Oral Answers to Questions

Kemi Badenoch Excerpts

Monday 16th May 2022 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

5. What discussions he has had with Cabinet colleagues on taking steps to improve access to employment for those without car access in (a) North Shropshire and (b) other rural areas as part of the levelling-up agenda.

[The Minister for Levelling Up Communities (Kemi Badenoch)]

The levelling-up fund announced at the last spending review saw £1.7 billion awarded to 105 successful projects across the UK, including projects to improve access to employment for those without the use of a car in rural areas.

[Helen Morgan]

Market Drayton and a number of other towns in North Shropshire are seeing cuts to their bus services, with Market Drayton set to lose them all together at weekends. It has received none of the funding that it has applied for to date, including from the Bus Back Better fund. Like many other towns across Britain, its beautiful high street is struggling to recover from the pandemic. For such towns that have been unsuccessful in their bids so far, and where people are struggling to get in and out of them, what is the Government’s plan to level them up?

[Kemi Badenoch]

The hon. Lady needs to work with her local transport authority—that would be Shropshire Council—to look into resolving those issues. The pandemic had a huge impact on the delivery of local services and the Government provided nearly £1.86 billion in grant funding for bus services in England. Shropshire Council received about £2.17 million of that, so I encourage her to speak to the council to see what it, along with commercial bus operators, can do.

[Peter Aldous (Waveney) (Con)]

6. What steps his Department is taking to support economic growth across the UK.

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

7. What steps he is taking to deliver long-term funding settlements for the levelling-up agenda.

[The Minister for Levelling Up Communities (Kemi Badenoch)]

We know how important multi-year certainty is to local authorities and we aim to provide it whenever possible. We are making £54.1 billion available to local government in England through this year’s settlement—an increase of up to £3.7 billion on last year. We are also providing an additional £1.6 billion of grant funding per year across the spending review period.

[Justin Madders]

Long-term challenges need long-term solutions. We have had too much of an ad hoc bidding war, which creates winners and losers. A perfect example is my constituency: in the past three years, we have had our bids to the future high streets fund, towns fund, Restoring Your Railway fund, levelling-up fund and Bus Back Better fund rejected. Any one of those could have made a real difference to the constituency, but after each bid, we have been back at square one. Can the Minister not see that to truly level up, we need a strategy, not a lottery?

[Kemi Badenoch]

I am sorry that the hon. Gentleman’s area has not been successful in bidding for funds, but I remind him that it has received £12.6 million from the shared prosperity fund. The levelling-up bids are competitive, and the strength of the bids is part of what is measured, so I encourage him and his local authorities to continue trying.

[Mr Speaker]

We come to the shadow Minister.

[Alex Norris (Nottingham North) (Lab/Co-op)]

A new study by the Centre for Business Research shows that by the end of next year, more than half the UK’s slowest-growing economies will be in the north of England. So much for the Government’s commitment to levelling up the country! If we want true levelling up, we need proper regional investment. Instead, we have a rolling series of beauty parades: the levelling-up fund, the towns fund, the high streets fund, the buses fund, the brownfield fund and all the others. Do Ministers really believe that levelling up is best served by making communities come cap in hand to Whitehall, where only some can win, and most must lose?

[Kemi Badenoch]

Competitive funding has its place, and we think that it has been an effective tool for protecting value for taxpayers’ money. The hon. Gentleman knows that, as I said in answer to his colleague the hon. Member for Ellesmere Port and Neston (Justin Madders), that is not the only funding that we are providing. We have increased funding for local government by £3.7 billion.

[Alex Norris]

The hon. Lady knows that the story for local government over the past decade has been a devastating one. Even if an area is successful in the bids that I have talked about, it will still be worse off overall as a result of Government cuts. With this Government, the reality never matches the press release, and we see that once again with the shared prosperity fund: the Tory party promised, in its 2019 manifesto, that the amount in the fund would match the what used to be received, but now we can see that the fund is worth hundreds of millions less. So I ask the Minister what I asked the Secretary of State last month, when I received only a grammar lesson in response: levelling up is a sham, is it not?

[Kemi Badenoch]

I completely reject the hon. Member’s assertion. It is not true that the shared prosperity fund is less; it is more. The Opposition are looking at different sources of funding to arrive at their inaccurate figures. If he would like us to explain how it works, I would be very happy to provide him with a letter.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Bloomberg’s devastating forensic analysis of the Government’s progress with their so-called levelling-up agenda has found no overall levelling-up progress in Scotland. On the contrary, the UK Government are levelling down Scotland compared with London, which has had significant levelling-up funding and gains since 2019. Disparities across the UK are widening. To what extent does the Minister agree with Bloomberg’s analysis that the Tories are levelling down Scotland and prioritising the south of England?

[Kemi Badenoch]

I am afraid that is not a statement that we accept. I looked at the Bloomberg figures, and I noticed that Bloomberg was using a 2019 baseline, when the whole purpose of levelling up is to ensure that we solve the problems identified. I would like the hon. Lady to look at the metrics that we have included in the “Levelling Up the United Kingdom” White Paper, and at the missions in it; it is through those that we will level up across the country.

[Mick Whitley (Birkenhead) (Lab)]

9. What steps he plans to take to extend right-to-buy schemes to housing associations.

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[Mohammad Yasin (Bedford) (Lab)]

10. What steps he is taking to help reduce financial pressures on local authority budgets.

[The Minister for Levelling Up Communities (Kemi Badenoch)]

As I mentioned before, this year’s local government finance settlement makes available £54.1 billion for councils in England—an increase of £3.7 billion on last year’s settlement—to ensure that councils have the resources that they need to deliver key services. That includes more than £1 billion for councils to meet social care pressures, and a new un-ringfenced 2022-23 services grant worth £822 million.

[Mohammad Yasin]

As a result of the Government’s actions—they cut Bedford Borough Council’s revenue support grant from over £30 million in 2015 to just £6.1 million in 2022-23—local authorities have been forced to raise council tax precepts to meet vital costs. The adult social care burden is ever increasing, and cannot be paid for unless the RSG is increased to a realistic level. Will the Minister tell us when the fair funding review will finally be published?

[Kemi Badenoch]

I thank the hon. Gentleman for raising this issue. We recognise that adult social care costs are increasing, which is why we have provided additional funding. For the hon. Gentleman’s borough of Bedford, we have provided an additional £2 million for this settlement year. We will continue to look at the pressure that councils are under, but I remind him that this settlement increased budgets significantly. Bedford Borough Council received a core spending power increase of 6.5% this year, worth £9.6 million. That makes available up to £156 million-worth of spending.

[Mr Speaker]

I call the shadow Minister.

[Mike Amesbury (Weaver Vale) (Lab)]

Ministers cannot escape the fact that according to the National Audit Office, 50% of central Government grant funding has been cut from the budgets of local authorities up and down the land since 2010. Ministers are living in a parallel universe where less is more. Millions have been taken out of the shared prosperity fund. The consequences are all too plain. We even have Sir Rod Stewart doing DIY, filling in potholes in Essex—a county with which the Minister will be familiar—and a third of libraries are closing. Those are real consequences.

At what stage will the Minister grasp the bull by the horns and provide fair funding for local authorities, based on genuine need? This should not be about competition or jumping through unnecessary hoops; we should be providing first-class public services for all.

[Kemi Badenoch]

I remind the hon. Gentleman that the reason we have had such difficulties in local government spending is the terrible state of public finances that this Government found when they came into power 10 years ago. It is only because of the hard work that we have done over the last decade to repair the public finances that we have been able to provide additional funding for local government.

[Richard Fuller (North East Bedfordshire) (Con)]

11. What recent progress he has made in delivering an “infrastructure first” approach for planning and house building.