Oral Answers to Questions

Lord Wharton of Yarm Excerpts

Monday 14th December 2015 Commons Chamber

[Graham Evans (Weaver Vale) (Con)]

1. What support his Department is providing to the northern powerhouse initiative.

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

The northern powerhouse is a project that runs across a number of Government Departments. The contribution made by this Department includes: the local growth funds, 11 of which are worth nearly £3 billion; the £400 million northern powerhouse investment fund; the devolution deals being agreed right across the north of England; and, of course, the doubling of the enterprise zones in the northern powerhouse announced in the spending review by my right hon. Friend the Chancellor of the Exchequer.

[Graham Evans]

Earlier this year, the Government invested over £113 million in high-performance computing in my constituency at the Hartree Centre, a joint venture between the Science and Technology Facilities Council and IBM bringing high skill, high wage jobs to Weaver Vale. Does my hon. Friend agree that investment in technology and science is key to the growth of the northern powerhouse?

[James Wharton]

I commend my hon. Friend’s important and significant work in this area. He is a passionate advocate for his constituency and for investment in it. This is just one more example of Government investment in the north to build the northern powerhouse and rebalance our economy. As we saw in the autumn statement, science and innovation spending is being protected. We are investing in the economic growth of the future. This is a great example of that and my hon. Friend deserves commendation for the work he has done to deliver it.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Will this Government stop patronising the north? We are a powerhouse. Give us the investment in infrastructure. We are the people who still make things in this country. We make the wealth of this country. Many people in this part of the world—London and the south—live parasitically on our efforts. Stop patronising, start investing!

[James Wharton]

I welcome the hon. Gentleman’s enthusiasm for the northern powerhouse project. The Government recognise the potential of the north to drive our economy. The north can make a difference if it is invested in, and, crucially, if the people of the north are given real control over their own future. That is what we are doing. That is what the devolution agenda is about and what some of the investments I spoke of are about. We are going to deliver it. It will make a real difference to his constituents and to mine.

[Alison Thewliss (Glasgow Central) (SNP)]

What support are the Government giving to small businesses in the northern powerhouse area to ensure that they benefit from all the procurements that will come from it?

[James Wharton]

The hon. Lady raises an important point. The £400 million northern powerhouse investment fund will be targeted specifically at small and medium-sized enterprises. Growth hubs across the north are driving that investment and giving that support. We want our big industries to succeed and drive forward our economy, but our small and medium-sized enterprises are important too. We want to invest in them and give local people the controls they need to ensure they can reach their potential.

[Alison Thewliss]

The Minister will be aware that the Scottish Government procure 46% from small and medium -sized enterprises compared to the UK Government’s 26%. Will he look at the Glasgow and Clyde Valley city deal, which has a supplier development programme to encourage SMEs?

[James Wharton]

City deals can be key drivers for growth. I welcome those that have already been agreed and we continue to have talks, including with some of the great cities and city regions in Scotland, on where we can go further and what more we can do. I hope we can deliver more in due course, because we can already see the difference the deals are making.

[Jon Trickett (Hemsworth) (Lab)]

On behalf of the whole House, we thank all hard-pressed and often low-paid council staff and others who even now are helping those areas of the north so badly affected by the recent flooding.

In contrast to the rhetoric about the northern powerhouse, the Office for National Statistics recently reported that the north is falling further behind as a result of under-investment and that it is getting worse. The average Londoner now produces £42,000 a year added value, while in the north-east the average is only £18,000. In the place of more cuts, will the Minister now include specific, substantial and urgent northern investment in his local government settlement later this week?

[James Wharton]

The hon. Gentleman raises the important point that our economy has for too long been unbalanced. The whole point of the northern powerhouse project is to address that imbalance, ensuring we unlock the significant growth potential that exists across the north and the contribution the northern powerhouse can make to our economy. We can see, from a number of the announcements, that that investment is going in, but more importantly it is going in hand-in-hand with local control, giving control to the people who know best how to grow the economies of the north because they live in them and are part of them.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

9. What assessment he has made of the effect of policies in the spending review and autumn statement 2015 on his Department's expenditure on policies and services which in Scotland are devolved to the Scottish Government.

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

As the hon. Gentleman will know, the services of this Department are devolved to Scotland, so there are Barnett consequentials of spending decisions that affect the Department. As a result of the spending review, the Scottish Government’s capital budget will increase by 14%.

[Alan Brown]

The Chancellor confirmed in the autumn statement the extension of the right to buy to housing associations, thereby effectively privatising them. As we all know, the existing right to buy has decimated social housing stock throughout the United Kingdom. The Scottish Government recognised that, and abolished the right to buy. Given that the new discounts and the so-called one-for-one replacements are not being financed by additional Government funding, will the Minister explain what effect the Chancellor’s proposals will have on housing in Scotland?

[James Wharton]

The hon. Gentleman is right to draw attention to the policy intention to replace homes on a basis of at least one for one, which is greatly welcomed by Conservative Members. As I have said, the spending review will have a Barnett consequentials impact on the Scottish Government’s capital budget, amounting to £1.9 billion, which is in addition to the borrowing powers they already have. That will enable them to deliver on what they want to do for Scotland—just as we want to deliver on our objectives and manifesto priorities in England and Wales.

[Mr Laurence Robertson (Tewkesbury) (Con)]

10. What steps he is taking to ensure that new developments do not affect the risk of flooding to existing properties.

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[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

12. What recent progress has been made on the proposed Inverness city region deal.

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

The Government, along with the Scottish Government, are working with Highland Council to identify the opportunities for an Inverness and Highland city region deal. The discussions are ongoing. They are positive and constructive. I hope they will lead to the outcome that I am sure the hon. Gentleman hopes for. He is absolutely right to raise this important issue. City deals can be a great driver for growth; they can help us realise economic potential, and that is what we want to see.

[Drew Hendry]

Highland Council has submitted a detailed and innovative plan for city deal investment, with the support of the Scottish Government. Will the Minister commit to advancing discussions, and will he indicate a timescale for finalising the process to allow the deal to get under way?

[James Wharton]

Discussions are already under way. Officials met local representatives on 2 December and will continue to work through the plans to ensure that they are robust, that they deliver what is needed, that they meet the requirements that we place on such deals and that they have the support they need to continue. We wish to see them progress positively. That is the strongest assurance I can give the hon. Gentleman at this time, because of course those things need to be done properly and thoroughly before plans are taken forward.

[Margaret Greenwood (Wirral West) (Lab)]

14. What steps he is taking to ensure that the funding model for local government is fair.

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[Chris Heaton-Harris (Daventry) (Con)]

16. What weight his Department gives to neighbourhood plans when assessing planning developments at the appeal stage.

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

Planning appeals are determined in accordance with the development plan, unless material considerations indicate otherwise. Once brought into force, a neighbourhood plan is part of the development plan.

[Chris Heaton-Harris]

As the Minister will know, a few weeks ago the villagers of Earls Barton were trooping to the polls to vote on the referendum on their neighbourhood plan, at the very same time as the Secretary of State was allowing a housing planning appeal in their area. After all the work my constituents have put in, what assurance can the Minister give them that this work on neighbourhood plans will be worth while?

[James Wharton]

I recognise my hon. Friend’s diligent commitment to representing the views of his constituents and taking an interest in local matters, including this one. He will appreciate that I cannot comment on individual planning cases, but neighbourhood plans are, where appropriate, given significant weight, and individual decision letters will set out why there is a difference and why a neighbourhood plan has been departed from. The Secretary of State will always give appropriate weight to neighbourhood plans, which are an important part of our planning process and of localism. We welcome them and we want to see more agreed.

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[Peter Grant (Glenrothes) (SNP)]

21. What recent progress has been made on the proposed Edinburgh city deal.

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

We are speaking with Edinburgh and south-east Scotland to look at proposals for a city deal there. It is welcome that so many parts of Scotland are keen to be part of the process of delivering city deals. We must ensure that, when they are agreed, they are agreed in such a way that will drive economic growth, and that is exactly what we are doing.

[Peter Grant]

Despite the obvious wealth that exists in some parts of Edinburgh and south-east Scotland, there are also significant areas of very severe deprivation. Some 21% of children in the proposed city region live in poverty just now. The economy of the area has not been helped over the past few months by Government decisions on renewables. Rather than just talking about this deal, will the Minister tell us what the timescale is, first, for a decision and, secondly, for actual action on it?

[James Wharton]

The hon. Gentleman makes an important point about the diverse nature of the area about which he talks. We see great potential for growth across Edinburgh and south-east Scotland. We want to ensure that we can realise that potential and deliver that growth. We will continue to have talks, which have been productive and are constructive, with interested parties on the city deal. We will continue to work constructively to deliver that city deal if it can be delivered in the right way. These things must be decided properly and after due consideration. That is the process that is currently under way.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

22. What plans he has to tackle landlords who knowingly rent out unsafe and substandard accommodation.

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[Matt Warman (Boston and Skegness) (Con)]

T5. The people of Lincolnshire know what is best for the people of Lincolnshire. Will my right hon. Friend outline the benefits on offer in the current devolution deal and tell me how the Lincolnshire bid is going?

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

My hon. Friend is, of course, well placed to represent the views of the people of Lincolnshire and he does it very effectively. The whole approach of the Government towards devolution is bottom up; it is about bespoke deals that recognise that areas are different and that local people know best the tools they need to drive economic improvement and improve lives for the communities that they represent. Discussions in Greater Lincolnshire are going well and include the issues of skills, transport, housing and water management. I hope they will conclude successfully and that a deal will be reached that will last for a very long time.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Further to my earlier question, if the new one-for-one replacement for right to buy was funded directly by the UK Government instead of other means, what would the Barnett consequentials be for Scotland?

[James Wharton]

As I said earlier, the Scottish Government are seeing a significant increase in their capital budget as a result of the announcement in the spending review. The Barnett consequentials of individual policies are worked through and delivered. The British Government—the Government here in this place—meet our obligations in that regard, and will continue to do so, to ensure that the Scottish Government get a fair deal and can continue to deliver what they need to deliver to meet their obligations and the concerns of hon. Members.