is the lack of tenant voice to make good things stick when bad practice is all around.

[Michael Gove]

The hon. Lady makes two important points. First, the freeholders, as the ultimate owners of these buildings, will be held responsible for all the work that is required, and we will make sure that leaseholders are not on the hook. Secondly, she is right that those who listened to some of the testimony at the Grenfell inquiry, and those who have seen some of the excellent campaigning journalism associated with it, will know that Ed Daffarn and others explicitly warned of some of the consequences of the approach taken at the time. Tenants’ voices were not heard, and people died as a result. That is why the social housing White Paper, which my right hon. Friend the Member for Newark (Robert Jenrick) did so much to advance, and the social housing Bill, which will come forward in due course, are so important.

[Stephen McPartland (Stevenage) (Con)]

I welcome this brilliant statement, and I am grateful to the Secretary of State for working constructively with us, across parties, and with the cladding groups to get us to where we are today. Today’s announcement is another huge step forward for leaseholders. This is a victory for leaseholders, who will get up to £9 billion of support. We will make those responsible pay and start on the journey.

I seek clarification on two areas. First, cladding is an external fire safety defect, but are developers responsible for internal fire safety defects such as missing fire breaks, which stop fire spreading from one flat to another? Secondly, will there be Government amendments to the Building Safety Bill to make it clear in law that leaseholders are innocent parties and will not have to pay?

[Michael Gove]

I thank my hon. Friend for his fantastic campaigning on this issue. On the first point, which is linked to his second point, the owners, the freeholders and the responsible figures in charge of these buildings will be held responsible and made responsible for making sure that all the work is done to make these buildings safe. We will table amendments to ensure that, on a statutory basis, we protect leaseholders from having costs passed on unfairly by the owners of the freeholds of these buildings.

[Jeremy Corbyn (Islington North) (Ind)]

When the horror of Grenfell happened, many local authorities such as mine responded immediately by inspecting all buildings and taking action as appropriate, as they should have done. The private sector did not do that for many of our leasehold properties.

I had a very sad conversation with a group of leaseholders a month ago. They are completely stuck. They cannot sell or move, they have expanding families and they are faced with massive bills. Can I go to them tomorrow and say that the Government will underwrite all the costs that they have been threatened with so that they can get their building brought up to standard and, if they wish, sell and move on? Or will there be months and months of delay until the private sector decides not to pay and the Government intervene? I think those leaseholders, like leaseholders all over the country, deserve an immediate answer. They have been through too much stress.

[Michael Gove]

Perhaps for the first time, I am almost wholly in accord with the right hon. Gentleman. Leaseholders deserve speedy action, but I do not want to overpromise. I believe we can rapidly relieve the difficult situation in which his constituents find themselves. I do not think it can be immediate, but I intend to ensure it is as quick as possible.

Please forgive me for making this point, but I agree with the right hon. Gentleman that many in local government, across parties, were far quicker to respond to this crisis than some in the private sector, which is shaming.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

My right hon. Friend will be aware that this whole issue has caused extraordinary misery, anxiety and upset, and I had the opportunity this morning to speak to Jim Illingworth of BrumLAG. He, my right hon. Friend the Member for Newark (Robert Jenrick) and our friend Jack Dromey have worked closely, and he was clear that he is very grateful for this progress. We are seeing a mixed economy of response, although there are clearly issues of timing and other details, which I have no doubt that my right hon. Friend the Secretary of State will need to address. I hope that he accepts that he needs to crack the whip on this, but is he not well able to do so?

[Michael Gove]

I am grateful to my right hon. Friend for his point. I had the chance to chat to Jim Illingworth and other cladding campaigners earlier today and he is absolutely right. I know that my right hon. Friend, as a Birmingham MP, is all too well aware of how many people in that great city are affected by this crisis, and I look forward to working with him and others to resolve it as quickly as possible.

[Kim Johnson (Liverpool, Riverside) (Lab)]

A retired teacher in my constituency invested in a property in 2015, but just before Christmas, they were issued with a massive bill for £200,000 for an increase in their costs, and remedial work on their property will cost a possible £9 million. Will the Secretary of State agree to meet me and the leaseholders to talk about how the policy change will benefit them?

[Michael Gove]

I am grateful to the hon. Lady and I will make sure that either I or others in my Department have those conversations as quickly as possible.

[Sir Mike Penning (Hemel Hempstead) (Con)]

I welcome the statement today and the work that the Minister for Housing has done with colleagues across the House to explain how the policy will go forward, because this has been a nightmare for leaseholders. I have two quick questions. First, if leaseholders have already paid money out, will they get that money back from the freeholders or the developers? Secondly, on the issue of insurance, which was raised earlier, does the Secretary of State realise that even though people are liable for the costs of building insurance, they have no rights at all in the policy? When the situation occurs, they cannot claim against the policy; only the freeholder can do so. That must get changed in the Bill.

[Michael Gove]

There are few people in the House who know as much about fire safety as my right hon. Friend. We will certainly work with him to explore the specific insurance provisions that he mentioned. I cannot, unfortunately—I would not want to mislead him—say that we will be in a position to compensate those who have already contributed. We are seeking to ensure that individuals do not face costs in the future, but again, I will work with colleagues across the House to try to get to the most equitable position possible.

[Daisy Cooper (St Albans) (LD)]

I look forward to seeing the amendments from the Government about how leaseholders will be protected, because my constituents in St Albans, like many others, have had too many false dawns. I want to ask about the Secretary of State’s review of proportionality. In the past, building safety assessors have been chosen because of their willingness to recommend the less expensive safety work, and that has created a race to the bottom. Will he confirm that the BSI guidance will be mandatory for building safety assessors, and will he put protections in place so that assessors do not get away with offering the lightest touch mitigations that they can?

[Michael Gove]

First, I thank the hon. Lady—it is always difficult for me to praise a Liberal Democrat, but she has been campaigning consistently on this issue for some time and has done a great job of bringing to light some of the defects that need to be addressed. It is the case that the BSI work, we believe, will ensure a properly proportionate approach. There are incentives either way—incentives, sometimes, for some to seek to do work on the cheap and for others to exaggerate the scale of the work that may be required to generate business. I hope, however, that a truly proportionate and safe approach will now be followed as a result of the BSI’s work.

[Royston Smith (Southampton, Itchen) (Con)]

I joined this campaign a year or so ago because, as the Secretary of State said in his statement, leaseholders are blameless and it is morally wrong to make them pay. I look forward to seeing this become part of the Bill so that leaseholders know that they will never have to pay. However, let me go back to insurers: not only are they increasing premiums by up to 1,000% for people who cannot really afford the premiums that they were paying before, but insurers are part of the problem. They were indemnifying these developers and underwriting these developments. They are part of the warranty issue and yet, this has not been brought into scope as part of the solution, so will the Secretary of State look again and make sure that insurers have to pay in the way that developers will?

[Michael Gove]

My hon. Friend makes a very important point and his campaigning has been a significant factor in helping us to get to the right, or certainly to a better, position. We want insurers to be part of the solution, as we want everyone to be, and Lord Greenhalgh is doing great work with them. I am sure that there will be an opportunity before too long for me to explain in greater detail, with Lord Greenhalgh, to my hon. Friend and others the progress that we are making, but he is absolutely on the button in pointing out some of the mistakes that have been made that need to be addressed by the insurance sector.

[Kate Green (Stretford and Urmston) (Lab)]

I note that the Secretary of State said he would extend the right of leaseholders to challenge those who cause defects retrospectively for 30 years, but he will be aware that unscrupulous developers such as Mr Jason Alexander in my constituency exploit loopholes in company law with the result that there is no corporate entity to go after because it has been wound up, struck off or stripped of assets. Can he say what work he is doing with the Department for Business, Energy and Industrial Strategy to ensure that those loopholes in company law are closed? Can he also tell us whether the obligations that developers will now face as a result of his statement today will take precedence over their other financial obligations?

[Michael Gove]

The hon. Lady makes two important points. On the first point, yes, this has been a feature. I was not fully aware, until I took on this responsibility, of how some within the development industry play fast and loose with the rules and set up special purpose vehicles, shell companies and so on to evade their responsibilities. They exhibit the unacceptable face of capitalism, I am afraid, and she is right to say that work requires to be done to bring them appropriately to account. I will be working with colleagues across Government to do just that.

[Esther McVey (Tatton) (Con)]

I welcome the Secretary of State’s announcement today but, like others, I will be awaiting the detail, not least because I was calling for leaseholders to be protected from the cost of cladding when I was a Minister in the Department. So what has happened to change the Government’s mind?

[Michael Gove]

As so often, my right hon. Friend is ahead of her time. There have been any number of occasions, including recently, when I have had to acknowledge that she has been right and the rest of us have been wrong, and this is one of those occasions.

[Barry Gardiner (Brent North) (Lab)]

Today the Secretary of State has told us what many all across the House told the Government three years ago—namely, that individual leaseholders trapped in unsafe homes should not have to bear the cost of making them safe. But today’s statement focuses on cladding, whereas the vast majority of leaseholders are suffering in unsafe homes as a result of other insulation and fire stopping defects. How will he address that? He has told the companies to pay up, but many have now gone into voluntary liquidation. We need a windfall tax on the whole industry now. Far too many leaseholders have been waiting for three and half years in purdah. Many of them, like my constituents in Central Square, have been waiting since 31 July even to get a response from the BSF. Can the Secretary of State get his own Department to be a bit more expeditious?

[Michael Gove]

The hon. Gentleman makes a number of important points. Yes, the Department needs to be more expeditious and yes, we are focused on doing just that. Yes, it is important that the freeholders—the ultimate owners—deal with all the fire safety issues and yes, it is absolutely right that, while ACM cladding is the most egregious example of buildings being unsafe, there are many other issues that require to be tackled.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I welcome my right hon. Friend’s statement. It is long overdue. Many in my constituency and elsewhere face huge bills, as he knows. The biggest problem is getting the developers to talk to those who have suffered. I spent two years trying to get representatives of Telford Homes to meet the leaseholders, but they have now gone to ground and will not say a word. The Government have been talking about talking to developers for some time now but nothing has come of it, so, with all due respect, how is my right hon. Friend going to drive them—and the insurance companies that insured those that have gone out of business—to meet the leaseholders? Taxes can take time, so what about instantaneous fines?

[Michael Gove]

By any means necessary. My right hon. Friend is absolutely right. My preference is, wherever possible, to proceed consensually and to think the best of people. There are undoubtedly many people in the property development sector who have done the right thing and others who hope to do so, but if we need to, we will deploy heavier artillery to ensure that we get the necessary support to those on the frontline.

[Sarah Jones (Croydon Central) (Lab)]

I welcome the statement, which is certainly a step in the right direction.

There are many tall buildings in my constituency. Some of the issues affecting them, and the costs that they bear, are very complex, and do not involve anything that would be covered today. Two blocks, Longitude and Altitude, have to pay for compartmentalisation, and although Bridge House—which is over 18 metres tall—is cladded, its cladding is not categorised as the right type to qualify for funding under the Government’s scheme. Some of my constituents live in blocks where the developer has gone bust and the freeholder is overseas, and they have a tenuous relationship with the managing agent. It is very difficult to get any information. Can the Secretary of State say something about that wider issue and what can be done about it, and what is his estimate of the cost of making all these buildings safe?

--- Later in debate ---

[Michael Gove]

The hon. Lady has made a series of important points. I know that she has already been in touch with the Department, but I want to be more closely in touch with her. Our project team, Operation Apex, are making sure that we can do everything possible to ensure that the ultimate responsible owner is identified and takes on responsibility for the work to which the hon. Lady has correctly drawn attention. I look forward to working more closely with her to address precisely that issue.

[Joy Morrissey (Beaconsfield) (Con)]

I thank my right hon. Friend for standing up for leaseholders, particularly young people who have just got on to the housing ladder. May I ask him to look again at sprinklers as a safety measure? They are required in many countries, and the fact that they are not required here has always perplexed me. I also ask him to ensure that the building materials used for social housing are subject to the necessary level of scrutiny. Developers often use lower-quality materials which create a greater risk to safety, and we need to protect social housing tenants as well.

[Michael Gove]

My hon. Friend is absolutely right. She was an incredibly hard-working figure in local government in London, where she helped to ensure that the needs of those in social housing were understood. There are specific provisions in the building safety legislation introduced by the Minister for Housing, my right hon. Friend the Member for Tamworth (Christopher Pincher), to address some of those questions about poor-quality material social housing.

[Sammy Wilson (East Antrim) (DUP)]

It is right that leaseholders should not be held responsible for the faults of builders in the past, and I therefore welcome the statement. However, given that housing is a devolved matter in Northern Ireland, I assume that what we are discussing today will not automatically apply there. What discussions has the Secretary of State had with the Communities Minister and the Finance Minister—both of whom are responsible for these housing and building regulations issues—given that Sinn Féin seem to take the view that anything that emanates from this place, regardless of how beneficial it is to people to Northern Ireland, is not acceptable?

[Michael Gove]

Those are very fair points. I have written today to Ministers in the Northern Ireland Executive and the other devolved Administrations to outline the approach that we propose to take. I will work with Ministers from whatever party—I absolutely take on board the point made by the right hon. Gentleman—to ensure that we get to the right position. I am grateful to the First Minister, Paul Givan, for the support he has given us overall in the run-up to this announcement: it is much appreciated.

[Mark Logan (Bolton North East) (Con)]

Everyone remembers their first visit to Bolton, but on his next visit, will the Secretary of State come with me to Holden Mill in Blackburn Road and Astley Bridge to meet residents and see the progress that has been made on the removal of cladding, but also to discuss with them issues relating to poor build quality and how the Government can fight their corner?

--- Later in debate ---

[Michael Gove]

I certainly will, and I am grateful to my hon. Friend, who is a very effective advocate for Bolton.

[Janet Daby (Lewisham East) (Lab)]

May I add my voice to those who have spoken of the sudden passing of Jack Dromey? He was a truly pleasant and decent person. Let me also convey my condolences to the Mother of the House, and especially to his son, Joe Dromey, who I know very well, and knew especially well when we were councillors together in Lewisham.

Leaseholders are feeling anxious and angry about the delays, and the uncertainty about when the cladding will be removed from buildings and associated safety problems will be dealt with. That includes residents of the Parkside development in my constituency. The developers and the housing association have said that they will start to look at doing the remediation work in the spring, but will provide no absolute guarantee that any costs will not be passed on to the leaseholders. Will the Secretary of State review this case in order to provide the certainty that leaseholders in my constituency so desperately need?

[Michael Gove]

Yes, I absolutely will. I thank the hon. Member for bringing that to my attention.

[Mrs Maria Miller (Basingstoke) (Con)]

I welcome my right hon. Friend’s statement and his sheer determination not only to hold people responsible for the wrongdoings they did but to stand up for leaseholders. However, building owners are still dragging their feet, delaying essential remedial works, even though they might be eligible for Government funding. What incentive can he give today to those building owners to complete the works as soon as possible and not put concerns about their own financial liabilities, however theoretical, above the concerns and safety of residents in those blocks?

[Michael Gove]

My right hon. Friend is absolutely right. It is certainly the case that many already enlightened owners have done just that. But one thing we are saying today is that ultimately we will ensure in law that it is the ultimate owner of the building that is responsible for that work, so the incentive is to move now for fear of consequences later.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

It is good to see the Secretary of State acknowledge the unjust treatment of buildings under 18 metres in particular. However, it appears that what he has outlined will involve a voluntary contribution from developers, which may take a while. The leaseholders in my Vauxhall constituency do not have a while to wait. They are fed up of waiting. It has been four and a half years. They want solutions now. So will he confirm that he absolutely understands the urgency that leaseholders want to see and call on those developers to take action now?

[Michael Gove]

Absolutely. Again, I do not want to over-promise, but I do recognise the need for speed.

[Bob Blackman (Harrow East) (Con)]

The complexity of this issue has been highlighted by the Secretary of State’s statement and by the questioning. May I challenge him on one point? As my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) said, thousands of people will have received large bills and many will have paid them. The Secretary of State is saying that he will take statutory powers in the Bill that is coming before us. When will that happen? Once the House has voted on those powers, will that be the operational date for bills not to be presented to leaseholders, or can leaseholders who have refused to pay the bills thus far say, “Thank goodness—I don’t have to pay anything”?

[Michael Gove]

My hon. Friend, who has been a consistent campaigner in this area, makes a very good point. Again, I do not want to make a cast-iron commitment at the Dispatch Box on the operational date, but I will work with him and others as we frame the legislation and ensure that he has access, in so far as it is possible, to the legal advice we have, so that we can stress test it and provide the maximum level of protection.

[Rachel Hopkins (Luton South) (Lab)]

I have spoken to many leaseholders in my constituency who have struggled with issues around fire safety and cladding and the impact that has had on their mental wellbeing. We raised that issue in the Building Safety Bill Committee and the response was that those people should access mental health support through their GP in the usual way. We know the pressure GPs are under at the moment, so will the Secretary of State bring forward any additional measures in the light of his statement to support leaseholders’ mental health?

[Michael Gove]

It is the case that some leaseholders face additional vulnerabilities. Some have had mental health problems and other leaseholders living with disabilities have particular problems. It is important that we develop a comprehensive package for all, so I will look into that.

[Mary Robinson (Cheadle) (Con)]

I welcome the announcement and thank my right hon. Friend for listening to leaseholders who have faced the prospect of bankruptcy because of defects that needed to be put right. In confirming that he will keep in mind that other defects may come to light when cladding is removed, will he commit to looking at that and ensuring that the bodies responsible for the cladding crisis cannot find a place to hide and will be pursued to pay for it?

[Michael Gove]

Absolutely. I totally agree with my hon. Friend that we need to take all means to pursue those who are ultimately responsible. We also need to recognise that, exactly as she said, when remediation work is undertaken, sometimes other flaws are revealed, and they need to be addressed.

[Clive Efford (Eltham) (Lab)]

I associate myself with all the comments that have been made about my colleague, Jack Dromey.

I welcome the steps forward that we take every time a Secretary of State comes to the House and makes a statement, but it is the steps backwards that we make after those statements that are causing me problems. I have a property in my constituency that is about 18 metres high. The residents have done their own survey and say that it is over 18 metres. The management agency says that it is over 18 metres and should therefore qualify for the building safety fund. These issues though are difficult to resolve. Meanwhile, the residents have been paying out £28,000 a month for waking watch for nearly four years. How retrospective will these measures be? Will my constituents be compensated for what they have unfairly had to pay out? It would have been far cheaper to put in a fire alarm system than to continue paying waking watch. Will we see an end to the EWS1 forms or will RICS come back at us and say that we cannot possibly do that, as it has done before?

[Michael Gove]

I can totally understand the hon. Gentleman’s frustration. As my hon. Friend the Member for Harrow East (Bob Blackman) pointed out, and as the hon. Gentleman’s question lays bare, there is a complex set of inter-related problems. We are making money available to ensure that we can get rid of waking watch in all save a very few circumstances. I recognise that there are people who have faced costs so far, but it depends on individual circumstances as to whether or not—depending on the ultimate owner of the building—they can receive compensation. I do not want to make any guarantees about that in a blanket way today.

On EWS1 forms, we can dramatically reduce their use as a result of the engagement that we have with lenders and with RICS. Again, it will still be the case that, in the meantime—even as we get a more proportionate approach—there will be some 11-to-18 metre buildings where work of that kind will be required, but we absolutely want to reduce it.

[Ben Everitt (Milton Keynes North) (Con)]

I welcome the commitment of the Secretary of State to hold to account those responsible for this. It is morally wrong that leaseholders should foot the bill. I know that this announcement and this progress will be welcomed by residents of Vizion apartments in Milton Keynes as well as by thousands and thousands of others across the country. Can he confirm that this means that the Government are accepting the principle of polluter pays in this instance? How confident is he that the cowboys will cough up without additional taxation?

[Michael Gove]

We do accept that principle, and we will do everything that we can to round up the wrong ‘uns. I do recognise, none the less, that we are dealing with some individuals who have behaved unscrupulously in the past and who will do everything to evade their responsibilities, which is why we need tax as a backstop.

[Hywel Williams (Arfon) (PC)]

There are many Welsh victims of this particular scandal, including in my own Arfon constituency and elsewhere in Wales, as I am sure the Secretary of State will be hearing about. I am very much in favour of holding the industry to account, but I have to tell him that long experience of trying to hold the cavity wall insulation industry to account, albeit as a Back Bencher, has not been encouraging, so I wish all power to his elbow on that matter. I was glad to hear him say that he will be working with the Governments in Wales, Scotland and Northern Ireland. Can his officials look at the issue of companies that work from England and are subject to its strictures, but that also work in Wales, as that might be a complicating factor?

[Michael Gove]

We absolutely will. I am very grateful to the hon. Gentleman for the approach that he outlines. Indeed, we want to work with the Labour-Plaid Cymru Administration in Wales in order to get to the right result.

[Dr Matthew Offord (Hendon) (Con)]

I am very grateful to the Secretary of State for his statement, but I gently remind him that those who have worked hardest on this issue are Conservative Members supporting their constituents. Two in particular—my hon. Friends the Members for Southampton, Itchen (Royston Smith) and for Stevenage (Stephen McPartland)—have worked incredibly hard on this issue. Will the Secretary of State confirm that no leaseholder—living in the building or not—living in a building of 11 metres or lower, or having problems with external or internal building defects, will pay any costs whatever?

[Michael Gove]

My hon. Friend makes an important point and allows me to place on the record my thanks to my hon. Friends the Members for Southampton, Itchen (Royston Smith) and for Stevenage (Stephen McPartland). I completely agree that their campaigning has been incredibly important. It is our intention that the ultimate owner of a building is responsible for all of the safety steps that are required, and we will use statutory means in order to ensure that that happens. That is what we will seek to do with the help of colleagues across the House.

[Fleur Anderson (Putney) (Lab)]

I, too, welcome the statement’s commitment to leaseholders and the fact that it puts businesses on notice, giving them the chance to do the right thing. When will the deadline be up for that chance to do the right thing? Without it, we could just be kicking the can down the road. Leaseholders in Putney will want to know when they can expect to be able to sell their homes and to move on. Will there be a Government guarantee—a letter or similar that they can use with estate agents and others—so that they can move on with their lives? Finally, residents in a Putney building of just under 11 metres have been given a bill of £1 million for remediation. Will they be covered by this?

[Michael Gove]

I will look at the specific case of the building of just under 11 metres that the hon. Lady mentions. More broadly, I would absolutely love to be able to provide people with reassurance that from tomorrow the cloud will be lifted, but as a number of Members have pointed out, there is a complex set of interrelated problems. I believe that we have a means of dealing with them all, and I also appreciate that we need to move at speed. I will come back to the House before Easter with an update on the measures we have taken. I will work with colleagues across the House in order to ensure that we have the right statutory underpinning. Again, I want to confirm that we require everything to go right in order to be able to help everyone who is currently facing difficulties. We will do everything we can. I hope the hon. Lady will appreciate that I would not want at this stage to provide an absolute guarantee for people whose specific circumstances I am not yet familiar with.

[Kelly Tolhurst (Rochester and Strood) (Con)]

I thank my right hon. Friend for his statement, which I very much welcome, and I am incredibly grateful to his Ministers for the time they have spent listening to my concerns and those of residents of The Wharf in my constituency. They have suffered from a lack of transparency and clarity on the work required and whether it needs to be done. As we speak, the management company, Y&Y, is applying to the tier 1 tribunal for costs. What assurances can my right hon. Friend give my constituents, who are very concerned about any outcome that would leave them with bills of between £10,000 and £20,000, payable within the next six months?

[Michael Gove]

Absolutely the intention of today’s statement is to try to address the concerns raised so powerfully by my hon. Friend on behalf of constituents who face those imminent bills. I am really grateful to her for drawing attention to the immensely hard work being done by Ministers in the Department. The Minister for Housing, Lord Greenhalgh and the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), who has responsibility for rough sleeping, have all been working incredibly hard to engage with colleagues across the House and with others in order to try to move this forward. It has been a collective effort and I am very grateful to my colleagues for that.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

It is four and a half years since Grenfell. The Secretary of State has made clear today that the Government have failed to solve the problem, but he then said that his chief action has been to write a letter to developers to ask them to come along to a meeting. That is simply not good enough for the thousands of leaseholders affected in Southwark. The biggest threat in this statement is to allow the backdating of action against those who have installed unsafe products over 30 years, but it is leaseholders who will be forced to take on the legal and other burdens involved, including the fees. Will the Secretary of State therefore amend the Building Safety Bill to finally clarify responsibility and load the burden where it belongs—on the developers, builders and manufacturers—so as to properly protect leaseholders, as Ministers have promised multiple times but which today’s statement fails to deliver?

[Michael Gove]

The proposals that the hon. Member enjoins on me are the ones that we are seeking to bring forward. However, in fairness to the hon. Member, for whom I have a great deal of respect—he is a courageous and doughty campaigner—I can understand a degree of cynicism and/or scepticism, given some of the missteps we have had in the past. If we manage to make progress along the lines that he has outlined, I hope that he will be in a position then to say that his worst fears were not realised. I think it is perfectly legitimate for him, at this stage, to want to see the colour of other people’s money.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Morello Quarter in my constituency has issues not only with cladding but with other building defects such as the apparent lack of firebreaks. Will my right hon. Friend include those in the scope of the measures, or should I go back to my residents and tell them to pursue legal action against the developers, who do not want to engage with me or with them, to try to get a resolution and certainty?

[Michael Gove]

It is our intention to ensure that those who are ultimately responsible—the ultimate owners of the freehold or the real owners of the building—pay in order to make it safe, but I will look specifically at the example that my hon. Friend raises to ensure that we can do everything we can to provide his constituents with the reassurance they deserve.

[Stephen Timms (East Ham) (Lab)]

Will the Secretary of State spell out how the statutory protection he has announced will help leaseholders in developments such as Waterside Park, built by Barratt in my constituency, which does not have a cladding problem, but where apartments have become valueless because of other serious building defects—missing firebreaks and unsafe insulation? How exactly will the statutory protection help them?

[Michael Gove]

I rely on the right hon. Gentleman’s description of the building, but we will talk to Barratt or whoever is the ultimate owner in order to ensure that they live up to their responsibilities, and there are steps that we can take. We will outline what they are when we bring forward appropriate amendments. We will make sure that we test those amendments with him and others to ensure that they meet the need that he has correctly identified. There is still a little bit of legal work to be done to ensure that the amendments are as robust as possible.

[Stephen Hammond (Wimbledon) (Con)]

I warmly welcome my right hon. Friend’s statement and the work that the Minister has done as well. I hope it will bring resolution to people in blocks of flats in Plough Lane in the centre of Wimbledon and in Chorus properties. Can my right hon. Friend confirm that he will expect and, if necessary, require lenders to base their lending decisions in future on the new risk mechanism, because clearly distress has been caused by people being trapped in their houses?

[Michael Gove]

My hon. Friend is absolutely spot on and that is what we will seek to do.

[Andy Slaughter (Hammersmith) (Lab)]

The Secretary of State has been asked by both sides of the House about protecting social landlords and tenants from remediation costs. Will he answer that point, bearing in mind that the biggest social landlords have said that their new housing programmes will be cut by 40% over the next five years if they have to cover fire safety costs themselves? Affordable housing is at particular risk, as yesterday’s fire in New York showed. Will he study the lessons from that fire, especially as some of the victims were on the lower floors, which he appears to say are at lower risk, and that lack of compartmentalisation rather than cladding was the cause of most of the deaths?

[Michael Gove]

I know that the hon. Gentleman, not least as a former council leader, has considerable experience in this area. He is right that the fire in New York reminds us of the range of risk, and he is also right that we need to take appropriate action to ensure that registered social landlords, housing associations and others are not hit adversely. We need to balance a set of competing goods, but ultimately—as he will appreciate—the most important thing is to make sure that people are in decent, safe homes and that there are more decent, safe homes built where people need them.

[Caroline Nokes (Romsey and Southampton North) (Con)]

My right hon. Friend spoke earlier about lifting the cloud that is hanging over leaseholders. Can he provide reassurance to residents such as those in Banning Street in Romsey, where the building is sub-18 metres, the freeholder is a housing association and the defects are cladding related, that they will be swept up in his reforms? They are looking at costs of £15,000 to £20,000 per leaseholder for new fire escapes, which may well not even be needed. Can he provide reassurance that they will be helped?

[Michael Gove]

I will absolutely look at that specific case. I do not want to say any more at this point, but my hon. Friend raises a very important point. One of the things with housing associations and other registered social landlords is that we need to make sure that the balance of responsibility is appropriate.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Sadly, cladding is not one of the only risks to building safety: flooding is another huge risk. While the Secretary of State is open to looking at amendments to building safety in general, will he also look at strengthening the standards for all new public and private buildings in terms of flood resilience? The Secretary of State promised me a meeting with the relevant Minister to discuss my flooding Bill and, as he is a man of his word, I am sure that date will arrive soon in my email inbox.

[Michael Gove]

The hon. Lady makes two very important points. We have already changed regulation with regard to flooding, but more could be done. I will ensure that either I or the relevant Minister sees her before the end of February, if that is okay.

[Alun Cairns (Vale of Glamorgan) (Con)]

I warmly welcome my right hon. Friend’s statement, which will yield significant benefits directly for leaseholders in England. As he has acknowledged, this policy area is devolved and therefore responsibility in Wales falls to the Welsh Government. However, the UK Government, through their initiatives, may well raise significant sums of money for this purpose. What conclusion has he drawn on whether that funding should be ring-fenced for that specific purpose in Wales, rather than diverted to other purposes?

[Michael Gove]

My right hon. Friend makes a very important point. We of course respect the devolution settlement, but he is absolutely right that money generated for building safety should be devoted, as far as possible, to building safety. I will work with him and others to ensure that the focus is maintained in the way he outlines.

[Daniel Zeichner (Cambridge) (Lab)]

It was a good weekend for Cambridge United, but sadly the misery continues for so many people in and around Cambridge who find themselves trapped in buildings that were not built to the expected standards. As we have heard, it is not just about cladding; it is also about fire breaks and so on. For so many of those people, lack of an EWS1 form means that they cannot move—they are absolutely trapped. What in the Secretary of State’s statement can give them confidence that they will be freed from that trap?

[Michael Gove]

I congratulate the hon. Gentleman and all supporters of Cambridge United, and I extend my sympathies to Newcastle and Arsenal fans, given the unfortunate events of the weekend. On his very important point, I hope that the withdrawal of the consolidated advice note and its replacement with the BSI-approved PAS 9980 will play a part in helping his constituents and others to be in a position once again to operate fully in the property market. Lenders to whom I have spoken have given our proposals a fair wind so far, but obviously engagement needs to continue.

[Crispin Blunt (Reigate) (Con)]

In welcoming my right hon. Friend’s statement, may I draw his attention to the situation at Nobel House in Redhill? The development has 126 apartments, 86 of which are privately leased, but the ownership of the freehold has changed twice. The managing agents failed to make an application to the initial £1.6 billion building safety fund. I was told in June that a new fund of £3.5 billion would be coming forward, but that is yet to materialise and leaseholders are already having to pay over £2,000 each towards the cost of this exercise. Can they be fully reassured that they will get their money back, given the ownership status of the building?

[Michael Gove]

My hon. Friend raises a very important case. I will look at what we can do to help his constituents. I will not make an absolute promise from the Dispatch Box at this point, but the situation he describes is clearly unacceptable.

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

The shadow Secretary of State said that we cannot make a building half safe, but some residential buildings are possibly more dangerous than others. In October 2020, over 800 leaseholders and students were evicted from the Paragon blocks in Brentford, with one week’s notice—that is how dangerous they were deemed to be. They were built using a modular form of construction, and the eviction came two years after the flammable cladding had already been removed. I have reason to believe that the Paragon situation—there are other examples across the country—was a result of the modular form of construction, to which the out-of-date building regulations do not apply, as well as poor, shoddy and badly supervised construction works. When will the Secretary of State bring up-to-date building regulations through the system, and when will he address the lamentable culture in the construction industry, which the counsel for the Fire Brigades Union at the Grenfell inquiry described as being driven by an

“agenda of deregulation, privatisation and marketisation”?

When will he do something about that?

[Michael Gove]

The hon. Lady makes an important point about modular construction. Through the Buildoffsite Property Assurance Scheme guidance, we require appropriate adherence to principles with modular construction, which should keep buildings safe. She is right that the Grenfell inquiry has also had a number of accounts from a number of witnesses that raise issues of concern. Although it is important that we continue to take action even before the inquiry concludes, I would not want to pre-empt the inquiry’s conclusion on all the issues she mentions.

[Damian Green (Ashford) (Con)]

My right hon. Friend is entirely correct that this is a substantial step forward, and he and the Minister for Housing, my right hon. Friend the Member for Tamworth (Christopher Pincher) are to be congratulated on it. May I return to the subject of those developers and companies that have gone broke and disappeared since they did the things for which the Secretary of State has rightly castigated them? Some of those have disappeared not for nefarious reasons. Has he quantified how much money will be absent—how big a hole there is in the money that ought to be available—for compensation from such companies? Who is going to fill that hole?

[Michael Gove]

My right hon. Friend makes a very good point. We want those we can identify as the responsible owner or freeholder of properties to contribute to and meet the needs of fire safety costs, but we are already looking at the wider development community and at construction products manufacturers to help to ensure that we have sufficient resources to provide relief to leaseholders everywhere.

[Hilary Benn (Leeds Central) (Lab)]

I join the tributes to Jack Dromey. Our shock is all the greater because we thought that he would always be with us; the whole of his life was dedicated to being there for others, as a representative of workers who was very proud to serve his constituents.

I welcome the statement that the Secretary of State has made today. It represents progress—loans were never going to work; they were unfair. However, my constituents will have listened very carefully to the exchanges between the Secretary of State, my hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Select Committee and the hon. Member for Harrow East (Bob Blackman) on the question of liability for non-cladding costs. I have many constituents, as do other Members, whose bill is on the mantelpiece, staring at them. Given that the Secretary of State has offered statutory protection, what are they meant to do with those bills? Can they confidently say, “I do not have to worry about that now, because the Government are going to sort this out”? When he talks about statutory protection, he mentioned protection against forfeiture and eviction. May I add a third risk to that list, which is bankruptcy? That is what many people are facing if they are ever forced to pay these bills that they are not responsible for and cannot afford.

[Michael Gove]

The right hon. Gentleman is absolutely right: such people are not responsible for these problems and in many cases they cannot afford the bills. I would not want to give advice precipitately to any individual at the moment about their particular circumstances without knowing every aspect of their particular circumstances, but it is vital that we move as quickly as possible. What I will want to test with him and others is the efficacy of the legislative solution that we propose to bring forward, because I am confident that it will help enormously, but I want to be in a position where he and others have an opportunity to stress test it, so that we get the best possible protection.

[Dr Julian Lewis (New Forest East) (Con)]

Everybody welcomes the statement of principle that it is immoral that innocent leaseholders should pay for remediation of something which was not their fault, but if that is immoral for the future, it is also immoral for everybody who has been pursued ever since the disaster at Grenfell Tower. Therefore, may I urge the Secretary of State to revisit the answers he gave to my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) and my hon. Friend the Member for Harrow East (Bob Blackman), because otherwise he will be creating a perverse incentive for people to come down on leaseholders and extract rip-off fees before any legislation comes into play if it is only going to be forward-looking?

[Michael Gove]

I very much take my right hon. Friend’s point. We will try to ensure that the legislation deals with the potential perverse incentive to which he alludes.

[Paul Blomfield (Sheffield Central) (Lab)]

In opening his remarks, the Secretary of State acknowledged that the problem is not simply developers’ negligence but a failure of regulation, for which the Government are responsible. Leaseholders will fear that today’s announcement will have the effect of kicking a solution further down the road, causing delays for those who have been trapped in an intolerable position for far too long. Does the Secretary of State accept that the best way of seeking a solution is for the Government to fulfil their responsibility by acting to fix the faults without delay and then using all their powers to recover the money from developers and those responsible?

[Michael Gove]

I absolutely take the hon. Gentleman’s point, but I think that the legislation we are bringing forward helps to address some of the regulatory failures to which he alludes. I also think it is important to wait for the conclusions of the Grenfell inquiry before apportioning appropriate weight on the responsibility that rests on central Government, the responsibility that rests on local government, and the responsibility that rests on others. I believe the proposals that we have put forward today are the best and most expeditious way of ensuring that we can provide support to leaseholders, but of course we will keep that under review.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests as a chartered surveyor.

I warmly welcome today’s announcement. May I ask my right hon. Friend about two aspects that he has mentioned in the statement—namely that the indemnity given to building assessors and the proper auditing assessment should enable lenders and insurers to offer those products at reasonable rates fairly quickly? That, in turn, will get the market moving, so that those leaseholders who desperately need to move should soon find that there will be a market for them to do so.

[Michael Gove]

My hon. Friend is absolutely right. That is exactly our intention, and it is the fruit of the work read by my hon. Friend and others.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

As a co-chair of the all-party parliamentary group on leasehold and commonhold reform, I pay tribute to all the campaigners up and down the country who have done a sterling job at keeping this issue on the political agenda. They will certainly welcome the principle, set out in the statement, that innocent leaseholders must not shoulder the burden. I hope that applies equally—not just to cladding, but to any other fire safety defects and to the cost of the interim safety measures that have been necessary. The Secretary of State recognised that in the statement by referring to the extra £27 million for waking watches, but leaseholders will have already paid out thousands of pounds for waking watches. Should they now expect some reimbursement for those costs?

--- Later in debate ---

[Michael Gove]

I completely understand and appreciate the concerns expressed by the hon. Member. We are seeking to avert additional costs in the future. It will be difficult for us to make good all the injustices that have been visited on his constituents and others. I do not want to oversell what we are putting forward. It is a significant step forward, but it cannot resolve every issue from the past. I enjoyed listening to the conversation that he and the Father of the House had on Times Radio at the weekend, and I echo the very generous comments that he made about the Father of the House.

[Claire Coutinho (East Surrey) (Con)]

I thank the Secretary of State for his actions today, particularly scrapping the loan scheme for medium-sized buildings, which will help constituents of mine such as Susan Seal and the Russell Square residents in Horley. I really welcome the onus that he is putting on developers. Does he agree that, along with the other things he has talked about, transparency can be an effective tool in getting people to do the right thing? Would he speak to whether naming and shaming could be part of the solution?

[Michael Gove]

My hon. Friend is absolutely right. One of the things that we saw just before Christmas with the Kingspan-Mercedes deal is the way in which public pressure from the Grenfell community meant that a very big corporate—Mercedes—did the right thing. I am very grateful to Toto Wolff and his team for doing that. We need to use a variety of tools, and my hon. Friend is absolutely right that transparency is critical.

[Jim Shannon (Strangford) (DUP)]

May I convey my own and my party’s sincerest sympathies to the family of Jack Dromey at this time of great grief and sorrow? He made a significant contribution in Westminster Hall last Thursday, and he will be missed—I want to put that on the record.

I thank the Secretary of State for his statement and for his clear commitment to finding a solution for everyone in this process. It is clear to me that that is what he intends to do, but can the right hon. Gentleman outline what steps he is willing to put in place to ensure that the burden of the cost of replacing cladding is not on the tenants alone? Too many tenants of one-bedroom apartments are being asked to pay thousands of pounds towards this from low wages, while developers are sitting pretty. Will the Secretary of State liaise with the Chancellor to see what tax breaks could be offered to developers who do the right thing by their tenants?

[Michael Gove]

I am grateful to the hon. Gentleman for his points. He is right that there are people in small, one-bedroom flats who have been faced with huge costs, which are totally disproportionate and from which we need to relieve them.

Secondly, he makes an important point about being as supportive as possible of developers that do the right thing. A debate such as this will inevitably concentrate on those who need to take additional responsibility, but it is important to stress that many developers, housebuilders and people in the property sector have done the right thing, and we should applaud them for having done so.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I welcome my right hon. Friend’s statement, which ticks all the boxes needed to solve this crisis, not least pointing the finger at construction product manufacturers. There is no doubt they have gamed the system to get some of their products approved inappropriately, but that gaming was facilitated by the Building Research Establishment, which, as my right hon. Friend knows, was privatised about 25 years ago. Will he make sure that these manufacturers contribute towards the costs of remediation and will he consider bringing the Building Research Establishment back under public ownership?

[Michael Gove]

My hon. Friend is incredibly knowledge-able about all matters of property and housing. On the first part, absolutely. On the second part, that is a tempting thought, but I will have to discuss it with the Chancellor.

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

Since last April, I have been seeking answers for a constituent in Cambuslang who has been trying to sell a flat between 11 metres and 18 metres, which was wrongly assessed to have failed the EWS1 form because of cladding. The Scottish Government have launched a free-of-charge assessment pilot, but details about the full roll-out and remediation payments are still pending. What discussions has the Secretary of State had with the devolved Administrations about remediating buildings across the UK at greater pace?

[Michael Gove]

I wrote to and was in touch with the Scottish Government, the Welsh Government and the Northern Ireland Executive earlier today, and I look forward to working with them. As the nature of the debate has reinforced, there are people in every party who are interested in practical solutions. That is incredibly helpful in helping to relieve the problems faced by the hon. Lady’s constituents, and by so many others.

[Tom Hunt (Ipswich) (Con)]

I welcome the statement, particularly on 11 metres to 18 metres. That includes flats owned by many of my constituents, who will get a great sense of relief from that. There are still concerns, as colleagues have mentioned, about non-cladding issues. The section of the statement about restoring proportionality was very interesting, but I do not want to be in the same position in three or four months of talking to a leaseholder who cannot sell their property because of non-cladding issues, so the proof will be in the pudding.

An issue that has not been raised is that when the cladding remediation work is carried out, the living conditions those who still live in the building have to live through are often unacceptable. I am certain that if my right hon. Friend visited St Francis Tower in Ipswich, he could not but share my anger at the conditions in which my constituents have to live. I invite my right hon. Friend to St Francis Tower to see the conditions that they are expected to live in.

[Michael Gove]

My hon. Friend makes an important point that sometimes work that is absolutely necessary involves a degree of disruption to people’s ordinary lives that is incredibly painful. Whether it is me or another Minister, we will make sure that someone comes to Ipswich to listen to my hon. Friend’s constituents. He is an incredibly effective advocate for them, and it is only right that we hear direct from them.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

Some of the most distressing conversations I have with constituents are with those who have been caught up in this scandal, as are some of the most distressed constituents I have met. They are trapped, unable to move and face unknown costs, none of which is their fault. I warmly welcome the raft of measures announced today, as will they, but the next question will be, what next? What will happen and how quickly? I urge my right hon. Friend to clarify the measures that he has set out as soon as possible, to drive this forward and to bring them the certainty they desperately need.

[Michael Gove]

My hon. Friend and constituency neighbour is absolutely right that people will want greater detail, and greater detail soon. I look forward to working with him and others to provide them with the required reassurance. As I mentioned earlier, although we believe these measures have the potential to resolve many of the issues, I would not want to say that every single individual’s problems will be resolved. We will do everything we can to proceed at speed in providing help.

[Nick Fletcher (Don Valley) (Con)]

I refer Members to my entry in the Register of Members’ Financial Interests. I welcome today’s announcement, and I am sure many families in my constituency will welcome it, too. Only this weekend we have seen a tragedy in New York, and I am sure I speak for every Member in saying that my thoughts and prayers go out to all affected. This was another electrical fire, and we still have a situation in this country where whether a flat’s electrical installation and appliances are tested depends on the tenure of the flat. It is like only rented cars having an MOT. I have raised this previously, and I will continue to raise it until we do something about it. Safe electrics and safe appliances means fewer ignitions and fewer fires, which means fewer lives lost.

[Michael Gove]

My hon. Friend makes an incredibly important point. Of course there are things we need to do to ensure building safety when it comes to construction products and materials, and when it comes to the quality of development and building control, but he is right that the fundamental aspects of wiring, power supply and electricity in our homes need to be addressed if people are to have the safe homes to which they are entitled.

[David Johnston (Wantage) (Con)]

Last week I led a debate on the broader issue of developers and house builders making large profits from low-quality homes that cause problems for owners and local communities. Does my right hon. Friend agree that the safety issues he seeks to tackle today are on a list of issues that people see with these companies, albeit that they are the most serious? That means the public will be very unsympathetic if they see further foot-dragging in trying to get a satisfactory solution.

[Michael Gove]

My hon. Friend makes a very important point, and he tempts me into a broader debate to which I will return. In a nutshell, many people involved in housing provision, construction and development produce safe, beautiful homes with concern for the environment that enhance our communities, and we need more homes that are safe, decent and sustainable. There are also problems in the system, and the behaviour of certain actors needs to be addressed.

Everyone in this House wants to work with the industry, because having a home of our own is such an important part of our aspirations and ambitions, but we must recognise that more work needs to be done so we can be proud of the sector. I know that was at the heart of the points my hon. Friend made in his Westminster Hall debate.

[Mr Deputy Speaker (Mr Nigel Evans)]

I thank the Secretary of State for escaping the BBC lift this morning so that he could come here to make his statement and respond to questions for more than 90 minutes.

Nuclear Energy (Financing) Bill (Programme) (No. 2)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the Order of 3 November 2021 (Nuclear Energy (Financing) Bill (Programme)) be varied as follows:

(1) Paragraphs (4) and (5) of the Order shall be omitted.

(2) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings on the Motion for this Order.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on the Motion for this Order.—(Mrs Wheeler.)

Question agreed to.

Provisional Local Government Finance Settlement 2022-23

Lord Gove Excerpts

Thursday 16th December 2021 Written Statements

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

Introduction

Today, I have set out the provisional local government finance settlement for 2022-23. This is a settlement that, at a national level, makes available an additional £3.5 billion to councils, an increase in local authority funding for 2022-23 of over 4% in real terms. This will ensure councils across the country have the resources they need to deliver key services.

The proposals I am announcing today focus on providing stability by:

Making available up to £3.5 billion more funding for councils across England compared to 2021-22. Overall, this means up to £53.9 billion of funding available for core services.

Providing a new, one-off 2022-23 services grant worth £822 million.

Striking a balance on council tax that helps councils invest in the services they provide to residents while protecting hard-working taxpayers from unfair hikes in rates, with a 2% core referendum threshold and 1% of additional flexibility for councils with adult social care responsibilities.

Making available over £1 billion of additional funding for social care.

Alongside this settlement, the Government will be providing further support to local communities through: £2.6 billion of UK shared prosperity funding, which helps people access opportunities in places in need; a £4.8 billion levelling up fund, which seeks to level up the country by investing in infrastructure that improves everyday life across the UK; and a further £2 billion of investment across the next three years to tackle homelessness and rough sleeping.

2022-23 services grant

Local government delivers a range of services that are at the core of every community.

I therefore propose to create a one-off 2022-23 services grant worth £822 million that will be distributed through our existing settlement funding assessment. We will then take the time to fully consider its future distribution in consultation with councils.

This funding would be excluded from any proposed baseline for transitional support as a result of any proposed system changes.

Adults’ and children’s social care

The Government are committed to ensuring local government has the resources it needs to support the most vulnerable through adult and children’s social care.

I propose, therefore, allocating £700 million of new grant funding going to social care. This means:

£636 million more into the social care grant, including funding for equalisation against the 1% adult social care precept.

providing an inflationary uplift to support integrated working with the NHS.

Local authorities can make use of over £1 billion of additional resource specifically for social care in 2022-23. This includes the increase in social care grant and the improved better care fund, a 1% adult social care precept and deferred flexibilities from last year’s settlement.

For many councils, adults’ and children’s social care are key priorities and the largest areas of spending. Councils are not expected to rely solely on this earmarked funding to meet the inflationary and demographic pressures facing these services; they also have access to funding from un-ringfenced grant, including the 2022-23 services grant, and from council tax.

On top of this funding to address core pressures, £162 million in adult social care reform funding will be allocated in 2022-23 to support local authorities as they prepare their markets for adult social care reform and to help move towards paying a fair cost of care. The funding made available to councils means overall local government core spending power can increase by over 4% in real terms in 2022-23, including the investment in adult social care reform.

Council tax

This Government recognise the importance of high-quality local services and believes in empowering local decision makers to shape thriving communities. This includes ensuring they have the flexibility to generate their own income through council tax, while protecting residents from excessive increases.

I have proposed the following package of referendum principles for 2022-23:

A core council tax referendum principle of up to 2% for shire counties, unitary authorities, London boroughs, the Greater London Authority (GLA) and fire and rescue authorities.

A principle of up to 2% or £5, whichever is higher, for shire district councils

An adult social care (ASC) precept of 1% for all authorities responsible for ASC.

The ability to add up to an additional 3% of unused ASC precept from 2021-22.

A £5 referendum principle for the eight lowest-charging fire and rescue authorities.

A referendum principle of £10 for police and crime commissioners (PCCs), including the GLA charge for the Metropolitan Police and the PCC component of the Greater Manchester and West Yorkshire Mayoral precepts.

No other council tax referendum principles for Mayoral Combined Authorities (MCAs) and no council tax referendum principles for town and parish councils.

The Government’s manifesto commits 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 and 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.

Stability of funding

Through this package we are providing local authorities with a firm foundation for funding throughout 2022-23. This means we are proposing to roll over much of the 2021-22 local government finance settlement, including:

Rolling over the current approach to the new homes bonus worth £554 million.

Keeping the rural services delivery grant at £85 million.

Maintaining the lower tier services grant at £111 million with an updated cash terms funding floor.

Increasing the revenue support grant in line with inflation; an increase of £70 million.

Continuing with the 100% retention authorities in the five devolution deal areas and 67% for Greater London overall.

Updating the system

The Government are committed to ensuring that funding allocations for councils are based on an up-to-date assessment of their needs and resources. The data used to assess this has not been updated in a number of years, dating from 2013-14 to a large degree, and even as far back as 2000. Over the coming months, we will work closely with the sector and other stakeholders to update this and to look at the challenges and opportunities facing the sector before consulting on any potential changes.

As part of this we will look at options to support local authorities through transitional protection. Councils should note the one-off 2022-23 services grant provided in the local government finance settlement in 2022-23 will be excluded from potential transitional protections.

Conclusion

In outlining these proposals, my priority is to provide stability in the immediate term so I can work closely with local government and other partners on options to update our assessment of local authority needs and resources. I welcome representations from all interested parties on the four-week consultation we have launched today.

The consultation can be found at: https://www.gov.uk/government/consultations/provisional-local-government-finance-settlement-2022-to-2023-consultation (www.gov.uk).

[HCWS510]

Intergovernmental Relations: Third Quarterly Report

Lord Gove Excerpts

Tuesday 14th December 2021 Written Statements

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

Earlier today, the UK Government published the third quarterly report of our engagement with the devolved Administrations on the www.gov.uk page for intergovernmental relations. The report has also been deposited in the Libraries of both Houses of Parliament.

The report details engagement between the UK Government, Scottish Government, Welsh Government and Northern Ireland Executive between 1 July and 30 September 2021. It covers a period of collaboration on a range of important areas, including preparations to ensure a safe and secure COP26, as well as partnerships between UK and devolved Administrations on net zero, covid-19 response and recovery, the resettlement of Afghan refugees and the roll-out of covid-19 booster vaccines across the UK.

The report is part of the UK Government’s ongoing commitment to transparency of intergovernmental relations to Parliament and the public.

[HCWS477]

Oral Answers to Questions

Lord Gove Excerpts

Monday 29th November 2021 Commons Chamber

[Mohammad Yasin (Bedford) (Lab)]

17. What steps he is taking to protect leaseholders from the costs of fire safety remediation.

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

I have enormous sympathy with leaseholders who are being landed with bills for faults for which they were not responsible and for which the responsibility for remediation truly lies elsewhere. I and my Department are looking at every available means to ensure that the burden is lifted from leaseholders’ shoulders and placed where it truly belongs.

[Fleur Anderson]

I am glad to hear that response. Hundreds of Putney leaseholders are facing agonising waits to get funding through the building safety fund. People in the Radial development have been waiting for 16 months, people in Hardwicks Square have been waiting for 17 months and those in the Swish building have been stuck at stage 2 for 11 months. Meanwhile, one constituent is paying more than £4,000 in insurance for a two-bedroom flat following a 500% hike, which is not unusual. What is the Minister doing urgently to speed up and simplify the building safety fund application process and also to prevent insurers from cashing in?

[Michael Gove]

As the hon. Lady rightly points out, leaseholders find themselves caught in an invidious vice, whereby they are not only having to pay remediation costs, but also find that insurance costs and the capacity to sell on their flat are compromised by the situation in which we find ourselves. Making sure that individuals are in safe buildings is our first responsibility, and to do that we must make sure that the building safety fund pays out and that we get support for remediation from those in the private sector, who also have a share of responsibility. I hope to update the House on our plans shortly.

[Marsha De Cordova]

Leaseholders in Battersea should not be held responsible for paying for remediation works when their homes were sold to them with the assurance that they were safe. Due to the poorly regulated EWS1 assessments, there have been cases where homes were being awarded a B2 classification—the lowest category—leaving leaseholders expected to pay for the repairs. In one case, leaseholders in Battersea challenged that, providing evidence proving that the building was of A2 classification. What action is the Secretary of State taking to ensure that leaseholders are protected from erroneous EWS1 assessment outcomes and that the process is not a barrier to selling or remortgaging, including properties below 18 metres?

[Michael Gove]

The hon. Lady’s question emphasises the complexity of the issue, but that is no reason not to take action to help her constituents and others. One of the principal concerns that I know many leaseholders have is that lenders will require the EWS1 form. The EWS1 form is a consequence of previous Government acts and decisions made by the Royal Institution of Chartered Surveyors and others. We need to ensure co-ordinated action across the piece to ensure we are in a stronger position to free people from the position in which they currently find themselves.

[Mohammad Yasin]

A number of my constituents are facing terrifying bills for remedial works. One couple made redundant due to covid need to sell their apartment urgently, but are trapped because of the safety issues. They have since heard that the developers have gone bust. I was pleased to hear the Secretary of State recognise how unfair it is to expect leaseholders to pay remediation costs, but they are expected to, and people are desperate. The Leasehold Reform (Ground Rent) Bill is a wasted opportunity to help them. When will this unjust mess finally be sorted out?

[Michael Gove]

Again, the hon. Gentleman reminds us in the case of his constituents how widespread this challenge is. The leasehold reform Bill can play a significant part in ensuring that the position of those in the future can be safeguarded, but we need to take action even before that legislation comes forward, and I hope to update the House shortly on a series of measures that I hope will help bring some relief to his constituents and others.

[Bim Afolami (Hitchin and Harpenden) (Con)]

I have a constituent in my constituency who has been severely affected by the lack of progress on building safety fund funding. He is an example of the complexity and the “invidious vice” that the Secretary of State mentions from the Dispatch Box. Will he agree to meet me to discuss the particular complexities of this situation?

[Michael Gove]

My hon. Friend has been campaigning incredibly assiduously behind the scenes on behalf of those who have been caught in this vice. It is the case that 700 or so disbursements have been made from the building safety fund so far, but we realise that we need to take a number of measures to address this situation. He is right that we need to do so with a sense of urgency, but we also need to ensure that those measures are appropriately co-ordinated to have the beneficial impact we would all like to see.

[Tom Hunt (Ipswich) (Con)]

I very much welcome the fact that a number of properties in Ipswich have been successful on building safety funding, but I am concerned about the conditions that many people renting flats are having to live through as the work is carried out. Yes, the work must be carried out quickly, but in one case residents are expected to live for 12 months behind shrink wrap with no natural light whatsoever. Does my right hon. Friend agree that we must balance the need to do the work quickly and make buildings safe with the mental health and wellbeing of residents who are expected to live in properties while that work takes place?

[Michael Gove]

My hon. Friend makes a very good point. I do not know whether the constituents to whom he refers are in private rented sector accommodation or social tenants. In the latter case, some of the changes that we hope to make with our forthcoming social housing Bill will help to ensure that tenants are treated as they should be by all registered social landlords. We are also looking at appropriate re-regulation of the private rented sector.

[Kelly Tolhurst (Rochester and Strood) (Con)]

Residents at The Wharf, a building of below 18 metres, are being asked by the management company to foot large bills for works to their building next year. Will my right hon. Friend outline how he will support those residents? Time is of the essence, and some residents will simply not be able to pay.

[Michael Gove]

My hon. Friend makes a very important point. It is vital that we proceed as quickly as possible on 18 metre-plus buildings rendered unsafe because of aluminium composite material or other forms of cladding whose unsuitability the Grenfell tragedy laid bare, to make them safe. For some buildings of between 11 metres and 18 metres, it is important that we take a proportionate approach to safety and cost. Safety must come first, but for a number of buildings between 11 and 18 metres, the action needed can be taken quickly and may not be at the level or intensity—or certainly the cost—of action required in other buildings.

[Mike Amesbury (Weaver Vale) (Lab)]

If I include the Secretary of State, Housing Ministers have promised 19 times to protect leaseholders from historical remediation costs, yet as we speak we know of thousands of people receiving invoices for astronomical remediation costs. Thirty-three such residents are in Oyster Court in London, and they could face bills of up to £80,000 each following an assessment using the Government’s new PAS 9980 form. We will hear a lot more about that in the media. Have the Government added yet another toxic layer to the mess? What will the Secretary of State do about it?

[Michael Gove]

I do not believe that the Government have added anything that is toxic to this mess. We need to ensure that we are in a position to reassure lenders, leaseholders and everyone in the market that buildings are safe. We also need to ensure, exactly as the hon. Gentleman indicates, that leaseholders are not paying and not shouldering an unfair burden for the remediation required. As I mentioned earlier, I hope to say more about that in due course.

[Dr Julian Lewis (New Forest East) (Con)]

The Secretary of State, like me, has been in the House a long time. Does he agree that this scandal measures up to some of the worst that we have seen, whether it be contaminated blood or the wrongful jailing of innocent postmasters? While I welcome his change of tone, does he agree that people are constantly paying out colossal sums for things such as waking watch, and that this must be remedied?

[Michael Gove]

My right hon. Friend is absolutely right. In arriving in this role, I was struck by two things. The first was the combination of circumstances that come so unfairly on to the shoulders of people who bought their properties in good faith and now find themselves landed with wholly disproportionate and unfair bills. In fairness, to respond to the hon. Member for Weaver Vale (Mike Amesbury), I also realised that my predecessors had worked hard to deal with a situation that is intrinsically complex. That is not to take away from the urgent need to tackle it, but good people both in government and outside have been attempting to deal with an interconnected set of issues. My right hon. Friend is absolutely right that they must be tackled, but, for a host of reasons, that requires not just Government but others to fulfil their responsibilities.

[Rachel Hopkins (Luton South) (Lab)]

2. What steps he is taking to ensure all homes meet high climate standards.

--- Later in debate ---

[Judith Cummins (Bradford South) (Lab)]

7. What assessment he has made of the implications for his polices on levelling up of the integrated rail plan.

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

As the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Harborough (Neil O’Brien), pointed out in response to the previous question, levelling up involves every Department working in a co-ordinated fashion to advance a series of policies that spread prosperity more equally across the country. The £96 billion integrated rail plan was the single largest rail investment ever made by a UK Government.

[Judith Cummins]

There was broad agreement around Lord Heseltine’s 2012 report that investment in rail infrastructure is central to a levelling-up agenda. The integrated rail plan really only delivers an upgrade to the existing lines, axing the eastern leg of High Speed 2 and the new high-speed Northern Powerhouse Rail line. How can the Secretary of State do his job now that the integrated rail plan has derailed progress in the north? With less than three weeks of parliamentary time left in 2021, when will he publish his long-promised levelling-up White Paper, which is due this year?

[Michael Gove]

The hon. Lady makes two very good points. On the first, if we look at the integrated rail plan, we can see that there are significant benefits for communities across the north of England. Indeed, travel time between Leeds and Bradford is reduced from, in some cases, just over 20 minutes to 12 minutes. That is a real, material benefit for citizens of both great cities. It is also the case that the potential for further work in making sure that we can have a more effective mass transit system in West Yorkshire is inherent in the approach that was outlined by my right hon. Friend the Transport Secretary. More broadly, I am grateful to the hon. Lady for her anxiety to see the broader set of plans that we are keen to bring forward shared with the House, and we will do so at the earliest possible opportunity.

[Jake Berry (Rossendale and Darwen) (Con)]

What my constituents in Rossendale and Darwen would have liked to have seen in the integrated rail plan was a rail line from Manchester to Rawtenstall, but they did not see it. With that in mind and with our shared ambition to level up Rossendale and east Lancashire, will my right hon. Friend look favourably on our levelling-up bid, which will have transport and other schemes in it, when it comes forward?

[Michael Gove]

My right hon. Friend makes a very good point. East Lancashire and its success must be at the heart of a successful approach towards levelling up. Whether it is Rawtenstall, Bacup, Blackburn or Burnley, we need to ensure that all communities in east Lancashire feel they have the right investment not just in transport, but in skills, schools, and ensuring that streets are safe and communities can take back control.

[Jeff Smith (Manchester, Withington) (Lab)]

HS2 and Northern Powerhouse Rail were never just about train lines and journey speeds; they are about regeneration opportunities. In the case of the cancelled eastern leg, 38,000 homes were planned on the back of that line, which now will not happen. Some £38 billion of economic growth in Bradford, reliant on Northern Powerhouse Rail, has been cancelled. Local government leaders in the north are united in their opposition to the £18 billion reduction in rail investment plans. Is the north not once again being let down rather than levelled up?

[Michael Gove]

I would contest that. Although the hon. Gentleman is absolutely right to say that the integrated rail plan creates opportunities for broader regeneration, it is important to recognise that transport is not the only tool that can promote regeneration across the midlands and the north of England. The work that Homes England does in making sure we can unlock the potential of brownfield sites for regeneration is critically important. I appreciate the disappointment felt by communities in Bradford and elsewhere, but there is more to come, both in transport and other investment, that will ensure that we meet our shared objectives to spread opportunity more equally across the geography of England.

[Andrew Bridgen (North West Leicestershire) (Con)]

What conversations is my right hon. Friend having with the Department for Transport with regard to restoring your railway funding, in particular for the reopening of the Ivanhoe line in North West Leicestershire, where we currently have no railway stations at all?

[Michael Gove]

I was unaware that there were no railway stations in North West Leicestershire. For the citizens of Ashby de la Zouch and other communities, transport connectivity is as important as it is for citizens elsewhere. I will look at whether the Ivanhoe line can secure the investment it needs. I know my hon. Friend is a white knight for rail investment. North West Leicestershire could have no surer champion in the jousting required to secure the investment needed. [Hon. Members: “Groan.”]

[Mr Speaker]

Stick with the day job!

--- Later in debate ---

[John Penrose (Weston-super-Mare) (Con)]

13. What assessment he has made of the potential effect of provisions in the Planning (Street Plans) Bill to allow residents to vote on the design of new homes in their streets on levels of housing supply.

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

It is a cracking private Member’s Bill. We shamelessly want to rip off all the ideas in it and take them for our own.

[John Penrose]

I am delighted to hear it. Will the Secretary of State look not only at those ideas, but at the related “build up, not out” proposals in my soon-to-be-launched policy paper “Poverty Trapped”? Both enshrine local democratic consent and style codes as essential steps for new developments. Does he agree that they are both vital to unlocking the scale of home building that will make buying or renting homes more affordable, reducing poverty and levelling up communities everywhere?

[Michael Gove]

My hon. Friend is absolutely right. It is rare that we have legislation that combines greater democratic control with the potential for the beautification —for want of a better word—of our urban and suburban environment, and also unlocks the potential for the value of individuals’ homes to be enhanced by additional development. It is a triple whammy of good news; we just need to make sure that it meshes with everything else that we want to do that is beneficial. I am really grateful to my hon. Friend and all the supporters of his legislation for helping the Government out so much.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Residents in Hull and Hessle are often fearful that the design of new homes and new housing developments will lead to increased flooding. Anybody who has been a victim of flooding knows how utterly devastating it is for everybody concerned, so will the Secretary of State meet me to discuss my ten-minute rule Bill, the Flooding (Prevention and Insurance) Bill, which is designed to improve and strengthen flood mitigation and flood protection measures for all new builds?

[Michael Gove]

I know how prone so many communities in the East Riding are to flooding. It is vital that we balance the need for new housing with making sure that there is appropriate mitigation, so I will ensure that I or another relevant Minister meet the hon. Lady to discuss her Bill and how we can take forward those provisions that mesh with our own ambitions.

[Chris Loder (West Dorset) (Con)]

14. What steps he is taking to increase opportunity in Dorset.

--- Later in debate ---

[Sara Britcliffe (Hyndburn) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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

I am very conscious of the additional responsibilities that I bear as Minister for Intergovernmental Relations, which is why I was pleased not only to be able to attend the British-Irish Council just over a week ago as a guest of the Welsh First Minister, but to have the opportunity this weekend, as we all consider how we deal with the shadow of the new omicron variant, to discuss with First Ministers across this United Kingdom how we can co-ordinate all our efforts in order to defeat this new covid threat.

[Sara Britcliffe]

The Secretary of State may know that I have campaigned tirelessly for investment in our town centres across Hyndburn and Haslingden, and those millions of pounds of investment would make a significant difference. Can he confirm that the second round will be confirmed in the White Paper, and will he visit my home of Hyndburn and Haslingden to see at first hand how the money would be spent?

[Michael Gove]

Absolutely, and we will be saying more about how we can ensure that the remaining tranches of the levelling-up fund are allocated fairly. Accrington and Oswaldtwistle speak to me even now as communities that I would love to visit, with my hon. Friend as my guide.

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

Not only have reforms of permitted development rights led to a new generation of slum housing, but the latest developments pose a huge risk to the beating heart of our high streets. Communities in this position have no voice and no say in these conversions, and councils are powerless to stop them. Will the Government at least give councils and communities some transparency, and release in full the promised regulatory impact assessment of the Department’s changes to permitted development rights?

--- Later in debate ---

[Theresa Villiers (Chipping Barnet) (Con)]

T5. The housing targets that are being asked of outer London boroughs such as Barnet are simply too high. Will the Secretary of State lower them so that we can halt urbanisation and save the suburbs?

[Michael Gove]

My right hon. Friend has spoken frequently and passionately about the importance of a balanced approach to the assessment of housing need across the United Kingdom. It is certainly true that the way in which we assess it needs to be updated. I think it only fair to say that every part of England—indeed, every part of the United Kingdom—will have to share in making sure that we can meet the housing needs of the next generation, but we are seeking to achieve a fairer and more equitable distribution of need across the country.

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

In contrast to what the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Harborough (Neil O’Brien), said in his earlier answer, the Institute for Government has said that, far from reducing bureaucracy, the UK Government have, in the shared prosperity fund, established a system that fails to include devolved Governments to the same degree as previously, and that the United Kingdom Internal Market Act 2020 facilitates the UK Government riding roughshod over devolution. How can the Secretary of State in all honesty work to improve intergovernmental relations when the core thrust of his portfolio is about undermining devolution and overriding devolved Governments?

[Michael Gove]

I share the hon. Lady’s concern for enhancing and improving devolution, which is why we are working with local government in Scotland and, indeed, with Scottish National party Members of this House, to help to ensure that the levelling-up fund, the shared prosperity fund and the community ownership fund meet the needs of individual communities. That is why we are so pleased that the hon. Members for Aberdeen North (Kirsty Blackman) and for Aberdeen South (Stephen Flynn)—SNP MPs—and the SNP councils in Edinburgh and Glasgow were so happy to work with us on these funds. I have to say that I sometimes find it surprising—

[Mr Speaker]

I call Andrew Rosindell.

[Michael Gove]

I find it surprising that local government in Scotland—

[Mr Speaker]

Order. Order. Secretary of State, it is not fair to take advantage. I know you enjoy teasing them, but my problem is that questions and answers are meant to be short and succinct—that is why they are called topical questions—and Mr Rosindell is desperate. Come on Andrew!

[Michael Gove]

Companion animals are a really good thing—cats, dogs or whatever they are—and it is vital that we work with landlords to ensure that people have the right to have the animal that brings so much joy into their lives with them, whatever form of tenure they enjoy.

[Ms Karen Buck (Westminster North) (Lab)]

T3. The Everyone In policy was very successful in taking rough sleepers off the streets at the beginning of the pandemic, but it was abandoned too quickly and last winter thousands of people were back on the streets. With winter storms, bitter weather and worry about a new covid variant, why are the Government not giving priority to restoring a version of Everyone In now?

[Nickie Aiken (Cities of London and Westminster) (Con)]

T7.   As the Secretary of State will be aware, I am working with peers, other Members of this place and charities to secure the repeal of the Vagrancy Act 1824, which criminalises rough sleepers rather than helping them. My constituency is home to the largest number of rough sleepers in the country. The former Secretary of State said in the House in February in answer to a question of mine that he thought that the Act should be “consigned to history”. What does the current Secretary of State think of the Vagrancy Act?

[Michael Gove]

I think that the Vagrancy Act has to go. We do need appropriate legislation to deal with examples of aggressive begging, but the most important thing to recognise is that the work that Westminster Council and Greater Manchester have done to reduce rough sleeping has been exemplary. In partnership with my Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), the Minister for rough sleeping, we must redouble our efforts, but I want to congratulate Rachael Robathan, the hon. Lady’s successor, and Andy Burnham on their success in dealing with rough sleeping in the hotspots that have suffered most from that phenomenon.

[Mr Toby Perkins (Chesterfield) (Lab)]

T4.   The Prime Minister is always enthusiastic about sabotaging the career prospects of the Secretary of State, so can the right hon. Gentleman tell us what the time lag was between him getting “levelling up” on his job title and the Prime Minister making it clear that he was abandoning any pretence that this was a levelling-up Government with his recent announcement on northern rail?

[Michael Gove]

Conspiracy theories are all the rage these days, but I have to say that the hon. Gentleman should be above all that. He has a number of important constituency issues that I long to work with him on. I know that this raillery across the Dispatch Box can entertain others but—I say this in the most generous of spirits—let us concentrate on ensuring that we can work together for the people of Chesterfield, and if we have legitimate disagreements, that is fair enough.

[Jane Hunt (Loughborough) (Con)]

Around 40% of workers who commute from the Charnwood Borough Council area commute into Leicester city. This is due in part to the lack of housing in the city. However, despite there being a derelict doughnut of brownfield land around the city that could be utilised for house building, more and more housing is being built in the Leicestershire countryside. Will my right hon. Friend set out what the Government are doing to encourage development on brownfield land? Will he provide greater incentives to councils to ensure this happens?

[Marion Fellows (Motherwell and Wishaw) (SNP)]

T8. Post offices are an essential part of our rural communities and town centres across these islands. As banks leave our high streets, post offices and sub-postmasters are playing a greater role in ensuring access to cash for the most vulnerable, so it is essential this network is protected. What discussions has the Secretary of State, or one of his many Ministers, had with the Chancellor to ensure post office numbers grow over the year?

[Michael Gove]

I could not agree more with the hon. Lady. The Post Office is a marvellous UK-wide institution, and the universal service obligation ensures that everyone across the United Kingdom benefits in exactly the same way. It is one of the strengths of our Union, and I look forward to working with her and with the Chancellor of the Exchequer to ensure we have a robust network for the future.

[James Sunderland (Bracknell) (Con)]

The Minister will know I am very concerned about rampant house building in east Berkshire and elsewhere in the south of England. Will he please assure me of what might be forthcoming in the planning Bill to protect assets such as farmland, school playing fields, golf courses, open spaces and the Pinewood Centre in Crowthorne?

[Michael Gove]

I am grateful to my hon. Friend and constituency neighbour for making that important point. He represents a beautiful part of east Berkshire, and it is important that we maintain our protections for areas of environmental importance and areas of aesthetic distinction. We all need to recognise that sustainable additions to the current housing stock are an important part of making sure the next generation also have a chance to own homes, too.

[Ben Lake (Ceredigion) (PC)]

T9.   The 2019 Conservative manifesto promised that Wales will not lose any powers or funding as a result of our exit from the EU. If Wales is to receive £167 million from the levelling-up fund, as opposed to the £375 million a year it received from EU structural funds, from which funding pot can the people of Wales expect to receive the shortfall?

[Michael Gove]

I would challenge the hon. Gentleman’s arithmetic, but I know time is short. All I will say is that when I visited Merthyr Tydfil and Pontypridd less than a fortnight ago there was jubilation, not on my arrival but on the arrival of the money from the levelling-up fund that is helping fantastic figures in Welsh local government to deliver for their citizens. I hope I have the chance to visit Ceredigion to see how we can support more projects there.

[Laura Trott (Sevenoaks) (Con)]

I urge my right hon. Friend to increase protections for the green belt in the forthcoming planning Bill. In Sevenoaks we are 93% green belt, yet we are constantly inundated with speculative planning applications that worry the local community. The answer should be clear: if it is green belt, it is protected; and if it is a speculative planning application, the answer is no.

[Michael Gove]

I would hate to be a developer facing my hon. Friend. When it comes to these speculative and ill-thought-out planning applications, developers had better put on their armour because she fires truth bullets at them from the hip, and repeatedly. Of course it is vital that we protect our green belt. However, the best protection that any local authority can have is to make sure its plan is properly designed and adopted.

[Stephen Timms (East Ham) (Lab)]

T10. Lease-holders in Kingfisher Court, built by Barratt in my constituency, have just been told that, unlike leaseholders in very similar buildings nearby, their application to the building safety fund has been rejected. They do not know why, and they now face bankruptcy. Can the right hon. Gentleman offer any reassurance that I can take when I meet them later this evening?

[Michael Gove]

Yes. I take this incredibly seriously. The right hon. Gentleman’s office may have already been in touch with the Department, but if it can be in touch with my private office directly, I will see what we can provide by way of additional information before he sees his constituents later. Whatever information we can provide in the meantime, let us try to make sure we can have a proper conversation about how we can resolve this problem in depth.

[Selaine Saxby (North Devon) (Con)]

Will my right hon. Friend meet me and other coastal MPs in Devon and Cornwall who are concerned about the deepening housing crisis, with no private rentals, no affordable homes and public services unable to recruit, as no one can afford to live in what were communities but have become holiday camps by summer and ghost towns by winter?

[Michael Gove]

My hon. Friend makes an important point, which emphasises the need for us to make sure that affordable housing is available for those in communities who are the vital workers—the productive workers who are at the heart of successful communities. Although of course it is legitimate for people to have second homes, that also means we need to look at one or two of the loopholes that allow some to not necessarily contribute to the community as much as they might.

[Mary Kelly Foy (City of Durham) (Lab)]

Across Durham, social housing in in short supply, while much of the stock that is available is of poor quality, and housing associations, such as Believe Housing, are struggling to meet the needs of residents on repairs and maintenance. Does the Secretary of State share my belief that residents in social housing in places such as Sherburn Hill and Brandon deserve housing that is fit to live in? Will he meet me to discuss the problems?

[Michael Gove]

I do share that view, and our affordable homes programme will be part of making good on our commitment to more and better social housing. I look forward to working with the new administration at Durham County Council in order to achieve just that.

[James Daly (Bury North) (Con)]

Does my right hon. Friend agree that culture can play a central role in levelling up throughout the north of England, and that an excellent example of this would be the proposed purchase and refurbishment of the Co-op theatre in Ramsbottom? May I invite him to visit this cultural gem from the 1870s, which has all its unique features still in place? What support can his Department give to supporting the cultural sector throughout the north of England, which is so important to levelling up?

[Michael Gove]

Culture is absolutely vital to levelling up. One thing I was discussing with my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport earlier today was the importance of making sure that more of the Arts Council funding that is currently spent in London and the south-east is spent in the midlands and in the north. Our acting and performing talent is spread equally across this country, but funding and institutions are not. We must do more, and my hon. Friend is absolutely right.

[Hilary Benn (Leeds Central) (Lab)]

The Secretary of State said earlier that his revised plans to solve the cladding crisis would be published shortly. Will that be before the forthcoming recess? All long-suffering leaseholders in my area want for Christmas is finally to hear that they will not have to pay sums they do not have to fix a problem they are not responsible for.

[Michael Gove]

Yes, I really do have to come back before Christmas with proposals. I cannot promise at this stage that they will relieve the burden on every leaseholder of every obligation, but we will do everything we can to help.

[Mike Amesbury (Weaver Vale) (Lab)]

On a point of order, Mr Speaker.

Liverpool City Council: Commissioners' First Report

Lord Gove Excerpts

Thursday 25th November 2021 Written Statements

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

On 10 June 2021 the then Secretary of State for Housing, Communities and Local Government, my right hon. Friend the Member for Newark (Robert Jenrick), updated the House that he had appointed a team of four commissioners to Liverpool City Council. The commissioners’ responsibilities are set out in directions¹ made under section 15(5) and (6) of the Local Government Act 1999 and include oversight of the council’s highways, regeneration and property management functions together with the associated audit and governance arrangements. The original best value investigation was initiated following a police investigation into allegations of fraud, bribery, corruption and misconduct in public office which involves a significant connection to Liverpool City Council. The wider criminal investigation into corruption is ongoing.

The commissioners submitted their first report to me on 5 October 2021 and I have discussed it with them. I was pleased to hear about the steps the council has taken to expose and stop wrongdoing. It is vital for Liverpool’s transformation that a clear line is drawn between the council of the past and the council of the future. The commissioners recognise the hard work, ambition, and determination of the Mayor and her cabinet, as well as the corporate leadership team. The commissioners have met dedicated and talented staff across the council who are working hard to deliver vital public services.

The commissioners have outlined to me, as they have stated clearly in their report, that the council is at the beginning of a long improvement journey and has a great deal to do in the next three years. In addition to the precise functions listed in the directions, the commissioners have encouraged the council to take a whole-council approach to improvement, with an expectation that the plans being developed will reflect this position. The commissioners are working with the council to develop their strategic improvement plan so they can focus on setting a sustainable long-term financial plan, improve corporate governance, deliver basic services well and meet the requirements of the statutory directions.

The commissioners shared with me their concerns about the council’s financial resilience and have outlined these in their report. I welcome the forthcoming review of the council’s financial resilience being conducted by the Chartered Institute of Public Finance and Accountancy (CIPFA) at the request of the commissioners. This review is expected to be completed before Christmas.

Given the circumstances of the intervention and legacy of the previous administration, it is not surprising that commissioners have found that the council’s approach to regeneration and property management lacks rigour and commercial awareness. I welcome commissioners working with these teams to embed strong commercial principles in these functions. Commissioners are also working with the planning team to address the lack of strategic policy frameworks and the significant backlog of planning applications which are constraining development in the city. It is likely to take another 12 to 18 months to fully stabilise the highways and transport functions in order to provide a firmer foundation for onward improvement.

Electoral reform in Liverpool is an important part of the intervention. On 22 September, in line with the terms set out in the statutory direction, a submission to the Local Government Boundary Commission for England (LGBCE) was approved by full council. In this the council proposed a reduction in the number of councillors from 90 to 85; and on 1 October, the LGBCE announced it was “minded to” accept the proposal. The council is due to submit its ward pattern proposal in December 2021. In addition, the intervention package includes the use of powers in the Local Government Act 2000 to provide for full council elections for the City of Liverpool from 2023. An order which delivers these electoral changes was laid before Parliament on 27 September and came into force on 29 October 2021. It provides for all Liverpool City Council councillors, and the directly elected executive Mayor of the City of Liverpool, to be elected and retire together every four years, starting in 2023.

I am mindful of the recent terrorist incident which took place in Liverpool on 14 November and commend the council for its response efforts. No one can doubt the professionalism and public service shown in the response by local government, the NHS and emergency services. I know that going forward, the Council will draw on the expertise of the commissioner team as needed as the community pulls together from this event over the coming weeks and months. I am however clear that the parameters of the intervention have not changed, and I expect the council to continue to prioritise the intervention and transformation work.

The council has a significant challenge ahead of it to provide the services that the residents of Liverpool City Council deserve. My Department stands ready to support commissioners in any way needed to secure this transformation and enable the council to contribute to our levelling-up agenda.

The commissioners have agreed to provide their next report to me in April 2022 and I will update the House on further progress with the intervention at that time.

A copy of the commissioners’ first report will be placed in the Libraries of both Houses.

¹ https://www.gov.uk/government/publications/liverpool-city-council-directions-made-under-the-local-government-act-1999

[HCWS422]