Local Regeneration: Industrial Areas

Baroness Bennett of Manor Castle Excerpts

Thursday 7th March 2024 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is a pleasure to follow the brave and challenging speech of the noble Lord, Lord Mawson. He led me to reflect on the impact of the first past the post electoral system in creating one-party states in local government, with some of the outcomes that he outlined. He also inspired me with his wander through the tastes of Yorkshire. I have to mention the wonderful Razan Alsous, a Syrian refugee who came to Yorkshire in 2012 and missed what she describes as her “squeaky cheese”—traditional halloumi cheese that she ate in Damascus. She now has an award-winning company making that cheese in Yorkshire.

I thank the noble Baroness, Lady Armstrong of Hill Top, for securing this debate, particularly for the way she worded the topic—the word “local” in “local regeneration of former industrial areas” is so important here. I thank her also for highlighting the challenges constraining this, particularly local government. I thirdly thank her for her timing, since my visits last weekend to Newcastle and North Tyneside means that I will have the same regional focus as the noble Baroness brought to this debate.

My visit was differently directed towards the Byker Wall estate, a 1970s social housing project with grade 2 listed status that has tried to maintain its existing community from the pre-development streets. There were many issues then and since in making that work. What I saw in my visit to Byker was a real struggle to deal with the problems of litter and isolation and loneliness, but it is also notable that community groups, such as Byker Mutual Aid, Byker Village Tenants and Residents Association, and St Peter’s Neighbourhood Association, have sprung up to try to fill the gaps that have been left by more than a decade of austerity in public services. Byker was the site of the incinerator ash scandal in the 1990s. The incinerator was finally closed due to the action of campaigners at the turn of the century.

Picking up on points that the noble Baroness made, we need to think about the clean-up of industrial and post-industrial areas and to focus on public health. Clean air, clean water and soil are the crucial foundations for a healthy community. We know that, across the UK, we have a major problem with disability and chronic illnesses. Of course individuals need support with that, but what we really need to do is build healthier communities so that people do not get ill in the first place. Figures from the Office for Health Improvement and Disparities show that in the most deprived neighbourhoods in England, which are many of the areas we are talking about, people develop multiple long-term health conditions 10 to 15 years earlier than in the least deprived communities, they spend many more years in ill health and they die sooner.

Another thing we need to focus on in many of these areas around health is warm, comfortable, affordable-to-heat homes. This is a particular issue in Byker, where the cost of heating with a district heating system is considerably higher than in other areas. In so many of these post-industrial areas, the housing stock is poor, yet that is a potential opportunity. The insulation of homes can create a field for many small, independent businesses, provided that they have the certainty of long-term government investment and not the boom and bust that has been induced by see-sawing government policies. I am afraid that the largest current opposition party has see-sawed in its home energy efficiency policies even before it has got into government.

Last month, the New Economics Foundation looked at the data on the Government’s home energy efficiency schemes and showed that, in a single year, rollout had fallen by 40%. The total number of households upgraded by the home upgrade grant—HUG—and local authority delivery schemes has fallen by 40% in the past year. Similarly, the number of households upgraded under ECO, the largest and longest running scheme, has fallen by 55% in the past year. The social housing decarbonisation fund has existed for less than two years, but if we look at the figures quarter on quarter, we find that it is down 41% as well. This is key to Britain reaching its net-zero targets, but it is also crucial to cutting the £2 billion costs for the NHS that come from the poor quality of our housing stock.

Money that has to be spent on heating cannot be spent with local businesses and suppliers. It goes into big multinational pockets. Had the Government brought in community energy schemes, which your Lordships’ House tried to push very hard through the Energy Bill, the money could be returning into communities.

On the importance of local activity, local energy and local decision-making, I want to focus on some good news stories. One of the places I want to highlight is the Valley Project in Holme Wood, Bradford. There was an adventure playground project there, and money was parachuted in from London—the whole plan was parachuted in. Some big high-tech equipment was installed. It lasted a couple of years and then fell apart. Then, a couple of local people, ironically made unemployed by austerity, started small, working with the community. It is now a wonderfully lively, successful project using mostly recycled and donated materials that the children work with to design their own spaces. As a little advert for it, if anyone knows a local source, it is currently looking for some large wooden cable reels for the children to use in their secret garden as tables and chairs. That gives a sense of the kind of project that is working to lift up that community.

I have not yet focused on industrial policy, as I am sure many noble Lords to follow in this debate may well do. To return to Byker, the area has a proud history of glassworks and community artists, a tradition that continues with Mushroom Works, Testhouse 5 and Lime Street. The estate was built with hobby rooms: spaces for people to do activities. The one that I visited used to house a darkroom for the development of photography skills, but they are often not widely used today. We need to see that the resources are there to be put in to work with local people to develop such facilities for modern-day uses. The key has to be to build on what is already there in local communities and focus on their skills, knowledge and capacities, rather than bringing in highly paid outside consultants and grand plans drawn up by them.

Here, I want to draw a real contrast. The noble Baroness, Lady Armstrong, caused me to cross out a significant part of my speech that covered the Teesworks area, so I want to look at the alternative, 180-degrees opposed model. The Preston model of public sector working and community wealth building is focused on the procurement policies of the local authority and other anchor institutions, such as its university and housing providers, to support local businesses, develop new enterprises, encourage better working conditions such as through the real living wage, and increase the socially productive use of wealth and assets, such as local government pension funds. The focus is on genuine prosperity and the creation of wealth in that community, rather than some, often all too artificial, bottom line.

I go back to a figure that I have cited before in your Lordships’ House: 10% of the entire land area of Britain has been sold out of public ownership in the past four decades. That 10% of the entire country was 50% of what used to be public land holdings. We need to see a building up or restoration of public assets, not further privatisation and loss to the public. For example, among the co-operatives in Preston there is the Brookfield retrofit co-operative, led by a community organisation, and a housing co-operative for—and run by—the Traveller community.

What is not the way forward, as the noble Baroness, Lady Armstrong, set out so clearly, are the freeports. That model encourages corruption, tax evasion and criminal activity. Freeports suck businesses and jobs out of other areas; indeed, the evidence from around the world is that it is a model built mostly on relocating existing businesses, not generating anything new.

I conclude with the words of Ruth Hannan, the former director of the People’s Powerhouse in Preston. She told an event last year that the need for local government is to be as flexible as possible, so that it can improve people’s lives. Ms Hannan said:

“Most of the time, we have to fit into the system, rather than the system adapting to us”.


I suggest that that is also a lesson for Westminster. Westminster needs to get out of the road. It needs to stop providing directions and being a backseat driver, to ensure that local communities have the power and resources that they need to make decisions for their own future, not with direction from what is often far, far away Westminster.