Teesworks Joint Venture

Alex Cunningham Excerpts

Monday 29th January 2024 Commons Chamber

[Sir Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I am pleased that the report has been published today and thank the Minister for his statement. Teesworks is critical for my constituents and the whole of Teesside, and the report confirms that for every £1 of public money that has been invested, the taxpayer will receive £9.50 back, and that is on the basis that only 17% of the site has been developed.

As my hon. Friend the Minister said, the hon. Member for Middlesbrough (Andy McDonald) alleged “industrial-scale corruption” in the House. He did so for overtly political reasons, which sadly Opposition Front-Bench Members have repeated today. Labour wants Teesworks to fail.

[Alex Cunningham (Stockton North) (Lab)]

Nonsense!

[Sir Simon Clarke]

Labour puts politics before people, and the furious denials of the hon. Member for Stockton North (Alex Cunningham) do nothing to disguise the fact that he and his colleagues have connived in making malicious allegations that this afternoon have been fundamentally proven to be false. The independent review confirmed that no illegality occurred. Does my hon. Friend agree that the hon. Member for Middlesbrough ought to apologise to the House, and to all those who were named in the report and falsely accused by him? Does he also agree that the hon. Member for Middlesbrough should resign for acting against the interests of the constituency that he serves and, indeed, against the interest of the whole Tees Valley?

[Lee Rowley]

My right hon. Friend speaks loudly for Teesside and his constituency. I will take the steer of Madam Deputy Speaker and keep my remarks solely to the statements made previously. The hon. Member for Middlesbrough stated clearly, on 20 April in this place, that there had been

“truly shocking, industrial-scale corruption on Teesside.”—[Official Report, 20 April 2023; Vol. 731, c. 383.]

In the same business questions session, he repeated “industrial-scale corruption”. A few days later, in another business questions, he referred to “dubious dealings”. Those remarks have proven to be incorrect, and I hope that he withdraws them as soon as he is able to do so.

[Alex Cunningham]

I apologise for my outburst, Madam Deputy Speaker.

Will the Minister join me in congratulating Mayor Houchen’s partners, Musgrave and Corney, for pulling off the business coup of the 21st century? Without spending a penny, they secretly acquired 90% of the shares in Teesworks, which has had hundreds of millions of pounds of taxpayers’ money invested in it. They have done multi-million-pound deals to lease it to others, including the combined authority, have made over £100 million in profit in just one year, and have secured control of the business development at Teesside airport when no one else got a look in.

That is all in the gift of Mayor Houchen, who, the report says very clearly, has failed on both governance and transparency—something I have said time and again. That is the accusation that I have made. Does the Minister accept that this is a terrible deal for the taxpayer and the people of Teesside? Will he now hand it over the NAO, as others have requested, so that all aspects of the business at Teesworks—not just those chosen by the Secretary of State—can be independently investigated?

Oral Answers to Questions

Alex Cunningham Excerpts

Monday 4th December 2023 Commons Chamber

[Simon Hoare]

I have never given a nuanced answer in my life and I do not intend to start doing so now. I thank all the councils my right hon. Friend mentioned for the work they do in delivering services for their communities. Local government has seen a real-terms increase in core spending power over the period 2019-20 to 2023-24. I know she knows that, but I assure her and the House that we recognise and understand the pressures on local government. We will look in the round at sector spending when finalising the budget at the upcoming settlement, as we do every year, but I shall certainly bear at the forefront of my mind the representations that she has made.

[Alex Cunningham (Stockton North) (Lab)]

6. What steps he is taking to reform the leasehold system.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

10. What plans he has for leasehold reform.

[The Minister for Housing, Planning and Building Safety (Lee Rowley)]

On 27 November the Government introduced the Leasehold and Freehold Reform Bill, which delivers the Government’s manifesto commitments on leasehold reform and makes long-term necessary changes to improve home ownership for millions of leaseholders across England and Wales.

[Alex Cunningham]

In January, the Secretary of State told The Sunday Times:

“I don’t believe leasehold is fair in any way. It is an outdated feudal system that needs to go. And we need to move to a better system and to liberate people from it.”

But the Government’s Bill does not sort it, nor does it free my constituents from their feudal masters. Why?

[Lee Rowley]

As the hon. Gentleman will know if he has read the Bill that was introduced last week, a substantial amount of progress is proposed under it: a substantial number of leaseholders will be much better off and experience a substantial improvement to their lives as a result of the changes that this Government are proposing.

Nutrient Neutrality: Levelling-up and Regeneration Bill

Alex Cunningham Excerpts

Tuesday 5th September 2023 Commons Chamber

[Rachel Maclean]

The simple answer to my hon. Friend’s question is that he is right. The existing legal framework that has been hindering us has had a disproportionate effect on planning permissions and house building when the main source of the pollution lies elsewhere. Overall, this package will be able to deliver house building and extensions in my hon. Friend’s constituency, help the smaller builders and, of course, protect our rivers.

[Alex Cunningham (Stockton North) (Lab)]

In an industrial area such as Teesside, environmental standards are critical, including around water quality and our riverside. Will the new policy framework lead to increased funds for the Canal & River Trust, which has seen its budgets decimated in recent years, leading to huge cuts in its activities and the removal of every single litter bin on its land around the River Tees?

[Rachel Maclean]

I thank the hon. Gentleman for raising the concerns of the Canal & River Trust. I am sure that his comments will have been heard by DEFRA Ministers, but I will be happy to take those concerns back to them and ask them to provide an answer.

Teesworks: Accountability and Scrutiny

Alex Cunningham Excerpts

Wednesday 7th June 2023 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I am proud to speak today in support of Teesworks and our Tees Valley Mayor, Ben Houchen, as well as the process that the Government have put in place, of which more in a moment.

Teesside is being transformed, from our airport, saved after Labour let it drift to the brink of closure, to our town centres of Middlesbrough, Guisborough and Loftus benefiting from tens of millions of pounds of direct investment. We have the new mayoral development corporation to turbocharge the regeneration of Hartlepool. We have the Treasury’s northern campus in Darlington and we have the UK’s largest freeport on the Tees. Overshadowing, and indeed uniting, all of this is Teesworks, the largest brown-field remediation project in the country, and the beating heart of our industrial future. The site of the former Redcar steelworks was costing the taxpayer £1 a second as long as it stood idle. It is right that the Government and our Mayor have brought it back to life. Government investment of £246 million has been put in, but as we know, the cost of total remediation is some £482. 6 million, as independently assessed. That is the reason for the joint venture established with the private sector.

It is important to clarify exactly what has happened. The first point is that the site has never been a public asset. The private sector Teeswork partners brokered a deal to take back control of the land from the Thai banks. It brought the deal and the land to the South Tees Development Corporation, not the other way round. That is why the Opposition’s talk of no public tendering process having taken place is such a red herring.

The public-private partnership was agreed, moreover, by the TVCA cabinet, the STDC board, the Department for Business and the Treasury. Bob Cook, the Labour leader of Stockton council, voted in favour. The hon. Member for Middlesbrough (Andy McDonald) stated on the BBC’s “Sunday Politics” that he understood the reasons for a 50:50 split. A lot of revisionism is going on now.

[Alex Cunningham]

I have spoken to the leader of Stockton borough council and he has had no part in any decision relating to the transfer of those assets from the public to the private sector. He is a member of the combined authority, not a member of the STDC board. It is important that the right hon. Member recognises that.

[Mr Clarke]

The hon. Gentleman is completely wrong. Mr Cook voted for this structure and he cannot change that vote.

There is no credible suggestion that wrongdoing has occurred. Teesworks is double audited, first by Mazars and then by Azets, two separate auditors. There is then an audit committee for Teesworks. Here we come to the truly jaw-dropping fact that that audit committee is chaired by none other than Councillor Matthew Storey, the leader of Middlesbrough Council’s Labour group and the head of the parliamentary office of the hon. Member for Middlesbrough. He chairs that audit committee —what concerns has he raised? He is part of the audit structure that is now being cast into doubt.

It is noteworthy that in the speech by the shadow Secretary of State we heard nothing that amounted to a substantive allegation. We heard a series of inferences and questions that amount to nothing more than the same tittle-tattle that has characterised this process, with the exception of the allegation of industrial-scale corruption that has been made but never substantiated, because the hon. Member for Middlesbrough knows that he would be sued for libel if he repeated it.

--- Later in debate ---

[Alex Cunningham (Stockton North) (Lab)]

Secrecy is a disease that is threatening a once-in-a-lifetime opportunity for the people of Teesside—an opportunity of thousands of high-quality jobs and a share of the dividend from hundreds of millions of pounds of taxpayers’ money. It is secrecy that drives the suspicions, questions and doubts about how the Tory Tees Valley Mayor, Ministers and their cronies do business not just at the Teesworks site, but at our publicly owned Teesside International airport, which continues to lose millions of pounds and has twice been bailed out to the tune of £10 million using taxpayers’ money.

Tomorrow will be the 13th anniversary of my maiden speech in this House. I was happy that day to tell the world how proud I was to be an adopted Teessider, and that remains very much the case today. We have a wealth of resources, from our people to our amazing cultural offer. We have our beautiful countryside, our coast and our amazing industrial base, which has created so much of our country’s wealth, but we deserve so much more.

My hon. Friend the Member for Middlesbrough (Andy McDonald) and I have been consistent in demanding openness and comprehensive scrutiny of decisions and the use of hundreds of millions of pounds of taxpayers’ money by the Tees Mayor and his close-knit band of supporters and partners. The fact that several national newspapers, led by Private Eye magazine, have made front-page news of how business is done on the mayoral projects on Teesside warrants a completely independent investigation not by a group appointed and favoured by the Secretary of State, but by the National Audit Office, which has confirmed that it could do one if given the green light by Ministers. The Tees Mayor is up for it; why are the Government not?

Similarly, I hope to see Ministers withdraw their opposition to the inquiry proposed by the Select Committee on Business and Trade, which would have the power to scrutinise in a way so far denied by all those concerned. It could also summon people here to give evidence. I have had all manner of concerns over the years as the Mayor has been aided and abetted by Ministers as senior as the Prime Minister himself, hiding not just the decisions made about the airport and the Teesworks site, but how those decisions were reached, who was involved and who was excluded.

I do not know whether you have heard of the Darwin’s bark spider, Mr Deputy Speaker. It weaves the largest and most dense webs in the world. They can be as large as 28,000 sq cm, but that spider has nothing on the Tees Mayor when it comes to creating dense webs of secrecy, with organisations, companies and even charities created in an attempt to dodge full and proper scrutiny of how he and his mates do business and spend public money on what is referred to as the UK’s biggest levelling-up project.

As has been alluded to, things came to a head last year when a record posted with Companies House showed that the once public asset that is the Teesworks site is now 90% owned by a small group of local businessmen, the shares having been transferred to them by the Tees Mayor and the board of the South Tees Development Corporation, but we still do not know why such a decision was taken and who exactly was party to it. For certain, it was not taken by the Tees Valley Combined Authority, made up of the elected Mayor and the elected leaders of the five local authorities. They were not even consulted, as far as I know.

The Mayor thinks he had to do business with two men in particular, Chris Musgrave and Martin Corney, because they owned what can only be described as a ransom strip of land on the Teesworks site and they would take on the liability of the hundreds of millions still needed to remediate the site. I have an issue with both his reasons, or perhaps “excuses” is a better word. The Tees Mayor took on the might of the Thai banks, which owned most of the site after SSI walked out on Teesside and ended over 100 years of steel production. He decided he would go as far as a compulsory purchase order, and to his credit, he acquired the site for the public. Why, then, did he not take similar action against the two local businessmen who were holding the public to ransom? He will not answer that question, but perhaps the Minister can help.

The Minister may also be able to help over the costs of the remediation of the site. The Government get no accolades for allowing the steel industry to die on Teesside, but I do give them credit for agreeing to fund the remediation of the site so it could be fully developed. During his short-lived tenure as the Government investment tsar for the Tees Valley, Lord Michael Heseltine—I am quoting him directly—said:

“The money to clean up the site will be what it costs. No-one knows what the condition of the site is and although there have been estimates, they are estimates based on guess work. So it is much better to make it clear”—

and I agree that it is much better to make it clear that—

“central government will pay the clean-up costs and underwrite them whatever the bill comes to.”

Successive promises were made by Government Minsters that the Treasury would fund that work, so there was never any need to find private capital.

We have heard the Tees Mayor claim that he may have been naive in some of his dealings, but never did anything illegal. That may well be the case, but that naivety has cost our communities on Teesside the chance to share the dividends from the site and the public money invested in it. Sadly, however, we go back to the word “secrecy”. Were other companies and organisations considered for partnering with the Teesworks site? Were other offers made for the land? I have heard of one, and that was increased. What were the criteria and business case for selecting partners? It is all very much a secret, and none of the decision-making bodies is subject to the Freedom of Information Act.

I do not want to repeat all the accusations laid at the doors of the Mayor and his friends by the FT, The Times, the Daily Mirror and The Guardian, but I do hope we can get a fully independent investigation by the NAO into the wholesale transfer of assets, including the tens of millions of pounds of on-site scrap, to the private sector. That includes the Private Eye claim—a claim yet to be denied by the Mayor or anyone else—that Orion Kotrri, Mr Musgrave’s son-in-law, has been running the scrap operation. The South Tees Development Corporation has refused to say why he was selected for the role, who employs him or how he is paid. It is no secret that the business is being kept in the family.

The media and others are right that there are critical questions over how a bunch of local businessmen could already have extracted around £50 million in cash and assets from Britain’s biggest levelling-up project before a single business has begun operating on the site, and apparently without investing themselves. Perhaps all those concerned with the scrap should meet the challenge from The Northern Echo, which has said:

“There must be a ledger showing how much scrap has been sold which can put the facts in the open and enable people to judge whether there is any truth in the rumour”—

that is, the rumour of poor management.

[Mr Simon Clarke]

Will the hon. Gentleman give way?

[Alex Cunningham]

I will not.

Is the Minister aware of any such ledger of what are public assets, of where they have gone, and of what cost and value? Private Eye has established that decisions have been pushed through a board of the South Tees Development Corporation dominated by Houchen placemen and women in unrecorded discussions. Surely Ministers will recognise that they have some cleaning up to do. All we are seeking is for the truth to come to light. If the claims are not true, why is the Mayor not coming forward to publish all the relevant documents? Why is he not challenging, through the courts if necessary, all these media claims that he simply dismisses?

I would love to see the promises made by the Tees Mayor come to fruition. I want our communities to benefit from the jobs, but from much more than that too. Just as London boroughs benefit from the massive council tax base, those on Teesside could benefit from the dividends from Teesworks, and goodness knows we need it. Our community in the Tees Valley faces soaring levels of hardship compared with the national average. Research released on Monday by the End Child Poverty coalition showed that, in Stockton-on-Tees alone, over 40,000 children are living below the poverty line.

The picture is the same across all of the constituencies of Members from Teesside represented in the Chamber, but time and again we have seen the Mayor and his Government fail our area. They failed to do anything to retain steelmaking on Teesside. Despite claims of help on the way, they allowed our historic and world-leading Cleveland Bridge and Engineering Company to go to the wall, with the loss of hundreds of highly skilled jobs. When the Sirius mine got into cash-flow difficulties, the Mayor promised help, but his Government brokered a deal for a multinational company to take over, leaving thousands of local investors with very little. Many of them were former steelworkers who had invested their redundancy pay in the venture. Who knows what could have been done if business had been handled in a different way on Teesside, with public benefit being the focus.

We need assets on Teesside. We need investment. We need to know what is going on with people’s existing assets and how they are being disposed of. If there are huge profits to be made from Teesworks—the scrap alone is said to be worth £100 million—surely they should be going into our communities for development and quality services and not almost exclusively into the pockets of private companies. We need answers. We need openness and transparency. We need to see an end to this secrecy.

[Several hon. Members rose—]

Future of Social Housing

Alex Cunningham Excerpts

Wednesday 19th April 2023 Westminster Hall

[Alex Cunningham (Stockton North) (Lab)]

I, too, congratulate my hon. Friend the Member for Weaver Vale (Mike Amesbury) on securing this debate. If I had a fiver for every time I was asked by an older person to help them move to a bungalow, or I encountered a plea for help from a person with a disability who needs specialist accommodation, I could probably build a house. I could build half a street if I included all the individuals and families who are homeless, or who need more space for a growing family or an extra room so they can accommodate and care for a relative. After 13 years of Tory Government, we simply do not have the houses to meet those needs. All those people have been failed. We have simply failed to build sufficient social housing.

We do not just need to put a roof over people’s heads; we need to provide safe homes that are fit for purpose in places where individuals and families can thrive without worrying about the end of yet another 12-month lease, which are so common in the private rented sector. More and more people are stuck in that sector when they should have a council house to rent.

It is reprehensible that the Tories have abandoned their 2019 manifesto commitment to build 300,000 homes a year. The Prime Minister refused to say why when he spoke at Prime Minister’s questions today. Perhaps the Minister will be able to answer that question. Thatcher produced the right-to-buy scheme and opened the door for millions to buy their council houses, but she failed to ensure that those homes were replaced when they were sold, which meant that there were insufficient homes to rent for future generations. The Labour Government from 1997 did not build enough houses to rent either, but they did concentrate on refurbishing millions of existing council homes, which had been neglected by the Thatcher and Major Governments for nearly two decades.

The Local Government Association says that we should

“give local government the powers and funding to deliver an ambitious build programme of 100,000 high-quality, climate-friendly social homes a year”,

and I agree. It adds that that would

“save the public finances by £24.5 billion over 30 years, which includes a reduction in the housing benefit bill and temporary accommodation costs.”

For a long time, what used to be our council housing stock has been transferred to housing associations, and they have succeeded in many ways, but I worry about the focus on building new houses rather than social houses for rent. More and more are being built for sale. I do not doubt that there is a place for that sort of activity, but we need a policy to drive a revolution in the building of affordable homes for rent. Shelter is banging the same drum. It says:

“Unless we act now, we face a future in which a generation of young families will be trapped renting privately for their whole lives, where more and more people will grow old in private rentals, where billions more in welfare costs will be paid to private landlords—and hundreds of thousands more people will be forced into homelessness.”

My local authority, Stockton-on-Tees Borough Council, is also seeing rent increases, which are making housing more unaffordable for residents. There is therefore a greater demand for social housing. That comes at a time when there is a lower turnover in social housing, which means that the generations coming up that require housing do not get it. Of course, there are significant waiting lists for properties that can provide independent accommodation for those who have a family member with a disability.

Thirteen, the social housing provider, wants to upgrade its old houses, but it is a risky business because of the way the financial system works. We need that revolution, and I believe that only our Labour pledges will drive a generational step change in housing. Our people will be happier and healthier as a result.

--- Later in debate ---

[Rachel Maclean]

Thank you—I will crack on, then. I thank the hon. Member for Weaver Vale (Mike Amesbury) for today’s really important debate. It is a pleasure to be here and to respond for the very first time on this particular issue in this Chamber.

The hon. Member powerfully articulated the case for building more social homes not just in his constituency, but across the country—that is reflected in the Members here. It goes without saying that that is an objective we all very much share. I will be responding to the comments made by Members, both in the course of my speech and at the end, and I thank every Member for making powerful contributions.

I start by reaffirming the unshakeable commitment of the Government to driving up both the quality and quantity of this nation’s social housing stock. It is a core tenet of our levelling-up agenda, and that has been reflected in recent years, starting with our affordable homes programme. The Government have been clear that they are entirely committed to increasing the supply of affordable housing in the country. That is why we launched the £11.5 billion affordable homes programme in 2020, with a commitment to deliver tens of thousands of affordable homes for both sale and rent.

At this point, I would like to say a bit about the social rent component of our affordable homes programme. We recognise how vital these homes are to building and maintaining thriving communities, and I was particularly struck by the very fluent remarks of the hon. Member for Vauxhall (Florence Eshalomi) on this point; she really brought it to life and I thank her for doing so.

I know that every hon. Member will agree that homes for social rent are a fundamental part of our housing stock—a lifeline for those who would struggle to obtain a home at market rates. It was absolutely right for us to bring social rent homes into the scope of the affordable homes programme, as the Government did in 2018. Since then, we have doubled down in our levelling-up White Paper on our commitment to increase the supply of social rented homes, while also improving the quality of housing across the board in both the social and private rented sectors. The affordable homes programme has been changed to meet this commitment, with further increases to the share of social rented homes we are planning to deliver.

However, although social rent is a key element to our approach, we are also a Government who truly believe in supporting aspiring homeowners to take their first step on to the housing ladder. We understand what a difference that increased sense of security can make to all aspects of someone’s life and the lives of their family. That is why home ownership continues to be a fundamental part of the affordable homes programme offer and we will continue to deliver a significant number of homes through our shared ownership tenure.

[Alex Cunningham]

At Prime Minister’s questions, the Prime Minister dodged the question as to why the Conservative party was reneging on its manifesto commitment to build 300,000 homes a year. Can the Minister answer the question and say why that has happened?

[Rachel Maclean]

The hon. Gentleman must be telepathic, because I was just about to come to that point. We are more broadly focused on accelerating housing delivery to make home buying a reality for a new generation, so we must build homes in the places that people want to live and work. As the Prime Minister said, and I agree with him, we want decisions about homes to be driven locally, which is why we need to get more local plans in place to deliver the homes that our communities need. We are working tirelessly across the country with our local partners and we intend to deliver 300,000 homes per year, as our commitment set out, so that we create a more sustainable and affordable housing market that benefits everybody.

However, I am not here only to talk about commitments, because it will make no difference unless we deliver on those commitments. We are making progress in our mission to increase housing supply and the numbers back that up. Many Members talked about numbers; let me give them some. Since 2010, we have delivered over 632,000 affordable homes, including 441,000 affordable homes for rent, over 162,000 of which were for social rent.

I hope that the hon. Member on the Opposition Front Bench, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), will forgive me for making the comparison, but it is worth noting that this Government have delivered more affordable homes in the last 12 years than were delivered in the preceding 13 years of a Labour Government. Actually, I note that the hon. Member for Stockton North (Alex Cunningham) agrees with me. He said very clearly—

Oral Answers to Questions

Alex Cunningham Excerpts

Monday 27th March 2023 Commons Chamber

[Dehenna Davison]

I am certainly happy to meet the hon. Gentleman to discuss those levelling-up projects. We have had a huge swathe of fantastic projects that have been funded around the country.

[Alex Cunningham (Stockton North) (Lab)]

15. What recent assessment he has made of the effectiveness of the delivery of funds for successful levelling-up fund bids.

[Philip Davies (Shipley) (Con)]

20. What the deadline is for the next round of levelling-up fund bids.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

The levelling-up fund continues to invest in infrastructure that improves everyday life for local residents across the UK. Levelling-up fund projects that are in delivery are closely monitored through quarterly reporting, with payments made to local authorities every six months. We have also agreed a £65 million support package to ensure that local authorities have the capacity they need to deliver. I am pleased to say that details of the next round of the levelling-up fund will be outlined in due course.

[Alex Cunningham]

For generations the people of Billingham have made a massive contribution to the British economy—through the chemical and pharmaceutical industries, among others—and they continue to do so today. Sadly, the once state-of-the-art town centre, also built on their backs, has seen better days. Can the Minister explain why, when it comes to levelling up, the Government have turned their back on those who have contributed the most and deserve investment in their town?

Middlesbrough Development Corporation

Alex Cunningham Excerpts

Tuesday 14th March 2023 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

I beg to move,

That this House has considered the Middlesbrough Development Corporation.

It is a pleasure to see you in the Chair, Mr Paisley.

On Friday 24 February, Middlesbrough Council held an extraordinary general meeting, convened by the monitoring officer, to determine whether the council supported the proposal to create a Middlesbrough development corporation. The proposal was put to the vote, and 13 councillors voted to approve and 17 voted against. Many councillors from the ruling Tory-independent coalition did not attend, although they were all given proper notice of the meeting. Obviously, not all councillors can be expected to turn up for every single meeting and there will be good reasons for some absences, but, quite frankly, the appallingly low turnout for such an important vote was pathetic.

The council decided not to approve the MDC, but three days after the council had made that decision, 25 councillors, led by the elected Mayor, Andy Preston, wrote to the Government saying that the council decision should be ignored and the Minister should instead accept their letter of acquiescence as being the true position of the council. I do not need to stress just how ridiculous it is that the Government, in their determination to overreach local democracy, are prepared to ignore the formal council decision.

Indeed, the Secretary of State for Levelling Up, Housing and Communities has subsequently written a letter in which he outrageously describes the vote of the local authority as being born of “misinformation and mischief making”. That is incredibly partisan language from the Secretary of State, but perhaps we should not be surprised.

[Alex Cunningham (Stockton North) (Lab)]

Does my hon. Friend share my concern that this sets a precedent for Tory Mayors or Tory Governments to ride roughshod over local democracy and local decision making in our local authorities? There could be more land grabs elsewhere in the Tees Valley, such as in Darlington and in Stockton.

[Andy McDonald]

My hon. Friend and neighbour makes a very valid point. That is one of the facets of the debate that I have sought today; I want to stress that that is a danger.

We all want to see good development in our towns, but how that development is done is important. Over the years, Middlesbrough Council has acquired and assembled assets using public money, and it holds those assets on behalf of all of us in Middlesbrough. The proposal is that if the council transfers these assets to the MDC, the MDC will, in turn, use money from central Government for development. Councillors were not elected to give our town away, but we now know that money is available. The bargain proposed is that if—and only if—the council gives up those assets and planning powers to the MDC, £18 million will be released for development.

--- Later in debate ---

[Andy McDonald]

Let us deal with all the rest of them; I am just about to do that very thing.

I was talking about a conflict of interest that the Mayor of Middlesbrough now has. The geographical boundary of the MDC takes in an area called Middlehaven and vast swathes of the town centre, and it includes an area of the town where Mr Preston owns or has owned property. According to the latest Tees Valley Combined Authority register of members’ interests, Mr Preston owns vast swathes of land and properties on both banks of the River Tees—well over 50 properties in total. Clearly, the decisions that the MDC board makes could have a direct bearing on any increase in value of any such interests, and they could potentially directly and financially benefit him.

In local government and in all public institutions, the greatest of care has to be taken regarding such potentially conflicting pecuniary interests. That is why Mr Preston was advised not to attend a vote at the crucial meeting. There is an obvious conflict of interest, and the question arises: if he cannot vote on the creation of such a corporation, how can he possibly lead on a letter to countermand that very vote and then serve on the board? It is utterly farcical; it is almost as though we have gone back to living in medieval times, with wealthy feudal landlords controlling political power over their lowly subjects without any proper democratic processes of accountability.

[Alex Cunningham]

My hon. Friend clearly shares my concerns about how development corporations are being managed on Teesside, with joint ventures being created and then used as vehicles to transfer hundreds of millions of pounds-worth of public assets to private companies, and all behind doors and in secret. Does he fear, as I do, that the new Middlesbrough and Hartlepool development corporations could see more of the same—deals made in private to transfer public assets to private companies?

[Jill Mortimer]

Will the hon. Gentleman give way?

--- Later in debate ---

[Rachel Maclean]

I thank my hon. Friend. The Government will always stand squarely behind local areas that are doing everything they can to level up. That is the basis on which this Government were elected.

Following the consultation in October, the Mayor of Tees Valley, Ben Houchen—who, I remind the hon. Member for Middlesbrough, was democratically elected—wrote to inform the Secretary of State that he was designating an area of land in Middlesbrough as an MDC. It is important to stress that the designation was submitted following unanimous agreement by the combined authority’s cabinet, of which the Mayor of Middlesbrough Council is a member.

It is completely right that we give these Mayors the tools and resources they need to succeed. Obviously, a Mayor cannot unilaterally create one of these corporations; public consultation is required, and that took place in this case. The consent of the members of the combined authority is needed, and the process allows Parliament to have its say. There is a clear, transparent, democratic process, and it has been followed in the establishment of this corporation. The conspiracy construction that the hon. Gentleman is putting on these events is nothing more than a last-ditch attempt to stand in the way of life chances and opportunities for the people he represents. I am proud to be on the other side of the debate, and will do absolutely everything I can, along with my hon. Friends, to level up areas that so desperately need it, as he has said.

[Alex Cunningham]

Can the Minister guarantee that none of the assets transferred to the Middlesborough development corporation will end up in private hands, perhaps through a joint venture? Will the same people who have benefited from other developments in the area benefit yet again?

[Rachel Maclean]

There is growing consensus across the House that in the past, too many decisions about local areas have been made by politicians here in Whitehall. It is not for me to stand in the way of the best interests of the democratically elected Middlesborough Council and the Mayor of Tees Valley, Ben Houchen, who is promoting the best interests of local people in seeking to regenerate the area. The obvious way to ensure levelling up is through devolution, and that involves putting power, money and control in the hands of those powerful, democratically accountable local leaders.

Levelling-up Fund Round 2

Alex Cunningham Excerpts

Thursday 19th January 2023 Commons Chamber

[Lucy Frazer]

I will be happy to do that.

[Alex Cunningham (Stockton North) (Lab)]

With rich country areas such as Guisborough and Richmond successful, what does the Minister have to say to the people of Billingham? Is it, “You are not deprived enough and you are undeserving”, “I didn’t have enough money and I needed to put what I had into the Prime Minister’s constituency and those of Tories he sacked from his Cabinet”, or, “I’m sorry, we are Tories, and we have areas where we need to shore up the Tory vote”? It stinks.

[Lucy Frazer]

I would not say any of those things to the hon. Gentleman’s constituents because I have repeatedly said that 45% of the funding has gone to Opposition areas. There were £8 billion-worth of bids, which were excellent, and unfortunately the fund was £2 billion. I am pleased that his area got £16 million of future high streets funding quite recently.

Management of the Economy and Ministerial Severance Payments

Alex Cunningham Excerpts

Tuesday 15th November 2022 Commons Chamber

[Lisa Nandy]

The hon. Gentleman can shake his head, but it is a fact. This is money that many families across the country simply do not have. Food is going up, energy is going up, rents are going up and now mortgages are going through the roof. The one thing that this country cannot afford anymore is more of this Tory Government, who have been in office for 12 years.

Almost 2 million people are struggling to afford their mortgage costs. Government Members do not have to take my word for it—that is according to the Office for National Statistics. That is one in four mortgage holders. First-time buyers now face putting £1 of every £4 they earn towards their mortgage. Mortgage repossessions have soared by 91% compared with the same period last year, while the number of orders to seize property is up over 100%.

The crisis does not just affect homeowners; it is seeping into every part of the housing market. Buy-to-let landlords’ profits have declined by almost three quarters compared with last year because of rising interest rates, which means many tenants, already forking out huge chunks of their income on rent, are seeing their rents go through the roof. This is a housing crisis, the likes of which we have not seen for a generation, and what caused it? Let us make no mistake that this is a Tory crisis created in Downing Street by a disastrous mini-Budget which crashed the economy and threw families up and down the country under a bus. It is no coincidence that, after the mini-Budget, more than 40% of available mortgages were withdrawn from the market. It is no coincidence that the Bank of England had to launch an unprecedented intervention to stabilise the markets. Hon. Members do not need to take my word for it; 12 days ago, the Bank of England’s Monetary Policy Committee report said:

“The sharp pickup in UK interest rates has been partly driven by global factors, but UK-specific factors have played an important role”—

and that

“UK interest rates had increased by somewhat more than others”.

[Alex Cunningham (Stockton North) (Lab)]

I congratulate my hon. Friend on her very good speech. I have been pleased to see lots of new homes being built in my constituency and nearby, because that has created jobs. However, does she share my anxiety that, with increased mortgage costs, the new homes will not be sold and that the people who will build the next phase will lose their jobs as well?

[Lisa Nandy]

My hon. Friend is absolutely right, and I will say more about that in a moment. This country is facing not just a housing crisis, but a growth crisis. Housing is a central part of the answer to the growth problem that the Tory Government have presided over for the past 12 years and it has to be part of the solution. This is a Tory crisis; it was made in Downing Street and is being paid for by working people. It is not Tory Ministers who will pay the price for it, but working people who will do so for years to come.

--- Later in debate ---

[Lisa Nandy]

My hon. Friend is absolutely right. The truth is that before the former Prime Minister and Chancellor crashed the economy, we had a housing crisis in this country. We saw social housing stock being lost faster than it was being built, with rents rising in the private rented sector and a real squeeze on people there. The Government promised to do something about it, but we have had three years of them dragging their feet. We have had more Secretaries of State than we have had promises, and we have had a lot of those, but nothing has been delivered. I will say more about that in a moment.

Given all of that, I genuinely ask Government Members: where is the Housing Secretary? Why has he not met banks and lenders in the middle of this mortgage crisis? Any Government worth their salt would be moving heaven and earth to help families and protect vulnerable people as we head into what promises to be the harshest winter that many families can remember. The crisis is of such magnitude that we accept that there is no magic-bullet solution, but any Government worth their salt would do everything in their power and pull every lever to make a difference.

This afternoon, the shadow Chancellor—my hon. Friend the Member for Leeds West (Rachel Reeves)—and I will be talking to lenders about what can be done. Why is the Housing Secretary not doing the same? He has a reputation for roving across Government as Mr Fix-It. This is a major crisis in his brief; why is he not doing everything he can to fix it?

[Alex Cunningham]

I am grateful to my hon. Friend for giving way a second time. I remember the mortgage rates during the Thatcher years: mine exceeded 15%. Despite a good income, we struggled, but all around us, people were losing their homes. Interest rates have some way to go to reach those levels, but does she share my anxiety that if the Government do not take the right action now, another generation will face double-digit interest rates in this country?

[Lisa Nandy]

I agree absolutely. Bringing stability back to the economy is the first step, but the Government could do more. We know that the only way out of this crisis is growth and we know how central housing is to that part of the puzzle. The Government could start by committing again to their target of 300,000 homes a year and do more than that by actually building them. The Conservative Government’s failure over 12 years to build enough homes is a major cause of the housing crisis.

--- Later in debate ---

[Lucy Frazer]

I will give way shortly.

Furthermore, there is some protection in the courts through the pre-action protocol, which makes it clear that repossession must always be the last resort for lenders. Fourthly, if mortgage holders do fall into financial difficulty, guidance from the Financial Conduct Authority requires firms to provide support through tailored forbearance options, which could include a range of measures depending on individual circumstances. We continue to work with the FCA and the financial services sector to explore what additional measures may support efforts to help people facing rising mortgage costs.

[Alex Cunningham]

I am surprised by the Minister’s rewriting of history, particularly in relation to the Prime Minister’s role in failing our economy over many years. She has talked about fiscal rules. Can she tell me why many of the fiscal tables show Britain at the bottom end of the economic league?

[Lucy Frazer]

I think the hon. Member is forgetting that the UK is projected to have the highest growth rate in the G7 in 2023. I think he is forgetting—or is not aware—that we are seeing inflation across the globe. Germany’s inflation rate is 11.6%, Italy’s is 12.8%, and the eurozone’s is 10.7%. These are obviously issues that are affecting people across the globe. This Government are committed to supporting vulnerable people who need the support that we are providing.

Let me now address some of the points made by the hon. Member for Wigan about homes, home ownership and the shattering of dreams. It will not surprise Opposition Members to learn that we believe home ownership to be an essential component of any long-term issues in our economy. This Government are proud of their track record of helping first-time buyers on to the housing ladder, and we have just expanded first-time buyer relief by raising the level at which first-time buyers start paying stamp duty, from £300,000 to £425,000. I seem to remember that the Opposition voted against that. As the hon. Member mentioned, we are also investing £11.5 billion in affordable homes. She will be aware, I hope, that since 2010 we have delivered 598,000 new affordable homes, and Government-backed schemes have helped more than 800,000 households to purchase a home since 2010.

Coastal Communities

Alex Cunningham Excerpts

Thursday 8th September 2022 Westminster Hall

[Alex Cunningham (Stockton North) (Lab)]

It is a pleasure to serve under your chairmanship, Dr Huq. I, too, congratulate the hon. Member for Hastings and Rye (Sally-Ann Hart) on securing this important debate.

For too long, the specific needs of our coastal communities have been neglected and their voices continue to be ignored. Many of our once proud resorts are tired and lacking in investment, while many people are locked into low-paid, no-prospect jobs.

Along the north-east coast, we have a particular problem that is devastating our marine ecosystem and the fishing industry from Hartlepool to Whitby, as well as hitting tourism. Dead crustaceans and other wildlife continue to be washed up on our shores, and the catches of many local fishermen are down by 90%. Some have told me about their catches. One put down 1,100 pots but caught only seven velvet crabs; he told me that he would normally catch thousands a day. A father and son went out fishing recently and had their worst day ever. Normally, they would have caught 80 kg of lobster and 250 kg of crab. Instead, they caught 5 kg of lobster and 30 kg of crab—less than 10% of their usual haul. Of the catches that are secured, I am told that buyers are now turning elsewhere and prefer to buy from areas further south, because too many of the crustaceans in our area are weak or already dead.

In a Westminster Hall debate that I secured at the end of June, I was told by the then Minister, the hon. Member for Banbury (Victoria Prentis), that this issue would remain at the very top of the Government’s agenda, but clearly that is not the case. At a time when fishermen are already feeling the economic bite of declining catches and reduced economic opportunities, they have had to fork out from their own pockets and crowdfund investigations in order to try to understand what was happening. They commissioned Tim Deere-Jones, an independent marine pollution consultant with 30 years of experience, who said that there is “no empirical evidence” for the Government’s preferred algal bloom theory as the cause of the problem. Instead, he suggested that the cause is linked to the chemical pyridine, because the Department for Environment, Food and Rural Affairs’ own data indicated that quantities of it were over 70 times higher in crab samples taken from Saltburn and Seaton than in a control sample from Penzance.

I know that the results of an independently led university investigation will soon be available, but I can advise the House today that its very early results appear to support the pyridine theory. Our coastal community believes that this warrants further, comprehensive investigations by the Environment Agency into the presence of pyridine in the Tees and the possible consequences of that for marine life. I ask the agency to engage even more with our local universities when the report comes out.

Many believe that dredging is resulting in dangerous substances entering the sea and the Government will be aware that there is considerable anxiety locally about dredging in connection with the Teesworks development, which we all want to succeed. In a statement about the dead crustaceans, the South Tees Development Corporation said that

“all official scientific investigations to date have ruled out dredging”

as the cause of the problem. However, in a Centre for Environment, Fisheries and Aquaculture Science report about the South Bank Quay dredging, its officer notes that

“the data reviewed from previous studies and from desk-based sources provide an understanding of the shellfish features in this region, although it is acknowledged that these data do not represent the exact area potentially being impacted by the present project.”

Our sea is dying. I need the Government to tell us what they will do to find out exactly what is causing it and what they will do about it.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lia Nici)]

It is an absolute honour to be here and speak in this debate. I thank my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) for raising the important issue of coastal communities and their future. This Government’s central mission is to level up the UK by spreading opportunity more equally across the country, bringing left-behind communities up to the level of more prosperous areas. I am delighted to have the opportunity to set out our ambitious plans to realise the potential of every place and every person across the UK.

We have already made progress towards levelling up coastal communities through initiatives such as rolling out gigabit broadband, introducing a fairer school funding formula, opening freeports, increasing the national living wage, recruiting more police officers, and further local devolution with more powers being passed to local people, away from Westminster.

My Department’s coastal communities fund, which ran from 2012 to 2019, made great strides towards levelling up coastal communities, with investment of £229 million into 369 projects in coastal areas through England, Scotland, Wales and Northern Ireland.

[Alex Cunningham]

The coastal development fund was important for coastal communities around the country. The Minister’s predecessor said that fishermen in Redcar could access the fund for infrastructure—perhaps a new fishing boat or equipment to improve their fishing. However, there are no fish left in the sea for them to catch. Does the Minister agree that we need further investigation into the ecological disaster we have on our hands on Teesside?

[Lia Nici]

I thank the hon. Gentleman for his intervention, but I am not sure I quite agree that there are no fish in the sea.

[Alex Cunningham]

There are no fish in the sea off Teesside!

[Lia Nici]

With respect, I am not sure I agree with that statement. Coming from the coastal community of Great Grimsby, where our fishing industry is taking advantage of the increasing Brexit opportunities for quotas, I accept that we need to ensure that fishing is sustainable to ensure that we have a future industry. However, I am not quite sure I agree with the hon. Gentleman there, but DEFRA is not my portfolio or my specialism.