Levelling-up and Regeneration Bill

Lisa Nandy Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

The Secretary of State is a born performer and he was clearly having fun today. I was glad for him that he could not see the faces behind him when we reached the planning section. I suspect he may need to reach over to this side of the House a little more in the coming weeks and months than he has just done in that performance today.

Even the Secretary of State cannot perform his way out of this one. The Bill has been brought to the House on the day when the reality of the Government’s record on levelling up has been laid bare. New figures published today by the Office for National Statistics show that London alone of the regions of the UK has had a post-pandemic recovery that has far outstripped the rest of us. Our industrial heartlands, once the engine room of Britain, including the west midlands, are performing at 10% below pre-covid levels. That is the brutal reality of a decade of underinvestment, money stripped out of communities and money taken out of people’s pockets. This is what it has done to our communities in every part of this country.

So how is it that the Secretary of State has come to the House with lots of jokes, smart phrases and slogans but nothing in the Bill that will turn that around? The only mention of levelling up in this hefty great tome, apart from in the title, is in the 12 missions that will be written into law. But this is a law not worth the paper it is written on because tucked away in clause 5 is the sleight of hand that has become so characteristic of this Government. The cat is out of the bag. Not only will they not back the country, but they will not even back themselves. In clause 5 is a measure that allows the Government to tear up those missions on a whim—their entire levelling up agenda, the promise made to the people of Britain and on which they won the last general election—presumably when they fail to deliver every single one.

The country simply cannot go on like this.

[Robert Halfon]

rose—

[Lisa Nandy]

I will give way in a moment.

In 19 of the last 20 years, only two regions of our country have been given the backing they needed from their Government to succeed. They cannot try to fire the economy on one cylinder and expect it to work. If the right hon. Gentleman would like to tell me how he thinks that can work, believe me, I am all ears.

[Robert Halfon]

The hon. Lady said that, under the Conservative Government, there has been a lack of investment in the regions. Harlow, as she knows, has a fair bit of deprivation, but under this Government it has been levelling up for the past 10 years: an advanced manufacturing centre, millions of pounds; an enterprise zone, millions of pounds; a new hospital coming, hundreds of millions of pounds; a new road junction on the M11 just about to open up, many millions of pounds; infra- structure improvements; a technical school opened up; and a £23 million town fund. That has not been happening just over the past year; it has been happening over the past 10 years. This Government have been levelling up Harlow for 10 years.

[Lisa Nandy]

That was a superb audition for the forthcoming reshuffle and I am sure we will hear many more of them. I hope that that gave the right hon. Gentleman a better press release for his local paper than the failure to back the hospital that was promised. Let me tell him the reality of what levelling up has done in Essex: £292.5 million taken by his Government from the people of Essex, even when levelling-up funds are taken into account. That is the reality of levelling up for the people he represents. No wonder he sits there with such a glum face, listening to that record.

Our core cities are still far outpaced by London. We are an outlier across major economies. The inequalities between regions are outstripped by the inequalities within them. And even the winners in this system are losing. London is the region with the highest disposable income in the country, but I do not need to tell any of my London colleagues the reality of overheating some parts of our economy and underinvesting in others. Once we take the crippling housing costs that are holding back a generation into account, disposable income in London falls way down the ranking and people are worse off.

The Secretary of State has presented a Bill today that contains more aimed at dealing with housing and planning than it does on levelling up, democracy and devolution. Can he not see the problem? We are one of the most geographically unequal countries of any major economy. As someone once said, when levelling up was a thing:

“for too many people in this country, geography turns out to be destiny”.

If this Government continue to write off the opportunities for many parts of the country—to write off the potential and the assets we have, for lack of imagination and investment—they will continue to cram more and more people into small corners of the country, and that in turn will continue to push up housing prices. Surely the Secretary of State can see, even if he cannot admit it today, that one of the chief ways to deal with the over 120 clauses aimed at dealing with pressures on land, planning and development, is to level up the country. The clue is in the title. Why are they not doing it? Any self-respecting Secretary of State would have brought us a plan to get proper resources spent wisely and invested for the long-term recovery of our local economies.

[Jonathan Gullis]

It is this Conservative Government who have invested £56 million in the levelling-up fund, £31.7 million in Bus Back Better, 500 brand new Home Office jobs, and the £17.6 million Kidsgrove town deal that has unlocked the refurbishment of a sports centre that Labour closed in 2017 because it could not be bothered to spend a single pound coin. Labour’s legacy is a PFI hospital with 200 fewer beds than the old one, stealing £20 million a year from the doctors and nurses on the frontline, PFI schools stealing money from teachers in the classroom, and the white elephant council office that wasted £40 million. Why would Labour ever come back in Stoke-on-Trent? I cannot see it.

[Lisa Nandy]

That was a fantastic audition for the Secretary of State’s job, but I cannot imagine, based on that performance, that the hon. Gentleman will be around long enough to keep his own. Let me tell him why. I was in Stoke-on-Trent the other day meeting some incredible young people at the YMCA—an amazing organisation. Those young people had a lot to say about the record of this Government, and it sounded very different to his. Let me tell him the reality of what has happened in Stoke-on-Trent. Taking into account every single penny of levelling-up money that has been allocated to Stoke-on-Trent, his constituents are £27.7 million worse off as a consequence of this Government. That is the Tory premium. That is the premium we pay for having a Tory Government. If he had an inch of conscience about the plight of some of the young people I met, he would be standing up and challenging this Government on their record of not delivering for Stoke-on-Trent.

Tory Members do not need to believe me. Why do they not read the Public Accounts Committee report that was published today? It is devastating. It says that billions of pounds have been squandered on ill-thought-out plans, forcing areas to compete over pots of money—small refunds for the money that has been stripped from us over a decade. This is not “The Hunger Games”; this is the future of our country and it is no way to treat the people in it. The Chair of the Select Committee said that this

“Government is just gambling taxpayers’ money on policies and programmes that are little more than a slogan, retrofitting the criteria for success and not even bothering to evaluate if it worked.”

This is our money. In case Tory Members have not noticed, as they sit and joke and laugh, and make wisecracks at other political parties, we have not got money to burn in this country right now, so why are they burning it?

Why has the Secretary of State not come here today with a guarantee that every part of this country has a right to the sort of basic infrastructure that we would expect in any modern economy? Since the Conservatives won the election, they have not just refused to make good on that promise, but backtracked on the promises they have already made. They press-released northern powerhouse rail 60 times over seven years and then casually axed it. The hon. Member for Stoke-on-Trent North (Jonathan Gullis) mentions Bus Back Better. Quietly, under the cover of the pandemic, they halved the funding that was available for bus services. I am starting to wonder what they have against Yorkshire in particular. Let me tell him about our record on buses. Right across this country, we have Labour representatives and metro Mayors who are delivering on that promise, such as Tracy Brabin, my hon. Friend the Member for Barnsley Central (Dan Jarvis), Oli Coppard, Andy Burnham and Steve Rotheram. Those are the people who are delivering the bus services that we need. The hon. Member for Stoke-on-Trent North might want to go and learn a thing or two from them.

I am starting to wonder what the Government have against Yorkshire, in particular. There has not been a penny for bus services in South Yorkshire. They have cancelled the eastern leg of High Speed 2.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

My hon. Friend is making an incredibly powerful speech. Does she share my disappointment about the fact that flooding prevention and mitigation measures have not been adequately addressed in the Bill? If we want a strong future for Yorkshire and areas such as Hull, we need to get serious about tackling flood prevention and mitigation. I hope that the Secretary of State will look at that issue again when revisions are made to the Bill.

[Lisa Nandy]

My hon. Friend is an outstanding advocate for her community and we on the Front Bench absolutely support her call for proper action to deal with the crisis of flooding around the country. My hon. Friend the Member for York Central (Rachael Maskell) is here; she knows only too well, too the impact that flooding has on communities up and down the country and the shameful way that we have been treated by the Government, with promises of action and measures. As my hon. Friend the Member for Brighton, Pavilion (Caroline Lucas) said during the Secretary of State’s opening remarks, there is not a single mention of net zero in the Bill. What is the commitment, if it is anything at all?

I was starting to wonder what the Government had against Yorkshire, but then I saw yesterday that they had also casually scrapped the Golborne link. That decision appears to have been made in the face of pressure from Tory MPs ahead of a confidence vote in the Prime Minister. It is going to create havoc for people trying to travel by rail across the north-west and it plays into the real problems that we already have with east-west connectivity.

Then I saw that the hon. Member for Isle of Wight (Bob Seely) said that he had voted for the Prime Minister to keep his job after receiving assurances that there would be a funding review for his council. Can I ask the Secretary of State—

[Bob Seely]

Will the hon. Lady give way?

[Lisa Nandy]

I certainly will, but I ask the Secretary of State: did he have knowledge of this? Did he sign it off? Let me say to him: that sounds awfully like corruption to me.

[Bob Seely]

The hon. Lady completely misunderstands and she gets it completely wrong. Several years ago, the Prime Minister realised that the Isle of Wight was the only island in the UK that does not have a multiplier. The Isles of Scilly get a multiplier of 1.5 and the Scottish islands get the Scottish islands needs allowance. I said to the Prime Minister, “Will you commit to rectifying this wrong, which is a policy flaw?” He said “Yes,” and I reminded him of that promise beforehand. Did I ask for a bag of cash? No, and it is completely untrue for her to say that, so she can get up now and apologise.

[Lisa Nandy]

Of course I will give the hon. Member the opportunity—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Order! That means sit down. This is a very sensitive point and I want to hear what the hon. Lady has to say.

[Lisa Nandy]

I of course gave the hon. Member the right of reply, but I am quoting literally and directly a quote on his website. If those are not his words and are not correct, I leave it up to hon. Members to judge. I am simply quoting his words to the Secretary of State and asking whether that is correct, because we have had a report today that says, in stark terms, that the Department—

[Bob Seely]

On a point of order, Madam Deputy Speaker. This is a very serious allegation. Corruption has been alleged, but there is no basis for it and it should be withdrawn.

[Madam Deputy Speaker]

This is a serious allegation. I am not in a position right now to weigh up one side of the argument against the other, because I do not have the evidence before me of whatever words were published and whatever words have been said. I ask the hon. Lady —[Interruption.] She cannot possibly be looking at her phone while I am speaking to her. No, no, she cannot possibly be looking at her phone while I am speaking to her! I ask her to get us over this part of the debate, and we can come back to this matter at another time. Will she please withdraw the—[Hon. Members: “ No!”] Do not shout at me when I am speaking from the Chair! Will the hon. Lady please withdraw the allegation of corruption, which is a very serious one, and perhaps find some other words to show that she disagrees with what the hon. Member for Isle of Wight (Bob Seely) said. We can then proceed with the debate and, if necessary, come back to this point at another time.

[Lisa Nandy]

Out of deference to you, Madam Deputy Speaker, of course I will rephrase my words in a manner that is far more acceptable to you: this looks awfully dodgy to me, Secretary of State. Was this signed off by him or his Department? I would certainly never disrespect the Chair by reading from my phone, so I will not do it now, but the words are there on the website of the hon. Member for Isle of Wight, and if anybody cares to look at them, they can draw their own conclusions.

I say to the Secretary of State that this matters at a time when councils and our communities around the country have had £15 billion stripped out of them by the Government. That is not what respect looks like. [Interruption.] Written into every part of the Bill is a lack of respect, and every single hon. Member who sits there chuntering and heckling, rather than standing up for their own communities, needs to look in the mirror and ask themselves whether they are doing a good job for their communities.

[Kelly Tolhurst]

I take exception to what the hon. Lady said. How dare she suggest that Government Members are not standing up for their communities when we are quite obviously aggrieved with the allegation that she has just made against a fellow colleague? So yes, we do have a right to chunter at her comments.

[Lisa Nandy]

The hon. Member absolutely has a right to challenge me on my comments, and so have her constituents. They might want to know why Kent has had £276.8 million taken from its budget by the Government over the past decade.

[Kelly Tolhurst]

Will the hon. Lady give way?

[Lisa Nandy]

No, I will not give way—[Interruption.]

[Madam Deputy Speaker]

Order. Mr Gullis, stop it!

[Lisa Nandy]

I do not need to dwell on the point about a lack of respect; we have just seen the most stunning display of a group of representatives who will open their mouths but cannot open their ears and eyes to the reality of what is happening in their communities.

In the press release that accompanied the Bill—[Interruption.] Perhaps I could directly address the hon. Member for Stoke-on-Trent North, who is chuntering again. If he cared one iota for his constituency, he would not be chuntering at me; he would be asking the Secretary of State where the missing £27 million has gone.

[Jonathan Gullis]

rose—

[Lisa Nandy]

No, we have heard plenty from the hon. Member and it is about time that he listened.

We were given a promise of the biggest transfer of powers out of Whitehall, but instead, we have three tiers of powers on offer in the Bill. The upper tier of those powers is still pretty limited. Areas can get priority for new rail partnerships. They can get a consolidation of local transport funding. They can get—[Interruption.]

[Emma Hardy]

On a point of order, Madam Deputy Speaker. May I seek your advice on how we can continue to have this debate in a respectful manner and stop the incessant chuntering and rudeness coming from Government Members?

--- Later in debate ---

[Lisa Nandy]

Areas can get consolidation of local transport funding. They can get a role in designing and delivering future employment programmes and access to something called a long-term investment fund, but only if they can clear the bar of the upper tier and only if they accept a governance arrangement that is imposed from Whitehall.

I went back to look at what the Prime Minister promised when he made his levelling-up speech last year:

“Come to us with a plan for strong accountable leadership and we will give you the tools to change your area for the better”.

Will the Secretary of State tell me why a kid in Barnsley should have to turn down an apprenticeship because of the lack of a functioning bus service while a kid in Bolton can take one up just because somebody hundreds of miles away in Whitehall, who has never set foot in either of those communities, decided that they liked the look of the local leaders—the local leaders we chose—in one area more than another? Why is there not a right in the Bill for every area to have democratic control over their bus services, if that is what they choose?

The Secretary of State said that the last Labour Government did not devolve power in England, but let me remind him of what can be done, and what was done, with the right level of commitment and imagination. It was the last Labour Government who set up the regional development agencies. In the north-west of England, which I call home, we had the foresight to bring Media City to Salford. That was not just about the economic regeneration of one of the most disadvantaged areas of the country; it was also a key measure that started to rebalance the national debate that determined who had a voice and who got a place and was reflected in our national story.

Under the last Labour Government, the regional development agency in Yorkshire was among the first to see the potential of wind in Grimsby—the Grimsby docks are the windiest place in Europe—and I have met those young people who, a generation later, are powering the world from the Grimsby docks through clean energy and life-changing apprenticeships. It is not just in Grimsby that the Yorkshire regional development agency saw potential; it looked for potential everywhere. It understood the legacy of skills, because of steel cutting from the steel industry, that made Rotherham an ideal location for one of the most incredible advanced manufacturing centres in the world. That is what real power and devolution looks like.

All that potential in our communities, realised by the last Labour Government, has now been collapsed into the spectacle of two proud cities that were at the forefront of the industrial revolution—Birmingham and Manchester —begging for the right to introduce a tourist levy on hotel bedrooms. When they have come to Whitehall, it is not just Ministers’ doors that have been repeatedly closed to them, but their minds as well.

[Chris Grayling (Epsom and Ewell) (Con)]

I am listening very carefully to the hon. Lady, who, to be frank, is painting a picture of doom and gloom in the northern part of the country over the past 10 years. Could she explain, then, why unemployment in her constituency is 30% lower than it was when we took office in 2010? Does she not think that that is a good thing?

--- Later in debate ---

[Lisa Nandy]

The right hon. Gentleman talks about doom gloom around the north of England, but I have just told him about the life-changing jobs that were brought to those communities by action taken under the last Labour Government. I have just told him what ambition looks like, and what levelling up looks like in action. If he thinks that that is doom and gloom, I dread to think what he thinks about the legacy of his Government.

In fairness to the Secretary of State—I feel I ought to say something nice to him; if he could see the faces behind him, he would not feel very cheerful—it is not his door and mind that have been completely closed, but the Treasury’s, and it is the Treasury that calls the shots. In fairness to him, he inherited a complete mess in relation to planning, and it falls to him to try to sort it out.

[John Redwood]

Why did the people of the north-east turn down Labour’s policy of elected regional government, and why did Labour not try it anywhere else?

[Lisa Nandy]

Perhaps the right hon. Gentleman could ask the Secretary of State that question, because it was his then policy adviser who led the campaign against it.

In all fairness to the Secretary of State, we were relieved to see the back of a planning framework that seemed to be based on a traffic light system. Our communities deserved far better than that. However, this Bill, as he has heard from colleagues on both sides of the House, allows neighbourhood plans to be overridden when they conflict with a national development management plan. The Secretary of State can make one of those plans at any time—without consultation if he chooses, and without any approval from a single Member of this House—and he can override people in any one of our communities if their plan conflicts with his to any extent. That is not being serious about handing power to local communities, is it?

The press release that accompanied the Bill said that the big idea behind handing power to local communities—notwithstanding that the Bill includes measures that allow Whitehall to override them—is something that the Secretary of State calls “street votes”. Will he explain exactly what those street votes will do to put power in people’s hands and put them in the driving seat of their own communities? The reason I ask is that, if he has a plan, it is not, unfortunately, in the Bill. How is it possible that that flagship idea, which headlined the press release, has not yet been written? Does he not accept that we are entitled to better than plans drawn up on the back of an envelope after horse-trading has taken place, usually to his detriment, behind closed doors in Whitehall?

The Secretary of State says that he wants beautiful communities that work for people, and I agree with him, but that means that we have to put power back into people’s hands, because people who have a stake in their own communities and who have skin in the game will do more, try harder, work for longer and be more creative in order to build thriving communities. It also means that we have to end the system where people can come to our communities and extract from them, taking our wealth, running down our housing and sitting on our land.

Surely the most basic plank of all this is that people have the right to know who owns their town, village or city. However, the measures in the Bill that try to ensure that more information is collected about land ownership also allow the Secretary of State to withhold that information from communities. Why on earth would a Secretary of State want to deny people in our villages, towns and cities the right to know who owns the housing, land, shopping centres and town centres that make up those beautiful places that we call home? I remind him that it was that great Conservative—also a great radical—John Ruskin who said:

“Nothing can be beautiful which is not true.”

The commitment to beauty in this Bill is not true.

We need a serious plan to tilt the balance of power back in favour of the people who built this country and will do so again, who have stake in the outcome and skin in the game. We have debated the problems they face many times in this Chamber—

[Matt Rodda (Reading East) (Lab)]

rose—

[Lisa Nandy]

If I am not mistaken, my hon. Friend is about to raise one of them, so I give way to him.

[Matt Rodda]

I am grateful to my hon. Friend for giving way. She is absolutely right to highlight the very poorly designed planning system and the failure of the current proposals to change anything. In my area, there are enormous pressures on land and terrible pressures on green spaces, yet brownfield land in the south of England is not being redeveloped as it should be. When it is redeveloped, it is not done appropriately, and local needs and local authorities are not listened to as much as they should be. Does she agree that there needs to be a complete rethink of that imbalance?

[Lisa Nandy]

I agree with my hon. Friend, who reminds us that we have had 12 long years without real action to put power back in people’s hands. He raises a really important point—I think all Members have raised it: that, as long as there are centralising tendencies in Government, and as long as they find their way into Bills such as this, we will continue to undermine the situation. If the Secretary of State does not want to listen to Opposition Members, I urge him to listen to Members on his own side; looking at their faces, I do not believe they will allow this to drop.

We have debated the problems that people face in this House many times. There are simple changes that the Secretary of State could make in order to stop people coming into our communities and extracting from them.

[Richard Graham]

I want to make a couple of very simple points. First, the constituents of the hon. Member for Reading East (Matt Rodda) could have applied to a very good recent fund for brownfield sites; Gloucester was successful in its application.

Secondly, I find it curious that the hon. Lady keeps referring to the regional development agency, which was one of the most disastrous organisations ever created. It did nothing but harm in my city of Gloucester, and all the bad things that it did are gradually being sorted out by this progressive Conservative Government. Could she talk about the Bill rather than Labour’s failures of the past?

[Hon. Members]

Hear, hear!

[Lisa Nandy]

Given all the chuntering and chuckling among the hon. Gentleman’s colleagues, I did not catch the end of his intervention, but I can tell him that we have been calling for a long time for measures to make funds available to bring brownfield sites into use. I know that very well myself, as I represent a former mining community—[Interruption.] If he would just listen for a moment, he would hear that I am about to agree with him.

Representing a former mining community, I know how painful it is for people to see green spaces built on when brownfield sites cannot be used for lack of a small amount of investment to deal with contaminated land and other issues. I have no quibble with the hon. Gentleman about that, because those measures are welcome and important. But if he wants to challenge the last Labour Government about Gloucestershire, may I remind him that it has had £91.2 million taken out of its pocket by this Government? Perhaps he might have something to say to the Secretary of State about that.

We have debated the problems many times in this Chamber. The Secretary of State referred to the five Bills in the Queen’s Speech for which his Department is responsible. Luckily for him, he will be seeing a lot of me and my colleagues over the next few months. We will remind him that there are simple changes that he could make, such as stopping sharks from coming into our communities and milking the housing benefit system; housing people in supported exempt accommodation; or allowing communities to go to rack and ruin. He knows that, because we have debated the issue many, many times and he has heard about it from colleagues on both sides of the House. Can he explain why, with five Bills in the Queen’s Speech, the simple measure needed to tackle the problem has not found its way into a single one?

The Secretary of State proposes an infrastructure levy to replace section 106. I apologise if I have missed it, but there is no clarity in the Bill about whether that will raise more or less money than the current system. There is no clarity about whether it will boost affordable housing or whether affordable housing will continue to drop off a cliff. I will tell him why that matters: it potentially makes the difference to whether our kids can stay and raise families in the communities they were born into. We are entitled to know the answer, not after some horse-trading behind closed doors or on the back of an envelope once he has asked for our votes, but now, as we scrutinise the Bill.

Can the Secretary of State tell us what is in the Bill to stop his new system from allowing developers to create ghettos of poorer housing reserved for poorer people, while earmarking prime sites exclusively for wealthy buyers? What measures will he put in the Bill to prevent the new infrastructure levy from being used in that way? I can tell him that if he will not introduce those measures, we will.

Where are the Bill’s impact assessments? Where is the regional impact assessment? Where is the local impact assessment? The Secretary of State knows how important it is to close the gaps between and within regions: it is so important to him that he proposes to write such objectives into law, with some caveats. The clue is in the name: it is the Department for Levelling Up, but it has not even bothered to assess the impact of its own legislation on regions of this country beyond London and the south-east. I would be pretty ashamed of that.

What I would be most ashamed of, however—bar none—is a measure that has been tucked away at the end of the Bill and that reverses the commitment made by the Government and this House to junk a Victorian piece of legislation that has no place in modern Britain. It is simply unacceptable to seek to criminalise people who find themselves homeless. This Government have presided over soaring numbers of people in temporary accommodation and B&Bs. Those numbers are up 37% on the past year, and even now the Local Government Association is concerned that there are Ukrainian refugees sleeping on the streets because the Homes for Ukraine scheme has broken down. They deserve help, not antiquated measures, a lack of thought or imagination, and harshly punitive principles tucked away at the end of this Bill. It cannot be right that we are saddled with a Government who are reaching back for inspiration not only from the 1980s, but now from the 1880s as well.

The Secretary of State will face problems with the Bill as it goes through the House; he knows as well as anyone that he is in for a bumpy ride ahead. I welcome what he said when he was challenged by the right hon. Member for Chipping Barnet (Theresa Villiers) at the end of his speech, so I ask him to work with us to turn things around over the coming weeks and months. In every part of Britain, people are ambitious for themselves, their family, their communities and their country. They need a Government who match that ambition, so let us turn this Bill into a vehicle to match it.

We will fight tooth and nail for our communities at every stage of the Bill, to make good not just on the promises of the Secretary of State, but on the promise that they have and the promise of Britain. Our message to the Secretary of State is “You have acknowledged today that this is not good enough and that there is work to do, so join us and fight for our communities to make good on that promise.”

[Several hon. Members rose—]