Local Government Funding

Chi Onwurah Excerpts

Wednesday 27th March 2019 Westminster Hall

[Thelma Walker]

I believe that devolved local governance, with local knowledge of the needs of local communities, is really important, and we have lost that.

Early intervention was cost effective in my previous career, and it transformed people’s lives. They were not left to go through the stress and trauma of reaching crisis point. It is better for the health and wellbeing of our communities to have that support in place, but Kirklees was forced to make savings of nearly £200 million over the past nine years. Over the next three years, the council has to find a minimum of £38 million in savings. That has detrimentally affected my constituents’ lives.

In particular, there are significant and growing pressures on high needs in Kirklees. The Government have acknowledged that Kirklees is the second most underfunded council in the high needs block of the dedicated schools grant.

One of my constituents has been in contact with my office for some time about their two children, who have been diagnosed as being on the autistic spectrum. They have been trying to establish appropriate support for their children through education, health and care plans. It has not been straightforward. Cuts to funding mean that the local authority is struggling to give the family the necessary support.

The pressures are also visible in housing. Another of my constituents, who lives in local authority housing, has been subject to verbal abuse and harassment from their neighbours. They have applied to move, but the housing provider has not been able to facilitate relocation because it does not have suitable places to move them to. It has been able to offer only additional security measures to reassure the constituent. Local authorities and local government workers are doing what they can, but they do not have the resources to do what they need to do. Hard choices have had to be made to protect care for the most vulnerable.

I know that these stories will sound familiar to many hon. Members today. Sadly, such stories are by no means unique to my constituency. But there is an alternative; it does not have to be like this. In Finland, local government has a lot of autonomy, and there is a greater level of responsibility for policy and delivery in areas such as education, healthcare, social services, planning and infrastructure. Decision making is closer to the people and seeks to be responsible for their needs. In Finland, policy is geared towards commitments to provide housing where it is needed, support those who cannot care for themselves, and provide accessible low-cost childcare to families.

Finland has also trialled a universal basic income. Policies are focused on delivering positive outcomes for citizens on health and wellbeing, and on reducing inequality. Marking those policies as priorities is important and effective. For the second year in a row, Finland has been named as the world’s happiest country, which cannot be a coincidence. There are some real lessons to take forward from countries such as Finland, which could be used to inform the way local government operates in the UK.

Labour is investing in delivering effective and positive change for local government, our communities and the families within them. The next Labour Government will genuinely end austerity and put an end to this crisis. At the last election we pledged £8 billion for social care. We also pledged an additional £500 million a year for Sure Start and early intervention services, to reverse the cuts that have closed centres across the country and to ensure that all children have the best start in life.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I congratulate my hon. Friend on securing the debate today, when we are all thinking about and debating Brexit, and on recognising the impact on services of cuts such as the 50% cut to central Government funding for Newcastle City Council. I want to mention one additional service: litter. It is an issue for my constituents, and children are writing to me to ask why their environment is covered in litter—

[Mrs Anne Main (in the Chair)]

Order. Before we go any further, as you can see the Opposition side is very heavy with speakers. There is a list of speakers, and I wish to get everyone in.

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[Dan Jarvis (Barnsley Central) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Main. I congratulate my hon. Friend the Member for Colne Valley (Thelma Walker)—a near neighbour of mine—on securing this important and timely debate.

I rise to speak as someone who, both as a Member of Parliament and as Mayor of the Sheffield city region, works very closely with our local authorities. Not only do I lead the combined authority of Barnsley, Doncaster, Rotherham and Sheffield, but through the Yorkshire leaders board, I work very closely with all of Yorkshire’s other local authority leaders. As hon. Members will know, the work of our local authorities is critical to the communities that they are there to serve.

I was out on the doorstep in Barnsley at the weekend talking to my constituents and, although some of them wanted to talk about Brexit—completely understandably —many of them wanted to talk about other things, including bins, potholes, parking, antisocial behaviour and, of course, housing. Those are incredibly important issues that fall to local government.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Will my hon. Friend give way?

--- Later in debate ---

[Mrs Anne Main (in the Chair)]

Given that a Member has just withdrawn from the debate, we now have a little more time for colleagues to speak, so I am extending the limit to seven minutes with immediate effect. Some of you have noticed that the clock has shifted on somewhat. We suspended on the point of an intervention, but perhaps you would like to save it for your speech, Ms Onwurah.

[Chi Onwurah]

indicated assent.

[Mrs Anne Main (in the Chair)]

We will return to where we left off. You have five minutes and 47 seconds, Mr Jarvis.

--- Later in debate ---

[Dan Jarvis]

Thank you, Mrs Main. I am happy to give way to my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwura).

[Chi Onwurah]

I thank my hon. Friend for giving way so graciously. He is absolutely right: when we knock on people’s doors, we hear about the issues that matter to them. Increasingly over the past nine years since I was elected, constituents have told me that litter is destroying the environment in which they and their children live, because of central Government cuts to local authority and police funding.

[Dan Jarvis]

My hon. Friend raises an important point that is often raised with me by local residents, as is fly-tipping, which is a big concern for many of my constituents. One of my local residents, Kevin Osborne, has been running a long-standing campaign against the fly-tippers, as has Barnsley Council, which has taken decisive, innovative action to prosecute them. My hon. Friend raises an important point that is of great concern to our constituents.

Before the Division, I was talking about important local issues that fall to local government. We all instinctively understand that councils and councillors work hard every day to improve the lives of our residents, but they face a funding crisis. Austerity has caused huge damage to communities across the country. It has undermined the way we protect children at risk, disabled adults and vulnerable older people, and it has reduced the quantity and quality of community services such as street cleaning, libraries and rubbish collection.

We should be honest about the fact that reduced funding is not just about numbers on a spreadsheet, but about a reduction in the capacity to invest in prevention. The cuts represent a false economy. If councils cannot fund sufficient support for older people, more of them will end up being admitted to hospital. Less money for children’s services means our young people will only get by, rather than thrive. Failure to invest in public transport stifles economic growth, isolates communities, reduces social mobility and damages our environment. Those are just a few examples of an austerity agenda that lacks any form of long-term strategy.

--- Later in debate ---

[Yasmin Qureshi (Bolton South East) (Lab)]

I congratulate my hon. Friend the Member for Colne Valley (Thelma Walker) on securing a vital debate, and I pay tribute to council staff. It is rightly fashionable to pay tribute to emergency staff in the health, police and fire services, but sometimes we do not recognise the work done by council staff day in, day out, and by the council leaders and cabinet members who must deliver, on a daily basis, the services our constituents want.

[Chi Onwurah]

I agree with my hon. Friend, and want to emphasise that councillors and officials in Newcastle City Council are under huge pressure, working not to implement the cuts for the public. They deserve our thanks.

[Yasmin Qureshi]

I thank my hon. Friend for that intervention.

We are all aware of the fact that post-industrial towns and cities in the north of England such as Bolton have been hit hardest by the deep cuts to local government spending. The idea that the Government sometimes project—that austerity hits everyone equally—is nonsense. The cuts are nothing less than politically motivated. The heaviest have been in the most deprived regions that are often thought of as economically left behind. That is compounded by the fact that those areas have the highest levels of poverty and a lower capacity to mitigate cuts through local taxation or asset sales.

My local council, Bolton, has lost about £l billion in spending power since austerity began in 2010. That has impacted on social care, with adult and child services taking the biggest hit, despite being the areas with the highest demand. As many hon. Members have said, we have an ageing population and therefore the impact on the social care budget is getting bigger. More and more children are being taken into care, meaning that the amount of money required is increasing.

Colleagues have mentioned the pressures on local authorities. For example, over the past three years, Bolton Council’s adult services department had to find more than £10 million of savings, including £8.8 million from children’s services. My local authority had to raise council tax, specifically to pay for social care. That led to its critics saying, “Oh, the council is raising taxes”, but nobody spoke about the fact that it had no choice. With funding cuts of 50%, what was it to do other than raise local taxation to fill that gap? The Institute for Fiscal Studies has estimated that between 2010 and 2020 local government will have had its direct funding cut by 79%. Let that sink in: 79%!

Oral Answers to Questions

Chi Onwurah Excerpts

Monday 4th March 2019 Commons Chamber

[Rishi Sunak]

I praise the work done by both Select Committees in producing some options for the social care Green Paper, and I know that they are being actively considered, as they should be. To the hon. Lady’s broader point, her characterisation is perhaps a little unfair, because good things are happening in social care. The recent publication of the delayed transfer of care statistics showed that they have halved since the peak of a couple of years ago, which shows that good progress is being made.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

6. What steps he is taking to help ensure that public services in Newcastle are adequately funded.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)]

The most recent local government finance settlement confirmed that core spending power in Newcastle is set to increase by £3.4 million in 2019-20. The North of Tyne devolution deal, for which there will be an election this May, will see £600 million invested in the area and, as part of the 2017 Budget, we announced our support for the £0.5 billion investment programme for the Tyne and Wear metro system.

[Chi Onwurah]

Since 2010, successive Conservative Governments have cut funding for children’s social care in Newcastle by 40% and, at the same time, the number of looked-after children has risen by 40%, which is obviously untenable. Instead of talking about strengthening local authority funding when he has halved the amount available to Newcastle City Council, will the Minister instead say whether he agrees with the national charity Action for Children, which has called these cuts “devastating and dangerous”? Will he give us the money to look after our children?

[Jake Berry]

We have just announced an additional £400 million to tackle exactly that. The hon. Lady and I have met in her city on occasion and talked about the northern powerhouse. I am sure she has heard me say that Charles Parsons, that great Newcastle inventor, is my inspiration for the northern powerhouse. A great danger for continuing growth in the north-east of England is the unfortunate selection of the Momentum, hard-left candidate for the Newcastle and North of Tyne election. I am inspired by the engineers of the north-east; he is inspired by Ken Livingstone and Derek Hatton. My hon. Friend the Housing Minister and I are from Liverpool, and we know where that leads.

Stronger Towns Fund

Chi Onwurah Excerpts

Monday 4th March 2019 Commons Chamber

[James Brokenshire]

I recognise the picture that my hon. Friend paints, and therefore the opportunity that this fund provides. We want to see people being ambitious and really positive about how funding can be transformative and can make that difference, and I look forward to continuing to work with him as we take the fund forward.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I welcome the Government’s conversion to regional funding, but the amounts are derisory by comparison with what has been lost through austerity and economic neglect and what will be lost if the Tory Government’s no-deal/bad-deal Brexit goes through. They refuse to give any details of the shared prosperity fund that the Secretary of State has mentioned a few times, which shows that by comparison with the European Union the Government are less transparent and open—we know that under European Union funding, we would have got up to £1 billion in the north-east. Will he at least say that the north-east would be better off with European Union funding?

[James Brokenshire]

I have already highlighted the per capita funding the north-east will receive through this fund. We will consult soon on the UK shared prosperity fund—the funding for that will need to be settled through the spending review—and set out the details. We recognise the need for areas such as the north-east to be able to flourish and prosper. I hope the hon. Lady will recognise what this fund delivers and that there is more to come beyond the European structural investment fund guarantee through to 2020. We should look beyond that to the UK shared prosperity fund.

Economic Growth: South-west

Chi Onwurah Excerpts

Tuesday 5th February 2019 Westminster Hall

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Owen. I congratulate the hon. Member for South West Devon (Sir Gary Streeter) on leading this important debate.

There is no hiding under a bushel the importance of the south-west. Its economy is bigger than that of Greater Manchester and twice that of Birmingham, contributing £127 billion per year to the UK economy. It is a diverse region, with great cities such as Exeter, Bristol and Plymouth, great agriculture and one of the highest rates of tourism outside London. However, as the hon. Members for St Ives (Derek Thomas) and for Cheltenham (Alex Chalk) emphasised, the benefits of that are not shared equally by all.

The south-west evokes cream teas and coastline pleasures. Rodda’s renowned clotted cream, with the jam above or below it, is of course manufactured in Cornwall, along with Ginsters famous pasties. However, we must not forget the industrial heritage that the region shares with the north-east. It was Dartmouth’s Thomas Newcomen who invented the steam engine, perfected by Richard Trevithick, although it took a Geordie, George Stephenson, to bring about the first commercial train journeys. Happily, we can take joint credit for the renowned Peter Higgs, of Higgs boson fame, who was born in Newcastle but went to school in west Bristol.

The bedrock of industry in the south-west lies in food, farming, fisheries and tourism—sectors that are due to be disproportionately affected by Brexit. Cornwall and the Isles of Scilly, Torbay and Devon are all in the top 20 areas where people work in tourism for their first or second job. Some 32% of marine fishing occurs in the south-west, meaning that, if a bad Brexit deal affects the Budget promise of £10 million for fisheries, that will be of great significance to the area.

The Government’s strategy on Brexit does nothing to protect small-scale farmers in Devon and Somerset against the massive American agro-industrial machine. May I ask the Minister how the Government expect those small farmers to compete with American wheat farms the size of small counties and pig farms the size of small towns, without ruining the glorious beauty of the south-west countryside?

Bristol is home to the largest aerospace cluster in the UK, with firms such as Airbus and Rolls-Royce having to stockpile parts in the face of Brexit uncertainty. In the last month, Airbus has warned once again of the impact of a no-deal Brexit. Its supply chain crosses the channel several times, meaning that any friction at the border will cause substantial problems for the company, which employs 3,000 people in Filton in high-skilled, high-paid jobs that are key to future economic growth. How does the Minister plan to protect those jobs?

[Dr David Drew (Stroud) (Lab/Co-op)]

I apologise for not being present earlier; I have been on a Delegated Legislation Committee—some of us spend a lot of time on those. Does my hon. Friend accept that Airbus is to the south-west, particularly my part of the south-west, what Nissan is to the north-east?

[Chi Onwurah]

I thank my hon. Friend for emphasising the importance of Airbus to the south-west; I absolutely accept that point. The warnings of industry leaders and companies such as Airbus and Nissan need to be taken seriously by the Government, and listened to.

As the hon. Member for Tiverton and Honiton (Neil Parish) emphasised, the south-west has one of the highest skills gaps in the UK, with a third of all small and medium-sized businesses having difficulty hiring people with specialist skills. That will only worsen after Brexit, if the Government press ahead with plans to slash so-called low-skilled immigration. Businesses will be even harder pressed to find and retain labour, as we have heard.

More than that, the south-west has been a major beneficiary of EU funding, receiving the second largest share of regional development funding and social funding. The key economic hubs of Bristol and Swindon are among the largest UK recipients of Horizon 2020 research grants, from which we get more back than we put in. After the UK leaves the EU, that hole will be filled by the Government, but the existing institutions exhibit the kind of south-eastern bias that means that, for example, the south-west receives half the per capita UK Research and Innovation funding that London got in 2016-17. How will the Government ensure that funding is replaced in a way that does not exacerbate regional inequalities?

At the heart of all those challenges is the need for a strong, positive industrial strategy, capable of building and rebuilding the economy to meet the challenges of the future and of Brexit. Unfortunately, we have seen no evidence of one. Labour has the answer. [Laughter.] Hon. Members should listen. We are committed to raising spending on research and development to 3% of GDP by 2030—an additional £1.3 billion in public investment. That will get us part of the way, and will certainly benefit the region’s burgeoning tech industry, which grew 47% from 2014 to 2016.

Much of that additional spend will draw on our industrial strategy, which is about investing in areas such as nuclear power as part of our commitment to low-carbon energy, ensuring that we have the skills for Somerset’s Hinkley Point.

[Dr Offord]

Will the hon. Lady give way?

[Chi Onwurah]

I am afraid I will not; I simply do not have time.

We will improve digital infrastructure, as part of our commitment to an innovation nation. That will be complemented by the £250 billion national transformation fund, which will enable the growth of the infrastructure needed to increase productivity and investment.

Successive Tory Governments have refused to invest in transport. My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) highlighted that today is the fifth anniversary of the Dawlish railway line being washed away. Labour has only two Members of Parliament in the far south-west and seven in the region as a whole, yet we have committed to fund the Peninsula Rail Task Force’s recommendations. Why can the Minister not match our commitment?

[Dr Offord]

Will the hon. Lady give way?

[Chi Onwurah]

I am afraid I will not give way.

Regional disparities and the unique issues facing the south-west are the reason we need the £250 billion national investment bank. [Interruption.] May I just point out that we have heard much more from Government Members than Opposition Members so far?

Many Members mentioned the need for regional investment. Our network of regional development funds will ensure that regional needs are put first and that local decision makers decide what is right for their area. The future of the south-west, and of our country, depends on a real industrial strategy that lays a path for a high-wage, high-skill, high-productivity region. The Government should follow Labour’s example in crafting a visionary, vigorous and viable industrial strategy.

[Rebecca Pow]

rose—

[Dr Offord]

Will the hon. Lady give way?

[Chi Onwurah]

If the hon. Gentleman insists, I will give way briefly.

[Dr Offord]

Labour has obviously announced many spending commitments. Perhaps the hon. Lady could explain to the House where Labour will get an additional £1 billion to invest in water quality in the south-west when it has nationalised South West Water?

[Chi Onwurah]

I would love to give the hon. Gentleman a basic lesson in economics and explain that the Tory Government’s economics of austerity have failed entirely to produce the productivity and rising wages that can deliver the tax base for such investments. I hope to hear from the Minister how he will address that.

Holocaust Memorial Day

Chi Onwurah Excerpts

Thursday 24th January 2019 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a privilege to speak in this debate, and I thank the Backbench Business Committee for securing it and my hon. Friend the Member for Dudley North (Ian Austin) for his opening speech. In Newcastle, we will mark Holocaust Memorial Day this year, as we did last year, by honouring the memory of the victims of the holocaust and subsequent genocides, celebrating and listening to survivors, and remembering the acts of kindness, such as our city’s welcoming of Jewish children from Germany.

We will also remember that much of the antisemitic hatred that preceded the holocaust was directed against poor Jewish immigrants from Russia, Poland and the other countries of eastern Europe and that that hatred was present not only in Germany, but in France and here in the United Kingdom. We must remember that at the core of so much of the hatred that prepared the ground for the holocaust was the idea that Jews were alien and could never truly be German, French or English. We must commit to fighting that invidious and corrupting lie wherever it raises its head.

[Alex Sobel]

On that point, I spoke in last year’s Holocaust Memorial Day debate and the footage was put on Channel 4’s Facebook page, where I was accused of all those things that my hon. Friend mentions. People said that I was a fifth columnist, that I was not fit to sit in the British Parliament and that I was not properly British. That is exactly what my hon. Friend is talking about, and we need to fight against it.

[Chi Onwurah]

I agree with my hon. Friend that such lies must be called out whenever they are heard.

As my Jewish constituents have made clear, the terror of the holocaust does not fade for our Jewish communities. Incidents that may seem marginal and inconsequential to some are experienced from the point of view of survivors and their children and grandchildren as harbingers of horrors too awful to think about. Fear echoes down the generations while many of us go about our business feeling safe and secure. Recent studies have revealed the degree to which the first antisemitic legislation passed by the Nazi party was modelled on the racist laws of the American south and of British colonies such as South Africa. Remembrance must mean eternal vigilance against the politics of hatred and dehumanisation and the recognition that they do not make their first appearance as mass murder, but as a climate of religious or racial intolerance and political expediency.

Nowhere is that recognition more important than in discussions about the middle east. Those of us who support the cause of Palestinian rights must recognise that we see antisemitic ideas surface time and again in debates over the Israeli-Palestinian conflict. There must be zero tolerance of antisemitism in such debates, just as there must be space for an honest appraisal of the actual issues and behaviours of those involved in the conflict.

There must be zero tolerance within the Labour party, too. I am sad to report that Jewish constituents have told me that they no longer feel welcome in our party. I have written to and met both our leader and our general secretary to discuss the matter, and I have also met representatives of Jewish groups in Newcastle and nationally. I have been assured that the party is developing policies and allocating appropriate resources that will provide demonstrable evidence that we are committed to rooting out antisemitism. Antisemitism cases will be heard more quickly and the backlog cleared, and anyone using antisemitic tropes must be called out and subject to appropriate sanction.

However, we also need appropriate educational resources to help Members understand the history of antisemitism and antisemitic tropes, ensuring that we can express a wide range of views, particularly on Palestine and Israel, without implying any antisemitic views, either directly or indirectly. I have been assured that that will be developed and delivered soon.

In the party, in Newcastle and in the country, the holocaust must be remembered in words and in deeds.

Local Government Funding Settlement

Chi Onwurah Excerpts

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

I congratulate Stoke-on-Trent and commend my hon. Friend on all he does to champion his community. The business rates retention pilots will certainly assist the 15 councils selected, but we want to see that benefit being rolled out to all councils. That is why this will be tested further, as we look to 2020 and beyond, so that other communities can see that positive impact.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

By 2022, Newcastle City Council will have had to save £327 million due to slashed Government funding and rising demand. We see that in the increased litter on our streets, the reduced library opening hours, reduced support for the most vulnerable among us and the terrible choices that Newcastle councillors and council officials have to make. The council is currently consulting on yet further cuts. Will the Secretary of State respond to that consultation and explain why slashed services should be further slashed, now that austerity is supposedly over?

[James Brokenshire]

First, I hope that the hon. Lady’s voice gets better quickly in time for Christmas. There will be a 75% business rates retention pilot in Newcastle in 2019-20, which will release additional funds to meet some of the pressures that she highlighted, and core spending power will increase further. We must also look at the devolution deals and all the support and investment being provided. I hope she sees the positive things in this statement that will address a number of the points that she highlighted.

Appointment of Sir Roger Scruton

Chi Onwurah Excerpts

Monday 12th November 2018 Commons Chamber

[James Brokenshire]

I profoundly do. The point is that, if we are to gain that consent and the support of the public on ensuring that we have communities that are built to last and that reflect a sense of community at their heart, it is right that we challenge and have this debate. I think that Sir Roger Scruton is uniquely placed to support that.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Mr Speaker, you will not be surprised to hear that I disagree profoundly with many of the views of Sir Roger Scruton, which seem to be designed to bring the bigotry of the 19th century into the 21st. The Secretary of State implied that Sir Roger Scruton has been consistently taken out of context. Does he think that for a professional and public intellectual, as he describes him, to be so generally misrepresented shows a lack of professionalism and expertise, or does he think that offering Sir Roger Scruton a platform on the built environment of the communities of our country is in some way not connected with his views on race, multiculturalism, homophobia, sexual orientation and Islamophobia?

[James Brokenshire]

We have the right to speak our minds in this House, as the hon. Lady has done, and my respect for the hon. Member for Denton and Reddish, even if I may disagree with his views, ensures that this place is the place that it is. We live in a world where people communicate in 140 characters. We are talking about someone who delivers long lectures and has written extensively in many different books and some controversial articles. It is important to see that context. Sir Roger has accepted in the past that he has got it wrong—for example, he acknowledged in 2010 that he had changed his position on homophobia and was wrong. It is part of that public debate that leading intellectuals are entitled to explore ideas and change their minds where necessary.

Oral Answers to Questions

Chi Onwurah Excerpts

Monday 5th November 2018 Commons Chamber

[Mr Speaker]

I want to get through two more questions very quickly.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

13. What recent steps he has taken to ensure that changes to existing leaseholds are more (a) accessible and (b) affordable.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

It is right that developers who sold leaseholds with onerous terms should support their customers to amend them. Some developers have introduced assistance schemes, which is welcome, but these must go further and faster. We are meeting developers shortly to discuss progress, and we will take further action as necessary.

[Chi Onwurah]

The St Mary Magdalene and Holy Jesus Trust in my constituency is a charity that is refusing to allow its leaseholders to extend their leases, in a wholly uncharitable way. The Secretary of State talks about roundtables and reviews, but when will my constituents get some sort of justice and the ability to extend their leases?

[Mrs Wheeler]

The hon. Lady has a particular problem with a particular trust. The good news is that, following last year’s discussions, the trust has now made an offer to some of her constituents to enable them to purchase their freeholds. I am aware that her constituents have found the freehold purchase price of the leasehold properties to be prohibitive. We are also aware that different formulas are in use to establish the cost of enfranchisement. The Government are looking to standardise enfranchisement processes and have asked the Law Commission to review current arrangements, including the valuation methodology. This will support existing leaseholders by making buying the freehold or extending the leasehold easier, faster and cheaper.

East Coast Main Line Investment

Chi Onwurah Excerpts

Wednesday 17th October 2018 Westminster Hall

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I beg to move,

That this House has considered East Coast Mainline investment.

It is a pleasure to serve under your chairmanship, Mr Owen, not least because I have attempted to secure a debate on this issue for some time in my capacity as chair of the all-party parliamentary group on the east coast main line. I also represent one of the constituencies served by this vital route.

I am grateful to right hon. and hon. Members for attending this debate during an important Opposition day debate in the main Chamber on universal credit and social care funding, to which I would ordinarily want to contribute. Newcastle has been particularly hard hit by the roll-out of universal credit, for which it was a pilot area, and by the social care crisis. Sadly, the reality is that none of us can be in two places at once. I declare an interest: like many hon. Members, I use the east coast main line on a weekly basis, so I can personally testify to the pressing and increasing need for investment in the route.

I am proud of the pivotal role that Newcastle and the wider north-east have played in the development of rail travel through George Stephenson, the father of the railways, who was married at Newburn church in my constituency, and his son Robert and others, who pioneered their world-leading technology from our region through the industrial revolution. Whether it was the Stockton and Darlington railway, the Stephenson gauge, Locomotion No. 1 and the Rocket, which were both built at Stephenson’s Forth Street works in Newcastle or William Hedley’s earlier Puffing Billy, the world’s oldest surviving steam engine that ran between Wylam in Northumberland and Lemington in my constituency, the north-east’s contribution to Britain’s railways has been second to none.

That impressive history was celebrated this summer during the Great Exhibition of the North, which was held across the region and included the sadly temporary return of Stephenson’s Rocket to the region.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I thank my hon. Friend for securing the debate and for her excellent opening, which focuses on our proud history in transport and particularly in railways. As she said, it is unfortunate that Stephenson’s Rocket apparently had to return to London. Stephenson’s notebooks were recently found in York. Does she agree that there is now an excellent opportunity to bring them back to the city that she proudly celebrates?

[Catherine McKinnell]

That is off-point with regard to the east coast main line, but it is an excellent suggestion that we should pursue. I am sure that there would be a lot of support for bringing home—back to Newcastle and the north-east—more of what is rightly ours when it comes to our contribution to engineering and railway history in Britain.

--- Later in debate ---

[Catherine McKinnell]

I absolutely agree with my hon. Friend, and I have huge respect for her grasp of detail as Chair of the Select Committee on Transport. I thank her for her support in this debate. She has highlighted some of the issues specific to the north-east, whereas I have been working hard to speak for the whole east coast main line route and make the case for it as national infrastructure, but I agree with what she has said and I am grateful to her for putting on the record some stark figures that need to be addressed by the Government.

Going back to the Government’s surprise announcement of £780 million of investment, somebody considerably more cynical than me might suggest that the timing and content of that pledge was more to do with the Cabinet’s visit to the north-east that day and the pressing need to announce something north-east-friendly. Indeed, they do need more north-east-friendly announcements; my hon. Friend the Member for Nottingham South (Lilian Greenwood) has pointed out the disparity in the investment that goes into the region. That concern is possibly backed up by the fact that it took several days for the Department for Transport to confirm what the funding would be used for. However, as was eventually confirmed in writing following the Minister’s attendance at the all-party parliamentary group on the east coast main line, it is intended that this control period 6 investment will include power supply upgrades between Doncaster and Edinburgh, a new junction near Peterborough, a new platform at Stevenage, and track layout improvements at King’s Cross—improvements that are mainly paid for by necessary maintenance and renewal expenditure.

Let me be clear: any investment in the east coast main line is welcome, given the scale and nature of the improvements required. However, the Minister will also know that Network Rail published its east coast main line route study covering the section from London to Berwick-upon-Tweed, which contained a long list of potential investment projects or investment opportunities that would deliver much-needed improvements to the east coast main line. Most have been known about for some time and have been mooted repeatedly, including some that have not been delivered in Network Rail’s control period 5, 2014 to 2019. The Consortium of East Coast Main Line Authorities estimates that the route requires at least £3 billion of investment to fulfil Network Rail’s proposals, but there is no indication of where the remainder of the funding to pay for these projects will come from, either via Government funding or third-party investment. Meanwhile, Network Rail’s renewal and maintenance fund for control period 6, 2019 to 2024, is barely enough to stand still, replacing items on a like-for-like basis.

I acknowledge that, as is made clear in Network Rail’s route study, “recent rail industry developments” have seen a shift away from the historical model of railway infrastructure improvements being provided and funded centrally, via national Governments and Network Rail raising capital against its asset base. However, as a reclassified publicly funded body, Network Rail can longer finance enhancements through financial markets. A welcome devolution of funding and decision making on transport infrastructure means that more local, regional or sub-national bodies—such as LEPs, combined authorities, and Transport for the North—have been tasked with defining the railway needs in their area and applying for Government funding or attracting third-party investment. However, the Network Rail east coast main line route study states:

“Overall, this means that improvements in rail infrastructure should not be seen as an automatic pipeline of upgrades awaiting delivery; rather, they are choices that may or may not be taken forward depending on whether they meet the needs of rail users, provide a value for money investment, and are affordable.”

I understand that could mean the Treasury taking final decisions on individual rail improvements in England on a case-by-case basis. I fear that does not bode well for the comprehensive, coherent programme of infrastructure improvements that I and others believe is required for the east coast main line route. To that end, it would be helpful to hear what the Minister’s plans are for working with the Scottish Government to secure that investment right across the line.

[Chi Onwurah]

I thank my hon. Friend for being generous with her time, and for the points that she is making. Specifically regarding the way in which the Treasury assesses opportunities for investment in north-east infrastructure, we have heard how discriminated against that region has historically been. Will the Minister look at the definition under which that assessment is made, taking into account the economic value of infrastructure investment in the north-east region and how it contributes to delivering a less unequal society?

[Catherine McKinnell]

Again, I echo my hon. Friend’s comments, and I thank her for putting on record some of the specific requirements of the north-east as part of the wider east coast main line infrastructure demands that we are making.

Oral Answers to Questions

Chi Onwurah Excerpts

Monday 23rd July 2018 Commons Chamber

[Kit Malthouse]

I have absolutely no doubt that the National Trust’s shifting its position on modern ground rent was due to the pressure exerted and the highlighting of the issue by many Members, not least my right hon. Friend himself, on behalf of his constituents. As I have said, I should be more than happy to meet representatives of that august body and discuss its property policies generally.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

8. What assessment he has made of the viability of local authority funding for the maintenance of acceptable levels of public services.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

Our local government finance settlement will increase resources for local government over the next two years because we recognise the pressures on local services, but it is right for decisions about funding priorities for individual local services to be made by local area representatives.

[Chi Onwurah]

The Cabinet has followed your example by visiting Newcastle today, Mr Speaker, but rather than giving its members the welcome that they deserve, I came here to hear the Minister’s totally out-of-touch answer. Central Government funding for Newcastle has halved since 2010. The number of looked-after children has increased by a fifth since 2014, and the number of vulnerable adults has risen by the same proportion in the last year alone. Given a funding gap of £300 million in 2020 just to keep services running, how does the Minister think Newcastle can deliver good public services?

[Rishi Sunak]

As we have discussed before, the hon. Lady’s local authority actually receives more funding per household than the average local authority similar to hers. Today of all days, I was hoping that she would welcome the meeting of the Cabinet in her area, the extra £1 billion for the northern powerhouse, and the continuing success of the Great Exhibition of the North, chaired admirably by my constituent Sir Gary Verity. In her area, the sun is shining, the visitors are pouring in, and the local economy is booming. It is a good time to be in the north-east, and that is being delivered by a Conservative Government.