Oral Answers to Questions

Gavin Newlands Excerpts

Monday 9th January 2023 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

2. What assessment he has made of the potential impact of changes in the level of (a) interest rates and (b) inflation on regional inequality.

[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.

[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.