Levelling-up Bids: North Somerset

Debate between John Penrose and Luke Hall

Wednesday 23rd June 2021 Westminster Hall

[The Minister for Regional Growth and Local Government (Luke Hall)]

It is a pleasure to serve under your chairmanship for the first time, Mr McCabe. I congratulate my hon. Friend the Member for Weston-super-Mare (John Penrose) on securing this debate. He spoke with eloquence and passion about the importance of supporting his constituency and the need to level up in Weston-super-Mare. His desire to support his community is shared by all parts and corners of this Government and certainly by the Ministry of Housing, Communities and Local Government.

Levelling up is a crucial part of our Government’s agenda. We are committed to unlocking economic prosperity across all parts of the United Kingdom. That is why we will publish the levelling-up White Paper later this year. We will set out bold policy interventions to improve livelihoods and opportunities in all parts and all corners of the country. It will set out the next steps in our plan to enable more people to get on in life without feeling that they have to leave their hometown or home community just to get the job or types of services they want.

We want to address these long-standing geographical inequalities. We want to deliver economic opportunity and improve livelihoods in all parts of the country so that, wherever someone is born, they have the chance to achieve what they want to in life. That means creating new, good-quality jobs. It means boosting training, productivity and skills in places that have seen economic decline and the loss of industry, and not through a broad, one-size-fits-all approach, but by nurturing different types of economic growth and building on the strengths that different types of places and communities have.

Nowhere is more important in these types of conversations and debates than places such as Weston-super-Mare. We have heard about how skills and wages lag behind the average in the south-west and many other different parts of the country. That is why the levelling-up fund as a concept is such an important vehicle for investing in communities just like Weston-super-Mare. We want to work with councils such as North Somerset Council to invest in the type of everyday infrastructure that my hon. Friend outlined, regenerating town centres and high streets, investing in transport and supporting cultural and heritage assets right around the country. That is a key part of the levelling-up agenda. It is about local communities and councils such as North Somerset determining and identifying their own priorities and using the funds as vehicles to develop and submit proposals and to level up in their area. It is about empowering communities.

The deadline for bids was last Friday. We have received significant interest from right around the country. The assessment process is just starting, but of course we were delighted that North Somerset submitted its bid last week.

We have heard some information about the proposal this afternoon and it is important for us to assess its impact. It is interesting to hear about the transformation of the pier building and the Tropicana Weston, two of the historic buildings that bookend the north and south end of the pier, which is so important to the town and to the regional tourism economy. It is also about bringing back into use vacant spaces in the main shopping area in Weston, helping to create new employment spaces and enhanced wayfinding and connections through the town centre.

I completely understand the passion and importance associated with these bids. I understand my hon. Friend’s belief in them, his desire for them to succeed and the importance he places on the potential to transform Weston’s future, enabling economic growth, improving the town’s economic resilience and tackling deprivation.

The bids focus on regeneration, town centre improvements, cultural assets and transport improvements. They accurately reflect the themes of what we are trying to achieve with the fund, so I thank North Somerset for its bids. I also thank my hon. Friend and my right hon. Friend the Member for North Somerset (Dr Fox) for their support for them and for making clear how important they are to the community. I hope they understand that I cannot comment too much further on the bid itself today. However, we will certainly work to the timescales set out in the prospectus, ensuring that the decisions are delivered in a timely way.

On the levelling-up fund’s methodology, the bids will be assessed against the criteria set out in the prospectus and the strongest bids will be shortlisted. My hon. Friend and my right hon. Friend note that Weston-super-Mare, which is part of North Somerset, falls into category 2, despite it having similar characteristics to a number of category 1 places. When we designed the fund we tried to purposely make sure that councils are able to target the pockets of deprivation within their local authorities, as my hon. Friend has identified.

In the case of North Somerset’s bid, two supportive MPs have helped to shape a bid within a council area, as will be noted as part of the process. The bid aims to tackle the most deprived part of the local authority area. That is noted as part of the assessment process. We will look at how the bid addresses challenges in the town and whether they relate to issues to do with health, unemployment or the availability of well-paid jobs for people living in Weston-super-Mare. The focus on tackling deprivation in Weston is in line with the objectives of the fund.

The methodology that sits behind the index of places is set out in the prospectus that we published on gov.uk. It is based on the metrics covering places’ need for economic recovery, regeneration and improved transport connectivity, as clearly identified by my hon. Friend in his speech. Those metrics do not determine either the outcome of the bid or the place’s eligibility to bid. Again, we certainly take account of the fact that two Members of Parliament have supported the bid, targeted at a pocket of deprivation. I do not know if that warrants a statue in Weston-super-Mare—a sandcastle, perhaps.

My hon. Friend also raised a point about the indices of multiple deprivation and asked about them not being included in the methodology of the fund. That is an important point. We considered looking at the IMD as part of the index, but it is important to consider that IMD does not represent in all circumstances a one-size-fits-all approach to measuring economic need. It does not completely accurately reflect, in this circumstance, the policy outcomes of the fund that we have established, which is about transport, high street and cultural regeneration. There are some things that IMD does not consider—for example, productivity. Raising productivity is a key part of what the fund is trying to address. Therefore, IMD was considered but we think that the way in which the indexation was set up is ultimately right.

My hon. Friend also referenced the UK community renewal fund, which is another important funding stream that this Government are delivering. We think it will improve the overall funding landscape available to places like Weston-super-Mare. We have tried to establish a one-year transition programme that is free of some of the shackles and bureaucracy of the EU structural funds, to allow places to design bids to tackle the problems that they identify. The £220 million fund will be available to communities next year.

We have received North Somerset’s £2.8 million bid. It includes a number of employment-based bids, including tailored support for jobseekers in the most deprived communities. That will be noted. Among the proposals is a financial inclusion project, a network of community hubs in rural areas and targeted business support, so we were interested to receive that. It sets out how, taken together, these will all work to create new education and training opportunities that will lead to the establishment of new local businesses and help to steer people towards the right employment and education opportunities.

I want to highlight the importance of the role of Members of Parliament in this process. This debate is a prime example of the way in which we have designed the fund to put such importance on Members of Parliament coming together, bringing communities together, including local authorities and local stakeholders, and acting as facilitators in the debate. My hon. Friend the Member for Weston-super-Mare and my right hon. Friend the Member for North Somerset have highlighted that they have managed to do that in Weston-super-Mare, working together to tackle the challenges in the way they have outlined. We have given MPs the opportunity to write formally in support of bids, and we have received that letter from my right hon. Friend and my hon. Friend.

[John Penrose]

The Minister is being very helpful and is showing that his Department is already getting to grips with the details behind the bids, so I thank him for his remarks so far. Could he just make sure that in the five minutes or so that are left, he focuses on the point about priority areas? He has been helpful on that topic, but I am still not quite clear whether starting from a priority area 2 designation automatically relegates us to being a long way down the list of projects being considered, or whether the other factors that I have talked about and which he has also mentioned—very carefully and fulsomely—will allow us to vault up the list of eligible projects and get a better showing in the eventual decisions on allocations.

[Luke Hall]

It is really important to say that that indexation is just one part of the wider assessment process. Yes, the categorisation—category 2 in this case—is taken into account, but the assessment also takes into account a number of other factors, such as the support of Members of Parliament. I think it is really noteworthy that two Members of Parliament are backing a bid that is targeted at the areas of deprivation. I urge my hon. Friend to look at the information on gov.uk, which clearly sets out that the categorisation is just one part of the assessment process. Yes, the weighting has an impact, but so do the bid’s strategic fit, deliverability and value for money. Those are all important parts of the process. It is not solely determined by the categorisation level 2.

I would also like to remark on the importance of other investment in North Somerset, outside of just those two streams of funding. Across the south-west, the Government are investing over £400 million in the region through the getting building fund, the future high streets fund, and the towns fund, which is delivering so much for the south-west. If we look at the business support that we have put into North Somerset, for example, we see £73 million of support for businesses and business grants. We have also ensured that Weston has benefited from the getting building fund. I think it is receiving a £1.7 million investment in the town centre, as part of the wider £13.5 million package across the area, for shovel-ready projects in Weston.

The need for regeneration and investment in the high street is also evident in so many of our communities. The funding that has been allocated is already going to be supporting the vacant Weston General Stores site, creating new work spaces for entrepreneurs, micro-manufacturing, events and community spaces. That will help to breathe huge new life into the town centre as well, so that is not to be underestimated. Residents can also look forward to the reopening of the Portishead rail line for the first time in 50 years. That is going to be a vital transport link between North Somerset and the surrounding employment areas.

Of course, these interventions—the levelling-up fund, the community renewal fund, the getting building fund and the other policies I have outlined—build on the £200 million we have invested across the wider area in recent years to support housing, skills and transport. That includes the two state-of-the-art training centres providing work-focused education at Weston College, the almost £12 million with which we have supported the Food Works innovation centre near Weston—a regional centre of excellence in that growing sector—and the major town centre transport improvements, including new cycle and pedestrian links across the town centre. There is huge investment in the region, and in Weston-super-Mare as well.

I hope that some of my remarks have helped reassure my hon. Friend that a number of factors go into the assessment of this bid, and it is not just the category place that determines the outcome. I very much look forward to seeing all the detail of the bid. We have had a number of them and we now have to look through them in detail. I know that he is as passionate as I am about levelling up in communities in the south-west and, of course, in Weston. As we have set out, we want every community to have the opportunity to shape its own future through locally designed solutions. I very much look forward to working with him on doing that as we look forward to the road to recovery for Weston-super-Mare.

Question put and agreed to.