Oral Answers to Questions

Dehenna Davison Excerpts

Monday 9th January 2023 Commons Chamber

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

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

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

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

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

[Bill Esterson]

Happy new year, Mr Speaker.

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

[Dehenna Davison]

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

[Gavin Newlands]

Happy new year, Mr Speaker. It is great to see the former Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), take a break from his career break to come and join us today—he is very welcome.

The UK is already the second most unequal G7 country, with inflation higher in poorer regions—including many parts of the west of Scotland—than in London and the south-east of England. That is set to become even worse as a consequence of the Tory cost of living crisis. Local initiatives such as the Clyde green freeport are designed to boost economic prospects in the west of Scotland, but inequality is still a major impediment to economic growth. How can the Tories fix that inequality when they largely caused it in the first place and have spent the last decade making it worse?

[Dehenna Davison]

I am grateful to the hon. Gentleman for again drawing attention to the green freeports programme, which will provide brilliant opportunities for residents in Scotland; we hope to make an announcement on that incredibly soon. I draw his attention to the incredible UK Government funds going into Scotland: the UK shared prosperity fund, the levelling-up fund and the community ownership fund—all things that Scottish people can access thanks to the UK Government improving opportunities for Scottish people.

[Sara Britcliffe (Hyndburn) (Con)]

Happy new year, Mr Speaker.

In Hyndburn and Haslingden, we welcome the shared prosperity funding we have received, which will support places such as Haslingden market. But after significant stakeholder engagement, we now eagerly await the outcome of our levelling-up fund bid. Can the Minister confirm that the results will be known before the end of the month?

[Dehenna Davison]

I am grateful to my hon. Friend, who is an excellent champion for her community—this is not the first time she has bent my ear on the levelling-up fund, and I am sure it will not be the last. I can confirm that we will announce the full outcome of the levelling-up fund by the end of January.

[Sir Jake Berry (Rossendale and Darwen) (Con)]

In Darwen, our town deal is absolutely crucial as part of our levelling-up plan. However, because of inflation, not only is time a wasting asset, but so is the value of that deal. Will the Minister meet me and representatives of Blackburn with Darwen Borough Council to discuss how we can speed up the release of the Darwen town deal funds?

[Dehenna Davison]

Yes, I absolutely will.

[Mr Speaker]

I call the shadow Minister.

[Sarah Owen (Luton North) (Lab)]

Thank you, Mr Speaker, and happy new year.

Conservative failure to tackle regional inequality is just one in a long list of let-downs. Thirteen years of Tory rule, and parts of the UK have plunged further and further into poverty. Local authorities spent over £27 million applying for levelling-up bids, only for many to lose out—places such as Barnsley and Knowsley, which have been denied multiple bids with little transparency, leaving many colleagues in the dark and resorting to questioning Ministers about local bids, with no answers at all. Will the Minister please clarify the lack of transparency and the financial costs of these bids to cash-strapped councils, particularly during the cost of living crisis?

[Dehenna Davison]

I thank the shadow Minister for her question. We are keen to get the levelling-up funding announced by the end of the month, with additional funding to what we were originally forecast to put out. We had £1.7 billion in the pot; we are now going to be divvying out £2.1 billion to local areas that really need it. It is the Conservative Government who deliver for the people across this country.

[David Linden (Glasgow East) (SNP)]

3. What assessment he has made of the strength of the Union.

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[Helen Morgan (North Shropshire) (LD)]

22. What assessment he has made of the potential impact of his Department’s levelling-up agenda on the cost of living for people in rural areas.

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

Levelling up is all about improving opportunities and living standards in all parts of the country, but we know that some cost pressures, including transport and energy, can be even greater in rural areas than in urban areas. That is why, in this year’s provisional local government finance settlement, we have proposed maintaining the £85-million rural services delivery grant. As we are concerned about the impact of the cost of living, the recent autumn statement also protected the most vulnerable by uprating benefits and pensions with inflation, strengthening the energy price guarantee, and providing cost of living payments to those most in need.

[Wendy Chamberlain (North East Fife) (LD)]

Happy new year, Mr Speaker.

Levelling-up funding will not help the systemic issues behind the cost of living crisis, but one of the challenges in rural communities is that the infrastructure is often not in place, so I am concerned about the Government’s delay in announcing the successful bids for levelling-up funding, particularly for the projects and communities that would benefit in North East Fife. I am also concerned that the Government are not pushing back the deadline on capital expenditure beyond 31 March 2025, because capital expenditure is difficult to deliver. Will they consider extending that deadline?

[Dehenna Davison]

I am grateful to the hon. Lady for her pertinent question. That is precisely why we are putting in place additional funding to help to support local areas to build up their local capacity and improve their ability to deliver those projects on time. Ultimately, all our constituents want to see spades in the ground and projects completed as soon as possible.

[Helen Morgan]

Happy new year, Mr Speaker.

As the Minister just said, it is well documented that the cost of living crisis is affecting rural parts of Britain to a much greater extent because of the higher costs of petrol, food, transport and housing, and the lower average wages. I am seeing a growing number of emails from increasingly desperate constituents, including one who contacted me this week to say that she was wearing coats and hats in her house, despite having worked all her life. Her email concluded:

“I wish I was dead, I’m so depressed”.

Will the Minister acknowledge the extent of the problem affecting rural parts of Britain and work with her colleagues across Government to address the factors that are making the cost of living crisis much worse for people in rural Britain?

[Dehenna Davison]

Again, I am grateful to the hon. Lady for raising the case of her constituent. Sadly, I think all of us have seen examples like this, but it is particularly acute in rural communities. I represent a rural constituency so I have seen similar cases. A lot of work is going on right across Government to try to mitigate cost of living pressures, including cost of living payments and additional help with energy bills, but I am certainly willing to work with anyone across the House who can help us in that mission.

[Caroline Nokes (Romsey and Southampton North) (Con)]

In many rural areas there is no mains drainage, and the cost of sewage disposal is adding to the rising cost of living. One housing association in Romsey and Southampton North is levying charges to homeowners of £300 per month, meaning that their sewage disposal charges are higher than their energy bills. Will my hon. Friend agree to meet me so that she can hear more about the specifics of that case and understand if there is anything the Government can do to help?

[Dehenna Davison]

I am grateful to my right hon. Friend for raising this, and I will of course meet her to learn more and see what more we in Government can do to help support her constituents.

[Dr Neil Hudson (Penrith and The Border) (Con)]

Levelling up must cover all parts of our country—north, south, east and west—including rural areas. With that in mind, does my hon. Friend agree that a great way for the Government to show their support for rural areas would be to back the Inspiring Eden Enterprise Hub bid, which would really be a shot in the arm for the people of Penrith, Eden and rural Cumbria?

[Dehenna Davison]

My hon. Friend, my constituency neighbour, is an excellent champion for Penrith and The Border, and I certainly see the excellent work he does. I am certainly happy to meet him to discuss this further.

[Miriam Cates (Penistone and Stocksbridge) (Con)]

9. What steps his Department is taking to empower local communities.

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

The Government are of course committed to seeing more empowered and accountable local leadership, and we believe that devolution is the key to ensuring that that happens. Alongside the existing nine devolution deals already in place, last year the Government announced deals with six new areas, which will provide them with over £4 billion to help drive growth and innovation, and to help them respond to the challenges and needs in their areas.

[Miriam Cates]

The town deal initiative has been very successful in empowering communities by enabling local people to decide for themselves how regeneration money will be spent. We are delighted in Stocksbridge to have had final sign-off on our town deal, which is £24 million of Government investment that is going to transform our high street, improve transport and enable people of all ages to flourish in our town. Does my hon. Friend agree with me that the towns fund initiative should be a blueprint for future levelling-up projects, and will she honour Stocksbridge—I believe it is not very far at all from where she grew up—with a visit to see this community power in action?

[Dehenna Davison]

Well, I cannot possibly say no now, as a proud south Yorkshire lass, can I? My hon. Friend is a fantastic champion for Stocksbridge, and I congratulate her and the Stocksbridge board on securing £24.1 million to respond directly to the needs of the town. The town deal model is indeed a strong one, and I can assure her that responding to the views of local communities and stakeholders, including the local MP, will continue to be at the core of our approach to levelling up.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her answer. What assessment has the hon. Lady made of the implications for her policies of the UK100 “Local Net Zero Delivery Progress Report” on local powers, which are critical for that very progress to actually happen?

[Dehenna Davison]

I thank the hon. Member for his question. Our net zero strategy sets out our commitments to enable local areas to deliver net zero and recognises that local authorities can and do play an essential role in delivering on our climate action. The UK100 “Local Net Zero Delivery Progress Report” forms part of a growing body of evidence that reviews what is going on with net zero.

[Tom Hunt (Ipswich) (Con)]

10. What recent steps his Department has taken to help protect people from unsafe cladding.

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[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

13. What recent assessment he has made of the impact of his Department’s policies on regional inequality.

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

In this challenging economic context, levelling up to tackle regional inequality is more important than ever. While this requires a whole-Government effort, my Department continues to push ahead through investment in local places, for example through the UK shared prosperity fund, from which I understand the Glasgow city region has been allocated more than £73 million for interventions that will build pride in place and improve life chances for people living in the region.

[Margaret Ferrier]

Happy new year, Mr Speaker. As successful bids for the levelling-up fund are finalised—I hope to see Shawfield in my constituency receive some money—how does the Minister expect this round of funding to support wage growth across the UK in the light of the cost of living crisis?

[Dehenna Davison]

I appreciated the hon. Member’s pitch, which I am sure we will take on board alongside those made by colleagues across the House. The levelling-up fund is there to support local capital projects, of which there is such a wide range. Many of those will help improve wage growth, improve life chances and improve the skills of young people so that they can get on in life, because that is what the Conservative Government are all about.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

With £56 million from the levelling-up fund, a £17.6 million Kidsgrove town deal, masses of funding from the shared prosperity fund and, of course, a Conservative-led council building 1,000 homes a year, on average, and reopening things such as Tunstall town hall, which Labour left shut for 30 years, does the Minister agree that those who want to see regional inequality broken should vote Conservative in May’s local elections?

[Dehenna Davison]

I could not have said it better myself.

[Mark Pawsey (Rugby) (Con)]

14. What steps his Department is taking to encourage the early provision of infrastructure for residential developments.

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[Caroline Ansell (Eastbourne) (Con)]

18. What steps he is taking to encourage developers to redevelop empty buildings in town centres.

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

Regenerating our town centres is essential to the Government’s commitment to level up the country. The Levelling-up and Regeneration Bill includes measures to tackle vacant properties, such as high street rental auctions, and it clarifies compulsory purchase powers. We have also revised the business development and use class rules so that commercial buildings can change easily between uses. Through the town deals programme and future high streets fund, the Government are also investing £3.6 billion to regenerate town centres, which of course includes projects to redevelop empty shops.

[Caroline Ansell]

With zero VAT on new build, demolition and greenfield development would seem to be the smart choice for developers, while empty buildings such as the former Debenhams in Eastbourne town centre, which would carry 20% VAT for renovation, are overlooked and year on year move towards dilapidation. Has any assessment been made of the number of new homes that could be delivered should different VAT regimes be levelled up? And, as there has been a great deal of negative campaigning—[Interruption.] I will come to that point next time.

[Mr Speaker]

One question.

[Dehenna Davison]

I thank my hon. Friend for her question; she is a fantastic champion for levelling up in her community. Questions on VAT would be a matter for His Majesty’s Treasury, but we are of course committed to reviewing incentives around brownfield development and will announce further details on the scope of that review in due course.

[Andrew Selous (South West Bedfordshire) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Peter Aldous (Waveney) (Con)]

T6.   The all-party parliamentary group for the east of England has carried out a review of levelling up in the region. It has found that although a good start has been made, there are five of the White Paper missions in whose delivery there is low confidence, four in which there is medium confidence and only three in which confidence is high. I would be most grateful if the Minister provided a full written response to the report, but in the first instance will she seek to make Lowestoft’s enterprise zone an investment zone? That would underpin and support levelling up.

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

Pitch for Lowestoft heard loud and clear! The Chancellor announced at the time of the autumn statement that the existing investment zones programme would be refocused to

“catalyse a limited number of the highest potential knowledge-intensive growth clusters”.

Our Department will work closely with key partners on how best to identify and support those clusters. My officials have read the APPG’s report; we will respond in full in due course.

[Mr Speaker]

I call the shadow Minister.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

T3. Last month, Barclays announced that it was replacing its Ellesmere Port branch. We are losing shops in the town centre weekly. We have put in a levelling-up bid that we hope will address the issues, but every previous application has been rejected, so we are not hopeful of success this time around. What is the Government’s plan B for areas whose levelling-up bids are not successful?

[Dehenna Davison]

We keep that under constant review. We are looking at the provision of further funds, but also at simplifying funding through schemes such as the UK shared prosperity fund, to empower local areas to make decisions on what is best for them.

[Robert Courts (Witney) (Con)]

Vital infrastructure for new homes includes upgrades to the sewerage networks that are needed to service them. Bringing schedule 3 to the Flood and Water Management Act 2010 into effect would remove the automatic right to connect, which would mean extra money to upgrade those systems. The Government are reviewing it, but are they going to do it?

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[Dehenna Davison]

Another pitch heard loud and clear! I should be delighted to meet the hon. and learned Lady.

[Shaun Bailey (West Bromwich West) (Con)]

My life peaked last month when I finally got to cut the ribbon on the Poundland in Owen Street, Tipton, which was opening after years of negotiation. A high streets strategy will be an important part of our levelling-up agenda. Will my hon. Friend meet me to discuss how we can make the most of the true beating heart of the Black Country, including the high streets in Tipton and Wednesbury?

[Dehenna Davison]

My hon. Friend has been a fantastic champion for his constituency. I congratulate him on his ribbon cutting, which I am sure was a moment of real joy. I should be delighted to meet him to discuss how best we can move forward with our high streets strategy.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

T5. What recent discussions has the Department had with the Scottish Government about the gap in funding for remediating unsafe cladding, following the Building Safety Act 2022?

[Simon Jupp (East Devon) (Con)]

The Dinan Way extension in Exmouth and the Cullompton relief road are two major projects that are needed to cut congestion and improve air quality locally. My hon. Friend knows that I have made the case for those bids previously, but may I make one final plea now?

[Dehenna Davison]

My hon. Friend is another fantastic champion, not just for his constituency but for the whole of the south-west. We will announce the outcome of the bids in due course, but his question has been heard loud and clear.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

T8.   Answers to parliamentary questions have revealed that the Government’s spending guidelines relating to local authority delivery of the holiday activities and food programme have seen, in just one year, more than £37 million wasted on the likes of publicity and marketing, as opposed to being spent on food for hungry children. Why is that?

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[Dehenna Davison]

My hon. Friend is yet another fantastic champion for her constituents. No further information is needed at this stage, but I should be happy to meet her to discuss the issue that she has raised.

[Dr Rupa Huq (Ealing Central and Acton) (Ind)]

T9. First we saw footage of the Prime Minister admitting to activists that he had diverted money away from urban Labour-voting areas. Then we saw the ex-Culture Secretary, the right hon. Member for Mid Bedfordshire (Ms Dorries), saying that the decision to defund the English National Opera was “politically motivated” and a “stunt”. To avoid accusations that levelling up is based merely on Tory targets and is anti-London, can the Minister tell us which funding formulas were changed, with what justification, and on whose authority?

[Dehenna Davison]

A great deal of transparent information is available on gov.uk, which I should be happy to send to the hon. Lady.

[Nick Fletcher (Don Valley) (Con)]

Devolution has been a resounding success in places such as Teesside and the west midlands, but in Labour-controlled South Yorkshire it has been an absolute disaster. Will the Minister meet me, and my South Yorkshire colleagues, to see what we can do to turn its fortunes around?

[Dehenna Davison]

We believe that local empowerment is the right way forward, but it takes the right local leadership. I shall, of course, be happy to meet my hon. Friend and his South Yorkshire colleagues to see how we can improve things for the great people of South Yorkshire.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Hard-pressed tenants in my constituency have been contacting me, worried about losing their homes and about unaffordable bills and rent. Well over three years after the Government promised to end no-fault evictions, when will they finally stop dithering and bring in the renters reform Bill?

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

I believe a mistake was made when the levelling-up parks fund was announced, because Stoke-on-Trent did not get any money. When will the Minister correct that, so that I can put pump tracks in Middleport and at the old BMX track in Norton and Ball Green?

[Dehenna Davison]

That is another fantastic pitch from my hon. Friend the Member for Stoke-on-Trent North, Talke and Kidsgrove—I am not sure I have got all the titles in there. I would be happy to meet him to discuss it further.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

Last month, 51,000 people came to the end of their placement under the Homes for Ukraine scheme, leaving them desperately needing somewhere to live. However, with the private rented sector unaffordable and council waiting lists already overwhelmed, families are having to choose between returning to a war zone and being homeless. What will the Government do about it?

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[Mike Amesbury (Weaver Vale) (Lab)]

Cheshire West and Chester Council and I have put in an excellent bid in round 2 of the levelling-up fund for the corridor at Winnington bridge. On what day in January can we expect a positive outcome?

[Dehenna Davison]

I cannot promise a positive outcome at this stage. All bids are under consideration, but there will be an outcome before the end of the month.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Over a million households and growing have real housing needs. According to the Institute for Fiscal Studies, the Minister’s Department has seen the largest proportional reduction across Government in post-2025 spending plans. What steps are the Government taking to ensure that there is adequate funding for social housing?