Birmingham City Council

Liam Byrne Excerpts

Tuesday 19th September 2023 Commons Chamber

[Michael Gove]

I love Blackpool and I love trees, but £174,000 for six trees is £29,000 a tree. Some trees they must have in Blackpool.

More seriously, the local authority faces challenges, but Blackpool’s two Members have been very successful in securing additional central Government expenditure to help to regenerate the centre of Blackpool and to secure new investment. Whatever views one might take of Blackpool Council—and it does seem as if it is paying slightly more for its trees than it could have paid in most garden centres—central Government have nevertheless shown how partnership and levelling up can secure real change.

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

I am grateful to the Secretary of State for the offer to work together, and that offer has been welcomed by Councillor John Cotton this afternoon.

Can the Secretary of State tell us whether we can find a way to have a conversation about fair funding? He is a student of Tory leadership campaigns and, like us, he probably winced when he heard the Prime Minister say to one campaign meeting:

“we inherited a bunch of formulas from the Labour Party that shoved all the funding into deprived urban areas…that needed to be undone. I started the work of undoing that.”

The truth is that richer councils have taken cuts of about £44 per head since 2010, whereas Birmingham City Council has taken cuts of 14 times that amount. There is a conversation to be had about funding, and I am grateful that the Secretary of State is considering one way to fix it, by creating a levelling-up zone and investment zones in east Birmingham, on land between the two High Speed 2 stations.

Can the Secretary of State confirm that those plans will still go ahead? Has he considered creating a development corporation in east Birmingham, for which I have argued for a long time, to lever in significantly larger amounts of money? Can we have a conversation about how we support the combined authority, too? As he will know, Andy Street’s budget faces a gap of £29 million next year, rising to £50 million in a couple of years’ time, and currently there is a £1.1 billion black hole between the investment programme and the funds available to pay for it.

[Michael Gove]

I am grateful to the right hon. Gentleman for his very thoughtful question. Although we might disagree politically and have different reflections on what may have been said in the past, he is absolutely right that we need to explore a development corporation and that east Birmingham, in particular, needs additional investment. He is also right that we need to work with the West Midlands Combined Authority. The recent trailblazer devolution deal gave significant additional support to the West Midlands Combined Authority and the Mayor, but we keep what is required under constant review.

The right hon. Gentleman is also right that Birmingham’s economic health powers the whole west midlands and is vital to our overall success as a nation, which is why I want to make sure that we get back to strong leadership and effective governance in Birmingham.