Levelling-up Fund Round 2: Bidding Process

Debate between Alun Cairns and Dehenna Davison

Tuesday 7th February 2023 Westminster Hall

[Dehenna Davison]

I do not have time, I am afraid. Each local authority was then capped at one successful bid in round 2—the highest scoring—noting that that would help to focus resources for delivery in a challenging economic environment. At that point, the highest-scoring projects remaining in Scotland and Wales were funded to ensure a fair spread of projects in Scotland and Wales until the minimum public commitments of 9% and 5% respectively over the first and second rounds were met. The highest-scoring projects remaining in Great Britain were funded until funding any more projects would have exhausted the funding available for Great Britain.

At that stage, there were two international territorial-level regions of Great Britain that had not received any funding in the second round, despite having bids on the shortlist. Again, prioritising the additional considerations of ensuring a fair spread of approved projects and so on, those two were brought into play, with Ministers agreeing to deselect a handful of the lowest-scoring bids across the north-west, London and Wales. Those were the regions and nations that significantly exceeded their guided allocation, taking into account historical regional investment from 2017-2022. As a result, and following a further quality assurance by officials at that stage, 101 bids were successful in Great Britain and 10 were successful in Northern Ireland. To reiterate, Ministers approved the selection of bids without adding or removing any individual bids from the funded list. The process was led by officials, aided by Ministers, to try to achieve the aims that were set out in the original prospectus to ensure a good geographic spread.

[Alun Cairns]

Will the Minister give way?

[Dehenna Davison]

I do not have time, I am afraid.

That brings me on to a point that we absolutely cannot lose sight of in these discussions: there will be a third round of the levelling-up fund. We will be announcing details of that incredibly soon.

[Alun Cairns]

When?

[Dehenna Davison]

I am afraid I cannot commit to a date yet, but we are working at pace to ensure that we draw up a fund that works and is quickly deliverable to ensure that we can get spades in the ground and get some of these projects delivered.

I do not have very long, but I will try to cover off some of the other points that have been made if I can. Feedback was raised by a number of hon. and right hon. Members, including my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns), the hon. Member for Glasgow South West (Chris Stephens), my hon. Friend the Member for Torbay (Kevin Foster) and the hon. Member for Glasgow North East (Anne McLaughlin). Feedback will be coming soon; we are aiming to get it out in writing initially. We want to ensure that the feedback is detailed enough to be of use, so we do not want to rush it. I have missed a lot of points, so I apologise. I will follow up a lot of those in writing, but I am very pushed for time at the moment.

Levelling Up Barry, Vale of Glamorgan

Debate between Alun Cairns and Dehenna Davison

Wednesday 26th October 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Pritchard. I sincerely thank my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) for raising the important issue of levelling up Barry town in his constituency. If I may say so, his speech was a brilliant tourism ad. He highlighted some of the best of Barry, not least “Gavin and Stacey”, which I am a huge fan of.

As my right hon. Friend highlighted, the Government’s central mission is all about levelling up all parts of the UK. For the benefit of the hon. Member for Strangford (Jim Shannon), I reiterate that—all parts of the UK, including Wales and Northern Ireland. We will do so by ensuring that we spread opportunities more equally around the country, empowering local leaders and bringing left-behind communities up to the level of more prosperous areas. I was particularly interested to hear about the background of my right hon. Friend’s constituency, with its transition from coalmining to a new purpose. In many ways, that is reminiscent of my own constituency, which was reliant on coalmining and, of course, the railways, and has had a journey to find its new ethos and purpose. It was interesting to hear about those similarities, which I know are reflected in a number of constituencies right across the country.

I am delighted to have the chance today to set out the opportunities being made available to Barry and its community through the Government’s levelling-up agenda. Wales is already benefiting from substantial investment across a whole range of new UK Government funding opportunities. In total, Wales has been allocated over £750 million of levelling-up funding in the last year alone. That includes over £45 million from the community renewal fund, benefiting 160 local community projects. Places across Wales have also received an additional £121 million across 10 projects under the first round of the levelling-up fund. I am sure that my right hon. Friend will agree that those new opportunities mark an incredibly exciting time for local places in Wales to be at the centre of decision making.

[Alun Cairns]

I am grateful to my hon. Friend for underlining the support that has been made available, but may I draw to her attention the point that I made about the capacity of local authorities? Those projects that gained support were primarily by authorities that were used to bidding for European-aided schemes. Clearly, we have now left the European Union and we have the levelling-up fund, with the shared prosperity fund to follow. Some local authorities that have been left out until now did not have the capacity to bid, or were not up to speed. That is not their fault; it is simply a lack of experience in bidding. I therefore ask the Minister to look specifically at those communities that have been left out for quite a long period.

[Dehenna Davison]

My right hon. Friend is absolutely right to raise that point. Ensuring that areas have the capacity and experience to complete what can be quite lengthy and complicated bidding processes is something that has featured in my inbox quite a lot during my time as Minister. I am looking at funding simplification to see how we can make these processes simpler and more streamlined so that there are fair opportunities, even for smaller authorities.

We have had a fantastic response to these new funding opportunities from local partners in Wales, including Vale of Glamorgan, which fully embraced its role in the delivery of the community renewal fund. I am sure that my right hon. Friend will know all too well about the £970,000 allocated to six exciting projects in the Vale, which have been delivering for local people, communities and businesses over the last year.

The community renewal fund is all about supporting the people and communities who need it most right across the UK. It is about creating opportunities, being innovative and trialling new approaches and ideas, all at a local level. To nurture that innovative thinking and give the communities the flexibility they need, we encourage partners to deliver on skills, local business, supporting people into employment, and community and place.

Through funds such as the community renewal fund, we have strengthened the relationship between the UK Government and the places we serve in every part of the UK, including Barry, we are working directly with local partners—people who know, understand and are part of the social fabric of their communities. I am proud that we are giving them autonomy over local decisions to support positive changes for their communities. That is evident, as I am sure my right hon. Friend will know, through Barry Bands Together, a community regeneration project run by a local musical partnership in Barry. It is using the skills of its members to work alongside the local authority music service to provide a new focal point for musical training. That multi-agency approach focuses on upskilling trainees, empowering children and embodying a cohesive and community-centric way of delivering local services through music.

The good news does not stop there. Other areas in the Vale of Glamorgan have also benefited from the community renewal fund. Enterprise Vale, another prominent project in the area, was awarded over £100,000 for its business support services. Over the last year it has been taking action to support local people into self-employment, and helping those in the community who are economically inactive to build confidence and take the important step into the world of business.

Building on the success of the community renewal fund, £2.6 billion is being allocated to places across the UK as part of the UK shared prosperity fund, which my right hon. Friend mentioned. Of that, a sizeable £585 million has been allocated to places in Wales, with over £14 million specifically for the Vale of Glamorgan. This trailblazing new approach to investment, and the empowerment of local communities to level up and build pride in place, will see direct investment in three local priorities: communities and place, support for local businesses, and people and skills.

I am pleased to say that the approach to regional collaboration intrinsic to delivering the shared prosperity fund has seen all 10 local authorities in the south-east of Wales submit a joint regional investment plan, backed with over £278 million of funding. As a partner in the region, Vale of Glamorgan will play its full part in delivering the regional investment plan and tailoring areas of support to local communities, including those in Barry.

I should also take this opportunity—I will be told off by the boss if I do not—to mention that the freeports programme is another core part of the Government’s levelling-up agenda taking place in Wales. Freeports will unlock much-needed investment in port communities up and down the country, helping those areas to overcome barriers to investment through a broad package of incentives. Our new freeport programme in Wales, which is being jointly delivered with the Welsh Government and backed by an initial £26 million of funding, will help us to make this vision a reality. The programme will drive forward our ambition for Wales to compete at a global level, while creating new local jobs and putting Welsh communities on the path to long-term growth and prosperity.

I know that my right hon. Friend will be familiar with the levelling-up fund, through which £4.8 billion of investment is being made available to provide crucial capital investment in local infrastructure. The aim of this competitive funding is to empower local areas to identify new opportunities for investment in creating pride in place. Projects are prepared in collaboration with local stakeholders and should have clear benefits to the local community, while being aligned with a broader local economic strategy. Through the first round of the levelling-up fund, over £1.7 billion was awarded to local areas across the UK, of which £121 million came to Wales, substantially more than would have been the case through any Barnett-based formula.

As Members may know, the second round of the levelling-up fund opened for bidding earlier this summer. My officials are continuing the assessment process, and successful bids should expect to be notified by the end of the year. I am sure my right hon. Friend knows that, due to the competitive process involved, I am unable to comment specifically on individual applications, but I look forward to seeing the outcome of all bids submitted, including the Barry Making Waves project, which he spoke so passionately about. I pass on my thanks to all those in his local authority who have worked so hard on making that bid and bringing it to the Government.

I thank my right hon. Friend for bringing forward this important debate—I also thank the hon. Member for Strangford for his contribution—and for drawing my attention to the Onward report, which I am interested in reading once it has been published. I certainly welcome the opportunity—assuming I stay in post—to have further conversations with my right hon. Friend and the hon. Member for Strangford on the future of Barry and Wales as a whole and, of course, of Strangford and Northern Ireland as a whole too.

Question put and agreed to.