Levelling-up and Regeneration Bill

Liam Byrne Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I think that what unites us across the House is an ambition to avoid the postcode where someone is born defining their possibilities in life. I think that that is something we share, but it is the reality for too many of the people we represent. We now live in a country where it takes five generations for the heirs of someone born in the lowest income group to rise up and even earn national average wages. That is a complete scandal. Social mobility has broken down in this country, and this Bill should have stepped up to address our ambition.

I wish to say two things by way of my contribution. First, as a former Chief Secretary who drove through the Total Place initiative and someone who has spent 20 years working on devolution—as the Minister knows, there are centralisers and localisers on both sides of this House, and I am resolutely a localiser—I am convinced that the inequalities in this country will be impossible to eradicate unless we create the freedom for local regions to begin developing their own institutions. They should be robust enough to mobilise and co-ordinate the demand and supply sides of ideas and innovation, capital and investment and land, and crucially, to intervene in the labour market. We will continue to fail until local regions have the power to set up radical university enterprise zones, like the Fraunhofer, to translate innovation into the private sector; regional banks; regional land trusts; and local commissions on skills and enterprise. However, there are a few steps we could take now to drive this forward.

First, we have to take the 149 different local spending programmes which, together, have in them £65 billion, spread between eight different Departments, and put them into block grants for local areas. We have the most ridiculous centralisation at the moment as a result of having to bid against different criteria for 149 different programmes. We have to take a Total Place approach to pooling public sending—crucially, Department for Work and Pensions spending, as well as that of Department for Education and Department for Business, Energy and Industrial Strategy. We should go further and create full-time regional Ministers in government and full-time regional Select Committees in this House. Crucially, we have to fix the gross imbalances in public spending that mean that spending per capita in London is 70 points higher than it is in the west midlands.

Secondly, as chair of the East Birmingham Inclusive Growth Taskforce, I can say that East Birmingham is a city the size of Derby, that it is the land between the two high-speed stations, but that it is also the capital of Britain’s unemployment. The potential is enormous, because of the new jobs that will be created by High Speed 2, but we have to make sure that we are not the oasis of inequality in between that wealth. That is why Bridgid Jones, the Deputy Leader of Birmingham City Council, has today written to Andy Street, the Mayor of the West Midlands, to ask that we make East Birmingham the key focus of the west midlands trailblazer devolution deal. We have a number of asks. We want to see: multi-year whole place public funding—pooling budgets between the Department for Work and Pensions and others; a levelling-up zone that would give us tax increment financing, potentially for a new urban development corporation; net zero powers; support for early intervention and preventive work, particularly in health; an enhanced transport package that would allow us to see our metro built through East Birmingham; a lot more funding for schools and for skills; tailored employment support; and greater housing powers.

We would love the Minister to meet a delegation from Birmingham along with the east Birmingham MPs in order to discuss this devolution deal in more detail. I am confident that we will also have the support of the Mayor of the West Midlands, too.

--- Later in debate ---

[The Minister for Housing (Stuart Andrew)]

It is my pleasure to deliver the closing speech on Second Reading of the Government’s Levelling Up and Regeneration Bill. I begin by thanking hon. and right hon. Members from all parts of the House for their thoughtful contributions to this afternoon’s debate. Before I address some of the points that have been raised, I should say that accompanying each of the 12 missions in our levelling up White Paper, enshrined in law by this Bill, is a clear commitment from this Government to work with all political parties, across all four nations and all tiers of government, to build a stronger, fairer and more united country after covid.

Despite the negativity we have heard from the Opposition Front Benchers, I am pleased to report that when I go around the country, I find that Mayors and leaders of all political persuasions are keen to work with us to deliver this mission. I believe that the Bill will help us to make this shared vision a reality by supporting local leaders to take back control of regeneration, end the blight of empty shops and deliver the quality homes that communities need. It is about giving them the tools that they need to deliver, along with the other major pieces of work that Government are doing in this area. I am grateful to hon. Members who continue to engage constructively with us on the provisions of this Bill so that it delivers the transformative change that we all want.

[Liam Byrne]

Could the Minister say a word about how he will use the missions to drive the reduction of inequalities in our country? One approach that the Labour Government tried was the use of floor targets in neighbourhood renewal funds. He may have a different approach, but that detail is terribly important.

[Stuart Andrew]

The right hon. Gentleman will have seen that, as the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Harborough (Neil O’Brien) just reminded me, we have a whole annexe with the measures on that and we will be held to account by Parliament. That is the right thing to do. I cannot recall there ever being missions like this before Parliament so that every single Member of the House can challenge the Government on whether they have reached those objectives; it is a real opportunity for Parliament to hold the Government to account on those missions.

I echo the sentiment of my right hon. Friend the Secretary of State when he said in his opening remarks that we will continue to work closely with right hon. and hon. Members to further hone and refine the legislation before it is put on the statute book. We want to build on our £4.8 billion levelling-up fund which, as hon. Members know well, is supercharging connectivity by building the next generation of roads, bridges, cycle networks and digital infrastructure. Through the UK shared prosperity fund, more than £2.6 billion is being spent to help people in the most deprived parts of the country to access more opportunities and pursue better careers. With more than £2 billion pledged by my Department over the next three years, we are helping local authorities to redouble their efforts to tackle homelessness and rough sleeping, building on the incredible achievements in the pandemic.

I will turn to some of the issues that were raised today. One issue that hon. Members on both sides of the House spoke about, including my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon) and for Stoke-on-Trent South (Jack Brereton)—I understand that they are calling themselves “levelling-up central”—and the hon. Members for Denton and Reddish (Andrew Gwynne) and for York Central (Rachael Maskell), and my hon. Friends the Members for Gosport (Dame Caroline Dinenage) and for Don Valley (Nick Fletcher), is the importance of breathing new life into our high streets, towns and city centres, all of which were especially hard hit by the covid pandemic and now require investment and support to adapt and thrive.

Many hon. Members spoke about the importance of entrusting councils, which know their areas best, to get on with the job and to green light regeneration schemes in their areas. We agree, which is why the Bill liberates councils to more easily redesign and regenerate their communities. The Bill allows local authorities to hold high street rental auctions so that landlords are encouraged to put empty buildings to good use. It makes the temporary freedoms around al fresco dining permanent, so that we can create more buzzing vibrant high streets. I have listened carefully to my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) and I will take her thoughts further—well, I would not be allowed not to do so.

Most importantly, the Bill makes it much easier for councils to issue compulsory purchase orders so that they can repurpose boarded-up shops and derelict sites. All those changes are accompanied by a series of common-sense reforms that will mean that no council has to pay over the odds in hope value to landowners when it issues compulsory purchase orders—a small change that will deliver big savings for the public purse. We will publish further details on how we intend to use those powers in the Bill. It should hopefully go without saying that we are more than willing to engage with hon. Members in the process.

One issue that is guaranteed to provoke lively debate in this place is planning reform, as we have seen today. I was going to list all the hon. Members who have raised planning concerns with me, but I suspect that I would run out of time. I am extremely grateful to all hon. Members who have engaged with the Government and with me on that issue over many months. We have listened intently to their feedback, and that is reflected in the fresh reforms that we have set out in the Bill.

Some may defend the status quo and question whether there is still a case for planning reform amid everything else that is going on, but let us look again at the facts. It currently takes on average seven years for councils to prepare a local plan, and, in some cases, five years before a spade even hits the ground. Response rates to a typical pre-planning consultation are around 3%, and that drops to less than 1% in local plan consultations. I say to hon. Members that we cannot deliver the homes that this country needs without planning reform, and we cannot level up communities without the improvements set out in the Bill. As my hon. Friend the Member for South Norfolk (Mr Bacon) rightly pointed out, we need these homes. I commend him for his excellent report and the proposals he has made to help people to build their own homes.

This Bill will simplify the content of local plans and standardise the process in a much shorter time, with improved local engagement. With more local plans in place, there will be far less speculative development, giving communities transparency and a real voice to influence what is built in their area. Our digital reforms will also move us beyond the days of laminated notices on lamp posts to fully accessible planning applications that people can view on their iPads and smartphones at home.

I am, of course, still continuing to listen to hon. Members. On the issue of local housing need and the targets, I should make it clear that they are not targets. They are there to inform the development of a plan, but in reality we know from listening to colleagues that they have been treated rather stringently. As my right hon. Friend the Secretary of State said in his opening comments, we need a more sensible approach and we are looking at that at pace.