Rebalancing Regional Economies

Lisa Smart Excerpts

Wednesday 14th May 2025 Westminster Hall

[Andy MacNae]

Indeed; part of the thrust of my argument is that these growth corridors must extend into the areas that need them most, and I am sure that Swindon very much needs to be part of that mix. The focus on those easier areas is perfectly reasonable, but if we continue in this vein of only doing the big and easy things, all the money will be gone before we get anywhere near the likes of Rossendale and Darwen.

In places such as my home, delivering growth is not easy—it is complex and bespoke and needs sustained focus. There is rarely a silver bullet and, if there was one, it would be tough to deliver. But, if properly valued, the long-term benefits of doing the hard yards are huge not just in economic terms, but in terms of health, crime, housing, environment and general wellbeing. That is the rub: as things stand, too often we do not fully value these benefits, either quantitatively or qualitatively. Ministers make decisions and advisers advise. The Government guidance for investment is the Green Book, which sets out how decisions on major investment projects are appraised. It was last reviewed in 2020 and is subject to another review now. Despite a clear intent for that guidance to support regional rebalancing, it is clear that embedded practices too often default to over-reliance on simplistic and short-term cost-benefit ratios.

[Lisa Smart (Hazel Grove) (LD)]

We have had debates on the Green Book in Westminster Hall before, and I am sure the hon. Gentleman agrees with me that there is a real opportunity, in the Treasury’s review of its methodology, to drive growth in our regions and in constituencies such as mine. We should be valuing things such as investing in the tram-train between Manchester Piccadilly and Marple in a way that generates growth. Does he agree that that is an opportunity that the Government should seize?

[Andy MacNae]

I agree 100% with the hon. Lady. It is a huge opportunity, and I will come to the specifics around it very shortly.

Some Departments still require projects to surpass a certain benefit-cost threshold before the investment decision gets anywhere near a Minister’s desk. It is a statement of fact to say that that reliance on benefit-cost ratios favours better-off areas and quick wins, contributing to regional and sub-regional imbalance over many years. That issue does not stop with the Green Book—it is broader than that; I would argue that it can be summed up as the simple human temptation to take the quicker and easier option.

The problem has historically been compounded by a failure to join up investment thinking across Departments and geographical footprints—for instance, local regeneration funding not being linked to regional transport or housing strategy. The great failure of the last Government’s levelling-up programme was to abandon any sort of strategic approach and simply rely on bidding competitions and piecemeal sticking-plaster interventions determined by the likelihood of a good headline.

If we are really to see the benefits of growth in places such as Rossendale and Darwen, we need to address all that head-on. The Green Book and appraisal practice must change to properly value all impacts of investment in our small towns. We must ensure that all appraisal processes, including departmental models, follow the intent of that guidance. Green Book best practice must be updated to ensure that project funding is primarily based on strategic objectives, which may include aspects that cannot be valued quantitatively, rather than arbitrary forecasts. That must include ending all arbitrary benefit-cost ratio thresholds based on limited economic forecasting, replacing them with strengthened and broadened place-based systems of evaluation, with public transparency about the calculations.

Appraisals must recognise the long-term and interlinked nature of key interventions extending over the period by which the benefits are valued, and address the excessive discounting of long-term impacts. More fundamentally, our strategies must insist on doing the hard yards, while giving the fiscal flexibility, regulatory framework and sustained leadership to deliver effectively.

The question “What does this do for our most deprived and left-behind neighbourhoods?” should be embedded in every investment strategy and decision process. We should develop tests that seek to answer that question and by which we can judge investments. By insisting on truly holistic, place-based approaches designed to benefit all, we can deliver much more meaningful impact. In delivering that sort of approach, devolution and local leadership could and should play a vital role—but only if we do it right.

It has been well argued that to close national productivity gaps we need to focus investment through integrated settlements towards the cities and devolved authorities. With developed institutions and the greatest ability to get things done, I agree with that, but that is the relatively easy bit. We must also do the hard bit: such progress must be in parallel with targeted investment in deprived towns outside the immediate economic envelope of the city, in line with original strategy and founded on the principle of growth for all that cuts across devolved areas. That strategy must be supported by flexible funding and delivery capacity to respond to specific challenges and opportunities.

We cannot continue to justify Government investment flowing into the likes of Manchester while the towns of Lancashire do not even appear in the picture. As a practical example, take the TransPennine route upgrade—a major project that will transform connectivity between cities and major towns across the Pennines. It has been presented, in some quarters, as a transformational project for our region. However, if I ask, “What does this do for Rossendale and Darwen, or any small town on or near the route?”, the answer is, “Frankly, not much—all it does is take trains past us a bit quicker.”

Would we not rather think about the rail upgrade as one part of a wider project that enables a growth corridor, and in which we make a positive impact on small towns and rural areas in that corridor a fundamental requirement of the investment, for instance by insisting on local procurement, associated recruitment and skills programmes, investment and startup incentives, brownfield remediation, housing renewal, local transport improvements, public realm investment and so on?

Such an approach could be delivered through a partnership of Liverpool, Manchester, Lancashire and West Yorkshire authorities, with mayors sharing accountability. It would require a fully place-based appraisal mechanism, flexible funding and long-term delivery capability. It should also be expected to bring in other agencies such as Homes England, Active Travel England and Historic England to provide additional leverage. By insisting on such an holistic approach, we could get something far more impactful, and bigger than the sum of its parts.

We have tried all this before with regional development agencies, housing market renewal, the single regeneration budget, the new deal for communities programme, local enterprise growth initiatives, local enterprise partnerships and so on. Many of these things were great, but they never quite got there. Too often programmes would retreat into doing the same easy thing over and over again, lose strategic focus and just deliver a lot of nice-to-haves or be pulled back into spending orthodoxies by risk-averse oversight. As Gordon Brown reflected—I will not do a Scottish accent:

“The frustration is that we haven’t made enough progress. Given the deindustrialisation of Britain, we haven’t managed to find a way to generate the kind of growth and wealth in the areas of the country that were at the heart of the first Industrial Revolution.”

This Government, who were elected by those very areas, must again take up that challenge.

For too long, geography has meant destiny. Small towns such as Bacup, Whitworth, Rawtenstall and Darwen have been at the back of the queue and left behind, as others shout louder and seemingly offer easier solutions. Our decision-making process has compounded that and left our communities behind. We must change the game. Our new default must be to put our left-behind neighbourhoods first. We must learn the lessons of the past and not allow established orthodoxies and a desire for easy wins to stand in the way. In the end, we simply cannot afford to fail those communities that need us most.

Proportional Representation: General Elections

Lisa Smart Excerpts

Thursday 30th January 2025 Commons Chamber

[Lisa Smart (Hazel Grove) (LD)]

I am a Liberal Democrat, a vice-chair of the all-party parliamentary group for fair elections and a sponsor of the debate. It is a genuine delight to see hon. Members on both sides of the House talking about this issue, which is one of the founding principles of my party. I believe firmly, though, that we will bring about the change that our country needs only on a cross-party basis, which is why working on the APPG with the hon. Member for Leeds Central and Headingley (Alex Sobel), who opened the debate, and the hon. Member for North Herefordshire (Ellie Chowns) is a delight. I look forward to working with them to deliver the change that we need.

The case for electoral reform is urgent and undeniable. First past the post is a system that no longer functions as a fair or effective mechanism for translating the will of the electorate into parliamentary representation. It is collapsing under its own weight. The time has come to take the first step in addressing this failure with the establishment of a national commission for electoral reform.

As colleagues across the House have mentioned, the 2024 general election was the most distorted in British history: Labour secured 63% of the seats with just 34% of the vote, while the Green party and Reform UK won almost 21% of the vote between them and received only nine seats. I will disagree with both those parties often and vigorously on different issues, but I defend their right to be represented when a number of people vote for them. Those results do not constitute fair representation; they represent a systemic failure.

The consequences of such an electoral mess are huge. The Electoral Reform Society has shown that 58% of those who voted in 2024 ended up with an MP they did not vote for, and that 85% of MPs were elected with under 50% of the vote, myself included. As others have mentioned, it now takes 24,000 votes to elect a Labour MP but 824,000 votes to elect a Reform UK MP.

Broader trends confirm the growing inadequacy of first past the post. According to the Institute for Public Policy Research, voter turnout has fallen from 84% in 1950 to below 60% in 2024 and trust in politics is at an all-time low. A system that continues to distort electoral outcomes so significantly will only worsen this crisis.

[Harriet Cross (Gordon and Buchan) (Con)]

We all recognise that trust is important in politics, and we are responsible for building that trust. One way in which we build trust is by being accountable, and the current system gives us accountability to our constituents within the defined area of our constituency. How would first past the post help build the accountability of a named person—a single MP—in that defined area?

[Lisa Smart]

I am grateful to the hon. Lady for intervening. I think her question was probably about how PR would deliver accountability, not how first past the post would deliver accountability. I very much agree that accountability and the constituency link are really important. I am glad that the debate has not nerded out excessively on which is our favourite form of PR, but there are many systems operating in the different nations of the United Kingdom that deliver that constituency link. I very much agree that that is an important part of our democracy.

PR provides a clear alternative to what we are currently doing. It ensures that seats broadly match votes, that every voter has a meaningful say and that Governments represent the majority of the electorate. We already have proportional representation in the UK, just not here in Westminster. In Scotland’s Parliament, 93% of voters have at least one representative they voted for, while in Westminster that figure stands at just 42% according to the Electoral Reform Society. PR in different forms is already used in Scotland, Wales and Northern Ireland, as well as in the vast majority of democracies worldwide, so why not here? Evidence shows that PR leads to higher voter turnout, more representative Governments and more stable policymaking.

For a long time, the question of electoral reform has been viewed as an abstract debate—indeed, with people arguing over d’Hondt versus single transferrable vote—rather than one that is integral to democratic legitimacy. It is neither sustainable nor responsible to continue governing under a system where a party can form a large majority on barely a third of the vote. It is reckless to maintain an electoral model that so consistently produces such wildly disproportionate groups of MPs and leaves millions of voters feeling ignored. If these trends are allowed to continue, it is not difficult to see how turnout will fall further, results will become even more distorted and political instability will grow.

I am a Lib Dem—I outed myself earlier—and I enjoy speaking with and listening to voters. I am also a fan of a bar chart on my leaflets.

[Mr Mohindra]

Are they accurate?

[Lisa Smart]

I am delighted to report that my bar charts have been measured and are accurate to the millimetre.

[Luke Akehurst]

rose—

--- Later in debate ---

[Lisa Smart]

I would be delighted to give way on that subject.

[Luke Akehurst]

Does the hon. Lady accept that one of the great advantages of moving to a proportional voting system would be that there would be no need to put any bar charts on any leaflets—it would be highly misleading to do so—that there would be no “two-horse race” graphics or squeeze messaging, and everyone would be able to vote for the party they really wanted?

[Lisa Smart]

I could not have been more delighted to welcome the hon. Gentleman’s intervention. I wonder if he has been listening in to the Hazel Grove constituency Liberal Democrat executive meetings. I agree with the him, though. When thinking about how to vote, I would much rather—as, I imagine, would a number of voters—talk about values, principles and policies, instead of a rather grim-looking canvasser pointing earnestly at a bar chart, worried about who might get in if the vote splits. PR would be better for our politics and better for our communities.

There is widespread and growing support for change, both in Parliament and across the country. A national commission for electoral reform would provide the necessary first step towards finally addressing the failures of first past the post—a step that must be taken well before the next general election. To ignore the urgency of this issue would be to further undermine our democracy.

Governments are not always known for doing things that they do not see as being in their best interest; however, like a number of colleagues across the House, I argue that proportional representation is in our whole country’s interest, and that is why I urge the Government to act. The public are watching, and the demand for fair representation cannot be ignored forever—our democracy depends on it.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

We have to get everybody in, so we are going to have a speaking limit of five minutes. I call Jas Athwal.

--- Later in debate ---

[Paul Holmes]

I think that is a relatively lazy argument about the internal machinations of the Conservative party and is not concerned with our electoral system. I give the hon. Lady the point that it was not a good time within my party, within this country and that period of office, but it concerns the way parties elect leaders and not the electoral system for the public.

In relation to proportional representation not allowing parties from different wings to be elected, if we look at an example from 2009, in European elections under the PR system, the British National party won two European Parliament seats with 6% of the vote. In the rare cases in which the BNP won local government seats, such as in Barking and Dagenham in 2006, its support represented 35% to 50% of the popular vote in the winning wards. First past the post, by contrast, acts as a safeguard against extremism in ensuring that only candidates with broad support can win. That helps preserve the political stability and moderation that are hallmarks of our parliamentary democracy.

When coalition Governments are formed, it becomes difficult for voters to hold any one party accountable for their decisions. Blame for unpopular policies can easily be shifted between coalition partners, which, given how things are going for them, I know might be appealing for Labour Members. However, that erodes trust in politics, whereas first past the post provides clarity. Voters know exactly which party is in charge and can hold it to account at the next election.

It is also the case that under a party-list PR system, which was previously the European Parliament’s system in Great Britain, there was no direct accountability, with representatives dependent on a party patronage system. How many voters actually knew the name of their European Parliament Members when we were in the European Union? I would hazard that there were only one or two well known MEPs and one of them is still close by.

I think the choice for us is clear, although I know that I am undoubtedly in the minority this afternoon. First past the post ensures strong and stable governance, clear accountability and an electoral system that is easily understood by the public. It prevents small, unrepresentative parties from wielding disproportionate influence and upholds the direct link between MPs and their constituents. The British people have spoken in favour of first past the post and we should respect that decision. Members in other Opposition parties should learn and take it from us: we know that you cannot keep asking the same question over and over and expect a different response. The first-past-the-post system has served the UK well for generations. It delivers clear outcomes, stable Governments and a direct link between voters and their representatives. If we were to move to a PR regional-based system, that link would be lost and MPs would be scrambling and fighting to take on their constituents’ casework. We can just imagine the mafioso-style turf wars such a system would generate. To scrap those sensible and time-honoured demarcations would be terrifically reckless and fundamentally unnecessary and would do our electors a disservice.

We should not trade a proven system for one that prioritises theoretical fairness over practical effectiveness. The challenges we face as a country demand strong leadership, clear accountability and a system that works for the people. Even though I do not like the result, the Labour Government won that mandate under the system we have. First past the post has provided that Government and we should stick to that, allowing the British people to have a system they fundamentally understand and fundamentally believe in.

[Lisa Smart (Hazel Grove) (LD)]

On a point of order, Madam Deputy Speaker. The hon. Member for Hamble Valley (Paul Holmes) in his wide-ranging comments talked about the vote that was held on 3 December 2024 relating to the Elections (Proportional Representation) ten-minute rule motion. He mentioned rightly that the ayes won by two votes, but in fact, the number of votes cast were 138 ayes and 136 noes. He mentioned that only 62 votes were cast and I am sure he would like to correct the record.

[Madam Deputy Speaker (Judith Cummins)]

That is a point of debate and not a point of order. I call the shadow Minister.

Planning Committees: Reform

Lisa Smart Excerpts

Monday 9th December 2024 Commons Chamber

[Matthew Pennycook]

My hon. Friend is absolutely right that there are good examples of training across the country. Hon. Members seemed to indicate earlier that they thought that mandatory training for councillors was in place. It is not in place. We know there are good examples out there, but provision is inconsistent, and we think that we need to take forward mandatory training to ensure that all councillors have the necessary knowledge to make the best decisions on individual applications.

On my hon. Friend’s point about trading of land, she is absolutely right. There is far too much speculative development in this country. We have a dysfunctional land market. Again, I come back to the importance of up-to-date local plans. It is through up-to-date local plans that communities have the ability to shape development in their area in the best possible way in accordance with their wishes. On build-out more generally, we are considering what options might be available to us to ensure that the build-out of consented sites goes forward, alongside our new homes accelerator, which was announced a few months back.

[Lisa Smart (Hazel Grove) (LD)]

Until September this year, I was a proud elected member of Stockport council. I made decisions on planning, because in Stockport we decide at ward level what is appropriate for each ward. If I understand the Government’s suggestions correctly, the power to decide for ourselves has been taken away from Stockport council. Could the Minister confirm my understanding?

[Matthew Pennycook]

I am afraid to say that the hon. Lady’s understanding is not correct. I encourage her to read the working paper. It is a working paper, and we are seeking initial views on a national scheme of delegation. There are three options in the working paper. I look forward to her submitting her views in full, and I will happily consider them.

Oral Answers to Questions

Lisa Smart Excerpts

Monday 2nd December 2024 Commons Chamber

[Jim McMahon]

In there is the point about devolution and localism: structures matter and the framework matters, but in the end it is about getting the power out to the communities who have skin in the game. That is why we want to ensure that the community right to buy provides an effective means for communities across the country to take ownership of assets that are important to them. We are considering what further support and guidance we will provide to communities and local authorities to support them in this measure, and I know that the Minister for local growth, my hon. Friend the Member for Nottingham North and Kimberley (Alex Norris), is fully engaged in this endeavour.

[Lisa Smart (Hazel Grove) (LD)]

Many of my constituents would welcome further powers being devolved to their local communities. They are as keen as mustard to see the right homes in the right places, particularly social housing, but one of the things stopping social housing being delivered is the viability calculations that are undertaken by developers, who use them to say that only expensive houses can be built. Are the Government looking at reviewing the use of viability calculations?

[Jim McMahon]

That is some way from community ownership, but the devolution White Paper is one of a number of measures that we are taking and it will have a clear community strand. This does not sit in isolation, however; it is part of the wider reforms that are taking place to ensure that communities, local authorities and Government work in partnership.

Oral Answers to Questions

Lisa Smart Excerpts

Monday 28th October 2024 Commons Chamber

[Matthew Pennycook]

I thank the hon. Gentleman for that point, though it is not about leasehold but about the private rental sector. Our Renters’ Rights Bill, which is currently in Committee, poses no threat to good landlords. Indeed, it will improve the situation for good landlords by driving out unscrupulous and rogue landlords from the system. As part of that Bill, landlords have robust grounds to take back possession of their properties when it is appropriate to do so. What they cannot do is arbitrarily evict tenants through section 21. We will finally abolish section 21 no-fault evictions where the previous Government failed to do so.

[Lisa Smart (Hazel Grove) (LD)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Housing, Communities and Local Government (Angela Rayner)]

As I have already told the House, this week’s Budget will set out our next steps to put us on the path to delivering the biggest increase in social and affordable house building in a generation. The Chancellor will set out further details on a number of measures, including a cash injection for the affordable homes programme, confirming funding for new social housing projects and a consultation on a long-term social housing rent settlement. We will provide certainty and stability, and reform right to buy to deliver a fair, sustainable scheme.

[Lisa Smart]

Hazel Grove’s 16 and 17-year-olds are all bright and articulate and never backwards in coming forwards to tell me what we need to do in this place, but they are denied their voice at the ballet box, unlike their Scottish and Welsh peers. When will the Government correct this imbalance, deliver on their manifesto promise and roll out votes at 16 across the United Kingdom?

[Angela Rayner]

Far be it from me to take on the Hazel Grove 16 and 17 year-olds—the hon. Member knows that I know Hazel Grove very well. This Government are committed to our manifesto commitment to give votes at 16, and we will make sure that we do that before the next general election.