Oral Answers to Questions

Debate between Bill Esterson and Dehenna Davison

Monday 9th January 2023 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

11. What recent assessment he has made of the impact of increases in inflation on the adequacy of levelling-up funding.

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

I wish you a very happy new year, Mr Speaker.

The recent autumn statement protected the most vulnerable by uprating benefits and pensions with inflation, strengthening the energy price guarantee, and providing cost of living payments for those who are most in need. My Department is continuing to analyse and respond to the challenges that inflation presents to the delivery of our levelling-up programmes and the levelling-up agenda, working closely with the places affected. We are continuing to explore what other support can be offered to mitigate against those inflationary pressures.

[Bill Esterson]

Happy new year, Mr Speaker.

According to the Department, construction of major projects has stalled because industry prices are well above the headline rates of inflation. As the Minister knows, UK inflation is projected to be the highest in the G7 this year, as it was last year. In the north-west, the Government have cut £206 million from the much-needed shared prosperity fund, so will the Minister confirm that her Department will make up the shortfall in the funds to help the construction industry play its part in rebuilding the economy and communities across the country?

[Dehenna Davison]

I am grateful to the hon. Gentleman for bringing attention to the shared prosperity fund, which is just one of the many measures that this Government have put in place to help to promote investment in local areas right across the country. One point that I draw his attention to is that, in recognising the challenging landscape that we face at the moment, our Department is making an additional £65 million of funding available to successful applicants to ensure that they can take on board consultants, train up extra staff and increase their capacity so that they are responding to the challenges that they face.