Oral Answers to Questions

Debate between Luke Hall and Richard Thomson

Monday 19th April 2021 Commons Chamber

[The Minister for Regional Growth and Local Government (Luke Hall)]

The levelling-up fund will be allocated competitively and is open to all local areas. As we set out in the prospectus published at Budget, the index used for the levelling-up fund places areas in category 1, 2 or 3 based on their need for economic recovery and growth, improved transport connectivity, and regeneration.

[Richard Thomson]

If the Minister does not mind my saying so, that index seems to be working in a rather curious way. It has not escaped anyone’s attention that some Tory target areas in England seem to have done extraordinarily well out of this fund, yet areas such as mine in the north-east of Scotland—Aberdeen City Council and Aberdeenshire Council—are languishing in levels 2 and 3 of the fund, despite being forecast to be hit hardest by Brexit. We know there was a power grab with the United Kingdom Internal Market Act 2020. Is not the truth that we are now seeing a corresponding cash grab, because the Conservative Government know that not even all the rhetoric in the world about shared prosperity and precious Unions can spare their party from the hiding it is set to get from Scottish voters on 6 May?

[Luke Hall]

It is hard to see how the £150,000 per local authority that we have already committed to is a cash grab from Scottish communities. We are investing directly in Scottish communities, with £125,000 in capacity funding already. This is a bidding process, and rightly so, but we are providing that capacity funding, and for the first round of funding at least 9% of the UK allocations will be in Scotland. As I said earlier, we are hugely excited about the opportunities we have now to work directly with communities in Scotland. We have already been in touch, of course, with Aberdeen City Council and Aberdeenshire Council to ensure that they have a good understanding of the levelling-up fund, including, importantly, securing support from Members of Parliament. I very much hope that the hon. Gentleman will play a full part in that process.