Coalfield Communities (Regeneration)

Baroness Keeley Excerpts

Tuesday 26th October 2010 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Dobbin. I congratulate my hon. Friend the Member for Wigan (Lisa Nandy) on securing the debate, which has been excellent—I counted 16 Members who have spoken. I join my right hon. Friend the Member for Cynon Valley (Ann Clwyd) and my hon. Friend the Member for Barnsley Central (Mr Illsley) in congratulating Michael Clapham on the work he has done.

In the last Parliament, my constituency contained many former coalfield wards. The last remaining winding gear in Lancashire is in Astley, and it is a strong and visible reminder of our area’s mining heritage. Following boundary changes, I no longer represent the former coalfield areas in Wigan borough, but I still have the ward of Little Hulton, which is a former coalfield ward and still has open-cast coal mining at the adjacent Cutacre site.

The Labour Government set up the CRT in 1999. The coalfields task force had noted that coalfield areas had

“a unique combination of concentrated joblessness, physical isolation, poor infrastructure and severe health problems.”

I saw those same problems on the Higher Folds estates in my former constituency. Higher Folds is in some ways typical of those areas. It is an isolated estate accessible via a single road, and it is remote from commercial centres such as Leigh and Tyldesley. Part of the estate was ranked within the 5% most disadvantaged communities in the country. For many years, its 3,000 residents suffered from high levels of worklessness, low educational achievement and low incomes. The closure of the pits had left that community with few jobs and poor infrastructure. In fact, the CRT singled out Higher Folds as an area where extra funding and support was needed.

The trust found many barriers to local people gaining employment, ranging from a lack of affordable child care to low confidence and skill levels in jobseekers, which are important factors. Its work included setting up a youth project on the estate and a plan to reduce worklessness from more than 30% to less than 20%. The trust plans to improve the community centre and put it at the heart of the community, and to develop new activities, including more child care.

The trust praised the sense of pride and community spirit that it found on Higher Folds, but community spirit is not enough. Without funding and support to get projects off the ground, the community could have achieved little change. One group that developed because of early support and funding was the Agape family support group. It was able to recruit more volunteers due to a grant from the trust, and to use the refurbished community centre. In 2006, one of the group’s co-ordinators stated:

“The group can’t exist without funding as we need to subsidise our costs for the services we provide. The CRT grant has provided funding to cover our running costs…and now that the new centre is open we are hoping to build up a busy programme and a growing band of volunteers to help out.”

That group now runs a pre-school group for the estate, and the community centre has a Sure Start children’s centre, so we have tackled the child care problem which was one of the barriers to local people getting work.

Community support and activism are vital for regeneration, but does the Minister recognise that they are no substitute for adequate levels of funding and support from the Government via organisations such as the CRT? Does he agree that, without adequate funding, we will not continue to see the work to remove barriers to employment that is needed on estates such as Higher Folds? The progress that has been made in many coalfield communities could be derailed. Can he tell us how that level of support can be achieved in the context of the reductions to budgets for his Department and local authorities over the coming months and years?

The Clapham review of coalfields regeneration found a marked improvement in the state of the coalfields today compared with a decade ago, but found that there is a long way to go. As we have heard in this debate, pressing challenges remain. Coalfield areas have greater overall and employment deprivation than average. They tend to be more isolated, they have fewer businesses than the national average, they have 25% fewer jobs per resident than non-coalfield areas, and they have more young people not in education, training or employment than the national average. As many Members have said, coalfield areas have a higher than average mortality rate, with the health of the older generations affected by their former work, and that of younger people affected by poor employment opportunities and low expectations.

The Clapham review called for local authorities to be given a more active role in the regeneration of our former coalfield areas and in dealing with those difficult and challenging issues. In welcoming the report, the Minister for Housing and Local Government said that it was crucial that former mining areas continue to get the support they need, and that there is more to be done to help former mining communities where there are ingrained social and economic problems. As my hon. Friend the Member for Wigan said, he also said that local authorities working with local people know best what the particular needs are in each area.

However, there is a danger that local authorities will be asked to take on responsibility for programmes without adequate funding to make a real difference. Michael Clapham’s report said that the Government should not leave it to local authorities to make up for reductions in Government programmes, and that coalfield regeneration funding should remain additional to local authority allocations. In the context of cuts of 28% in local authority budgets over the next four years, that is all the more important.

Does the Minister agree with the Clapham review’s recommendation that coalfield regeneration funding must remain additional to other funding, and that local authorities should not be left to make up for cuts to the three national coalfield regeneration programmes? Indeed, will he commit now to an oral statement from the Government when they respond to the Clapham review?

Last week, the Government announced the most severe cuts to public spending since before the second world war. The cuts will lead to almost 500,000 job losses in the public sector, and PricewaterhouseCoopers has estimated that a further 500,000 jobs will be lost from the private sector. That loss of employment will not be spread evenly but will hit some communities harder than others. We heard today from many Members how they fear the cuts will hit their constituencies. Indeed, a report by the Institute for Public Policy Research said that many city regions outside the south-east of England were likely to suffer disproportionately from public spending cuts because public sector jobs are a greater proportion of the employment in those areas. My hon. Friend the Member for Wansbeck (Ian Lavery) gave statistics to show that that is the case in his constituency.

Furthermore, the most vulnerable groups in our communities are likely to suffer the most from the cuts. Figures from the TUC show that the poorest one tenth of households are set to lose income and services equivalent to 20.3% of their household income by 2013, compared with just 1.5% for the richest one tenth of households. As I said earlier, it is former coalfield areas such as the Higher Folds estate that contain the poorest one tenth of households.

The Clapham report states that after the collapse of the collieries in the 1980s, despite the best efforts of central Government working with local authorities and communities,

“it became clear that more substantial intervention would be required to turn these communities around.”

As we heard in many speeches today, the coalfields regeneration programmes have had success because of central Government funding and partnership working between local authorities and local community organisations. The Government are putting that at risk because cuts to local authority budgets are likely to impact on both partnership working and the survival of local voluntary and community organisations. Given the scale and speed of the expected new job losses, we will find that many communities left reeling from the cuts will need active intervention to recover.

The Government must develop a plan for recovery in our local communities that involves more than saying to CBI members, “Over to you to create new jobs.” The private sector does not have a track record since the 1980s of moving into isolated coalfield areas and intervening to create businesses and jobs there. It took support, funding and partnerships to make improvements, as it will in the future.

We await the Government’s response to the Clapham review and their explanation of how regeneration programmes in coalfield areas can continue to tackle the many challenges outlined in this debate. We urge the Minister to confirm that those important announcements will be made, as they should be, in an oral statement to the House.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)]

It is a pleasure to serve under your chairmanship, Mr Dobbin, as it was to serve under Mr Bone before you. It is good to have a debate that is so well supported by Members who have passion for, and knowledge about, a subject. Twenty Members were present, and the vast majority of them contributed. I know that it is not the form to say such things, but I was delighted that Michael Clapham was able to be present throughout to listen to the debate. I want to say how much the Government appreciate the work that he did on his report, which was commissioned by the former Government and which we have been happy to receive.

I also want to thank the hon. Member for Wigan (Lisa Nandy) for giving the House the opportunity to discuss the matter, and for her reasoned presentation of the case. She is a new Member, but I am sure that she will quickly become established as a champion of Wigan, the miners and the mining community that she represents.

The hon. Lady and the hon. Member for Worsley and Eccles South (Barbara Keeley) asked me to undertake to give an oral statement. Such matters are not at all at my pay grade, but I shall ensure that the point is passed on. We do not in any way underestimate the importance of ensuring that the House is well informed about progress on the subject.

I want as far as possible not to get drawn into the broader macro-economic issues, because that would not be a good use of our time at this point, but I would not want the case to go by default. As a result of the spending pattern that this Government inherited from the previous Government, we have, during this debate, borrowed another £24 million, and will borrow an extra £150 billion by the end of the year. That is the background to the position in which we find ourselves, and which, of course, underpins the more local concerns of many who have spoken in the debate.

On 19 July, I was happy to respond to an Adjournment debate on precisely this topic. I say to the hon. Member for Wigan, whom I do not think was able to attend July’s debate, that the Government, now as then, remain supportive of the continuing need for land-based remediation, strongly support the important community-led regeneration projects, and remain committed to helping people and communities to work together to tackle local problems and support local enterprise, particularly in the former coalfields.

That previous debate centred around, or at least took very much into consideration, the report of the Public Accounts Committee. I say this very gently, because I am extremely supportive of the points that hon. Members have made, but there have been problems delivering the programme. It is a little bit like the young man at the casino who sends a text message saying, “System working well. Send more money.” We have heard that the output has not been the jobs that are needed, and we need to look hard at that. From that point of view, the review of coalfields regeneration by Michael Clapham is an outstandingly useful contribution to forming our view about what should happen next.

I have met Michael Clapham and other members of the all-party coalfield communities group since July’s debate. We agreed to meet again in January next year, because then, knowing the outcome of the comprehensive spending review, we would be in a position to consider Michael Clapham’s report and the allocation of departmental funding. I hope that we can proceed on that timetable.

I do not want to use up my time by rehearsing the report’s contents, but it clearly identifies problems on the ground and issues to do with delivery and contains some recommendations for the way ahead. Hon. Members have mentioned different parts of the report.

[Barbara Keeley]

A great deal has been said in this debate, including by me, about the difficulties with funding from local authorities, and about the possible loss of voluntary organisations. We heard about the impact in Makerfield of the work of the citizens advice bureaux. Given the timetable that the Minister mentioned, will he say whether a watching brief can be kept to ensure that we do not, in the period till January, lose any of the vital voluntary and community organisations that underpin and hold together the work in coalfield communities?

[Andrew Stunell]

I would not want the January meeting to be regarded as the earliest time at which it is possible for us to make an announcement. I take account of what the hon. Lady says. I would share her concerns if delay in making an announcement led to problems that could otherwise be avoided. I hope that I may, in my last 30 seconds, add something that will help her in at least one respect.

The Government welcome the Clapham report and agree that, often, local authorities working with local people know best what the particular needs are in their area. This Government’s strong, consistent message is that it is the people in a locality or neighbourhood who most often appreciate what the problems are and what the potential solutions might be, rather than people located more remotely, particularly in Whitehall.

The Government are keen to drive forward coalfields regeneration. We believe that a bottom-up, community-focused approach should be central to the next phase of coalfields regeneration. We are carefully considering the recommendations and hope to respond formally in November. As agreed, the full published report is already on the Department for Communities and Local Government website. For some reason, there was serious concern in July that we would keep it secret. We have no intention of doing that.

Hon. Members know that the spending review has been challenging. Over the next four years, DCLG’s overall resource will reduce by 33%, with capital spending reduced by 74%. Alongside this, we are devolving more than £7.6 billion directly to local government to set its own priorities. We are giving more flexibility to local government. We are delivering 150,000 new affordable homes and protecting the Supporting People programme, importing an extra £1 billion into it from the NHS. We are investing £1.7 billion in regeneration and local economic development over the next four years.

One or two hon. Members mentioned young people’s capacity and ambition, and opportunities for them. The introduction of the pupil premium will be a significant step forward that will help young people in communities such as the ones that we are talking about.

[Andrew Stunell]

I shall correct one detail: the pupil premium is intended to support disadvantaged children, whatever community they live in, rather than disadvantaged communities. In her main point, the hon. Lady describes exactly what the Government are doing. We are working hard to have community-based budgeting that draws together funding from all the different public sources and allows priorities to be set locally to deliver what is needed, without the necessity for everybody to operate in silos. I hope that the hon. Lady will see the benefits of that. We have established 16 pilot areas for this year and will be rolling that process forward rapidly over the next couple of years.

We have increased the regional growth fund from the original £1 billion that was announced to £1.4 billion, and have extended the life of the fund from two years to three years. I hope that that gives some comfort to those who are concerned about the issue.

On the regional development agencies, two bids have been presented to the Government for local enterprise partnerships for the north-east. Announcements will be made in due course. There could have been only one local enterprise partnership covering the whole north-east, had those involved wished to do that. On the future of coalfields regeneration, I provided assurances during the debate in July that we had no plans to dismantle the programme. The Minister for Housing and Local Government has already said, in response to the report on the review of coalfields regeneration, that it is crucial that former mining areas continue to get the support that they need.

[Barbara Keeley]

Will the Minister say whether that support includes additional funding? That goes back to the question that I asked about whether areas will retain funding.

[Andrew Stunell]

We intend to provide the support needed to enable the contractually committed, physical regeneration projects in the Homes and Communities Agency national coalfields programme to come to fruition. However, the settlement has been challenging. Difficult choices still need to be made about the way ahead. We will consider the case for the continuation of dedicated funding for coalfield areas in light of the Clapham report, and we intend to make an announcement on that in the next month.