Budget Resolutions
Dan Jarvis Excerpts(3 years ago)
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Dan Jarvis (Barnsley Central) (Lab)
I declare an interest, as a metro Mayor.
The UK is more centralised than most other developed countries. In the north, we feel that acutely. Regional inequality afflicts every aspect of our lives: trains—slower; wages—lower; life expectancy—shorter. The Government were elected, in part, on a promise to rebalance the scales by levelling up the north. It is an ambition that I share and have long championed. Frustratingly, however, two years on we still have no working definition of levelling up, no measurable goals, and no sign of the transformative level of investment that the north needs and deserves. Invariably, no strategy leads to no success. I am aware that a White Paper is forthcoming, perhaps by Christmas—we will see—but it cannot come a moment too soon and it needs to be developed in close co-operation with leaders across the north.
I am proud to say that in South Yorkshire, we are not waiting to follow, but are already leading the way. We have established an ownership hub to support worker buy-outs and co-ops. We are working to confront the climate emergency, with a plan to reach net zero carbon emissions, and we are developing a pioneering strategy to reduce flooding. Through our innovative working win programme, we have supported thousands of people with physical and mental health conditions. The same is happening across the north in West Yorkshire, Greater Manchester, North of Tyne and the Liverpool city region: Labour Mayors drawing on the industrial heritage of the past, the dedicated workforce of the present, and the cutting-edge innovation for the future, to transform our communities for the better. With the right backing, we can unlock the huge potential in the north and level up our country, but to do so in full we need the Government to play their full part.
Last week was the moment for the Government to show that they were serious about levelling up the north, turning slogans into substance and delivering policies that will make a difference to our people. Instead, the Chancellor barely mentioned the north. Nothing announced last week will reduce regional inequality, and levelling up remains under-resourced, undefined and over-centralised. Take transport, for example, which is a key part of the levelling-up agenda. South Yorkshire, like everywhere, deserves a world-class public transport network that is fit for the 21st century. Although I welcome the money that was provided under the city region transport settlement, where was the clarity on Northern Powerhouse Rail and HS2—projects of huge scale that are now under a cloud of uncertainty?
The same applies to our levelling-up fund bid—the Government’s flagship programme, which regrettably delivers less money than its predecessor, the local growth fund. Our mayoral combined authority proposal is a great example of how to rebalance the scales. The bid, which I personally submitted and has the backing of all our local leaders, targets investment in our bus services. It is not a massive amount of money, but it will help us to drive towards net zero—an objective to which levelling up must be inextricably linked. On Wednesday, we received word from the Government: a hugely disappointing, “No.” I urge them to take another look at our bid during the next round.
Those are just two of the many examples of how last week’s Budget and spending review failed the north. It is only with real investment, a real plan and real control that we will tackle regional inequality. Only then can we end this harmful, needless and unhealthy divide in our country. The message from the north is simple: give us the tools and we will do the job.
Levelling Up
Dan Jarvis Excerpts(3 years, 8 months ago)
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Eddie Hughes
Well, we can argue about that—it is still seven. When we make very good use of the £125,000 that will be given to Wrexham County Borough Council to help it work up its bid for the levelling up fund, I have no doubt that the enthusiasm for voting Conservative will spread to the remaining seats in north Wales.
Dan Jarvis (Barnsley Central) (Lab) [V]
If the Government’s formula says that the Chancellor’s Richmondshire constituency is in greater need of investment than Barnsley, the Government’s formula is wrong. But it is not too late to do the right thing, so will the Minister commit to urgently reviewing how money is to be allocated from the levelling up fund?
Eddie Hughes
We have no intention of reviewing how the money is allocated. The criteria were determined by civil servants. There was no political influence, so we are still comfortable with the basis on which funds are being allocated. However, the hon. Gentleman will probably not be short of cash. Like you, Mr Deputy Speaker, I am a keen reader of The Yorkshire Post and I understand that it is the hon. Gentleman’s intention to borrow £500 million to spend in the local region, so that area, for one, will not be short of money.
Oral Answers to Questions
Dan Jarvis Excerpts(3 years, 9 months ago)
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Robert Jenrick
My hon. Friend represents one of the most beautiful constituencies in the country, one with a very rich heritage, and I understand why he would want to see that preserved and enhanced, as do we. The developer community should now be engaging with our national model design code and his own local councils should now bring forward their own version of that. My Department stands ready, with our new place unit, to support local councils to produce high-quality, compelling and locally popular design codes. We will be piloting that over the course of the year—perhaps his local council might like to be one of the pilot areas.
Dan Jarvis (Barnsley Central) (Lab)
Fay Jones (Brecon and Radnorshire) (Con)
The Minister for Regional Growth and Local Government (Luke Hall)
This month, the local government finance settlement passed through this House, delivering a 4.6% rise in core spending power to councils across the country. For England, we are committed to putting funding where there is relative need, irrespective of the location, which is why councils in the most deprived areas of the country receive 16% more in grant funding than the least deprived areas.
Dan Jarvis [V]
Here in South Yorkshire, we used European Union and local growth funds to support our economy, attract investment and create good jobs. Now that they have come to an end, can the Minister guarantee that their replacements—the shared prosperity and levelling-up funds—will give local leaders the flexibility and capacity to invest that money to rebuild our communities?
Luke Hall
I thank the hon. Gentleman for his question and for the constructive way in which he continues to work with the Government. The levelling-up fund is worth £4 billion. It will be invested in local infrastructure that will have a real and visible impact on our communities, whether that be a new bypass, an upgraded railway station, museums, more libraries, or better high streets and town centres. The fund will be allocated competitively and we will be publishing a prospectus for it soon. We are also providing £220 million of additional UK funding next year to support communities to pilot programmes and new approaches in preparation for the UK shared prosperity fund. We will publish the prospectus for this funding soon. I assure him that this funding will be at the heart of the levelling-up agenda, benefiting communities across the country. As always, I will be happy to discuss the detail with him when those prospectuses are published.
Oral Answers to Questions
Dan Jarvis Excerpts(4 years ago)
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Luke Hall
I thank my hon. Friend. It was a pleasure to meet him recently to discuss this and other matters in Buckinghamshire. I would be delighted to have that meeting. As I say, I think our officials should meet to discuss the proposal, and then let us get together with the council very soon to take it further.
Dan Jarvis (Barnsley Central) (Lab)
The Minister for Regional Growth and Local Government (Luke Hall)
Since the start of the pandemic, we have given over £7.2 billion directly to councils. Sheffield city region has received £127 million in un-ringfenced covid emergency funding, on top of an increase in core spending power of over £70 million this year, and it is set to benefit further from the latest round of support for the November lockdown. Households in the most deprived areas in England receive nearly three times as much spending per home as those in the least deprived areas.
Dan Jarvis [V]
I thank the Minister for that response. He will know that since 2015, South Yorkshire has received £363 million from the local growth fund—money that has created 15,000 jobs, funded the revitalisation of town centres and supported investment from companies such as Boeing and McLaren. What plans does his Department have to extend this crucial pipeline of funding beyond next March, so that Mayors and local leaders can rebuild their economies?
Luke Hall
I thank the hon Gentleman for his question, and for working so constructively with Government throughout this pandemic. He is right to highlight the importance of local growth funding to places and people up and down this country. The Budget this year did confirm up to £387 million in 2021-22 to provide certainty for local areas, which allows them to continue with existing priority local growth fund projects that require funding past this financial year. We will work closely with LEPs and Mayors to understand the changing need of local economies, and will look at how this funding can be used alongside other resources to support local economic recovery efforts. Further funding decisions will be announced in due course at the spending review.
Oral Answers to Questions
Dan Jarvis Excerpts(4 years, 1 month ago)
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Robert Jenrick
My hon. Friend will be pleased to hear that we published the safer urban centres and green spaces guidance to provide exactly that kind of information to business owners and councils. We have supported that with a £50 million reopening high streets safely fund and, more recently, with £60 million for the police and local councils to provide enforcement and compliance. This comes on top of our cuts to the taxes of local businesses through the business rates holiday, the 5% cut in VAT, and the reforms that we have taken through to help small businesses, whether that is on use class orders, outdoor dining and markets, or creating a simpler route through the planning system for regeneration—all measures designed to support businesses and protect jobs, and all opposed by the Labour party.
Dan Jarvis (Barnsley Central) (Lab)
The Minister for Regional Growth and Local Government (Luke Hall)
The Government intend to bring forward the English devolution and local recovery White Paper in due course, setting out how we will partner with places across the UK to build a sustainable economic recovery. I was very pleased to see that the parliamentary order to implement the Sheffield city region deal in law was made in July, and I congratulate the hon. Gentleman on all his work and support in finally reaching that significant milestone in his work so far as Mayor.
Dan Jarvis [V]
I am grateful to the Minister for his response. He will know that devolution has the power to transform people’s lives and local economies, but as a Mayor, it too often feels like I do not yet have the powers and resources to make transformative changes. The White Paper represents a golden opportunity to reset the dial, so does he agree that to properly empower local and regional leaders, the Government should commit to place-based, multi-year, flexible budgets so that we can better deliver for our communities?
Luke Hall
I thank the hon. Gentleman for his question. I was delighted to meet him and nine colleagues from across the country to discuss their representations about the upcoming White Paper. We are genuinely pleased with the combined authority Mayors and the progress that they are making, but of course, we recognise that there is more to do. We will publish the White Paper in due course.
Robert Jenrick
The decision to which my hon. Friend refers is now being challenged in court, so it would not be appropriate for me to comment while those proceedings are live. None the less, he makes an extremely important point that people across the country want to see infrastructure flowing with new housing, whether that be hospitals, GP surgeries or schools. I would highlight that, in our planning reforms, our new infrastructure levy will drive more investment in infrastructure—both social infrastructure and physical infrastructure—in the years to come.
Dan Jarvis (Barnsley Central) (Lab) [V]
The Minister for Regional Growth and Local Government (Luke Hall)
The hon. Gentleman is absolutely right. Of course we are in regular contact with the M9 group of Mayors about the covid-19 response and indeed, as I have said, we have meetings with him and colleagues tomorrow with the Secretary of State. Metro Mayors do occasionally attend Cobra meetings where it is appropriate. In relation to the pandemic, it is particularly important that we recognise the crucial working relationship with Public Health England and the fact that we are led by the chief medical officer. I completely agree with the hon. Gentleman that the importance of close working with metro Mayors up and down the country is absolutely vital.
Draft Barnsley, Doncaster, Rotherham and Sheffield Combined Authority (Functions and Amendment) Order 2020
Dan Jarvis Excerpts(4 years, 4 months ago)
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Dan Jarvis (Barnsley Central) (Lab)
It is a great pleasure, Ms Ghani, to serve under your chairship. I thank both the Minister and the shadow Minister for their opening remarks. First, I should formally declare a massive interest. As well as having the great privilege to be the Member of Parliament for Barnsley Central, I am also the Mayor of the Sheffield city region, in which capacity I chair the Barnsley, Doncaster, Rotherham and Sheffield combined authority—it is a catchy name—to which the order relates. It is genuinely a little surreal to be here today, but primarily it is a great pleasure to see that this devolution deal has finally become a reality.
As I think the Minister could perhaps have alluded to very politely in his remarks, the road to get to this point has been long and hard. We were the only devolved administration without a full deal in place from the beginning and getting one has taken an enormous effort; I have the scars to prove it. None the less, we have achieved a lot, even without the full tools of this devolution order.
I am grateful to the Minister for his support, and by working with him we have already been able to secure £166 million from the Transforming Cities Fund; we have initiated an innovative Working Win employment programme, which has helped more than 6,000 people with mental and physical health challenges to find work and stay in it; and we have allocated more than £100 million of local growth funding for culture, transport, urban regeneration and flood prevention. This month, again by working with the Minister, we have secured an additional £81 million for infrastructure and housing.
Although those numbers matter—and are, of course, very significant—I think that the greatest achievement is the agreement of a deal and the drawing together of our local authorities and partners through the combined authority, in a way that provides us with the framework to co-operate and drive our region forward for the benefit of all our residents.
Almost 90% of people in South Yorkshire said they wanted to see more devolution, and now that we have it I am absolutely determined that we will seize the opportunity that it presents. Devolution will unlock our local knowledge and our networks; it will bring power closer to the people. It will also help us to reshape both our economy and our society in a way that reflects our values and priorities.
Devolution will help us towards the three great transformations that we need to see: an economic transformation to create not just a bigger economy but a better one, which is more innovative and of higher value; a green transformation to decarbonise our economy urgently, improve our environment and revolutionise our public transport; and a transformation of well-being and inclusion, raising our quality of life, widening opportunity and reducing inequality. It will also help as we struggle, like other parts of the country, not just for recovery from covid but for a renewal that advances the goal of a stronger, greener and fairer South Yorkshire.
We must, however, be clear that, even with this deal, South Yorkshire cannot fulfil these ambitions on its own; devolution will only work if we work together. To fulfil our potential, we must continue to build a culture of co-operation within our combined authority. There are great opportunities for us to work across all of Yorkshire, especially through the Yorkshire Leaders Board, and we need to work across the wider north as a whole, especially on environmental issues and on renewing our transport infrastructure.
We also have to work at the national level with the Government here in Westminster. Perhaps the most important aspect is that we need the Government to work with us to make our vision of transformation a reality. In the short term, we need the Government’s support for the covid renewal action plan that we have developed as a roadmap back from the ravages of the covid pandemic, and in the longer term, we need the Government to fulfil their pledges to level up the country. We must work together to use the public investment that we are able to draw down to boost the economy and finally end the wasting of our potential, benefiting not only South Yorkshire but the whole of the country.
So today marks a very important milestone, but it is not our final destination. Devolution is a process and not an event, and it is not about local and regional government competing against each other for funding pots administered in Whitehall. To realise its promise, devolution must be about the meaningful transfer of power and resources away from Westminster.
The UK is, to our detriment, one of the most centralised developed nations on the planet. We urgently need a deep national conversation on how to restructure and renew our democracy; without it, there is a risk that our country may not survive the currents of division already tearing at it. Today, however, we can and should give thanks for having come this far. I am grateful to everyone who has played their part.
I take this opportunity to place on record my thanks to the Minister for his support and guidance both in his current role and in his previous ministerial role. I also thank all the leaders of our local authorities and pay tribute and offer my profound thanks to the civil servants at the Ministry of Housing, Communities and Local Government and those in other Departments, as well as all my team in Sheffield and Barnsley, who have all made this happen.
We should all look forward to the things that we are now able to do which we could not do before, but we should not pause too long before we continue down this road. The greater part of its promise still lies ahead.
Lifting the Lockdown: Workplace Safety
Dan Jarvis Excerpts(4 years, 6 months ago)
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Paul Scully
My hon. Friend is right to take the specific example of construction sites. Clearly, there are different types of site. Battersea power station, which I visited just before the restrictions were introduced, is a 40-acre site, so social distancing is easier there than on a far smaller, constrained site. That is why we are bringing together industry expertise, union expertise and business representatives to ensure we have guidance that fits as many different workplaces as possible, backed up by Public Health England and the Health and Safety Executive.
Dan Jarvis (Barnsley Central) (Lab) [V]
Analysis from the TUC shows that workplace inspections have fallen by 70% and prosecutions by 82% over the past 10 years. We all want to get Britain back to work, so what guarantees can the Minister give that local government and the Health and Safety Executive will have the resources they need to ensure safe working practices?
Paul Scully
We will continue to talk to the Health and Safety Executive about the resources it needs. Local authorities have been working incredibly hard on local health issues and, in my experience—I have spoken to many of them—on providing financial support. That is why the Chancellor has been giving financial support, with a second round of £1.6 billion to support their functions. We will continue to review any support that we need to give.
EU Structural Funds: Least Developed Regions
Dan Jarvis Excerpts(5 years, 4 months ago)
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Dan Jarvis (Barnsley Central) (Lab)
It is a pleasure to serve under your chairmanship, Ms McDonagh. I congratulate my hon. Friend the Member for Sheffield Central (Paul Blomfield) on securing this important debate. I am pleased to see Members here from all parties and from every corner of the United Kingdom, especially from communities in our least developed regions, such as those in South Yorkshire, where I am proud to serve as Mayor and MP. Such communities are among the hardest hit by austerity, by stalled economic growth, and by the failure of successive Governments to address widening regional inequalities.
The stark truth is that, from 2020 onwards, funding allocated to regions by the EU will come to an end, and 2021 marks the end of the Government’s local growth fund programme. Taken together, those funds have been the glue holding together many of our communities. What replaces those funds must replace them on the basis of what would have been received had the referendum result been different. The creation of a shared prosperity fund provides a vital opportunity to do things differently. To heal the divisions in our country and to turn the dial in those least developed regions, we must think and do differently.
The UK has one of the most centralised political systems in the world, with the inevitable consequence that some of the decisions taken by Westminster and Whitehall, however well-intentioned, do not reflect the needs or opportunities of local areas. Those living in the UK’s least developed regions are feeling the impact of the equality gap, which grows ever wider. I am hugely positive about our collective ability in the north of England to make real progress, provided that we have the right powers underpinned by the right resources. My hon. Friend the Member for Redcar (Anna Turley) mentioned the Power Up The North campaign, and increasingly there seems to be a growing recognition that the answers to the many challenges that we face do not lie in Westminster or Whitehall.
In the final minute that I have available to me, I will rattle through the four principles that I have set out for the shared prosperity fund.
Dan Jarvis
I will not; I have very little time.
First, the annual budget for the shared prosperity fund should be no less in real terms than both the EU and local growth funding streams that it replaces. Secondly, there should be no competitive bidding element. Thirdly, the fund must be fully devolved to the areas that have in place robust, democratically accountable governance models. Finally, the funding must be stretched over multiple years, beyond the vagaries of spending reviews and parliamentary cycles.
If we want to create a country that works for everybody, let us take the opportunity to be bold, and let us make sure that the shared prosperity fund does what it says on the tin and enables all of our communities to share and prosper in our country’s economic growth.
Shared Prosperity Fund
Dan Jarvis Excerpts(5 years, 6 months ago)
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Dan Jarvis (Barnsley Central) (Lab)
I beg to move,
That this House has considered the UK shared prosperity fund.
It is a pleasure to serve under your chairmanship, Sir David. I am pleased to see so many colleagues present to debate an issue that will affect all corners of the United Kingdom and all our communities.
There has been considerable discussion and debate, especially within the Welsh, Scottish and Northern Ireland devolved Administrations, about the shared prosperity fund. Many of us have raised it formally with Ministers in written and oral questions, meetings and correspondence with the Government over the past year. However, it is right that today we take the opportunity to lead a national debate that seeks to heal the divisions in our country—divisions that were laid bare by Brexit but whose seeds were sown long before. Today is an opportunity to look at an important issue through the eyes of our communities, rather than through the prism of party politics.
The Government must respond to three key challenges: to accept that they cannot leave local areas facing major financial uncertainty, to signal that they trust devolved Administrations, mayoral combined authorities and local authorities to know their communities best, and to commit to a clear timetable for action. I speak not only as the Member for Barnsley Central, but as elected Mayor of the Sheffield city region—a unique position that gives me a unique perspective.
Mr Clive Betts (Sheffield South East) (Lab)
I congratulate my hon. Friend on securing this important debate; I apologise that before too long I will have to leave it to chair a meeting. Is it not disappointing that, despite the promise to consult on the shared prosperity fund by the end of last year, we still do not know its terms or the amounts involved? Secondly, should the Government not make a simple promise that no area will be worse off if we leave the EU than if we had stayed in?
Dan Jarvis
I agree. I will make those points later in my speech.
I have seen at first hand what local areas can do when they come together to drive economic growth, but also how they can be limited and constrained by the powers and resources available to them. European or Government funding can often come with limitations that inhibit creative thinking, making it difficult to deliver significant structural changes.
Mr Jim Cunningham (Coventry South) (Lab)
I congratulate my hon. Friend on securing this debate. When I was leader of Coventry City Council a long time ago, we badly needed regional aid, which at that time came from Europe. One thing that investors asked was what our skills, transport systems and so forth were like. If we could not answer those questions, sometimes we did not get the aid, and as a consequence we lobbied for regional aid for a couple of years. It is very important that we get some guarantees out of the Government, because whether we happen to live in Wales, Scotland or the west midlands, we need real answers. If we do not get them, investment will fall, costing us jobs. This is a very serious situation; I cannot stress that enough.
Dan Jarvis
My hon. Friend speaks with great authority on these matters. He has put his finger on the nub of the issue, which is that decisions that will have an impact on local communities are best made by those communities themselves. Through the devolution agenda, the Government have a very exciting opportunity to devolve not just decision making, but the powers and resources required to deliver those decisions.
I was expressing frustration about the criteria that are sometimes applied to pots of funding. Central Government funding in particular can often be short-term or pit places against one another. Sadly, at times it can be driven by political short-termism, by pork barrel politics or by who shouts loudest and longest. Under such circumstances, it is hard to plan for the future, and it can be more difficult to be strategic.
From 2020 onwards, the funding allocated to regions from the European Union will come to an end. From 2021, so will the funding allocated through the local growth fund programme. Together, the programmes have totalled billions of pounds of investment. The European funding element in the current programme alone has been worth €207 million for the Sheffield city region, €796 million for Yorkshire and the Humber, €513 million for Northern Ireland, €895 million for Scotland and €2.413 billion for Wales.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
In the highlands, the European structural funds were awarded on properly assessed need for roads, harbours and suchlike. That funding was fantastic in halting continuing depopulation, that great curse of the highlands. If we get this wrong—if we do not get something proper in place of the funding—I fear that that ghost will haunt the highlands once again.
Jo Stevens (Cardiff Central) (Lab)
My hon. Friend mentioned the timing for the funding running out and the possibility of taking a strategic view of funding for the future. Does he agree that the delay in publishing the consultation makes it even more difficult for people throughout the UK to think about strategic funding for the future and delivering projects for our communities?
Albert Owen (Ynys Môn) (Lab)
My hon. Friend rightly noted that in previous schemes that we have had in this country, assisted areas were pitted against one another. The European structural funds were just that—they were structural. They allowed us to invest in infrastructure, but also, importantly, in social projects. That dimension must not be lost.
Dan Jarvis
My hon. Friend makes an important point, which I will address in just a moment.
If we remained in the European Union, research produced by the Conference of Peripheral Maritime Regions suggests that UK regions would receive €13 billion under the future EU cohesion programme.
Sarah Newton (Truro and Falmouth) (Con)
I congratulate the hon. Gentleman on securing this debate. He is making a powerful case, but as one of three Cornish MPs present, I have to note that he omitted Cornwall from his list of regions of the UK that have benefited significantly from regional growth funds and from European funds. It is important that we have this debate and that we encourage the Government to publish the consultation, but it is also important that we should work right now, as we are doing in Cornwall, on how to spend regional growth funds to the benefit of our communities. We do not have to wait for the consultation to come out; we can all work with our local authorities and businesses to shape the future funding arrangements. Will the hon. Gentleman encourage colleagues in this Chamber to work together to ensure that we learn from the lessons of the past and have funds that work for our areas?
Dan Jarvis
I hope very much that this debate will provide an opportunity for hon. Members to make points that they have sought to make for some time. On Cornwall specifically, if the hon. Lady bears with me for no more than a few seconds, she will, I hope, be pleased with what I am about to say.
I was saying that certain areas with a specific interest in the work of the Conference of Peripheral Maritime Regions were due to get an even greater proportional increase: South Yorkshire, Tees Valley and Durham, Lincolnshire, southern Scotland, parts of outer London, Cornwall and the Isles of Scilly, west Wales and the valleys.
Dan Jarvis
And Devon—I am grateful for that intervention.
Let me move back from Devon and Cornwall to South Yorkshire for just a moment. In South Yorkshire, we would have seen an increase from €117 per head to more than €500 per head. It is therefore my view that any future shared prosperity fund needs to replace the funds on the basis of what would have been received, had the referendum result been different.
Wayne David (Caerphilly) (Lab)
On the question of how funds are allocated, does my hon. Friend agree that if there is any combination of needs-based formulae and competition, allocation on the basis of need should overwhelmingly be the most important factor to be taken into consideration?
Dan Jarvis
I do agree. My hon. Friend makes a very important point, and I will say more about that later.
When it comes to the funding criteria for the shared prosperity fund, it is important to understand that resources previously received support some of the most vulnerable in our society, through projects delivered by charities from Mencap and the Salvation Army through to local and voluntary community organisations, such as South Yorkshire Housing and Sheffield Futures, in my patch—organisations rooted in our communities, born out of need and surviving in some cases by the skin of their teeth. The resources also support investment in high-profile, multimillion-pound research and innovation schemes. They unlock town and city regeneration. They provide business support and finance in urban and rural areas. They deliver sustainable development projects that support the low-carbon agenda. Taken together, these local growth and European funds have been the glue that holds our communities together.
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)
I will be brief, as I know many others want to speak. Will the hon. Gentleman expand on that? Many of the areas he listed as the biggest beneficiaries of European structural funds were also areas that voted to leave the European Union. I was surprised to hear him say that we should have the same system, had the referendum result been different. Will he say why he thinks that people in many of those areas voted in such high numbers to leave?
Dan Jarvis
I do not think that that is an unreasonable question. We can have a debate if we like, although perhaps on another occasion, about why it was that people decided they wanted to leave the European Union. For many, it was because they felt that their local areas were not receiving the benefits that other, more affluent parts of the country were. This is a very good opportunity for the Government to seek to heal some of those divisions and invest in some of the communities that feel left behind. The United Kingdom shared prosperity fund must be designed and delivered so as to deliver on the aspirations of the communities such as the one that I am proud to represent. Those funds have previously done an incredibly important job in providing the glue that holds some of our communities together, creating new jobs, and in supporting disadvantaged and hard-to-reach communities that have often been neglected.
Mike Amesbury (Weaver Vale) (Lab)
The Employment Related Services Association has highlighted the very point that my hon. Friend makes—that these initiatives and organisations support people furthest away from the labour market. I used to be a Connexions manager and would draw down some of that funding to help young people who were not in education, employment or training. Does my hon. Friend agree that 2020 is just around the corner and people are getting desperate to plan and deliver those programmes?
Dan Jarvis
I do, and furthermore there is a real opportunity to place these resources in town halls and in mayoral combined authorities—in people who have their own democratic mandate to take decisions and allocate the resources in the most effective and efficient way.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
I commend my hon. Friend on securing this debate. He will know that, apart from Cornwall, the north-east and the Tees Valley are the areas that have received the most funding from the European regional development fund and social fund. He will also know that by the Government’s own economic analysis, those areas are also set to suffer most from the impact of any Brexit outcome, however delivered. Is it not incumbent upon the Government to take this opportunity not only to match up to the promises that have been made on that funding, regardless of our departure from the European Union, but to do that in a fair and properly targeted way, so that it gets to the areas that need it most—the areas suffering from poverty and low living standards—regardless of our patchwork of local devolution?
Dan Jarvis
My hon. Friend is exactly right; she makes a powerful point. This is a big opportunity for this Government and the next Government to invest money in our regional economies. I said at the outset that I hoped we would see this debate through the eyes of our communities and what is in their best interest, not through the prism of party politics. There will be a range of different views about Brexit and what it may or may not mean for our country, but I hope there is a unanimity of view on wanting to do the best for our country, whatever happens. We want to invest money wisely and effectively in the regions and nations of our country. If we are serious about doing that, the shared prosperity fund is an incredibly important element and ingredient in it, but we have to design it in the right way. We have to get the criteria right. We have to make sure that the formula in place is agreed by the regions and nations. That is why we need to get on with the consultation and make some progress.
Caroline Flint (Don Valley) (Lab)
It seems to me that, for one reason or another, moneys that have come from Europe—or that we have put in and that have come back to us from Europe—and moneys that a number of Governments have allocated have not dealt with the inequity in our country between north and south or between cities and towns. Does my hon. Friend agree that, whatever else happens in the future, unless there is an offer for our smaller towns and communities, no fund will match the expectations of those communities, or the demoralisation that they feel at how they have been treated by national Government and, for that matter, city government?
Dan Jarvis
As always, my right hon. Friend makes an important point. I hope that what is starting to emerge as a consensus in this place is that whatever happens over the next few weeks, months and years, business as usual and the way we have done our politics previously are not going to cut it. This is an opportunity to look at how we invest in our regional communities and to empower decision making at a regional and local level. That is not a silver bullet solution—it will not necessarily address all the challenges that we face—but it has to be part of the solution to many of the concerns that our constituents have.
My right hon. Friend provokes me to make another point. This country has one of the most centralised systems of public finance, policy making and political control of all the OECD nations. The Guardian—I am not sure whether the Minister is a regular reader—reported that local government in this country controls only 1.6% of GDP. That figure is 6% in France, 11% in Germany and 16% in Sweden, yet local government delivers around a quarter of all public services. The inevitable consequence is that decisions, however well meaning, do not always adequately reflect the needs or opportunities of local areas.
The issue is no more acute than in the way that successive Governments have decided where to prioritise investment. I have made this point many times before: when it comes to spending on transport infrastructure, the gap between more affluent areas, such as London and the south-east of England, and the north is particularly stark. Despite the work of the Minister and those in Government supporting the northern powerhouse, it is still the case that, since the northern powerhouse was introduced by the Government in 2014, public transport investment per person has been three times higher in London than in Yorkshire and the Humber.
It is no surprise that that is the case. However herculean the efforts of individual Ministers, the rules of engagement are stacked against us. The inequalities are built into the criteria of the Treasury Green Book model, which favours infrastructure development in more affluent areas, meeting existing demand rather than stimulating latent potential. In the words of my friend and neighbour, the Mayor of Greater Manchester, Andy Burnham—himself a former Chief Secretary to the Treasury—the Government have
“a tendency to shovel more and more into the areas that are already doing well.”
We see that in transport investment and other Government programmes.
Scott Mann (North Cornwall) (Con)
I am grateful to the hon. Gentleman for securing this debate. Does he acknowledge that it is not just the north that suffers this problem? Some areas in the south-west have exactly the same difficulty. Does he agree that the Treasury should have other mechanisms, rather than looking at just the economic benefits? Perhaps it could look at the social benefits of putting money into areas such as his and mine.
Dan Jarvis
I absolutely agree, and I always try to choose my words very carefully. Not for one moment will Labour try to pit the north against the south, or different parts of the country against each other. I absolutely accept that there are different needs in the remoter regions of our United Kingdom. The hon. Gentleman is absolutely right to make the point that there are areas of deprivation in the south, south-west and south-east, and indeed in London, just as there are in the north. That is why it is so important that we take this opportunity to get the design of this fund right, so that every corner of the country will be best placed to benefit from it.
I was about to make the point that in 1960 the UK had the highest levels of productivity in Europe. Now, though, a French worker produces, on average, more by the end of Thursday than a worker in the UK does by the end of the week. In the UK, the gap between the richest and poorest regions is around 150%, which is almost twice as large as in France and three quarters larger than in Germany. Such gaps in wealth distribution and productivity are neither normal nor inevitable, but for some of our most deprived regions they are increasing. The consequences of public policies and investment decisions entrench the economic and social divide. If we fix that, the prize will be huge.
Looking at the north of England, Transport for the North’s “Northern Powerhouse Independent Economic Review” suggests that we could add £97 billion to our economy by 2025, which is over and above business-as-usual levels. Over the same period, we could add 850,000 jobs, which is also over and above business-as-usual levels. We can do that by focusing on what we are good at. In South Yorkshire, the same qualities that fired the world’s first industrial revolution now power our 21st-century advanced manufacturing and engineering story. Companies such as Rolls-Royce, Boeing and McLaren have chosen our region because we are in the vanguard of developing new materials and solutions to real-life manufacturing and engineering problems. This must be the start of our economic transformation, not the end. To go further, we must have the tools and resources.
Anne Marie Morris
Many valuable points have been made, but the points the hon. Gentleman is now making refer to prosperity. One of his colleagues asked earlier whether we are looking at meeting need or at driving prosperity and productivity—those two things almost conflict. My concern is about how much of this fund will be delivered through local enterprise partnerships, which will be looking competitively at growth, and how much will be delivered through local government, which will effectively be looking much more at need. Is the hon. Gentleman also concerned about ensuring that both issues are addressed? This concerns not just the areas where we will drive productivity; we need to get other areas up to at least a basic level, so that the need is at least average.
Dan Jarvis
The hon. Lady asks the right questions, and the point of the debate is precisely to flush out these kinds of question. That is precisely why we need to have this consultation, so that collectively we can have that debate and put in place an arrangement—a formula or criteria—that serves our country in the way that I hope we would all want it to be served.
I was making some observations about the challenges that specifically relate to poor connectivity, issues regarding skills, and productivity. Owing to devolution, and hopefully to the design of this fund, I am hugely positive about our ability at a regional and local level to address some of these challenges. Change is afoot, and there is growing recognition that the answers to these issues do not lie just in Whitehall or Westminster. The recent election of the North of Tyne Mayor—I know the Minister is quite enthusiastic about that recent election—means there are nine metro Mayors across England. They represent 20.7 million people, which is 37% of the population of England.
We are adding our voice to that of our friends and colleagues in devolved Administrations in Scotland, Northern Ireland and Wales in calling for greater freedoms and resources to help us do our jobs. This is a powerful voice and one that, to be fair, I believe the Government listen to. The Government have made place central to their industrial strategy, recognising that no one size fits all, that each and every part of the UK has a different set of opportunities, and that different approaches are required to develop them.
Over the coming months, many of us will be working with the Government to develop our local industrial strategies—joint agreements that set out how central Government and local government will work together to grow our economy. With the creation of powerful sub-national transport bodies such as Transport for the North, we increasingly have the capacity, capability and voice to effect real change. Taken together, these new models of governance, the growing recognition of the importance of place, and an acceptance that the status quo cannot be allowed to persist suggest a brighter future.
That brings me back to the shared prosperity fund, which has to be part of the solution. With some frustration, I say that despite many interventions in the House— through written questions and correspondence with the Department—and despite many promises that consultation would take place, we do not yet have clarity on how much funding will be available, what activities will be eligible for support or who will take the decisions about how the money is spent. We know that the new fund will be a central pillar of the Chancellor’s spending review, and that Departments will be working on the development of the fund. On that basis, we have not been sitting idly by, waiting to be asked. Indeed, I commend the work of the all-party parliamentary group on post-Brexit funding, and the analysis and contributions of colleagues in local and regional government who have been addressing these issues.
I have set out my four guiding principles on which I think the fund should be developed, which are as follows. First, the annual budget for the UK’s shared prosperity fund should be no less in real terms than both the EU and local growth funding streams it replaces. It must guarantee that regions will not be worse off because of Brexit, in the funding available for regional development beyond 2020. Moreover, that should be a baseline rather than a cap.
Secondly, there should be no competitive bidding element. Instead, an open and transparent process must be put in place that strikes a balance between targeting areas of need and rebalancing our economy, and supporting economies that have the greatest potential to grow.
Thirdly, the fund must be fully devolved to those areas that have in place robust, democratically accountable governance models, including devolved Administrations, combined authorities and mayoralties. It must be up to local areas how best to invest this money, be it on skills, helping the most vulnerable and disadvantaged, infrastructure investment, employment or support and education. Fourthly, the funding must be stretched over multiple years, beyond the vagaries of spending reviews and parliamentary cycles.
I want to take this opportunity to implore the Government to untie the hands of our local areas—to trust that we know our communities and can develop, appraise and deliver projects on time, on budget and in line with local need and opportunity. The year-by-year drip-feed of central Government funding for local economic growth has to end. The imposition of priorities and projects has to end. The competing against, rather than collaborating with, our partners for funding has to end.
The shared prosperity fund will be a litmus test for this Government on their commitment to devolution; it will be the proof of the pudding. The central question is whether we all have the courage and the conviction to let go of powers and resources that for too long have sat in Westminster and Whitehall. If we want to tackle the scourge of regional inequalities and create a country that works for all, let us be bold. Let us ensure that the shared prosperity fund does what it says on the tin: enable all our communities to share in this country’s economic growth, and prosper.
Several hon. Members rose—
Dan Jarvis
I am grateful for the opportunity to debate this important issue, and I thank everyone who contributed; we heard from people representing every corner of the United Kingdom. The debate teased out some big and important, but in some cases still unanswered, questions. There is an urgent requirement for clarity about the design of the fund—how it will work and how it will be administered. There is also a need to guarantee that, at the very least, our communities will not be worse off. That is the right thing to do, not least because, at this very difficult time for our country, if we want it to be both successful and united, we need to ensure that we get rid of the systemic inequalities between our regions and our nations. If we are serious about doing that, the shared prosperity fund will have a very important role to play. Let us get on with it and work out how we are going to do it.
Question put and agreed to.
Resolved,
That this House has considered the UK shared prosperity fund.
Local Government Funding
Dan Jarvis Excerpts(5 years, 8 months ago)
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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?
Mrs Anne Main (in the Chair)
We have already waited for the customary 15 minutes. The proposer of the motion and both Front Benchers are here, so we will carry on.
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.
Neil Coyle
In cash terms, Southwark has lost 50% of Government funding since 2010 and faces another £8.6 million funding cut this year. Does my hon. Friend agree that it is deceitful of the Prime Minister to claim that austerity is over?
Dan Jarvis
My hon. Friend raises an incredibly important point. Following eight years of austerity and some £7 billion of cuts, neither the autumn Budget nor the more recent spring statement offered any comfort to our local authorities. The Local Government Association has projected that local councils will face a funding gap of £7.8 billion by 2025, and they still face a cut of £1.3 billion next year. Last autumn’s Budget offer of £650 million for the coming year is nowhere near enough even to close the funding gap for social care, let alone to address the shortfall in other services. Such concerns cannot be addressed by the piecemeal redistribution of income that we have seen from the Government.
Central and local government need to work together on the fundamental reform of the funding of our community services, and I believe that devolution offers the opportunity to do that. When we get it right, it offers a fairer and more democratic means of governing and delivering, where working people have a greater say in the choices that affect their lives and a greater stake in the services on which they rely. We can seek radical, transformative change to our communities only if those communities can control their destinies themselves. That means that the Government need to listen to and invest in those communities and the leaders they have elected to represent them.
We need to abandon an economic and political model in which the only hope is that wealth will trickle down and prosperity will ripple out. We must replace it with a fully empowered three-tier system of government—local, regional and national—giving each tier the powers and resources that it needs to make a difference in the communities for which it is responsible. Only if we do that correctly will we put the right people at the heart of decision making, end the status quo in which so many people have become disenfranchised, and allow communities to overcome the challenges they face, and thrive. Greater funding and stronger powers for local authorities should be the first step of that journey.