Merseyside: Funding of Local Authorities

George Howarth Excerpts
Tuesday 8th February 2022

(2 years, 2 months ago)

Westminster Hall
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George Howarth Portrait Sir George Howarth (Knowsley) (Lab)
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It is, as always, a pleasure to see you in the Chair, Mr Hollobone. I congratulate my hon. Friend the Member for Wirral West (Margaret Greenwood) on securing this important and timely debate. I thank her, and my hon. Friend the Member for Garston and Halewood (Maria Eagle), for setting out the headline figures for the reduction in grant funding to Knowsley since 2010. They both also referred to levelling up. Since they have put all that information on the record already, I will not go over the same material, but I will concentrate my remarks on levelling-up funding.

Last week, The Guardian published the results of its investigation into the local authority areas that have not benefited from levelling-up funding so far. Its conclusions are truly shocking. The article points out that some of the wealthiest areas in England are receiving 10 times—yes, 10 times—more funding than the poorest. How can that possibly be justified?

As I think my hon. Friend the Member for Garston and Halewood pointed out, Knowsley, which is a Labour-controlled local authority, received the shocking amount per head of population of zero—nothing—in the latest round of levelling-up funding, whereas Conservative-controlled Central Bedfordshire received £90 per head. Whereas Knowsley is the third most deprived borough in England, Central Bedfordshire is in the top fifth. How that can be justified defeats me, and I am sure it would defeat many qualified statisticians and researchers.

As Jonathan Webb from IPPR North accurately put it:

“This new analysis from the Guardian demonstrates the gap between the rhetoric and reality of levelling up.”

He went on to say that the way levelling-up funding is allocated is

“unacceptable and will only widen the UK’s existing regional”

disparities. That is the complete reverse of what we are told it is supposed to do.

Despite Knowsley’s being the third poorest borough in England, it received not a penny from the future high streets fund, the community renewal fund or the towns fund. Councillor Graham Morgan, the excellent leader of Knowsley Council, put it in a nutshell when he said:

“Levelling up has been nothing but a slogan so far. The people who work on these schemes can’t find any box which we haven’t ticked, so is there some other reason—a political reason—why Knowsley isn’t getting the support that local people need?”

The answer to Graham’s question, sadly, is yes—it is a political reason.

I will conclude with three questions. First, how can the Minister justify this politically skewed allocation of levelling-up funds? Secondly, can he give me a firm assurance that when the education investment areas are announced, Knowsley will be among them? Thirdly, will he agree to meet me and Knowsley Council to discuss the need for the regeneration of Huyton town centre?