Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Tuesday 11th July 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the Report be now received.

Relevant documents: 24th and 39th Reports from the Delegated Powers Committee. Scottish, Welsh and Northern Ireland legislative consent sought.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I beg to move.

[Baroness Hayman of Ullock (Lab)]

My Lords, before we begin Report, I want to make some points to draw the House’s attention to our concerns about the Government’s approach to the proper and timely legislative scrutiny of this Bill.

First, when we received the Bill into this House and prepared for Second Reading back in January, I and others were surprised to see that it contained three chapters that had not been scrutinised in the other place but had been added in after it had moved on to here. Then, following our debate in Committee, ahead of Report and with no prior warning, the Government added in a whole new schedule—nine pages in length—along with further amendments on childminding provisions, and altered the Long Title to reflect this.

I know that the Minister understands my concerns, and I thank her for arranging a meeting at short notice last week to discuss this. Can she now confirm, as we agreed in that meeting, that Committee rules will be used for the debate on the childcare amendments and any amendments to them on Report, and that, if deemed necessary, amendments will be accepted at Third Reading on this part of the Bill alone?

Finally, on Friday evening I had an email from the department apologising for the late tabling of further amendments, apparently to allow substantive discussions with the devolved Administrations prior to tabling as they relate to the devolution settlement and securing legislative consent for the Bill. Late discussions with the devolved Administrations unfortunately seem to have become a regular occurrence, but it would have been helpful if we had been made aware and alerted to any impact on timings in advance.

To be quite clear, I hold the Minister in the highest regard, I am not complaining about her as a Minister and we very much appreciated her apology. However, it greatly concerns me that the department has shown a lack of respect for the need to have proper legislative scrutiny from both Houses if we are to secure legislation of the expected highest standards.

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[Baroness Scott of Bybrook (Con)]

My Lords, I acknowledge that the Government have proposed a number of changes to this Bill ahead of Lords Report and that they deserve proper debate. Our amendments were tabled a week in advance of this stage commencing, as is usual, apart from the limited changes arising directly from our discussions with the devolved Administrations, where it was important to let negotiations conclude.

I have been very willing to meet noble Lords—I thank the noble Baroness opposite for accepting and appreciating that—from all sides of the House to discuss any aspects of the Bill, as have my officials, and I am grateful for the many conversations which we have had over the past week and previously. With a Bill of this complexity, we may not always get our engagement completely right, but our genuine intent has been to keep noble Lords well informed of our proposals, and I apologise once again to the House for any shortcomings in that.

The amendments we have proposed should also be seen in the context of the overall size of the Bill. A number of changes are being made in response to the report of the Delegated Powers and Regulatory Reform Committee. Where substantive additions to the Bill are proposed, principally on childcare, it is only right that we allow time for them to be discussed fully, and I assure the noble Baronesses that we will do that.

Report received.

Clause 1: Statement of levelling-up missions

Amendment 1

Moved by

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[Baroness Pinnock (LD)]

My Lords, I remind the House of my relevant interests: I am a councillor on Kirklees Council in West Yorkshire and a vice-president of the Local Government Association. This group of amendments focuses on the areas that have benefited, or not, from the initial round of the levelling-up fund. As we heard from the noble Baroness, Lady Hayman of Ullock, there are many examples of levelling-up funds failing to reach those parts that the Government’s own White Paper assesses as being in need of targeted funding over a sustained period.

Throughout our considerations of the Bill, I have said that this vast tome, the levelling up White Paper, should be at the heart of what we are discussing and what the legislation should be doing. As I said in Committee and at Second Reading, it seems to me that the Government have lost their way. The White Paper is not perfect, but it makes a good start in setting out what levelling up should be about. One of the phrases in it is that levelling up should be “broad, deep and long-term”—I agree. Experience of previous iterations of levelling up, from city challenge to neighbourhood renewal and several other policy interventions in between, has demonstrated that scattering plugs of funding is not sufficient to ensure that communities that have not shared in the nation’s prosperity begin to do so. The cycle is not broken without dedicated and long-term investment; that is what the White Paper says. The fundamental approach currently being pursued is inadequate to meet that challenge.

The Government have so far distributed funding via a bidding culture, which, as many noble Lords will know, the Conservative Mayor of the West Midlands has criticised, calling it a “begging bowl culture”. Such a bidding culture is also costly, in time and money, and leads to many more losers than winners. One example, which I think I have given before, is a major city in Yorkshire investing a six-figure sum in its bid for levelling-up funds only to receive a big fat zero. It seems to me that this process needs a fundamental rethink. The noble Baroness, Lady Hayman, was right to use the example of the House of Commons Select Committee on this very issue, but the National Audit Office has also raised concerns about the use of levelling-up funds and how the bidding culture has worked —or not.

If the Government were serious about levelling up, only those areas that are amply described in the levelling up White Paper would qualify for funding. The Minister may be able to tell us whether only those areas described in the White Paper will qualify for funding. If not, we are moving away from the purpose of levelling up.

The second element of change needs to be for local authorities. Those that qualify via the assessment and the metrics in the White Paper should be asked to produce plans that tackle the inequalities at the heart of their communities in a sustained way—that is what the White Paper says needs to be done. It would mean more emphasis, for example, on skills, access to employment, and barriers, such as lack of childcare and transport. However, given what the Minister said in Committee, I am not sure whether the Government are ready for such big changes.

The noble Baroness, Lady Hayman of Ullock, is right to pursue making the use of levelling-up funding more transparent and, as Amendment 3 says, ensuring that the funding is linked to the missions. For me, at the heart of levelling-up and regeneration legislation should be linking funding to the missions. If they are not linked, I do not know what the purpose of this Bill is.

At this point, the noble Lord, Lord Berkeley, raises a good example of what happens when there is an inequality of immense proportions. My noble friend Lord Teverson supported him in that, and he was right to do so. There are countless examples of such disparities across the country, which the levelling-up fund should be dealing with.

These amendments are fundamental to the effective levelling up of the many parts of this country that have suffered inequalities—some of considerable proportion compared with the rest of the country—over many years. If the noble Baroness wishes to move her amendment to a vote and divide the House, we on these Benches will support her.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 1, 17, 304 and 305 in the name of the noble Baroness, Lady Hayman of Ullock, are all linked to a proposed new requirement for government to lay a statement detailing the application process for round 3 of the levelling-up fund. That has already happened in the first two rounds of the fund. We published information on the impartial assessment and decision-making process, alongside a full list of successful applicants. We have also provided feedback to unsuccessful applicants in both rounds. We will continue to improve the process used to award funding, taking on board the feedback we have received, which will be reflected in our approach to the next round of the fund.

We have also published our monitoring and evaluation strategy, which makes clear how the fund will evaluate impact against a range of criteria, including healthy life expectancy, well-being and pride in place. On the timing of the statement of the levelling-up missions, which is mentioned in Amendment 1, we have committed in the Bill to publish this within one month of Part 1 of the Act coming into force. We argue that this is already an appropriate and prompt timescale.

Amendment 3, also in the name of the noble Baroness, Lady Hayman of Ullock, looks at how levelling-up funds are supporting the levelling-up missions. This Government are committed to transparency. The Bill will place a duty on the Government to publish a clear statement of their levelling-up missions and to report annually on their progress against them, including, where relevant, the contributions made by particular projects and programmes. We have also already published transparent criteria for assessing projects and initiatives to be funded via key levelling-up funds and have published all funding allocations made to places.

In relation to the levelling-up fund specifically, in round 2 of the fund we asked applicants to set out which of the 12 levelling-up missions their bid supported. Several of the criteria used in the levelling-up fund evaluation strategy align closely with our missions, including pride in place, health and well-being. Alongside that, transport forms one of the three investment themes, and more than £1.1 billion has been awarded to improve transport infrastructure in the first two rounds.

It might be useful to give some examples of what has happened. Torridge District Council made a bid for the Appledore Clean Maritime Innovation Centre. That will create North Devon’s first university research centre, which will help regional skills by providing a regional skills base, as the noble Baroness, Lady Pinnock, said. It will also establish the area as a leading research and development destination for clean maritime. Another example—I will not go on, because I could give noble Lords a large number—is the Porth transport hub, which will open later this summer. It will improve transport connectivity by providing seamless public transport connectivity for that town. These are the things that are happening.

The noble Baroness, Lady Hayman of Ullock, also asked about the rest of the money that the Government are spending and whether it will be spent in connection to the missions. I can say that £40 million from the DfE has gone into education investment areas, one of our priorities in the missions, while £2.5 billion has been allocated to the transforming cities fund and many billions more to the city region sustainable transport settlements and the bus service improvement plans. There is also £125 million from the Home Office for the safer streets fund. These are all connected to our very important missions.

The noble Baronesses, Lady Pinnock and Lady Hayman of Ullock, quite rightly asked about simplifying the funding landscape. We have already made significant progress in streamlining funds. Between them, the levelling-up fund and the UK shared prosperity fund consolidate what was previously a complex landscape. We are committed to publish a simplification plan setting out how we will go further, immediately and at the next spending review, to simplify the funding landscape far more.

The noble Baroness, Lady Hayman of Ullock, also talked about evaluation. We have an overall departmental evaluation strategy, which was published last November. Over the past 18 months, the department has significantly increased the resource dedicated to local growth evaluations, and that will continue—so we are looking particularly at including towns funds, the levelling up fund and the UK shared prosperity fund.

The noble Baroness also asked why it has taken so long to share information about the levelling up fund round 3. It is important that we have taken the time to reflect on the first two rounds, which is why things are changing. We have learned the lessons from those two, and we wanted to do that before committing to round 3. We will talk about it further in the near future. The Secretary of State signalled at the LGA conference last week that he intends to bring a completely new approach to the levelling up fund round 3, reflecting on everything that has happened up until now.

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[Lord Butler of Brockwell (CB)]

My Lords, before the Minister sits down: I have listened carefully to what she has said, and I think that what she has been explaining is that the Government are already committed to achieving the purposes of the amendment moved by the noble Baroness, Lady Hayman. Are there any disadvantages, in that case, of accepting the amendment?

[Baroness Scott of Bybrook (Con)]

The disadvantage is that we are already doing it, so we would not want to duplicate it. We have listened to the earlier rounds and we are looking at the simplification of funding streams to local government to deliver levelling up and to connect that to the missions. There is no point in duplicating that, as it is already in the Bill.

[Lord Lansley (Con)]

Prompted by the noble Lord’s intervention, I do not think that Amendment 1 is consistent with the Bill as it stands, because Part 1 comes into force, according to the commencement provision, two months after enactment, whereas Amendment 1 requires the statement to be laid one month after enactment—so the two are inconsistent, and Amendment 1 is probably not effective.

[Lord Berkeley (Lab)]

My Lords, before the Minister sits down, I thank her for what she said about the Isles of Scilly and my Amendment 11. I am grateful that she is happy to arrange a meeting with colleagues in the Department for Transport but, if it seems appropriate to have an amendment to the levelling-up Bill, would that be possible at Third Reading if she and the other Minister agree?

[Baroness Scott of Bybrook (Con)]

I think the House prefers not to have any amendments at Third Reading.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank noble Lords who have spoken in this brief debate, and the Minister for her, as always, very thorough response. However, I do not think that she has been able to demonstrate categorically that any future funding rounds are going to be properly tied to the delivery of the missions. The Government seem to have taken a bit of a scattergun approach to this, if I can put it like that. As I have already said, the Government’s approach is categorised by one-off, short-term initiatives which are insufficient if the geographic, economic, social and health inequalities are to be reduced and ultimately overcome, which is what the Bill aims to do.

To me, as I said before, getting the funding allocations correct, getting the analysis of the results of previous allocations of funding correct, and having that information and data at our fingertips to be able to properly target the funding to ensure that we get the outcomes we want, is critical to the success of the Bill. I take the point made by the noble Lord, Lord Lansley, but I have been informed by the clerks that my Amendment 17 is consequential on my Amendment 1. So I thank the Minister, but I am not satisfied with the Government’s future approach, so I would like to test the opinion of the House on my Amendment 1.

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I want to be brief, but it appears to those of us who live in far-flung parts of England that the further away you are from London and the south-east, the more acutely the disparities occur. Living in the north-east, as I and the noble Lord, Lord Shipley, do, we have a double whammy. We have the north/south divide, which is still a major concern, and the rural/urban divide. There is a double impact in terms of rural proofing that needs to be addressed. Only through well documented rural proofing and the proper engagement of different departments of government will we be able to identify what actions need to be taken to address these disparities. It is only through that evidence base that we will be able to successfully apply levelling up in rural areas. I support these amendments.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 2, in the name of my noble friend Lord Lansley, would require a Minister to withdraw the statement if either House of Parliament resolves not to approve it. The statements of levelling-up missions, the annual report, the revisions to the missions and revisions to the metrics supporting missions will already be laid before both Houses of Parliament. This already provides numerous opportunities for Parliament to scrutinise the activity of the Government on levelling up. Going further in this way could take up significant parliamentary time and giving a veto to Parliament on a statement of government policy, which is fundamentally different from legislation or guidance, would not in our opinion be appropriate. Of course, as my noble friend said in Committee, Parliament can at any time put a Motion for debate on any issue. That is always possible for both Houses to do.

Amendment 6, in the name of the noble Lord, Lord Shipley, would require the Government to publish an assessment of geographical disparity, with reference to defined criteria, alongside the statement of missions. But as set out in the levelling up White Paper, the missions are already supported by a range of clear metrics to assess different aspects of geographical disparities and measure progress in addressing these. These metrics take account of a wide range of inputs, outputs and outcomes and, in the vast majority of cases, they draw upon publicly available datasets. An additional assessment of geographical disparities risks being duplicative.

Further, as with the missions themselves, specifying reporting metrics in legislation would make reporting far too rigid. While disparities exist at regional, local authority, ward and even street level, the appropriate unit of comparison will vary depending on the mission or policy area. Governments must be able to adapt reporting to reflect changing contexts, without cumbersome revisions to primary legislation. The statement of levelling-up missions is intended as a statement of government policy, which will set out those admissions and metrics, while the annual report will report against those metrics. Having requirements to assess disparities according to specific criteria in the statement would pre-empt that annual report.

Amendment 10, in the name of the noble Lord, Lord Foster of Bath, would require the Government to publish a rural-proofing report alongside the first statement of levelling-up missions. The noble Lord is right to highlight the challenges facing rural communities, as are the noble Lords, Lord Curry of Kirkharle and Lord Carrington, but the annual rural-proofing report is the key tool in highlighting this work. The second of those reports, Delivering for Rural England, is out. It sets out further details on the Government’s approach to levelling up rural areas.

In addition, last month the Government published an action plan detailing their ongoing work and future plans to support rural areas. The noble Lord, Lord Foster of Bath, mentioned that, coming out of that, we are providing £378 million in ring-fenced grants for rural areas, to fund energy-efficiency and clean heating upgrades for low-income households living off the gas grid in England. We also announced a £2.5 million fund to boost the supply of new affordable housing to rent or buy in rural areas, by creating a network of new rural housing enablers. As noble Lords said, we are also supporting community ownership of vital rural assets, such as pubs and shops, through the £150 million community ownership fund. These are areas across government where we are supporting the rural economy and rural England, and this will come out of those rural- proofing issues. I will mention more of this in a minute.

Amendment 12, in the name of the noble Baroness, Lady Hayman of Ullock, seeks the publication of a report by an independent advisory body on progress against the levelling-up missions. Through the provisions we seek to put in statute in the Bill, we are committed to enabling Parliament, the public and experts to scrutinise our progress against our missions and in reducing geographic disparities, and to hold the Government to account. Many think tanks and academics are already scrutinising our performance on levelling up. Through my department’s spatial data unit, we are embracing and seeking to build on this engagement, including through work to improve the way in which government collates and reports on spending and outcomes and considers geographical disparities in its policy-making. That is not just in my department but across government.

As noble Lords will know, we also established the independent Levelling Up Advisory Council, chaired by Andy Haldane. The council, which provides very candid advice to Ministers and conducts independent research for the levelling-up agenda, has met nine times already. I am confident that these provisions and commitments will ensure transparency, scrutiny and accountability on the levelling-up missions, and on the way in which geographical disparities are defined, measured and addressed, without adding any unnecessary proliferation of public bodies.

Amendment 14, in the name of my noble friend Lord Holmes of Richmond, would oblige the Government to publish a report that considers establishing a task force to help increase the effective use of robotics and automation and to consider the impact on regional disparities. The Government are hugely committed to reducing barriers to innovation, which is why we committed almost £200 million in funding to manufacturers through the Made Smarter programme, and we are already convening a Robotics Growth Partnership with leaders across academia and industry. The Levelling Up Advisory Council is considering how to improve the uptake of productivity-enhancing technologies. Given the work that is ongoing already, we do not believe that a task force is necessary. Should government find it desirable to establish a task force in the future, I assure my noble friend that it will not be necessary to legislate to establish one.

Amendment 303, in the name of the noble Lord, Lord Foster, would require a rural-proofing report on how

“the measures contained within the Act will address the needs of rural communities”.

As I highlighted, the Government already have extensive rural-proofing mechanisms which ensure that the unique challenges of rural communities are considered in all our policy-making. The Government undertake robust impact assessment processes when introducing any new policy. The Bill is subject to the same scrutiny and therefore has been assessed accordingly to ensure that all communities, including rural ones, are sufficiently considered. Given the existing mechanisms in place, we do not believe it is necessary to impose a further condition on the provisions of the Bill.

I hope that this provides the necessary reassurance for my noble friend Lord Lansley to withdraw his amendment and for the other amendments to not be moved.

[Lord Shipley (LD)]

Before the Minister sits down, perhaps she might explain a little further about the Levelling Up Advisory Council. I think I heard her say that is has now met nine times. Is the advisory council publishing its papers and the minutes of its meetings? I am led to believe that it has not been doing so. Is that the case and, if so, would it not be better if the papers and minutes of its meetings were published?

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[Baroness Scott of Bybrook (Con)]

My Lords, I am not aware that the advisory council is publishing papers, because it is advisory to the Government. I will make further inquiries and come back to the noble Lord and others in the Chamber.

[Lord Foster of Bath (LD)]

To save the House time later, I remind the Minister that rural-proofing is not about giving a list of good things you have done in rural areas. To quote the Government’s own document:

“Rural proofing aims to understand the intended outcomes of government policy intervention in a rural context and to ensure fair and equitable policy outcomes for rural areas”.


If the Minister is correct that this legislation has been rural-proofed, will she commit to publishing the specific report for this Bill, which would achieve what my two amendments are seeking to do?

[Baroness Scott of Bybrook (Con)]

My Lords, a number of proofings have been done on the Bill. I will ask for those and make sure that they are brought forward. It is not about giving money; it is about knowing where money is required in rural areas to make life better for people, as well as making sure that policies are rural-proofed. If we find out through that rural-proofing that some policies are not delivering as well as they could for rural areas, we have to do something about it, and that is what the Government are doing.

[Baroness Hayman of Ullock (Lab)]

Before the Minister sits down, if the policies have been rural-proofed, what happened to the metrics? Clearly, they have not been rural-proofed. I raised public transport, which I think needs looking at.

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When the Procurement Bill comes back, we will have fun reminding the Cabinet Office of the Front Bench’s objection in principle to Parliament debating the policy statement of Ministers and to Ministers being required to withdraw it if Parliament objects. That is precisely what is in the Procurement Bill in another place, as put in the Bill by Ministers themselves. I am afraid that my noble friend’s argument of principle against my amendment does not hold much water beyond this convenient moment. None the less, I take her point. I have explained the flaws in my amendment and, on that basis, I will not press it. I beg leave to withdraw Amendment 2.

[Baroness Scott of Bybrook (Con)]

I have an update for the House: I have been advised that the independent advisory board has a public blog that noble Lords might like to look at.

Amendment 2 withdrawn.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I draw attention to my interests, as I am still a serving councillor in both Stevenage and Hertfordshire.

It is always a huge privilege to follow Members of your Lordships’ House with such great expertise and passion for their subjects as my noble friend Lady Lister of Burtersett and the noble Baroness, Lady Finlay of Llandaff, supported by the noble Baronesses, Lady D’Souza and Lady Benjamin, and the right reverend Prelate the Bishop of Durham. I shall speak to their amendments in a moment.

First, I have tabled Amendment 5 to highlight a number of missed opportunities in the Bill. Some of the many issues we have raised relate to the deficiency of the Bill in clearly setting out a definition of what levelling up actually means to the Government and, as importantly, how it will reach every area—we have a later set of amendments on regional disparities—how it will be funded, how it will measure outcomes rather than outputs, and how in key areas it will start to turn the agenda from acute interventions, which are expensive and complex, to preventive work, which will be more effective and save costs in the long run. I am grateful to my noble friend Lady Hayman for setting out so clearly our concerns around funding; I will not comment any further on that subject.

It seems to us that the levelling-up missions are nowhere near ambitious enough to take this country forward in the wake of Brexit, the pandemic and climate change, and with economic changes that need a clear strategic approach to ensure that the United Kingdom keeps pace with scientific development, tackles productivity challenges and is a place where everyone has the opportunity and encouragement to play their part in growing the economy.

What we see in the levelling-up Bill is, too often, the sticking-plaster politics of the last few years, which will do little to tackle the long-term challenges. Our missions indicate our ambition and determination that our country will face those long-term challenges that really matter to citizens and society; keep focused on them in spite of day-to-day pressures; ensure that everyone—business and trade unions, private and public sector, and government departments—works together; and, key to the consideration of this Bill, make sure that local and national government work together in partnership to ensure that action happens at the right level and combines national strategy with local knowledge and expertise. Strong missions must be focused on tackling the long-term and complex problems that need long-term thinking and recognise that there is no silver bullet to solve them, only key partnerships worked at and sustained over time.

We must be more ambitious, like our mission to secure the highest sustained growth in the G7, which is aimed at tackling the consistent underperformance in our economy that sees Britain still trailing behind our partners rather than powering ahead. ONS statistics show that the UK’s GDP growth between the final quarters of 2019 and 2022 was the lowest in the G7, which means that the UK is the only G7 country in which the economy remains smaller than it was before the pandemic. Being as ambitious for our economy as the people in our country are for their families must surely be the launch pad of levelling up.

There can be no levelling up while people and communities still feel unsafe in the places they live, work or spend their leisure time. There can be no levelling up while we treat the challenge of producing clean energy with a lack of ambition. We need a mission to make Britain a clean energy superpower, creating jobs, cutting bills and dealing with the crisis in energy security.

The noble Baroness, Lady Finlay, clearly set out the reasons why tackling health inequalities, which have beleaguered the UK for generations, must be part of the mission to level up our country in order to break the cycle. My local area is home to some of the most exciting cell and gene therapy developments in the world, so it is ironic that if you live in parts of my borough, you will live 10 years less than if you live in St Albans, 12 miles away.

In the United Kingdom we have 7 million people languishing on NHS waiting lists, waiting for surgery or procedures that could be life changing, never mind life saving. We must include in the missions for this country a stated aim to harness the life sciences to reduce preventable illness, speed up access to treatments and cut health inequalities. For that reason, if the noble Baroness, Lady Finlay, chooses to test the opinion of the House on this subject, she will have our support.

Lastly, I come to the powerful words of my noble friend Lady Lister, who has been such a strong advocate for children, particularly disadvantaged children, in your Lordships’ House. It is a shameful indictment of this Government that the situation relating to child poverty has gone backwards since 2010. As the right reverend Prelate the Bishop of Durham said, it should be central to levelling up. The Child Poverty Action Group figure of 4.2 million children living in poverty, which has been widely cited in the debate, is a shameful indictment. As the noble Baroness, Lady Benjamin, said, the situation is far worse for black and ethnic-minority children, and working is not the answer for everyone, with 71% of children in poverty living in a home where at least one person works. The figure cited that between 1998 and 2003 the number of children living in poverty fell by 600,000 shows that it can be done, but the figures are now climbing rapidly again.

The combination of low pay, poor housing and steep rises in the costs of food and energy is taking a terrible toll on the life chances of too many children and young people across our country. We heard recently from the National Housing Federation that too many children are in poor accommodation where they still have to share beds with their parents well into their teenage years. The generational change needed here requires breaking down the barriers to opportunity at every stage, for every child. That needs reform of the childcare and education systems to raise standards and prepare young people for work and life.

None of this can happen unless we all—across the political spectrum and society—make it our ambition to drive out the child poverty that blights lives, drains self-confidence, squashes opportunity and ambition, and continues the cycle that sees so many of our young people unable to make their full contribution to our country. It is unthinkable that we will see any long-term levelling up in our country without tackling child poverty. Indeed, the in-depth study on child poverty carried out by the University of Newcastle put at the top of its list of priority actions

“putting tackling child poverty at the heart of future devolution deals”.

That is a clear example of why it is entirely appropriate to have a statement of intent at national level—a mission—to drive bespoke action at local level. If my noble friend Lady Lister decides to test the opinion of the House on whether this must be included as a mission, she will have our strong support.

We would, of course, like to see Labour’s missions at the heart of the Bill, but even an optimist like me realises that this might be a little premature. However, the amendments on health inequalities and child poverty deal with aims that surely we all share and issues without close attention to which levelling up just cannot happen or be successful. I reiterate our support for them and urge all noble Lords to support those amendments.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 4 in the name of the noble Baroness, Lady Lister of Burtersett, would require the Government to set out a levelling-up mission to reduce child poverty. Amendment 5 in the name of the noble Baroness, Lady Taylor of Stevenage, would compel the Government to relate their missions to the Labour Party’s five priorities. What I am interested in is why child poverty is not in her amendment. Amendment 7 in the name of the noble Baroness, Lady Finlay of Llandaff, would require the Government to set out a mission on health disparities and healthy life expectancy. Amendment 8 in the name of the noble Baroness, Lady Pinnock, would require the Government to include the missions and headline metrics from the levelling up White Paper in their first statement of levelling-up missions.

I have made our approach to levelling-up missions extremely clear in this House. They are subject to debate in Parliament, but the specifics of the missions are not written into law. Missions may need to evolve over time—including to make them more stretching as goals are met and to adapt to policy relevant to the day. We will not put any missions in the Bill. Missions are intended to anchor government policy and decision-making necessary to level up the United Kingdom. Missions should not, however, be set in stone. As the economy adapts, so will the missions reflect the changing environment and lessons learned from past interventions.

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Moved by

[Baroness Scott of Bybrook]

13: Clause 2, page 3, line 19, at end insert—
“(5A) In the course of preparing a report on the delivery of the levelling-up missions, a Minister of the Crown must carry out such consultation as the Minister considers appropriate with the devolved authorities.”Member’s explanatory statement
This amendment requires a Minister to consult the devolved authorities in the course of preparing a report on the delivery of the levelling-up missions.

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Moved by

[Baroness Scott of Bybrook]

15: Clause 4, page 4, line 19, at end insert—
“(4) Before making any revisions under subsection (2), a Minister of the Crown must— (a) have regard to any role of the devolved legislatures and devolved authorities in connection with the levelling-up mission to which the revision relates, and (b) carry out such consultation as the Minister considers appropriate with the devolved authorities.”Member’s explanatory statement
This amendment requires a Minister, before making a revision to mission progress methodology and metrics or a target date, to have regard to any role of the devolved legislatures or devolved authorities in connection with the mission to which the revision relates and to consult the devolved authorities.

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Moved by

[Baroness Scott of Bybrook]

16: Clause 5, page 5, line 5, at end insert—
“(5A) In the course of carrying out a review under this section, a Minister of the Crown must—(a) have regard to any role of the devolved legislatures and devolved authorities in connection with the levelling-up missions in the statement, and(b) carry out such consultation as the Minister considers appropriate with the devolved authorities.”Member’s explanatory statement
This amendment requires a Minister, in the course of carrying out a review under Clause 5, to have regard to the role of the devolved legislatures and devolved authorities in connection with the levelling-up missions and to consult the devolved authorities.

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[Baroness Pinnock (LD)]

My Lords, Amendment 18 is a new probing amendment, because we all assumed that, if the Government are committed to levelling up and understand, as they will, that it is dependent on long-term capital investment, that would therefore be available.

The noble Baroness, Lady Hayman of Ullock, quoted the Financial Times, and I too did a bit of research on what capital was around. The Financial Times raised this issue earlier this year, reporting that John Glen, who was then Chief Secretary to the Treasury—perhaps he still is—has

“now stepped in to prevent DLUHC from signing off spending on any new capital projects, because of concerns about whether the department is delivering value for money. Such interventions are typically reserved for departments about which the Treasury has particular financial concerns”.

The Financial Times report went on to say:

“The decision to rein in Gove’s expenditure, taken last week, means that any new capital spending decision ‘however small, must now be referred to HMT before approval and the department is not allowed to make any decisions itself’”.


It is a fairly damning indictment of the spending already undertaken by DLUHC if that is the Treasury’s view of its value for money. As I said at the start, levelling up depends on capital investment. It is difficult to interpret the Government’s—the Treasury’s—decision to have tight controls on capital spending as anything other than putting a big brake on levelling-up funding, to the detriment of communities that are desperate for investment.

A House of Commons Select Committee also reported on levelling-up funds, which we referred to in debates on earlier groups today. It made the salient point that the Department for Levelling Up, Housing and Communities is apparently not able to demonstrate how the funding fulfils the aims of the White Paper for sustained investment to tackle long-standing inequality—these are the points that I have made today and throughout the debates on the Bill. That was a cross-party committee. The National Audit Office also published a report, making a similar, stark plea to the department to urgently increase the capacity to assess and manage levelling-up funds.

So here we are, with a significant Bill carrying one of the Government’s key objectives, set out in a detailed report, and before it has really got going the Treasury is saying, “Well, you can’t spend anything without us first checking and signing it off”. We also have researched reports from the House of Commons Select Committee and the National Audit Office, both pointing to funding not being spent in perhaps the best possible way.

So the noble Baroness, Lady Hayman, has posed an important question. We ought to hear from the Minister that the Government are prepared to continue to invest significant sums in levelling up because, without that, levelling up will not occur. You can tell that from the White Paper, which I keep pointing to—it has done its job. Unless there is investment, levelling up will not happen. If the Treasury is putting a big brake on it, how are we going to level up? Perhaps the Minister can give us some pointers.

[Baroness Scott of Bybrook (Con)]

Amendment 18 in the name of the noble Baroness, Lady Hayman of Ullock, relates to officials publishing an assessment of the impact of the requirement that the Department for Levelling Up, Housing and Communities seeks consent from His Majesty’s Treasury for all capital spending on the delivery of Part 1 of this Bill when it becomes an Act.

Noble Lords will be aware that the department is working within a new delegation approach, which involves Treasury sign-off on new capital spend. However, there has been no change to the budgets of the Department for Levelling Up, Housing and Communities, and no change to our policy objectives. It is reported that the Department for Levelling Up, Housing and Communities requires approval from His Majesty’s Treasury for new capital projects, but this will not impact the levelling-up agenda. The recent change relates only to new projects; there is no change to the decision-making framework for existing capital programmes and no change to the department’s budgets. Moreover, noble Lords will be aware that, in the usual course of departmental business, the majority of programmes would require HMT approval in any case, so there is little change with this new capital spending approach.

The noble Baroness, Lady Hayman of Ullock, asked what implications the new spending control would have on the levelling-up agenda. The amendment to capital delegations referred to in press coverage has absolutely no implications for the Government’s policy agenda. The Government’s central mission remains to level up every part of the UK by spreading opportunity, empowering local leaders and improving public services. There has been no dilution of levelling up. There have been no changes to the size of DLUHC budgets, both capital and revenue, or to its policy objectives; neither does this impact how large programmes already agreed are being delivered—for example, the towns fund or the levelling-up fund.

I hope this gives the noble Baroness, Lady Hayman of Ullock, enough reassurance that she will not press her amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Baroness, Lady Pinnock, for her comments in this debate and the Minister for her response. Although I am not absolutely and entirely convinced by everything she said, I beg leave to withdraw my amendment.

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[Baroness Pinnock (LD)]

My Lords, this group of amendments from the noble Baronesses, Lady Hayman of Ullock and Lady Taylor of Stevenage, concern the cost of living, based on regional variations that could exacerbate the challenges in the very areas already defined by the Government as suffering multiple inequalities. The noble Baroness, Lady Taylor, made a case for investigating geographical disparities in relation to the cost of living, which was the theme of my noble friend Lord Shipley’s amendment that was agreed earlier today.

The cost of living crisis is hitting some families and some parts of the country much harder than others. The Centre for Cities has done an investigation into the differences in the impact of the cost of living crisis on different parts of the country. What it discovered, which is not surprising, is that some areas of the north, the Midlands and the West Country are harder hit than cities in the south and the south-east. That mirrors the geographical inequalities we have been debating today.

I picked out these figures because they are from west Yorkshire. Bradford is already a significant area of child poverty and family deprivation. The Centre for Cities study, which has data from as recently as May this year, shows that on average a family household in Bradford is poorer by £111 a month. Huddersfield, in my own council area—a similar area for child poverty and deprivation—was also poorer by £111 per month. Every household in every part of the country will be worse off as a result of the cost of living crisis and all that goes with it. But when I looked at towns in more southern parts of the country, I found that they were worse off by, for example, £61 a month, £59 a month and £65 a month—about half the hit that families in Bradford and Huddersfield have had.

There is an issue here that I hope that the Government are thinking about in considering levelling up. The arguments we have heard in earlier debates demonstrate that areas with existing poverty and a further impact on family finances are harder hit than others where family finances are more resilient to a cost of living crisis. That leads me to conclude that those same areas should be the focus of the Government’s levelling up. It is no good saying, as the Government have done through the towns fund and the levelling-up funds, that Newark and bits of North Yorkshire are in need of levelling up. I am not denying that they would benefit from investment, but the places to which I am referring are multiply deprived and multiply under the hammer of the cost of living crisis, because of their earlier multiple deprivations.

If the Government are serious about levelling up, those are the places that need a laser focus of help, investment, planning and strategies to lift them out of the doldrums, so that they can experience the quality of life that more financially well-off areas experience. That is why this series of amendments is important. It underlines the fact that more financial troubles heap additional burdens on to these already deprived households. I look forward to seeing whether the Minister agrees with me. I live in hope.

[Baroness Scott of Bybrook (Con)]

My Lords, I am really pleased to address the important issue of the cost of living, dealt with in Amendments 19 and 274, proposed by the noble Baroness, Lady Hayman of Ullock. The Government absolutely understand that people are worried about the cost of living challenges ahead. That is why decisive action was taken at the Spring Budget this year to go further to protect struggling families. Taken together, support to households to help with higher bills is worth £94 billion, or £3,300 per household on average across 2022-23 and 2023-24. This is one of the largest packages in Europe.

His Majesty’s Government allocate cost of living support on the basis of the needs of cohorts, rather than location. We are committed to helping those who need it most, wherever they are. There are existing mechanisms in place to monitor and evaluate regional, economic and social disparities, and these mechanisms are effective and ongoing, making the amendment, I suggest, redundant.

The UK2070 Commission leads an independent inquiry into city and regional inequalities in the United Kingdom, while the Office for National Statistics routinely produces a range of datasets with a regional and local breakdown, including on inflation. This, alongside the Government’s spatial data unit, which is transforming the way the UK Government gather, store and manipulate subnational data, means that these amendments, we believe, are not necessary.

Amendments 20 and 285, also in the name of the noble Baroness, Lady Hayman of Ullock, seek to establish an independent board to assess geographical disparities in England, and would allow for its parameters to be specified by regulations. I have already been very clear that we are committed to enabling scrutiny of our progress on levelling up. Through my department’s spatial data unit, we are embracing and seeking to build on this engagement, including through work to improve the ways in which the Government collate and report on spending and outcomes and consider geographical disparities in our policy-making. As noble Lords will know from my responses to earlier groups in this debate, we have also established the independent Levelling Up Advisory Council, chaired by Andy Haldane, so we do not believe we need any further, unnecessary proliferation of public bodies in this space.

Amendment 22, in the name of the noble Baroness, Lady Taylor of Stevenage, considers the appropriate granularity of data. We agree with her that for certain missions and policy areas, this is extremely important. The spatial data unit in my department is already working closely with the Office for National Statistics to improve the granularity of place-specific data and strengthen published local statistics. For example, it published local neighbourhood area estimates of gross value added earlier this year, enabling comparisons of economic output to be made between very small geographical areas.

I hope I have convinced and reassured the noble Baroness, Lady Hayman of Ullock, and that she will not press her amendment and others will not press theirs.

[Baroness Taylor of Stevenage (Lab)]

I am very grateful to the Minister for her answers. Once again, she gave the figures for the support the Government are offering. I am sure that people who are struggling with the cost of living crisis were grateful for that, but of course, they have had another massive hit recently with the rapidly increasing mortgage rate. As people come to the end of their fixed-term mortgages, they are suddenly getting the awful shock of seeing their mortgages go up. Along with a drop in the support the Government are giving on such things as energy costs, that will be an awful combination to really hit people’s budgets once again.

I welcome the Government’s assurance that there will be a great deal of scrutiny of the levelling up data; that is welcome and we look forward to seeing how it works out over time. I particularly welcome the focus on granularity of data. There is a tendency to focus always on what is sometimes described as the north/south divide, but of course, it is never as straightforward as that. There are areas right across this country with serious poverty and deprivation, and we need to make sure that we look at those and provide appropriate support. I am very pleased to hear about the local area neighbourhood analysis now coming forward from the unit, and I am therefore happy to beg leave to withdraw the amendment.

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Moved by

[Baroness Scott of Bybrook]

21: Clause 6, page 6, line 12, at end insert—
““devolved authorities” means—(a) the Scottish Ministers,(b) the Welsh Ministers, and(c) the Northern Ireland departments;“devolved legislatures” means—(a) the Scottish Parliament,(b) Senedd Cymru, and(c) the Northern Ireland Assembly;”Member's explanatory statement
This amendment defines the devolved authorities and devolved legislatures for the purposes of Part 1.

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Moved by

[Baroness Scott of Bybrook]

23: Clause 6, page 6, line 14, at end insert—
““His Majesty’s Government” means His Majesty’s Government in the United Kingdom;”Member's explanatory statement
This amendment makes it clear that references to His Majesty’s Government in Part 1 are to His Majesty’s Government in the United Kingdom.

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[Lord Shipley (LD)]

Governor-General of the West Midlands—there, my Lords, is a thought. We are now starting to laugh, and I think there is a danger here that the general public will just not understand what all these titles are for. I would immediately say a school governor, a prison governor or the governor of a US state. We can think of various possibilities, but a governor of a combined county? I really do not think that fits with the structure of local and subregional government that we are talking about.

Under Clause 40(2)(c) the title could be “elected leader”. This is very strange, because councils have leaders and those leaders are elected—so I am not clear what the difference is between the “elected leader” of a CCA and the leader of a council. The constituency may be different: that is, it is the whole electorate for the mayor, but for the leader it is the councillors of that council who have to vote to elect that person as the leader of the council as well as leader of the group. This is getting too confusing.

The next thing could well be that if a mayoral CCA is entitled to call its mayor something else, can other combined authorities that have been in existence for a number of years change the title of their mayor? I just do not know why we are going down this road at all. I just say all that to the Minister. There may be something that I have not thought of that she can alleviate my concerns with, but I just wish that this clause and the associated clauses would just go away. It is not something that I want a vote on; I just hope that I will not have to stand up when the statutory instrument comes through for the creation of a CCA and ask why it is that the name has altered to something like a “county commissioner”, which the general public do not comprehend.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 25, 27, 35 and 53, tabled by the noble Baroness, Lady Hayman of Ullock, regard the boundaries and memberships of CCAs and combined authorities. The Bill includes our intended criteria for establishing and changing boundaries of CCAs and CAs in Clauses 44, 46, 62 and 63.

Proposals to change the area of a combined county area are generated locally in line with our principle of locally led devolution. The process to propose a boundary change must include a public consultation being undertaken. The Secretary of State has to assess any such proposals, including the results of the consultation, against a set of statutory tests and will consent to making the requisite secondary legislation only if they are content that the statutory tests are met. The legislation is therefore subject to a triple lock of agreement from the Secretary of State, the consent of the local area and parliamentary approval. I think it is important that we look at that as a triple lock.

Any proposal from the local area has to demonstrate that it will improve the economic, social and environmental well-being of some or all of the people who live and work in the area, suitably reflecting their identities and the interests of local communities, and will deliver effective and convenient local government. As such, the expansion of a CCA or CA cannot be pursued for political advantage. It must benefit the local area.

[Baroness Hayman of Ullock (Lab)]

I want to ask for clarification. The test is to carry out a consultation. When the Secretary of State takes that consultation with the local community into account, can he make a decision against what the majority of that community voted for?

[Baroness Scott of Bybrook (Con)]

It is more complex than that. It is not a referendum but a consultation. Therefore, there will be many views for, against, in the middle and all over the place, but he will obviously have to take account of views. If everyone said they did not want something, I am sure the Secretary of State would take note of that; it is part of those tests.

The main focus of the Local Government Boundary Commission for England, which the noble Baroness brought up, is a rolling programme of electoral reviews of local authorities; this is where its skills and experience mainly lie. It would not be appropriate to consult it on the proposed boundaries of CCAs and CAs. The requirement for public consultation and statutory tests for regulations provide, we believe, sufficient protection that further consultation is unnecessary. For these reasons, I hope the noble Baroness will not press her amendments.

Amendments 37 to 39 in the name of the noble Lord, Lord Shipley, seek to remove Clauses 40 to 42, which set out the process to allow the mayor of a CCA to change to a locally appropriate title that resonates with local stakeholders. Some areas are reluctant to adopt a mayor governance model as they feel the word “mayor” would be confusing and inappropriate for their area, preventing access to a strong devolution deal.

We had this discussion in Committee. There are many areas in this country where every town in a county, or even a district, will have a local mayor. That has been an issue for some authorities when they look into a CCA for the future. The noble Lord talked about directly elected leaders. Some authorities have said to us that they would prefer to call the person who leads—doing the same job as a mayor in a county authority—a “directly elected leader”. It is just a name; the job itself is the same.

To minimise confusion, the clauses include the protection of a shortlist of possible titles—it does not have to be used; it just gives some ideas—as well as a mechanism for areas to use any other title they choose, providing they have regard to other public officeholders’ titles in the area of that authority. We are trying to give as much local flexibility as possible to allow for local circumstances, so that the name of the directly elected person to lead that combined authority is the best name to use in that area.

Amendment 52, also in the name of the noble Lord, Lord Hunt of Kings Heath, regarding the timing of an order changing a combined authority’s area, would add further inflexibility to the process. An MCA can be expanded only at the time of a mayoral election, for reasons of democratic accountability; those affected by the mayor’s decisions will have had the opportunity to take part in that mayor’s election. Consequently, it can already be several years between an area expressing an interest in joining an MCA and such expansion coming into force. Introducing additional inflexibility would impede and potentially further delay—

[Lord Hunt of Kings Heath (Lab)]

My Lords, I will not delay the House for long but, with the greatest respect, this was a twinkle in the eye of Mayor Street a few months ago when the Wolverhampton Express & Star reported it. People in Warwickshire were innocently going about their own business, then along came Mr Gove to put pressure on them to make this application. The Minister is indulging in a fantasy that this is somehow driven by Warwickshire people desperate to join the West Midlands.

I joke about Wiltshire but the Minister will know about the sensitivities of shire counties and their relationship with urban metropolitan districts, which I well understand. My noble friend Lady Anderson’s Staffordshire would be another case in point; it would not wish to be ruled, in a sense, from Birmingham. It really is too much: the rules are being changed to allow for one gerrymander, in a foolish attempt to save Mr Street’s political career. That really will not do.

I am not going to go on because we have two other groups. In the next—

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[Baroness Pinnock (LD)]

My Lords—

[Baroness Scott of Bybrook (Con)]

May I answer the noble Lord first? I am not talking about the West Midlands or Warwickshire; I am talking about what is in the Bill and why we are doing what we are doing. I will come on to the Warwickshire issue in a bit, but this has nothing to do with it as far as I am concerned. What I am saying now is about the Bill and not about Warwickshire.

[Baroness Pinnock (LD)]

I thank the Minister for giving way. Do the Government have any limit for the expansion of mayoral combined authorities? If Warwickshire is allowed to accede to the West Midlands —Worcestershire is nearby and Staffordshire is next door. What is on the other side? I am thinking of between Coventry and Birmingham. It could get very large, so I want to know if there is a limit. This is a serious question, because when the West Yorkshire Combined Authority was created, we were not permitted to include parts of North Yorkshire, which had always been part of that combined authority before it had mayoral status. This is an interesting question for me in West Yorkshire, as well as for those who live in the West Midlands area.

[Baroness Scott of Bybrook (Con)]

My Lords, as we have said before, there are clear regulations that the Secretary of State will look at when he considers any bid. We have made it clear that they have to be geographically sensible economic areas, so I cannot think of anything growing and growing, because it will not. But it will be local people who put forward the bid; the Government will not be saying to any local area, “You have to join”. These are locally led bids for areas that local people think are the right economic areas to do business in and to deliver for them. How big will they be, realistically? They will not be what the noble Baroness suggests, of course, because those would be too big to be really good economic areas, but it is up to local people to do this, as I keep saying.

One of the principles that underpin our devolution agenda is that devolution deals are agreed and implemented over a sensible geography. We want to remove any barriers to neighbouring local authorities joining a combined authority where there is a strong economic, social and environmental rationale for doing so. The new local consent arrangements under Clause 57 mean that the decision would be given to the mayor and council wishing to join the CA. The mayor is democratically accountable to the whole existing CA area, so it is right that they should be the decision-taker for decisions on changes to that whole area.

The arrangements proposed in this amendment could mean that an expansion of a CA area that evidence shows would be likely to improve outcomes for the proposed whole new area could end up being vetoed by just one existing constituent council if the CA’s local constituency requires unanimous agreement from its members on this matter. This has been an issue in the past. This potential impediment to furthering devolution cannot be right; one small authority cannot stop a larger area that wants to grow to be more economically viable.

In his explanatory statement for Amendment 53A, the noble Lord references

“reports that areas may be added to the West Midlands Combined Authority prior to the 2024 Mayoral Election”.

Warwickshire County Council’s plans are part of a local process for the area—county and district councils—and it is up to it to apply to join the WMCA. If Warwickshire decides to pursue this, it will undertake a public consultation, following which it may submit its proposals to the Government. The Government will carefully consider any such proposals, as statute provides. No decisions have been taken by the Government. With these reassurances, I hope that the noble Lord feels able to not move his amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for her response to quite a charged debate. I thought I was quite good on the geography of the West Midlands, but I learned a bit tonight. We are not entirely satisfied with where the Bill is on this issue at the moment. I beg leave to withdraw my amendment, but, as my noble friend Lord Hunt said, I feel sure that we will return to this.