(10 months, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered Morecambe Town Council precepts.
This debate is of huge current importance to my constituents. An immense parish council tax rise has been inflicted on them. Last year, it was reported to have risen by 231%—this is a parish council—which is believed to be the highest such increase in Britain last year, bearing in mind that the base precept for this town council increased by 66% in 2021-22 and 50% in 2022-23. I think I got that right.
Last year, the town’s parish council voted to increase the precept for Morecambe residents, which saw the town council’s share of council tax rise by an unprecedented 231%. The council raised £1 million to set up a community fund in the hope that that £1 million would be ringfenced to buy a parcel of land on the site of Frontierland, a former funfair. The land is already owned by the taxpayer. It is owned by Lancaster City Council, which purchased it for a reported £3 million. The land is not for sale, so it is highly unlikely in any event that it would be undersold. This is double taxation, plain and simple.
It has also been reported that Morecambe Town Council has already spent £48,000 on engaging architects for plans on the site, which is not for sale. That has also now been lost. The town council made a shocking U-turn in July 2023 after my last speech on this issue in mid-April last year. It decided to withdraw its expression of interest on the eyesore—the site of the former wild west-style theme park Frontierland—but the £1 million fund remains in its coffers.
The town council did not carry out a referendum; it carried out an afternoon stall survey on the local prom. It cannot be verified whether any local people were present. The following is from the town council: some 65 respondents, the highest bracket, were willing to give £100, followed by 55 respondents at £50, and 35 respondents at £10. Some 100 respondents were willing to give amounts that ranged between £2 and, in one case, £15,000, which was obviously someone having a laugh at the ludicrous proposals. That is 255 people, if the figure is even true and if they were local people.
I therefore decided to write to every household in the Morecambe Town Council area to ask whether they supported the increase and whether they were ever aware that the increase took place. The rate of return was staggering. Over a quarter of the people of Morecambe responded—26.8%, some 3,919 people—which shows my constituents’ strength of feeling on this issue. I asked people whether they were aware of the rise before their bill hit them: 3% of respondents said yes, and 97% said no.
This is just a snapshot of what they said:
“The whole situation appears ludicrous to me, and I hope you will do all in your power to reverse what has happened”;
“I support regeneration and development, but the timing of the increase, the amount and the lack of notification has taken the decision out of our hands”;
“I cannot believe they took money without consulting first”;
“What right do they have to make that decision on my behalf? It is hard enough paying Council Tax as a single pensioner as it is, and I hope that this extra money we have paid will be reimbursed”;
“I have no idea of how this has happened. Yes, I want my money back thank you”;
“It is terrible. No other provider can increase charges by such unopposed.”
That is just a snapshot of some of the photocopies I have of that survey.
I have been asking questions in Parliament about whether the 231% tax rise through the council tax precept last year for residents of Morecambe was lawful. Originally, councillors could be surcharged under the Audit Commission Act 1998 if the rise was deemed unlawful, but that was repealed, and responsibility for councillors’ misconduct now lies with the standards board and the adjudication panel. That seems toothless to me.
Last year, the town council was taken to court for non-payment of its auditor, and that was upheld—the auditor won. No one knows how much the legal bill cost taxpayers in Morecambe. Indeed, the town council recently released a statement saying that
“during the past two years the council has received challenges to its end of year audit”,
which caused
“substantial delays to the conclusion of the audit, and significantly increased the workload of officers, resulting in a backlog of day-to-day work”.
In plain English, their ineptitude led to more spending.
Last night, my local radio station released an update on the town council’s proposed figures, so I have only had the past few hours to scrutinise them, but they are woefully damning. The town council is now proposing to shift the £1 million community action fund into council reserves, which I believe it will use to borrow against increasing council tax further, using £150,000 towards cutting the council tax precept. The town council suggests a 33% reduction in the council tax precept, compared with last year—in effect giving back what appears to be one third of a massive increase in Morecambe taxpayers’ 2023-24 bills.
To be perfectly clear, I have no political interest in Morecambe Town Council. The Conservatives do not field candidates to it because it has historically been mired in controversy and accusations of financial impropriety. I do not receive a bill from the town council because thankfully I live one street outside the catchment area. I very rarely get involved in local politics, but I cannot be quiet on this issue.
To be fair, the Morecambe Bay Independents party, which made great gains in Morecambe town’s parish council elections last May, sweeping out some of the decision makers responsible for this embarrassing debacle, proposed giving back the money. The advice it received from Lancaster City Council, which collects the council tax, is that there is no mechanism for refunding the money, and an alternative mechanism must be sought. The biggest issue is whether the council can give the money back. I am not sure that it can, but if the Minister can signal whether any mechanisms are available to town councils to refund council tax, I would be very grateful, as would my constituents.
The Labour party, which chairs the town council, says that party policy is to freeze council tax. Well, examples begin at home. It has continually spanked the taxpayers of Morecambe with annual increases in council tax, including last year’s 231% tax rise and another massive rise this year. That contradicts the national council tax policy. What will Labour members say to justify that to my community when knocking on doors in Morecambe? Bear in mind that the council raises money directly from the local taxpayer, and there is no Government involvement, so the old chestnut of Government cuts will simply not wash.
The Liberal Democrats also co-chair the council. The leader of the town council last year wrote an open letter to me, which was naturally released to the press before I received it, stating:
“The Town Council street rangers along with dedicated volunteers of Morecambe Liberal Democrats, have now taken over the weeding service (funded by Lancashire County Council for the next 5 years) for the whole District”—
not just Morecambe. So the taxpayers of Morecambe are now subsidising the weeding service of the whole of Lancaster. That is hundreds of square miles outside Morecambe. It gets £63,295.67 from the county, but has spent £80,000 on equipment and £30,680 on casual staff—a loss of £48,385, or thereabouts.
The letter also challenges me:
“So I ask you Mr Morris, do you expect our street rangers, weeding service and events organisers”—
which I have found out cost £225,000—
“to provide their services for free”?
I expect value for money, and so does my community. Perhaps the Minister can ask for a list of who works at Morecambe Town Council in those and other categories, and whether they are politically aligned. Nobody seems to know, but if they are, this is potentially political parties being funded by the taxpayer, which is a potential electoral offence.
Having a special community action fund of £1 million last year, as I explained, on top of the precept itself is a clear breach of the precept rules. In plain speak, it is only supposed to be raised against a current service capacity of service provided. In this case, that has been expanded, with empire building on top of the running costs, which have come to a large amount, and a million quid on top of that. I challenge the town council to demonstrate to my community how it provides value for money when Morecambe now pays for the weeding service for literally hundreds of square miles outside the parameters of Morecambe.
Let us look at the town council’s budget: £1,000,195.70 was carried forward from last year. The general reserve for 2024-25 is £850,195.70, and £150,000 was used to bring down the precept by the amount of the proposed new council tax bill. Here is the real issue: the predicted expenditure is over £1 million—it is £1,164,680. Those are mind-blowing amounts. That is what they are spending, but the budgeted income is £63,295—and 67p, to be pedantic. The council tax precept is £951,384.33 from the taxpayer. That is a loss of £150,003—mind-blowing. It equates to a loss of—I have lost track of all the figures. It is just completely off the Richter scale. In reality, the council is giving back £150,000 to the taxpayer, lowering the council tax bill and losing an extra £150,000. That is not value for money. It serves only those who run to serve themselves on the council—not the taxpayer.
I am sorry if I seem a bit flustered, Sir Robert, but you can imagine that, with the figures I have had to go through, it has been extremely challenging, not only for me but for my community. I ask the Minister whether we can, ideally, freeze the council tax at the rate from before the 2023-24 hike—which was very high at that time—so that the whole £1 million can be paid back to Morecambe residents. I urge the town council to stop empire building at the expense of Morecambe residents. I had assurances of a meeting to discuss the matter with the Prime Minister a few months ago, and I will be petitioning Parliament with nearly 4,000 responses and concerns from my constituents very soon.
I want to know what the Government are going to do to stop my community being ripped off, and to stop Morecambe Town Council’s behaviour of hiking parish council tax, which is testing the system to destruction. Are there any plans to cap the rate at which parish councils can increase their precept without requiring a referendum? If Morecambe Town Council had carried out a referendum, it would not have been able to do this in the first place. Given that the whole community is against it, why did the council do it? I have also called for an investigation into parish councils by the external auditor, PKF Littlejohn. However, I fear it has no teeth to act—so what are the Government going to do to help with this matter?
There has been considerable media interest in this issue from the national and local media. We in this House must act in any capacity we have to stop this excuse for raising public funding from my community in Morecambe, seemingly to no benefit whatsoever, except to serve those who run the council. I apologise for being emotive about this, but it is a very serious issue for my community.
It is a pleasure to serve under your chairmanship, Sir Robert. I will not begin my speech in the usual way, because it was announced in the last quarter of an hour or so that my very long-standing friend, the Member for Rochdale, Sir Tony Lloyd, has passed away. As, I think, the first Minister on his feet following that news, on behalf of the Government I want to extend to his very many friends, to his colleagues across the House and, of course, to his family our very deepest sympathy and condolences on Sir Tony's final loss of the battle against a cancer that dominated his life for the last 12 months.
I thank my hon. Friend the Member for Morecambe and Lunesdale (David Morris) for raising this important issue and for the way in which he has done it—with his customary thoughtfulness and attention to detail. Given that I have known him for eight and a half years, I would expect nothing less, and we heard it again this afternoon.
The backdrop to the debate is the increase in all the costs that families up and down the land face as a result of inflationary and other pressures, which have come to be known collectively as cost of living pressures. I am always keen to remind local government of its role in delivering important services to communities. The total burden of council tax—regardless of whether that includes a town or parish council precept, or is set by a district council—is used to pay for social care, police and so on, all of which comes to a considerable sum for very many people. Councils should always take into account its broader impact.
My hon. Friend has set out a scene in his town of Morecambe that certainly causes me concern. In broad terms, he raises several issues with regard to the overall governance of town and parish councils. We are very hot on governance with regard to this place, and very hot on governance issues when it comes to upper-tier authorities, boroughs and districts; historically, because town and parish councillors do not receive remuneration for their service, they are slightly off the grid. I have been considering the situation with representative bodies of the town and parish councils. He has given me food for thought, and I shall continue my deliberations.
My hon. Friend also raises a question to which I am afraid I do not have the answer, but I shall seek it back at the Department and, if he will allow me, write to him about the use of a precept for works outside the jurisdiction that is raising the precept as part of the council tax bill. I shall check on that and seek advice. Also, I do not believe that when a precept is raised by the considerable level that my hon. Friend has told the House about this afternoon, it can be used, by sleight of hand, to—I do not use this term in a pejorative sense—fill the coffers of a higher tax authority. The precept is the precept, as I understand it, and that precept belongs to the raising body, which in this case is Morecambe Town Council. I do not think that it can be transferred—that a vast sum of money raised for a specific reason in a one-off increase could suddenly be transposed into Lancaster City Council or Lancashire County Council’s budgets. I do not think that can be done, but I will check on that and revert on that point to my hon. Friend.
My hon. Friend has set out an issue of concern, but I would like to take this opportunity to acknowledge the work of the almost 9,000 town and parish councils across England, and the work that councillors do free, gratis and for nothing to improve the quality of life and wellbeing of their communities and to help create and maintain places where people are proud to live. They are often the unsung heroes of our local government family. They are close to the communities they serve, they know them and they play a vital role.
As my hon. Friend will be aware, council tax is set by local authorities, including town and parish councils, which will decide what level of council tax they need to raise, taking into account their individual circumstances. As he will know, the Government set referendum principles each year for principal authorities, to ensure that where they set excessive increases, they must be approved by local voters through a referendum, the rules of which are clearly set out. Those referendum principles strike a balance between giving councils flexibility to raise council tax to meet spending pressures without overburdening council tax payers.
For 2024-25, the Government have consulted on continuing our approach of not applying referendum principles to town and parish councils. That carve-out comes with a clear expectation that town and parish councils will take all available steps to mitigate the need for council tax increases, and that the Government will see clear evidence of that restraint. We would also expect authorities to take the resources that they already have available into account before setting increases.
None of that precludes a town or parish council raising money for a specific purpose. I can remember having served as a parish councillor in Oxfordshire. We had a one-off increase of some considerable percentage points to buy a parcel of land that had become available in order to extend a graveyard in the village. It was a one-off chance to do it and we grasped it. We consulted the village community, they saw the benefit of it, and that is what we did. We are not seeking to preclude or clamp down on initiatives by town and parish councils to help make their towns or parishes better.
The point that my hon. Friend has raised, as I understand the mathematics of it, is that last year Morecambe Town Council set a precept increase of £105.14 on the band D bill, which represents a fairly significant rise of 231% on the previous year. That was for the purpose of buying an asset, which my hon. Friend has advised was not on the market; whether it was on the market or not, however, the council has pulled away from that and decided not to buy it.
The question, therefore, has to be: what happens to the precept that the good burghers or Morecambe have paid, which is now sitting, at least notionally, on the balance sheet of Morecambe Town Council? Well, my hunch would be that, if it is not able to pay it back—I think that trying to work out each household’s bill and whether the person who paid the precept is still in the house, as they may have died or moved, could be extremely onerous administratively and possibly counterproductive —it does not take huge genius to think that one could bank that money and explain that the town council precept would be frozen to the point of zero, until that exceptional nest egg accrued from that large 231% increase had been spent.
The precept was raised last year by a certain amount, but then there was the special amount as well; in other words, there were two precepts. That is what happened, and the £1 million precept has just been set to one side and carried forward this year. There was an increase in the precept itself, which is very hard to explain because it has all been mixed together, but there was a separate precept for this £1 million to buy the land that was not for sale.
I am grateful to my hon. Friend for that clarification. I think, given the fact that there now appears to have been two precept streams, one of which could be described as an extraordinary precept for a specific purpose, I would certainly be suggesting to Morecambe Town Council that the precept there—the element of the precept for the 2024-25 council tax year—be frozen to zero, because clearly it has significant resources still in the coffers. I will also tell my hon. Friend that I shall be writing to the town clerk of Morecambe Town Council to get a much clearer picture of the history of this activity and of what the council is proposing to do with what anybody would describe as a fairly large slug of money sitting in the accounts which was raised for a specific purpose that has become obsolete because the opportunity to purchase has been changed.
This case speaks to an important point about transparency and accountability. It is so important to ensure that all of our councils, irrespective of the level they are operating at, are accountable—principally and primarily accountable to their electorates and the communities they serve. There is no greater need for transparency than in the use of income raised from council tax. Town and parish councils must comply with the requirements of transparency legislation, just like the principal authorities. I highlight to my hon. Friend the local government transparency code 2015, which requires all local authorities with annual income or expenditure exceeding £200,000 to publish all payments exceeding £500 in value and all payments made via a government procurement card. It is also mandatory for parish councils with sufficient turnover to meet the requirements of the code. Of course, where there are concerns, we would recommend that the authority is contacted directly in the first instance. I know my hon. Friend has bent over backwards to try to secure some clarity regarding the numbers at hand.
We support, champion and applaud the work that town and parish councils do up and down the land. When setting council tax and precept, we expect the sector to show restraint and to be able to justify increases to those they expect to pay it. We reserve the right to introduce referenda principles for them should they breach that restraint. Our 2016 consultation on the topic made that position clear, as does our stipulation in the recent consultation on the provisional settlement. The Government and I will keep this under review, and action will be taken if necessary.
We believe that our current approach is the right one, but we are always open to change when or if the canon of evidence persuades us that that is the right thing to do. My hon. Friend the Member for Morecambe and Lunesdale has, if I may put it in these terms, shone a light on a rather cloudy story—one that requires further investigation. As I say, I shall revert to my hon. Friend on the two technical points. I shall contact the clerk of the town council with some degree of urgency—certainly before the precepts are set and the council tax bills are issued—to try to finally get to the bottom of this issue, which has clearly concerned my hon. Friend to the extent that he has raised this with the Prime Minister and also here this afternoon. It is also clearly causing much distress and concern to the many residents who have the great luck to live in Morecambe, but who are not so lucky to pay such an enormous town council precept.
Question put and agreed to.
(1 year, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered parish and town council precepts.
This debate is about Morecambe Town Council and the huge parish council tax rise that it has inflicted on my constituents in Morecambe. The rise—reportedly of anywhere between 231% and 237%—is believed to be the highest such increase in Britain, bearing in mind that the base precept for this town council increased by 66% last year and by 50% in 2021-22.
I will not mention any political party or politician, as there are local elections, but I will name responsible officers. I have no political interest in Morecambe Town Council, because the Conservatives do not field candidates for Morecambe Town Council, as it has historically been mired in controversy and accusations of financial impropriety. I do not receive a bill from the town council because, thankfully, I live one street out of the catchment area. I very rarely, if ever, get involved in local politics, but I cannot not get involved in this issue of double taxation and needless spending that has inflicted a cost of living crisis on approximately 17,500 homes in my constituency, which equates to approximately 33,000 people.
As expected, my inbox has been flooded with messages from angry constituents who are paying an extra £100-plus —in some cases, even more—but have no idea for why or for what. I have forensically researched this issue, which is so complex and at times perplexing that I will try to articulate the main problems as best I can. All sources for my research—Companies House, the Charities Commission, media reports and Morecambe Town Council itself—are in the public domain, on the internet. For the Minister, I have printed the 2023-24 Morecambe Town Council budget, before, I fear, it is taken offline after this debate. It looks as if it has been written and amended copious times, because the more I read it the more contradictory information I find.
The main increase and the published reason in the Morecambe Town Council budget are set out on page 26, which includes the proposal for the vote; this concurs with the first report of the town council wanting to buy a large area on Morecambe seafront, known as Frontierland, for its own purposes. I have spoken to several town councillors—some have whistleblown to me and some have already resigned—and they all tell me the same story: they say that they voted on this budget without being given the full papers in adequate time.
There was a question in the full council meeting of the larger Lancaster City Council in February that the print for the billings in regard to the budget was not there, and it was asked why the Morecambe Town Council precept was not listed. It was believed that the precept would stay the same and there was silence from the city council members who were also town councillors. They evidently did not know about this huge increase—or just did not care.
I was told that the recent town council budget was voted on in a rush, and the controversial motion that has caused all the huge increases is set out in the box at the bottom of page 26, and states:
“Proposed earmarked reserve to be collected to safeguard the former Frontierland site for community use”.
The main controversy is that there have been copious reports in the press that Morecambe Town Council wants to buy the Frontierland area but it is already owned by the taxpayer. The city council, which owns it, states that it is not for sale and already has guidelines in place for development interests. Some town councillors who are also city councillors should already know that and make their declaration clear in their respective meetings.
The reports started to mutate, depending on what each political group on the town council had in mind for this piece of land. The proposals range from a park to a housing project to—the latest proposal—a community centre. It would presumably be a very large building, given the acreage of the land. All of these proposals are for land that is owned by the taxpayer and is not for sale. There have also been reports in the media of begging letters to raise capital to buy this land, but I cannot confirm that they are true because I have not seen one. As I have said, the land is already owned by Morecambe taxpayers as it was bought by the city council for £3 million. It is therefore unlikely ever to be sold for £1 million.
There has been an admission in the press that the town council has engaged architects, at the cost of £48,000, to design a community centre on Frontierland—a site that the town council has no ownership of, and it has not even sought or been given outline planning permission. It is needless spending and blatant double taxation. According to the town council clerk Luke Trevaskis in the local press, the council has also created a “£1 million community action fund” to respond to the call from residents for a community project to be delivered on the former Frontierland site.
I understand from section 32(2)(a) of the Local Government Finance Act 1992 that revenues can be raised only from
“the expenditure which the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year”.
A parish council cannot create a second reserve fund, but only a reserves fund up to a reasonable safeguarding of the running costs of the parish council. Interestingly, in the town council budget, the clerk has advised 25% to 100% could be claimed, which is extreme. That would be cheap in comparison to the actual increase for 2023-24 of up to 237%.
According to the town council budget, the action fund is a result of a public consultation with 1,600 responses. On page 14 of the same document, the town council published that there were 5,638 responses, not 1,600. Interestingly, on page 13, there is a detailed breakdown of 430 residents and the amounts they are willing to give. On the same page, it is claimed that there were 1,554 respondents. Sixty-five respondents—the highest bracket—were willing to give £100, followed by 55 respondents at £50, and 35 at £10. Some 100 respondents ranged from £2 to £15,000, which was obviously a resident having a laugh at the ludicrous proposals.
A total consultation percentage of 1.3%—or 430 people giving various answers—is not justification to charge my 33,000 constituents in Morecambe a £1 million bill for a vanity project that will never get built. What will become of that money? The answer can be found on page 14, paragraph 5.7 of the town council budget, which says that
“the Council must consider the level of capital receipt required to attract additional grant funding.”
In plain English: the town council wants to have a separate £1 million from the reserves to borrow against, based on the consent of 1.3% of residents. The taxpayer will inevitably be asked for more and more money over the ensuing years. That cannot be right.
Indeed, page 15, paragraph 6.9 says:
“Since 2012-13, the Government has had the power to require parish and town councils to hold a referendum if their precept increases by more than a set threshold. Thresholds are imposed on principal authorities every year. The Government has decided not to require parish and town councils to hold a referendum for 2022-23, however this policy has only been set for a period of one year and it is not known if the Government will impose such restrictions in future years.”
That is a giveaway. To me, it means “get as much out of the local taxpayers as quick as you can, while you can.”
There are irrelevant figures released by the town council, including the costs of the precept historically up to ’22-23, accompanied with volumes of national examples and comparisons that are not like for like. Most notably, there are scant figures demonstrated for the council tax bands across Morecambe for ’22-23. As an example, a band D dwelling for ’22-23 was £44.11. A band B for ’23-24 now costs £130.75. That alone is more than double the cost for a band D dwelling last year. I know, as I have seen a copy of an actual bill given to me by a constituent. Most houses are in band C, which is not demonstrated in the document. The costs are extortionate and this situation is causing a cost of living crisis for my constituents.
Morecambe Town Council has gone from £200,000 expenditure historically to nearly £2 million in the two years since the clerk, Mr Luke Trevaskis, arrived. By law, any amount raised over 200,000 must follow the local government transparency code 2015, which is a requirement of any parish council with gross annual income or expenditure exceeding £200,000. I have been told by a former town councillor that Mr Trevaskis said he would work part time for £16.50 per hour for 20 hours, or do a really good job for £26.50 per hour for 25 hours. That was supposedly to educate the town council. I have been told by former town councillors that he has since drafted his own contract, and his part-time salary is now nearly £60,000. He has had to be named by law as he earns over £50,000. It is clearly a part-time position, contrary to claims that it is full time, as Mr Luke Trevaskis is a serial town parish clerk: he recently claimed that he is town parish clerk to five other parish councils.
I cannot find a 2015 transparency code on the Morecambe Town Council website. I can find a link to the definition of a transparency code, but no detail. I have searched the budget for 2023-24, and the council’s accounts paint an alarming picture. The salaries have nearly doubled in 12 months, going from £185,000 to £360,000 for 10 staff, including two apprentices. That is empire building by officers who have seemingly replicated the larger district council for that small area of Morecambe only.
By law, any officer paid over £50,000 must be named. There are two officers earning that much: the chief officer and the community and events officer. The income from events for 2023-24 is estimated to be £30,000, so why is that officer being paid over £50,000? A £25,000 donation has been given to community causes, but two of the charities listed on the Charity Commission website that Mr Trevaskis claims the council gives to are a food bank that had a surplus of nearly £196,000 in the year ending 2021, and More Music, which had £111,000 retained—presumably in the bank—in the year ending 2022. I cannot see the donation in its accounts, but that is presumably because the year is not specified. It is good to give, but not taxpayers’ money to rich causes. Both charities have reserves higher than the town council, which has reserves of £105,000 for 2022-23. What is going on here?
There are three new officers earning less than £50,000, who are unnamed. There are administration and projects officers, a public realm supervisor, and six public realm operatives, including two apprentices—for what services? This is a parish council and its wages bill is now a whopping £360,000. It costs nearly as much as Lancaster City Council to the taxpayers in that small area. This is high double taxation. There are no names given for any of those titles, and it is rumoured that they are linked to some councillors—in short, nepotism. I cannot confirm that. However, the leader of the main political party on the town council wrote to me criticising my questioning as I was trying to hold this exorbitant spending to account. He naturally gave his open letter to the press and the local radio station, Beyond Radio, before I received it, but it was heavily redacted and he omitted the following important passages:
“The Town Council’s Street Rangers along with dedicated volunteers from the Morecambe”—
I redact his political party—
“have taken over the weeding service (funded by Lancashire County Council for the next 5 years)…Do you expect our Street rangers, weeding service and events organisers to provide their services for free?”
I expect the town council not to give jobs to cronies of political parties, and the taxpayer not to be charged again through the town council’s exorbitant precept for funding that is already in place.
I analysed the statement. Page 9 of the Morecambe Town Council budget shows £63,295 from the Conservative county council per year for weeding. There is an environment committee costing the town council £150,000, with no specification, yet on page 8, under the same category, it states that litter collection and backstreet projects cost £130,000 in 2022-23. Again, it is double taxation. The events officer costs over £50,000. There is an events budget of £100,000, which brings in a projected income of £30,000—a loss of £120,000. That is very telling.
There have at times been accusations of impropriety, and problems with financial matters involving the town council go back nearly a decade. Perhaps the Department can find out who those 10 public officers are—we already know two—and whether they have links to other councillors or officers.
It would not be the first time that there have been accusations of impropriety. There have been reports in the press about office holders in the town council and about self-appointed funding in the past. I alluded to financial misappropriation earlier. There was a report 18 months ago in the Lancaster Guardian with the headline “Independent audit finds fundamental weaknesses and failings within Morecambe Town Council”—I have attached a link for the Minister’s perusal. It was found, after an audit by Internal Audit Yorkshire, that there were serious problems with funds used for payments from different accounts to linked suppliers. Mr Trevaskis, the town council clerk, stated in the article:
“Morecambe Town Council will be considering the matters raised in the audit report and intend to publish the report alongside a statement on October 1 2020.”
A statement was published; it was a two-page apology and an admission of irregularities due to lack of officer scrutiny. The auditor was not paid and a court date was set. Mr Trevaskis appeared at Skipton county court only a few weeks ago, with the chairperson of the town council present, for non-payment to the auditor. I was told that a Daily Mail reporter was also there. The town council defence and counterclaim was immediately thrown out by the judge. The basis of the town council defence for the non-payment was given by Mr Trevaskis, who stated that the audit was not done properly and that there were losses. The losses were not specified; however, this relates to the appointment of another auditor and external work by the watchdog PKF Littlejohn, costing the town council a further £4,359.
This case is estimated to have cost £3,500 plus extra costs, bringing this debacle to around £10,000 in costs to the Morecambe taxpayer. That response was surprising, because a public statement released from the town council and Mr Trevaskis previously concurred with this audit. In the counterclaim to Skipton County Court, he also claimed, and I quote—
Order. Before the hon. Gentleman moves on, I want to check that he is not speaking about a live court proceeding, but one that is already completed.
It is completed; I can confirm that. Thank you for your intervention, Mr Hosie, to make that clear.
In his counterclaim to Skipton county court, he claimed:
“Mr Trevaskis also sits on the National Association of Local Councils (NALC) for its local council award scheme, so has significant experience and knowledge of the requirements of auditing local authorities.”
When this court appearance was reported on Beyond Radio, covering the Morecambe and Lancaster district, he responded:
“Following a recent independent review by the National Association of Local Councils, Morecambe Town Council has also been recognised nationally for its high standards in transparency, responsible governance and exceptional community impact, becoming the first council in Lancashire to receive a quality gold award for its achievements in the last two years.”
Interestingly, there is absolutely no mention of him on the NALC website. The problem with these statements, if true, is that, if Mr Trevaskis is on the award scheme board of the National Association of Local Councils, this would not appear to be an independent gold-quality award for Morecambe Town Council.
This is not the first time that Mr Trevaskis has run a parish council where late or non-payment of bills has occurred. Indeed, his own parish council of Hale, which he ran at the time, had the bailiffs calling for non-payment. That was reported in the Liverpool Echo in August 2019, when it was said that the parish council was in chaos and financial transactions were being done on the back of event flyers.
Mr Trevaskis was also a director of a company called the Cheshire Clerk Ltd. That company has had an application to strike it off, yet it has been stopped from being struck off, as somebody made a complaint to the Companies House registrar in January 2022. He has not disclosed that as an interest as a councillor on his Halton Borough Council website. He has not submitted a confirmation certificate to carry on trading, yet it is still listed as active, presumably until whatever complaint prevented the closure of this company is resolved. That is not good or proper compliance from Morecambe’s proper officer, or chief executive officer, as he prefers to be known.
That is the fifth company over the years of which Mr Trevaskis has been a director. Most appear to have been struck off with no accounts. All companies are operating out of a residential address in Halton, near Liverpool. The house is obscured on Google Earth but, in a different setting, it is plain to see that it is a domestic residence. So why has office space increased from £6,000 to £15,000? I sincerely hope there are no expense claims by Mr Trevaskis for carrying out his duties from a spare room, as that would be subsidy to the other parish councils where he is also clerk.
The town council is now advertising to hire a financial officer, salaried at £30,000-plus. Given the recent court appearances, previous record, and any advice given that has been the cause of this debate, Morecambe Town Council should seriously question the expensive level of service and supposed expertise that Mr Trevaskis is charging the taxpayers for.
With local elections in full swing, again Mr Trevaskis emailed the town councillors—not other candidates standing—a crib sheet of excuses for why the exorbitant budget had to be inflicted on the taxpayers, apparently for their own good, because the candidates are facing fierce criticism on the doorsteps covering the town council. One excuse was to blame the Conservatives for requesting the town council to ringfence £80,000 for Morecambe lights. That is, again, incorrect and purposefully misleading.
Order. I am conscious that this is only a half-hour debate and we are now 20 minutes into it. I hope there will be sufficient time for the Minister to respond.
I am literally on the last two pages. Thank you for reminding me of the time, Mr Hosie.
The excuse was reported to me as breaking purdah, because on page 10 of the budget the amount is £20,000 ringfenced as lower match funding. The other 90%, which comes from the Conservative-led city council for the next few years, totals £425,000.
To sum up, since I became the MP 13 years ago, Morecambe and the surrounding area has prospered. We have had hundreds of millions of pounds in Government investment. Just to scratch the surface, there is the link road, sea wall defences, the prestigious Eden Project North and, very recently, more millions to finish off the majestic winter gardens. That is without going into public service upgrades, new builds and business partnerships. The area of deprivation in Morecambe has reduced by 10% since 2011, according to the Office for National Statistics. That has not been easy, and the antics of the town council put all that at risk, with its ongoing legacy of super-taxation, which is causing a cost of living crisis that is unique to my Morecambe constituents. I call for a Government taskforce to investigate this matter urgently.
Where does one start to sum up? We have what is believed to be the highest council tax rise in the country—237%. Some councillors and officers are not adhering to the Nolan principles. The budget has questionable content and fabricated figures. There is a wealth fund created out of Morecambe taxpayers to supposedly buy land that is not for sale, and architects have charged fees twice for a building that has had no planning permission, sought on land that the town council does not own and is already owned by the city council. There is an intention to borrow against this money, causing more precept rises and a further cost of living crisis for my constituents. We have a part-time clerk on over £50,000 who admits the lack of scrutiny in an audit report, goes to court, was okay and loses £10,000 for not paying the same auditor. We have wages doubling, £25,000 grants given to charities and political parties paying themselves twice from the taxpayer.
What is needed is auditor or an official regulator from the Department to ascertain whether the conduct of the town council is fit and proper and legally compliant, given the exorbitant tax rises and various excuses given to do so. Yesterday, I had a meeting with the Secretary of State for Levelling Up, Housing and Communities, who assures me that he will take advice and see what he can do in this extraordinary case. I have full faith in him to do so.
Thank you very much for your patience and time, Mr Hosie. My speech has been long winded, but it just scratches the surface of a very complicated issue.
(1 year, 8 months ago)
Commons ChamberThe hon. Lady is absolutely right; I should get on with it.
First, I thank the Secretary the State for the money for the Eden Project Morecambe; it has been gratefully received in Morecambe.
However, we have another problem that I would love to meet the Secretary of State to discuss. The town council or the parish council has raised the precept from £200,000 two years ago up to £1.5 million. Apparently, that is to buy a piece of land that is already owned by the public for a knock-down price of £1 million, when it was bought for £3 million. If that is not the case, the remaining money will go into a fund. As we both know, funds cannot be raised against what is already there, unless it is half. Will the Secretary of State meet me to discuss the issue as soon as possible?
Order. Topical questions are meant to be really short and not as long as hon. Members wish. I think we need to give the hon. Gentleman an Adjournment debate. Come on, Secretary of State.
(2 years, 9 months ago)
Commons ChamberFirst, we have set out clear missions, but the hon. Lady is absolutely right to say that we need to deliver on them. We want to be held to account for that delivery and it needs to be concrete. Secondly, she has been a great champion for community organisations and their capacity to bring people together. A new approach is outlined in the levelling-up White Paper on just that, which is inspired by her work and that of my hon. Friend the Member for Devizes (Danny Kruger), so of course I will accept.
Eden Project North gained planning permission on Monday. Five long years, but we got there in the end. I will put it bluntly: how can my right hon. Friend help Eden Project North? The sooner he helps me, the sooner I will shut up about it and the sooner I can get on to the next project in my constituency.
Eden Project North has two brilliant advocates: my hon. Friend and the Prime Minister. I know I will not be long in this job if I do not deliver for both of them.
(3 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
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I beg to move,
That this House has considered the economic benefits of Eden North for Lancashire.
It is a pleasure to serve under your chairmanship, Mr Efford. I am delighted to be here today to debate the economic benefits of the proposed Eden Project North in Morecambe, Lancashire, a subject that is very close to my heart and my constituency. Eden Project North will be built right in the centre of Morecambe, on the seafront. It is revolutionary in that respect. To use a famous quote,
“Time and tide wait for no man.”
Indeed, that is the theme of Eden Project North.
Eden has just gone through planning, and millions of pounds have already been spent on the project to bring it to this point. We have just been through the most difficult of times; while none of us have previously faced a pandemic in our lifetimes, there are examples in our recent history of the type of projects that can really change regions, and this is one of them. The project will give back hope and deliver the right sort of growth in an area that really needs it—not just for my constituency, my hometown of Morecambe, but for the wider north-west of England. I am talking about projects that can deliver on the old triple bottom line of being economically, socially and environmentally sound.
We are all painfully aware of the story of coastal community decline from the 1970s to the present day, but we have many fine seaside resorts in Britain. Coastal communities that thrived in the 19th century have been neglected for too long. According to a report by the Select Committee on Regenerating Seaside Towns and Communities, that is a fact. This surely must be the moment for our contribution to the Government’s levelling-up project and the covid recovery.
Investment in deprived areas is required to improve the region’s levels of human and social capital, research and development, and innovation. As I speak, Eden Project North has met another milestone: the submission of its planning application. It has taken millions and millions of pounds of local government spending to get to this point. This is a huge moment for Eden, the result of years of hard work from both the Eden team and its local partners in Lancashire. The investment of time, energy and money that went into preparing it is a real statement of the intent of the Eden Project, but it still needs Government funding to become a reality.
I must thank the previous Chancellor of the Exchequer on the record for giving £100,000 to kick-start the Eden Project in my area three or four years ago. We have Government intent; it is now a case of pushing forward to see where the money will come from. In my opinion, there is no better example of the Government’s levelling-up aspirations than Eden Project North. It has been demonstrated in Cornwall for more than 20 years. Eden Projects provide economic benefits for their communities that far outweigh the investment needed to build them. In Cornwall, from an initial investment of £105 million, Eden has so far contributed more than £2.2 billion to the regional economy. Through its huge and continuing popularity, local sourcing policy has been turbocharging the local economy. This will benefit not only businesses in Morecambe, but businesses in the wider north-west area.
This is testament to the shared prosperity the Eden Projects can bring to a particular region. In Lancashire, we need this jewel in the crown of the north-west to shine. This must not happen by chance; only by being clear from the beginning and investing in regional supply chains will the economic benefit happen and jobs be created, not just at Eden Project North but through many firms across the north-west.
An investment in the Eden Project is an investment in people, too. Twenty years ago, young people in Cornwall felt that they needed to leave the area to get a decent job. Now, they see huge opportunities driven by increased profile and prosperity, as well as better educational provision. Eden works with schools and further and higher education providers to inspire and educate learners of all ages. In Cornwall, they welcome 50,000 schoolchildren a year and offer degree-level courses with local university partners. Eden Project North will have a larger catchment than that, because schools can only transport children in a vehicle for up to two hours. The catchment area in Morecambe would be all the way from the Scottish borders to the midlands and across to the east coast. In Morecambe, the Morecambe bay curriculum has already been established, a bespoke, place-based education and training programme catering to students throughout the education system.
Eden Project North will welcome 1 million visitors a year and inject around £200 million a year into the north-west regional economy, supporting 1,500 quality green-collar jobs across the supply chain. Such jobs are crucial, and the education programmes that provide training for them will be vital for Government to realise their zero-carbon ambitions, and will make the north-west a leading green hub.
Like most coastal communities, Morecambe would be a beacon of regeneration in the Government’s levelling-up agenda. The pandemic has made that need only more acute. A Government investment of £70 million will make Eden Project North viable and ready to open in under three years. The economic and social benefits and impacts would be seen almost immediately. The return on investment will be swift, with economic impact due to surpass the Government’s investment within six months of opening. I know from the research that Eden has done for the planning application that my community is wholeheartedly in support of the project. Now it is time for the Government to put faith in the project, too.
The creation of Eden Project North will be epic, an all-year-round venue that can attract 1 million visitors every year to the north-west. That will have obvious employment benefits and knock-on effects for the region’s visitor economy and supply chains. Eden Project North has been designed to be a catalytic investment that will provide a step change in the economic fortunes of Morecambe and be an important economic asset to the region. That can only contribute and deliver an example of the levelling up of the north-south economic performance. There is a residential catchment of 10.5 million people in the region of the north-west of England where I am from. We are looking for £70 million. Just in that local catchment of the north-west of England, there are 427 schools. The situation will be ongoing for time immemorial, because every child in a school year will visit Eden Project North maybe once or twice a year. Eden Project North will be an asset and beacon for green initiatives and growth. In partnership with Eden, local colleges and universities are already educating for the green-collar jobs in emerging global economies. There is a memorandum of understanding for Morecambe to train future workers for Eden internationally. That is already happening
As I said at the start, time and tide wait for no man. The tides are clearly changing as we try to level up the country. I for one do not want to wait too much longer before we deliver this important project in my home town of Morecambe and for the rest of the north-west of England. Eden Project North has the potential to be the key driver of socio-economic and environmental victory in post-covid recovery for the north of England. Will the Minister confirm which Government funds have been earmarked to enable schemes to drive levelling up? Eden Project North is a true embodiment of the Government’s levelling-up, “build back better” aspirations. It is shovel-ready and can be open by 2024, driving the local economy and acting as a catalyst in the levelling-up agenda.
This is precisely the type of project that is worthy of Government commitment. The Government must be seen to be delivering investment across the north. Levelling up does not mean investing only in Manchester, Liverpool or Leeds. Will the Minister reassure the people of the north-west—specifically Morecambe—that they will not be forgotten? Eden Project North will have a huge positive impact across Lancashire, Cumbria and Yorkshire. It is within easy reach of nearly all the north’s urban centres. We have the quickest route to the coast and seaside from the M6 from anywhere in the country. That is why Eden is coming to Morecambe.
Will the Minister confirm that this is exactly the type of project that the Government wish to support in demonstrating their commitment to levelling up? I am sure the Minister will agree that this would be a unique opportunity to create a collaborative project, to reimagine the British seaside resort for the 21st century and be a model for sustainable coastal community regeneration.
My community, along with Eden, has done its job. Millions have already been spent in trying to level up Morecambe, the jewel in the crown of the north-west. It is now time for the Government to put their money where their mouth is. Give us the investment to build back better. Help us put back the sparkle in the rest of the crown of the north-west of England by helping my community build back better, creating prosperity for future generations with Eden Project North in Morecambe.
(3 years, 6 months ago)
Commons ChamberI wish to convey to the House a tragedy that occurred in my constituency in the early hours of Sunday morning—at 2.36 am to be precise. As it happened, I was wide awake. I heard a loud explosion from my community, a quarter of a mile from where I live, and my windows shook. Watching the scene from where I live—I live on the top of a hill and can see all around the district—I could see blue lights coming from all directions. About an hour later, I found out that a house had exploded in Mallowdale Avenue in Heysham, not a quarter of a mile from where I live. A little boy, George Arthur Hinds, who was only two years and eight months old, lost his life. His parents were severely injured, as were the people next door. Three houses in all were affected; we think two were completely obliterated.
The next day I was invited by the local council to look at the site. I have to tell you, Madam Deputy Speaker, it was heartbreaking. I was not prepared for what I saw. Belongings and toys were strewn all over the streets. Debris was everywhere. The whole community were out and they were all in shock, but they rallied together. Some are related to the families concerned.
We had phone calls from the Home Secretary, the Secretary of State for Business, Energy and Industrial Strategy and good wishes from the Prime Minister conveyed through his Parliamentary Private Secretary. That made my community feel very valued indeed. I thank the emergency services for being there so quickly; it was just unbelievable. I cannot imagine what they had to contend with, but we are so lucky to have them. My whole community in the wider area have clubbed together to make sure that anyone who was affected was looked after. I am so proud to represent them.
What it brought home to me is that the Government’s proposals, which I welcome, should ensure that we all have a safe home in which to live and that any measures to be learned from the still ongoing investigation into this tragedy in my community should be heeded by the Government. I thank the Government for everything that they have done not just at Westminster, but all the way down to local government and on to the emergency services.
(3 years, 9 months ago)
Commons ChamberI am delighted to be able to open this Adjournment debate on an issue that is close to my heart and, indeed, to the hearts of many in the north of England, and certainly my constituents. I wish to focus attention on how to persuade the Government to help us get the Eden Project in Morecambe.
We all know that we face multiple challenges coming out of this pandemic—the most difficult of times that we have endured. While none of us has faced a pandemic previously, there are examples in our recent history of projects that we can enact to really change regions and give back hope, and that can deliver the right sort of growth and prosperity while not harming the environment around us. I am talking about projects that we can deliver on the old triple bottom line—economically, socially and environmentally.
We are all painfully aware of the story of coastal communities and the demise of many of Britain’s fine seaside resorts, although there have been some rays of hope, with investments in places such as the Turner in Margate and the V&A in Dundee. Coastal communities that thrived as pleasure resorts in the 19th century have sadly been neglected for far too long. According to a report by the House of Lords Select Committee on Regenerating Seaside Towns and Communities, this must surely be the moment for our contribution to levelling up the covid recovery. What is required is investment in deprived regions to improve their levels of human and social capital, research and development, and innovation.
A proven example of such a project is the Eden Project in Cornwall. At the turn of the millennium, the Eden Project team delivered a bold vision that transformed an old clay pit into a truly spectacular asset for Cornwall and the south-west. From an initial public and private investment of £105 million, the Eden Project has returned more than £2 billion directly into the regional economy—a near fifteenfold return on investment going directly to businesses and workers across the region. At the same time, the Eden Project has become a powerful green UK brand, renowned across the whole world for its pioneering fusion of world-class horticulture, art and architecture delivered through a spectacular and unforgettable visitor experience.
Twenty years on, the same team have now reimagined their vision as Eden Project North. Set on a derelict site on Morecambe’s once grand and bustling seafront, the old Lido, it will have even greater potential to transform the community, not just in Morecambe itself but around Morecambe bay, with a world-class visitor destination and a unique educational tool to help unite and inspire the next generation in terms of our natural history and the immense environmental challenges we face as a society. This is a very strange but exciting project. We want to build an ecological park—a bubble—in a seaside resort right in the middle of the town overlooking the beautiful Bay of Morecambe, itself overlooking the foothills of the Lake District and beyond.
As an educational charity, the Eden Project welcomes 50,000 schoolchildren a year to Cornwall and offers degree courses with local university partners. Similarly, Eden Project North is already investing in the future of the region, working with Lancaster University and other local institutions to create a bespoke education and training programme—the Morecambe bay curriculum, empowering young people to help to drive the UK’s green recovery and making the north-west a key player in delivering the Government’s net zero targets and 25-year environmental plan. Meanwhile, we are all working on eliminating educational poverty. This will be an excellent educational facility backed up by excellent educationists in the Lancaster-Morecambe district. There are 427 schools within 25 miles of the proposed site in Morecambe, and it is estimated that Eden Project North will directly engage with over 100,000 students per annum—1 million students over the next decade.
I am sure that the Minister would agree that providing this type of sustainable education fits directly with the Government’s agenda. Given the current impact of covid on pupils and students and the need for the UK to inspire the next generation of environmental entrepreneurs, what better investment could the Government make than to support this incredible opportunity and deliver on so many policy areas at about the same price as two secondary schools? This is exemplary and groundbreaking, and Morecambe is the place to do it. We need to make Morecambe the jewel of the north-west once again.
The health and wellbeing of the wonderful Morecambe bay is at the heart of this timely proposal as well—a beacon for lasting positive social change in one of the north’s most deprived areas. Eden Project North is a model of coastal community regeneration and long-term health benefits, which will be realised through nutritional education with reductions in obesity, diabetes and similar issues, with immeasurable reductions in reliance on many facets of modern healthcare. Eden Project North has set out its mission to improve the health of the bay through a unique ecosystem that can become a model for the 21st century of net-zero-carbon living. This is a whole-bay ecosystem of humans and nature living together.
As we forge our own destiny outside the EU, the need for us to be responsible guardians and stewards of our unique coastlines is self-evident. We have the responsibility to support these coastal communities, allowing them to prosper while encouraging them to respect and actively care for their environment. The Eden Project has a proven track record of community-building activities, including the incredibly successful Big Lunch, which 6 million people every year take part in. A good example is Eden Cornwall’s local pass scheme whereby all Cornwall and Devon residents can buy a pass that allows them to access an all-year-round ticket that is half the price of standard admission. In addition, throughout the year, local residents and key workers such as teachers, Royal National Lifeboat Institution staff and NHS staff are invited to preview events and to access the site for free. I know that this will be welcomed in the Morecambe area as well as the Lancaster area and the whole north-west. The Eden Project engagement team has been working in the local community since 2017 and has received overwhelming support for the plans from local people, businesses and institutions. Ninety-nine per cent. of people who attended the series of consultation events said that they were in favour of Eden Project North—the kind of polling figures that any MP would be happy with.
Social prescribing programmes have been run at Eden Cornwall since 2016, helping hundreds of people, some of whom have had their lives completely changed, from housebound elderly people who now have new friends, to chronic obstructive pulmonary disease patients who are spending less time in hospital. The creation of these types of projects—epic year-round ventures—can attract 1 million visitors every year to the north-west. That will have obvious employment and output benefits and advantages for the region, the visitor economy and supply chains through focusing on improving the region’s levels of human capital, research and development, and innovation. Quality-of-place investment in projects like Eden Project North can represent an important and significant levelling-up project. This will also help the Morecambe area, as the Morecambe bay link road from the M6 to Heysham port and into Morecambe itself is the quickest link from the M6 to a seaside area in the whole country; it takes less than 10 minutes to get from the M6 to the coast. It has been designed to be a catalytic investment that will provide a step change in the economic fortunes of Morecambe and will be an important economic asset to our region, contributing to the levelling up of economic performance between the north and south.
The high levels of deprivation in Morecambe and the north-west coast are symptoms of being left behind. We do not want to see that any longer. Morecambe is on the up and we want it to flourish, as it once did about 40 years ago and before. People on the north-west coast do feel that they are being left behind. Many local areas along the coast rank in the top 10 most deprived areas of England. The area within which the site is located is one of the most deprived parts of the country. We have to turn this around and make it a better area for us to live in. Although things are getting better in Morecambe, the Eden Project North will be the catalyst that sorts out this problem, a beacon for future generations, and a template for seaside resorts to adopt.
The project will be part of the north-west tourism zone in line with the tourism sector deal. It will be a world-class, epic destination and part of the north-west coastal arc for clean and sustainable growth. As such, it would be good to see sponsorship led by Lancaster University and building on its work with the Health Innovation Campus. Eden Project North would be an asset that can help to capitalise on the five opportunities identified in the science and innovation audit. It will be the brand that helps to galvanise investment and mobilise efforts, around which the partners can co-ordinate activity: communicating the economic importance of clean sustainable growth; improving connectivity between the region’s assets for clean and sustainable growth; enhancing support for connecting businesses to global markets; training regional talent to support and lead clean and sustainable growth; and having the freedom and flexibility to support industrial research and development for clean and sustainable growth, particularly in small and medium-sized enterprises.
Another brilliant exemplar project is the N8 Research Partnership with Net Zero North, which focuses on green collar jobs and agritech developments, enabling Eden Project North to work with the Lancashire agritech group to develop a testbed to offer for productivity improvements in food production. Together, these types of projects will surely demonstrate that the Government have a lot of commitment to levelling up. The Eden Project North is a cutting-edge facility that, through its design and operation, will contribute to meeting the UK’s net zero target by 2050—an emissions pledge that we must keep—and provide jobs for some of the 2 million projected new green collar workers nationally.
Building on the success of the Eden Project in Cornwall, Eden Project North has now submitted its business case to the Government, demonstrating the impact that the development of an epic year-round destination in Morecambe can have. It will attract 1 million visitors a year to Morecambe and inject £200 million a year into the north-west region’s economy, while from day one opening to support 1,500 quality year-round green collar jobs across the whole supply chain. It is fully compliant and has a business case with clear benefits to society. Will the Minister confirm that these are the type of high-quality, new green economic jobs that are needed in the north, and will he prioritise investment into the Eden Project North as part of the economic levelling-up agenda?
Eden Project North has the potential to be a key driver, and an example of socioeconomic and environmental post-covid recovery for the north. Will the Minister confirm which Government funds, such as the shared prosperity fund, could be accessed and which have already been earmarked to enable schemes that will really drive the Government’s levelling-up agenda? Is this project the true embodiment of the Government’s levelling-up, “build back better” aspirations? I think it is. This project is shovel-ready and can be open by 2024, driving the local economy and acting as a beacon to the levelling-up agenda.
If Morecambe is not part of this levelling-up agenda, there will be very little faith among the public, given that Eden Project North has gone through every consultation one can think of. It has gone through many Departments, and this is my third speech on this particular subject of the new jewel in the crown of Morecambe. It will signal very strongly that the Government mean business, because this is a shovel-ready project, ready to be implemented and open by 2024.
We must be seen to deliver on investment across the north. Levelling up does not mean investing only in Manchester, Liverpool or Leeds—the major cities—but levelling up all across the north-west. Can the Minister reassure the people of the north-west, and specifically Morecambe and the Lancaster region, that they will not be forgotten, because Eden Project North will have a huge positive impact across Lancashire, Cumbria and Yorkshire? It is within easy reach of the north’s urban centres. We are only about 40 minutes away from Manchester. We are about 20 minutes away from Preston, and looking further north, we can be in Scotland within an hour and a half.
I would like to see some indication of at what fiscal event Eden Project North will be able to attract match funding. The Eden Project has already got £55 million on the table and ready to go, and we now need some Government investment to make it happen—to get the bulldozers in there to start turning around the fortunes of Morecambe and the Lancaster district and to help turn around the fortunes of the north-west and its tourism.
(6 years ago)
Commons ChamberThere has been a recognition of the important step that has been taken in the Budget with the additional funding provided for adult and children social care and how that will make a difference. I will of course look carefully to the future in discussions I will have, through the spending review, on long-term financial support for our local government sector, the innovation and real value I see in local government—what it delivers for our local communities—and I will remain a proud champion for local government. But, as I said, local authorities also have a huge role to play in helping us to build the decent, affordable, secure homes that families and communities so desperately need and deserve. As the Prime Minister has said, this is our biggest domestic priority.
Does not my right hon. Friend agree that more money has gone into services over the years and into communities, but these accusations of cuts are directly as a result of Labour’s great recession?
As I said at the outset of my speech, we have had to make those difficult decisions and I know so many people have contributed to this—the British public up and down the country. This Budget is indicating how we are now turning things around and looking positively at what our country can be and what it can do, and how we should be optimistic about our future.
The hon. Gentleman will see what we do later this evening. He will also see what we do with our reasoned amendment to the Finance Bill, which will be coming next week.
The Resolution Foundation has done a cumulative analysis of all the tax and social security decisions from 2015 to 2023. It shows that the people in the first five income deciles—the five poorest groups of people in the UK—are set to lose out by between £100 and £500 a year, on average and in real terms. Of course, some families will continue to get hammered to an even greater extent, as I have already pointed out. The top income deciles, however, will all see an increase in their incomes. So when the Chancellor chose to bring forward a tax cut that disproportionately benefits higher earners the most—instead of stopping the benefit freeze, which is the single biggest cash grab from low-income families, or stopping the most draconian cut to universal credit, which is the disgusting two-child cap, which targets children with austerity—it was clear that his priorities were skewed. He keeps up an income squeeze on the many to pay for the biggest tax cuts for the few. That might have been a line from the shadow Chancellor, but of course Labour is supporting this disgrace.
The tax shambles that Labour has got itself into was compounded yesterday by Scottish Labour putting out a statement asking the Scottish Government to do the exact opposite of what the Labour Front-Bench team here wants to do on tax. For Scottish Labour, it is the old Groucho Marx line: “Those are my principles and if you don’t like them, well, I have some more in London.” Of course, the Scottish Government are already plotting a different, progressive path on taxation, leaving 70% of all taxpayers paying less this year than in 2017-18. I am confident that that will continue in next week’s budget.
Let me return to the impact that Tory austerity is having on families. The OBR has warned that unsecured debt has risen as a share of household income. In other words, people are relying more on loans and credit cards to stay afloat. We know that from the evidence that the Trussell Trust and Citizens Advice have provided about food bank use and people seeking help. The OBR falls just short of saying that the growth outlook is dependent on an unsustainable debt-fuelled increase in consumption, but even its need to mention that in the report should be a warning to the Government and their Front-Bench team. Their squeeze on living standards and family incomes is pushing people into debt, and that has not just social but economic consequences.
Most fundamentally, we should struggle to believe that any of the Budget will be delivered anyway. The OBR has struggled to do its analysis because the Government failed to provide the figures in time. I wonder why that was the case. The Chancellor himself essentially said that his Budget was a wish list—and a wish list that is entirely contingent on Brexit. The OBR’s blue book quotes studies from the Centre for European Reform and the Centre for Economic Policy Research that say that, by the middle of 2018, the UK economy was 2% to 2.5% smaller than it would have been had it not been for the Brexit referendum. In other words, the Brexit referendum itself almost halved the already slow annual economic growth enjoyed by the UK. I doubled checked this with the Library, and UK annual GDP is around £2 trillion, so 2% to 2.5% of that is worth £40 billion to £50 billion. That is £40 billion to £50 billion lost from the UK economy thanks to David Cameron’s failed Brexit gamble and the Vote Leave campaign that broke the rules. The Schadenfreude for the Prime Minister, who claimed that austerity was over, is further compounded by the fact that the estimated cost of ending austerity ranged from £19 billion for the IFS to £31 billion for the Resolution Foundation. Had there been no Brexit, the Chancellor could have ended austerity while staying within his own fiscal rules and still had enough money to fix the roof while the sun was shining.
On Monday, the Chancellor let us all believe that the space he had to loosen the Tories’ vice-like grip on the financial purse strings was down to austerity economics. Let us have a little look at what the Chancellor did not say on Monday and provide bit of the cautionary detail referred to by the right hon. and learned Member for Rushcliffe. Many Tories point to cuts to corporation tax as the reason for greater-than-expected tax receipts. Sadly for them, that does not appear to be the case. Last year, the IFS discussed recent trends in corporation tax receipts and said:
“Weak investment post Brexit is forecast to boost receipts in the short run because it is expected that firms will make less use of tax-deductible capital allowances.”
Analysis in the Financial Times in April last year made basically the same point:
“Companies can offset some of their investments against their profits to reduce their tax bill. The idea is to give them a tax incentive to make more investment. For this reason the OBR has a rule of thumb that a 1 per cent increase in business investment leads to £50m less in tax receipts…But business investment fell by 2 per cent in 2016, according to the ONS. This was good news for the public finances, which received more in corporation tax revenue, despite being bad news for the overall economy.”
I am just about to wind up.
Business investment has continued to slow since 2016. The Office for National Statistics said it was down 0.5% in quarter 1 of this year and down 0.7% in quarter 2. What does the ONS reckon is a factor in that? Business investment is being held back because of Brexit. Of course, business investment is doing rather better in Scotland, with FSB Scotland’s quarter 1 2018 report quoting increases in business investment of 1.1% quarter on quarter. Perhaps that is the reason that the Chancellor has held back nearly £16 billion in fiscal headroom and refused to end austerity in this Budget. As the right hon. and learned Member for Rushcliffe said, the Chancellor knows that the fiscal position he has found himself in is neither intentional nor necessarily one to aspire to, because it is at least partially down to weak business investment. More austerity is not the answer. Austerity has failed and continues to fail, and as we know the Chancellor has little intention of ever creating that mythical Budget surplus.
As ever, this Budget is about choices; to govern is to choose after all. The Chancellor chose not to end austerity. Most departmental budgets are set to get hammered in the spending review. The Chancellor chose not to properly fix universal credit. Billions of pounds of cuts to low-income families will continue. The Chancellor chose not to use nearly £16 billion that he had spare; he has presumably squirreled that away as a further Brexit down payment. However, the Chancellor chose to bring forward a multi-billion pound tax cut which will disproportionately benefit those on higher incomes the most.
Now people in Scotland have their chance to choose. Can we really afford to keep ourselves aligned to this austerity-driven Brexit Britain, which is driving up poverty through this Government’s paucity of ambition for our people and isolating us from the rest of the world, or will we choose to regain the powers of independence and the power to choose the future for ourselves?
I am glad to follow the right hon. Member for Putney (Justine Greening). I want to focus on housing, which was where she ended her remarks. In particular, I want to focus on what the Secretary of State said in his opening speech, which is that this is the biggest domestic policy priority for the Government.
We should begin with a moment of candour. If we are looking across the piece at policy failures of Governments of both parties, we can see that this is the biggest single failure over the last generation. I am proud of some of the things that the previous Labour Government did, but we did not build enough homes, and this Government have not done so either.
I am serving on a social housing commission run by Shelter. It comprises residents of Grenfell Tower and people from across the political spectrum, such as Baroness Warsi and Lord O’Neill from the other place, and is precisely designed to try to fashion a new cross-party consensus on these issues.
Reading the Budget, I was encouraged by some of the measures in it. It mentions the broken housing market, to which the Secretary of State also referred today. I must confess that I am old enough to remember when such talk was part of living in a Marxist universe, but it is genuinely good that things have changed. It is a positive step that the Government have lifted the local authority borrowing cap, and indeed that they are providing housing associations with some money to build. They say that their measure on council house building will mean that 10,000 council homes are built each year, and that the housing association measure will lead to 13,000 being built over three years. The question at the heart of any analysis of this Budget on housing is: is that enough? I argue that it is not nearly enough.
Let me provide some context to this. The Secretary of State said that he wanted to be like Macmillan. Indeed, I think all of us can praise what Harold Macmillan’s Government did. Let me tell the House about the scale of building in that era. The 1951 to 1955 Government built an average of 193,000 social homes each and every year. That is more than this Government have built in the last seven years. Each and every year, the 1955 to 1964 Government built 116,000 homes, the 1964 to 1970 Government built 143,000 homes, and the 1970 to 1979 era saw the building of 116,000 homes. We are way off that.
Does the right hon. Gentleman not agree that the Macmillan era was post-war, when Britain was bombed out and we had the Marshall fund to back us up?
I will get to the question of funding and whether it is an investment in the future. The figures I have read out are actually flattering to the era since 1979. I am genuinely saying that this a cross-party failure, because under the right to buy we have sold off 2 million homes since 1979—far more than we have built.
The question is, what do we do? My argument is that this is not just about a change in policy. It is actually about a change in the whole philosophy on social housing. I argue that there are three principles that have been in effect since ’79 and need to be replaced. These principles were brought in by the ’79 Government, but have not fundamentally changed.
The first principle is that the market will provide; the market will build. We know from experience, despite the many efforts of different Governments, that the structural barriers in the market such as developers, incentives to build for the high end of the market and the cost of land mean that the market will not provide sufficient housing at the scale and speed required. There is no historical evidence to suggest otherwise. Indeed, the figures show that it is not in the private sector that the failure to build is most pronounced compared with the 1970s; it is actually in the social housing sector.
The thing that we have all missed is that the social housing sector is the bedrock of an effectively functioning housing market. In other words, it does not just benefit those who live in social homes. It benefits everybody, because it is more likely to keep prices down and avoids some of the problems that we see in the private rented sector. The Government have to be fair and recognise—at least at the level of principle—that saying the market will build will not cut it any more, and that the Government need to play a substantial role when it comes to building.
Morecambe has had more money given under this Conservative-led Government since 2010 than it has ever seen before. We have had delivered, by a Conservative-led Government and a Conservative county council, £130 million for a link road, £11 million for sea wall defences, £4 million recently for a bridge upgrade, and a collective package of upgrades to schools and NHS services that has tipped over into well over £1 billion-worth of spending in my area. That is not to be sniffed at, and it has been happening for years. Recently the Chancellor decided to award Morecambe £100,000 for a feasibility study for a new Eden project—Eden Project North—to be built there on a marine basis. That would be a huge game-changer for Morecambe. It would solve all the problems that Morecambe has, and there are very few of them left to go. This shows Government intention to invest in a seaside community that was on its uppers under a Labour Government.
My people in Morecambe are very proud of their town, and they are really happy about what this Government have done. We have 3.3 million more people in work. The UK economy has grown in 22 consecutive quarters since the great Labour recession. Some £7.2 billion has been given to first-time buyers through the Help to Buy equity loan scheme—that cannot be a bad thing—and 94,000 social housing tenants have been helped to buy their homes since 2010, which is more than in the Labour years.
There are more people in work and earning a living wage in Morecambe than Lancaster. Jobcentre workers told me recently that 87% of steady full-time jobs are now in Morecambe, compared with 72% in Lancaster. That was the other way around for many generations. We have had a port upgrade in Heysham, where I live, because the port accepts that Brexit is not a problem and that we will be getting more trade.
Universal credit was rolled out in Morecambe two years ago, and it has been very successful. Gary Knowles, the local Department for Work and Pensions manager, and his excellent team at the jobcentre have a very low percentage of problems, given the high demand from applicants who want to sign up for UC in the Morecambe area. The minimum income floor does not apply for a 12-month period under UC, and that now applies to the self-employed. As a former self-employed man, I should know what that means. The Government have given an additional £1.7 billion to increase the work allowance by £1,000 a year, which will mean an extra £630 per year for 2 million households.
I turn to the high street, and at this point I have to refer to my interest: I used to be a shopkeeper. Shops have always been sprouting up out of town, and there is a reason for that—the shops in town centres are too small for the capacity of businesses. However, niche businesses do flourish there. This Government have looked at that and lowered the rates so that shops can flourish. Again, that cannot be a bad thing.
This Conservative Government have never let Morecambe down, and this Conservative MP has never let Morecambe down. Things have got better under this Conservative MP than they ever did under the Labour Government, when money was flowing out of the coffers and my town went down the pan. Morecambe is open for business and getting better, and during my tenure we will show what the north-west is made of.
(6 years, 10 months ago)
Public Bill CommitteesWe are now sitting in public and the proceedings are being broadcast. Before we begin, everyone should ensure that their electronic devices are turned off or switched to silent mode. Tea and coffee are not allowed during sittings because they are hot drinks. I also remind Members that they need to declare any relevant interests publicly. They can do that now, if they wish, or when they first rise to speak. Does anyone wish to declare any interests?
I do not know whether it is relevant or not, but I am the chairman of the all-party parliamentary group on space.
Thank you.
Today we will consider the programme motion on the amendment paper, then a motion to enable the reporting of written evidence for publication.
Ordered,
That—
(1) the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 23 January) meet—
(a) at 2.00 pm on Tuesday 23 January;
(b) at 11.30 am and 2.00 pm on Thursday 25 January;
(c) at 9.25 am and 2.00 pm on Tuesday 30 January;
(2) proceedings on consideration of the Bill in Committee shall be taken in the following order: Clauses 1 to 12; Schedule 1; Clauses 13 to 17; Schedule 2; Clause 18; Schedule 3; Clauses 19 to 21; Schedule 4; Clause 22; Schedule 5; Clauses 23 to 40; Schedule 6; Clauses 41 and 42; Schedule 7; Clause 43; Schedule 8; Clauses 44 and 45; Schedule 9; Clauses 46 to 59; Schedule 10; Clauses 60 and 61; Schedule 11; Clauses 62 to 66; Schedule 12; Clauses 67 to 71; new Clauses; new Schedules; remaining proceedings on the Bill;
(3) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 pm on Tuesday 30 January. —(Joseph Johnson.)
(6 years, 10 months ago)
Commons ChamberThis is quite a great day for me because I have been the chairman of the parliamentary space committee for nearly four years. When I was elected in 2010, it was the first all-party group I joined, so I have been watching with interest over the past few years how this Bill has proceeded from its embryonic stages—from being just an idea—through various stages of development, to the point we are at today.
I have mentioned the space sector many times before, and that has brought a smile to some people’s faces because they do not realise just what the sector actually means for the UK economy. The space sector brings in £13.7 billion—nearly £14 billion—a year. It has outgrown every other sector by approximately 10% all the way through the recession and the austerity measures. The figure I think we heard tonight is that it has seen 6.5% continual growth over a period of about six years. It has therefore outperformed any other sector in the United Kingdom.
A lot has been said about Brexit issues and about how space will progress. ESA is actually separate from the Brexit issues and the EU, so I hope the projects we have already designed and agreed with ESA will carry on after the United Kingdom has embarked on its solo voyage away from the rest of the EU.
Having a spaceport is extremely important, because the space industry in the United Kingdom is very scattered, but very prolific. We have installations in the seat of my right hon. Friend the Member for Wantage (Mr Vaizey), who has just spoken, and in the Leicestershire area. We even have them in my constituency; in fact, there is one above my office, and I often joke that when the phones go off we know that the teleport system is being engaged upstairs.
This is a vast industry. The industries in my area are looking to put satellites into orbit to provide better navigation for ambulance services in the NHS. People do not realise just how big an industry space is and how our everyday lives are affected by it. Satellite navigation in cars, which is taken for granted, comes from the military applications that NASA first sent up back in the 1960s. These things are now trickling down and being used in our everyday lives.
What would I like to see in the future? I think—these are personal, not informed thoughts—that our first spaceport will more than likely be in the Cornwall area. That is purely and simply because of Virgin Galactic and our space industry being opened up on a tourism basis. However, it is important that we branch out to places such as Prestwick; we have to look towards having ballistic installations, so that we can capitalise on deep-space orbits and not just sub-orbital, as we would with space tourism. We have to look towards the future, and this Bill is facilitating our footsteps on the great journey that we are taking.
Kourou in French Guiana is where ESA has a spaceport, and even the former Soviet Union sends up its Soyuz from there. We can therefore see that space is not really a political industry; it is actually for the greater good of humanity.
It may come as a surprise to the House that I have run a satellite business. We launched our satellites from French Guiana, and one reason why we as a company did that was its closeness to the equator, which is terribly important. That is a factor in where people put space launch sites. Near the equator is the best place to launch from.
As I said in my speech—I think the hon. Member for Beckenham (Bob Stewart) was not in his place—we have both geostationary and polar satellites. Polar satellites are for earth observation, weather and so on, so you do not need to be near the equator; you want to be near the pole, as Prestwick is.
I thank the hon. Lady for that great intervention.
We are talking about £14 billion per annum going into our economy and about 38,000 people being employed in the sector, so it is huge, and it is expanding. Most of the technology that has been utilised, especially by American companies, has come from Great Britain—even in the early stages of space exploration—so we have a lot to offer. We are taking a huge leap into the future by putting this Bill forward. Over the next few years, the equivalent of £1 billion will go into these projects, and that will be welcomed by the space industry.
I thank you, Madam Deputy Speaker, for letting me speak in the debate. I urge that the Bill go forward in the best way it can and that Members on both sides vote for it.