Towns Fund

Antony Higginbotham Excerpts

Thursday 4th February 2021 Commons Chamber

[Steve Reed (Croydon North) (Lab/Co-op)]

The Government like to talk about levelling up the country, but sadly their record shows they have done the precise opposite. Since they were first elected in 2010, the Conservative Government have imposed £15 billion-worth of cuts on local authorities, and they did not share the pain equally either. The 10 poorest council areas have faced cuts 18 times bigger than the 10 richest, as the Government embedded inequality. Initially, the Conservatives’ failed ideological austerity stalled Britain’s economic recovery after the global financial crash. Last year, they left the country so woefully unprepared for the covid-19 pandemic that we are now suffering the highest death rate in Europe and the deepest recession of any major economy.

Right now, many of our towns and high streets are at breaking point. After a decade of Conservative cuts and now the recession, they are on their last legs. Councils cannot support high street businesses because the Government have left councils with a £2.5 billion funding black hole, after breaking their promise to compensate them fully for the costs of tackling covid-19.

Conservative changes to planning rules allow developers to convert shops into low-quality flats, so that they can never reopen as shops again, creating dead zones on our high streets. Now the Government plan to choke off spending on the hope of rapid economic recovery by forcing council tax rises on families already struggling to pay the bills in these unprecedented times.

The Government spent the past decade levelling the country down, stripping out jobs, assets and investments from parts of the country they chose to hold back. They have closed nearly 800 libraries, 750 youth centres, 1,300 Sure Start centres and more than 800 public toilets. That is political vandalism on our high streets, but it goes much further than that. They have deliberately pulled our country apart by deepening and entrenching inequality. Whole regions have been starved of investment, leaving them without the infrastructure, jobs or skills to attract good new employers. People should not have to leave the towns they live in to find a decent job because all that is available back home are the low-skill, low-paid, insecure jobs that are a hallmark of this Government’s economic neglect.

As my hon. Friends the Members for Barnsley East (Stephanie Peacock), for Stockton North (Alex Cunningham) and for Warwick and Leamington (Matt Western) have said, opportunity should be open to everyone, wherever they live. Aspiration should not be capped because someone lives in a part of the country that the Conservatives chose to abandon. Social care should be an entitlement, not a lucky dip. Our high streets deserve a brighter future than the long stretches of graffiti-covered shutters that are the visible legacy of Conservative misrule.

As my hon. Friends the Members for Warrington North (Charlotte Nichols) and for City of Durham (Mary Kelly Foy) point out, the towns fund is a wholly inadequate fix for how the lost Conservative decade has blighted our high streets. The Government stripped out £15 billion of funding, and now they expect gratitude for giving less than a quarter of that money back.

Some funding is better than no funding, and we support those areas lucky enough to get something, but what about everywhere else? The vast majority of towns and high streets are getting nothing at all, as we heard from my hon. Friends the Members for Hemsworth (Jon Trickett), for Ealing Central and Acton (Dr Huq) and for St Helens South and Whiston (Ms Rimmer), my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) and my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders). Instead of the open and fair process that communities want to see, the Conservatives are stitching up backroom deals that carve most towns out of the funding they so desperately need.

[Antony Higginbotham (Burnley) (Con)]

rose—

[Steve Reed]

I am sorry, there is not going to be time. How embarrassing, yet how typical of this Government that the Secretary of State and the right hon. Member for Rossendale and Darwen (Jake Berry) stitch up a cosy deal to funnel public money into each other’s constituencies, taking it from towns and high streets with higher levels of deprivation. The Conservatives are pulling our country apart. Labour wants to see our country come back together again. People living in every town in the country deserve their fair share of investments.

The real yardstick of success would be if the towns fund put new opportunities on people’s doorsteps in every town and made every part of the country a good place to set up home and aspire to a better future, but that is not what we are seeing. The Public Accounts Committee says that the Government are unclear what they expect from the funding or how they will measure its success. That simply is not good enough.

Many new Conservative Members, as we have heard this afternoon, like to trumpet how towns in their constituencies were selected to benefit from funding, but they are remarkably quiet, are they not, about the much bigger sums of money the Conservative Government took away from those places in the first place. The Conservatives took £275 million away from Bishop Auckland’s local council. They took £165 million away from Blackpool. They raided £203 million from Crewe, £324 million from Penistone and Stocksbridge, and £197 million from Wakefield. The towns fund gives back only a tiny proportion of what the Conservatives have already stripped away. It is like a burglar breaking into a house in the dead of night, stripping it bare and then expecting thanks for handing back the TV set.

We will not secure the economic recovery by killing off our high streets, and we will not protect the NHS by starving older people of the social care they need. We will not rebuild our country by choking off spending with a Conservative council tax hike that is timed to hit hard-pressed family budgets just as the furlough scheme comes to an end. If the Conservatives really want to bring lasting prosperity to towns and regions that they have held back, they have to do better than the towns fund. This country needs a real plan to bring jobs and investment to every town and high street, not the short-term fixes and back-room deals cobbled together by the same Government who pushed our high streets to the brink of disaster in the first place.

--- Later in debate ---

[Luke Hall]

I ask the hon. Lady to check the facts. The majority of these town deals are in Opposition-held council areas.

I was delighted to hear the hon. Member for City of Durham (Mary Kelly Foy) open her speech by saying that no Labour MP will oppose more funding for local government, because she will have the opportunity shortly to vote for a local government finance settlement that will increase councils’ core spending power by 4.5%—a real-terms increase.

The hon. Member for Strangford (Jim Shannon) asked about funding for Northern Ireland and how the Department for International Trade’s high potential opportunities programme is supporting investment across the UK. I can confirm that DIT announced in October the second round of successful bids, with 19 new projects selected, and it is currently working with Invest Northern Ireland to explore even more investment opportunities. I am sure that colleagues in the Department for International Trade will be happy to pick that up with him.

In the face of this relentless negativity from the Labour party, in October last year we announced the first seven towns to have gone through the assessment process and have their plans approved. Among them was Peterborough. I know that my hon. Friend the Member for Peterborough worked closely with the town deal board and helped to develop the ambitious investment plan. I am delighted that it was offered £22.9 million in October. That funding will help to deliver a new enterprise hub to support entrepreneurs and inward investment. It will support healthy lifestyles by making it easier to walk and cycle, and it will further Peterborough’s ambitions for low-carbon living. I thank my hon. Friend and his town board for all their support and help in making this happen.

I also thank my hon. Friend the Member for Blackpool South (Scott Benton) for his remarks this afternoon. It is in large part down to his hard work, alongside that of the town deal board, that Blackpool will receive £39.5 million. This substantial investment reflects the exceptional nature of Blackpool’s proposals and the national significance of what they are planning. We think investing in this iconic British seaside resort has benefits that will reach way beyond the boundaries of the town. The plans include making Blackpool’s famous illuminations even more impressive so that they can attract visitors right around the year and have a huge impact on tourism in the town.

My hon. Friend the Member for Brigg and Goole (Andrew Percy) raised his ambitions for the Goole to Leeds rail link and asked whether we could retain some flexibility in delivering the fund to support places requesting revenue funding as part of the deal. I would say to him that the towns fund criteria are broadly drawn, and intentionally so, to ensure that we give towns as much flexibility as possible to determine their own priorities. It is right that the towns fund is principally about capital investments, but we recognise that in some towns there might be a particular need for an amount of revenue funding, perhaps to support the implementation of a capital project, so we absolutely agree with that.

My right hon. Friend the Member for Harlow (Robert Halfon) talked passionately about his town investment plan, which we received in late October last year. I can assure him that the assessment process is under way and my officials are looking at the details of the plan. I agree with him that it provides the opportunity for Harlow to determine its own future, and I will certainly join him in thanking the Harlow growth board, the chief executive of the council and all the officers who have worked on the bid.

Alongside town deals, we are also investing directly in the high streets that are at the heart of so many of our communities. Too many high streets have seen considerable decline in the past decades, and those challenges have been exacerbated over the last year by covid-19. That is why, on Boxing day, we announced the winners of our future high streets competition, committing up to £830 million to 72 places in England and giving a major boost to local high streets and the many jobs and livelihoods that depend on them.

That investment includes over £11 million for Blyth, which was raised in the debate by my hon. Friend the Member for Blyth Valley (Ian Levy). This will deliver important new cultural and educational facilities and bring vibrancy to the town centre. The investment also includes nearly £18 million for Worcester city centre, which will benefit from the renovation of the popular theatre and the Corn Exchange, and £25 million for Swindon to modernise its town centre. Some £107 million from the future high streets fund has also been allocated to support the regeneration of heritage high streets, and we are doing everything possible to help high streets to survive, adapt and thrive.

My hon. Friend the Member for Peterborough also talked about the need to do more and go further, and he was right to do so, because there is of course more investment to come. At the spending review, we announced the levelling up fund, worth £4 billion, and that will bring infrastructure investment—

[Antony Higginbotham]

Burnley is looking forward not only to the levelling up fund but to the competitive round of the towns fund. May I ask my hon. Friend to look sympathetically at Burnley’s bid when that scheme opens, because we have such ambitious plans not only for Burnley town centre but for Padiham, too?

[Luke Hall]

My hon. Friend is a passionate advocate for his constituency and I know he will champion any bids that come in, as he is absolutely right to do. I am of course always happy to speak to him about his representations.

The levelling-up fund will be open to all local areas and allocated competitively. We will prioritise bids that drive growth and regeneration in the places that need it most—those places that face particular local challenges in upgrading their infrastructure and those that have received less Government investment in recent years. We are also developing the UK shared prosperity fund, which will succeed EU structural funds and provide vital investment in local economies, free of the bureaucracy that thwarted European funding. The new fund will allow us to target funding better and support those who are most in need. The towns fund, the levelling-up fund and the UKSPF will be vital tools for levelling up in our country.

I thank all Members for their contributions to this debate. The Government are levelling up: we want everybody, wherever they live, to benefit from increased growth and prosperity, and the towns fund is helping us to achieve that. We are investing in the places that need it most and putting local communities in charge of the decisions that affect them. The towns fund marks just the start of that. There is, of course, much more investment to come and much more to do through the levelling-up fund and the UK shared prosperity fund. We want to see more towns such as Barrow, Torquay, Blackpool and Mansfield benefit so that everybody, wherever they live in our great country, can be part of a brighter and more prosperous future.

Question put and agreed to.

Resolved,

That this House has considered the Towns Fund.