Towns Fund

Debate between Luke Hall and Stephanie Peacock

Thursday 4th February 2021 Commons Chamber

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

I congratulate my hon. Friend the Member for Peterborough (Paul Bristow) and the Backbench Business Committee on securing what has been an important and passionate debate. We have heard colleagues on both sides of the House speak with passion and enthusiasm about the communities they represent. I am hugely grateful to colleagues on both sides of the House for their contributions, and I will try to address as many of the points raised as possible.

This debate has given us a chance to celebrate the towns fund, which is a cornerstone of our levelling-up agenda. It is helping to reshape towns and cities into places where businesses and communities can thrive. In 2019, we announced that 101 places had been invited to develop proposals for a town deal. The objective of these deals is to drive the regeneration of towns to deliver long-term economic and productivity growth. It has been genuinely inspiring to see town deal boards, communities and representatives of individual places work with local government to do just that.

These towns are spread right across the country. Many are birthplaces of industry that have been centres of commerce for centuries. Others are bastions of the maritime economy across the coastline. They are all different, but the thing they have in common is that they have been left behind as investment has focused on big cities for too long. Town deals are reversing that trend. They are about providing investment and confidence at a crucial time for these communities. We are investing in new uses for often derelict and unloved spaces. We are creating new cultural and economic assets that will benefit communities for years to come, and we are connecting people through better infrastructure, both digital and physical, such as the new walking and cycling routes planned at Torquay and the creation of a new digi-tech factory in Norwich.

It is unsurprising and disappointing to see the Labour party today trot out the same tired old lines attacking this fund, which is investing so much in towns that were neglected for years under the last Labour Government. We heard Labour Members say again today that this fund has been targeted at Conservative-held areas. They are wrong. The majority of towns selected are in either Labour or Opposition-held local authority areas. Those councils have worked with us co-operatively, passionately trying to put together their bids, to deliver investment in their communities, but the Labour party in Westminster is determined to reject the support for those communities and attack these local regeneration projects in towns and cities that they neglected for years and years.

[Stephanie Peacock]

I am grateful to the Minister for giving way, but I am afraid he is completely wrong. Sixty out of 61 towns selected by Ministers were in Conservative-held or Conservative target seats. Barnsley, which I represent, has had the biggest cuts in the country. How could we possibly not have been considered for the fund?

[Luke Hall]

I ask the hon. Lady to check the facts. The majority of these town deals are in Opposition-held council areas.

I was delighted to hear the hon. Member for City of Durham (Mary Kelly Foy) open her speech by saying that no Labour MP will oppose more funding for local government, because she will have the opportunity shortly to vote for a local government finance settlement that will increase councils’ core spending power by 4.5%—a real-terms increase.

The hon. Member for Strangford (Jim Shannon) asked about funding for Northern Ireland and how the Department for International Trade’s high potential opportunities programme is supporting investment across the UK. I can confirm that DIT announced in October the second round of successful bids, with 19 new projects selected, and it is currently working with Invest Northern Ireland to explore even more investment opportunities. I am sure that colleagues in the Department for International Trade will be happy to pick that up with him.

In the face of this relentless negativity from the Labour party, in October last year we announced the first seven towns to have gone through the assessment process and have their plans approved. Among them was Peterborough. I know that my hon. Friend the Member for Peterborough worked closely with the town deal board and helped to develop the ambitious investment plan. I am delighted that it was offered £22.9 million in October. That funding will help to deliver a new enterprise hub to support entrepreneurs and inward investment. It will support healthy lifestyles by making it easier to walk and cycle, and it will further Peterborough’s ambitions for low-carbon living. I thank my hon. Friend and his town board for all their support and help in making this happen.

I also thank my hon. Friend the Member for Blackpool South (Scott Benton) for his remarks this afternoon. It is in large part down to his hard work, alongside that of the town deal board, that Blackpool will receive £39.5 million. This substantial investment reflects the exceptional nature of Blackpool’s proposals and the national significance of what they are planning. We think investing in this iconic British seaside resort has benefits that will reach way beyond the boundaries of the town. The plans include making Blackpool’s famous illuminations even more impressive so that they can attract visitors right around the year and have a huge impact on tourism in the town.

My hon. Friend the Member for Brigg and Goole (Andrew Percy) raised his ambitions for the Goole to Leeds rail link and asked whether we could retain some flexibility in delivering the fund to support places requesting revenue funding as part of the deal. I would say to him that the towns fund criteria are broadly drawn, and intentionally so, to ensure that we give towns as much flexibility as possible to determine their own priorities. It is right that the towns fund is principally about capital investments, but we recognise that in some towns there might be a particular need for an amount of revenue funding, perhaps to support the implementation of a capital project, so we absolutely agree with that.

My right hon. Friend the Member for Harlow (Robert Halfon) talked passionately about his town investment plan, which we received in late October last year. I can assure him that the assessment process is under way and my officials are looking at the details of the plan. I agree with him that it provides the opportunity for Harlow to determine its own future, and I will certainly join him in thanking the Harlow growth board, the chief executive of the council and all the officers who have worked on the bid.

Alongside town deals, we are also investing directly in the high streets that are at the heart of so many of our communities. Too many high streets have seen considerable decline in the past decades, and those challenges have been exacerbated over the last year by covid-19. That is why, on Boxing day, we announced the winners of our future high streets competition, committing up to £830 million to 72 places in England and giving a major boost to local high streets and the many jobs and livelihoods that depend on them.

That investment includes over £11 million for Blyth, which was raised in the debate by my hon. Friend the Member for Blyth Valley (Ian Levy). This will deliver important new cultural and educational facilities and bring vibrancy to the town centre. The investment also includes nearly £18 million for Worcester city centre, which will benefit from the renovation of the popular theatre and the Corn Exchange, and £25 million for Swindon to modernise its town centre. Some £107 million from the future high streets fund has also been allocated to support the regeneration of heritage high streets, and we are doing everything possible to help high streets to survive, adapt and thrive.

My hon. Friend the Member for Peterborough also talked about the need to do more and go further, and he was right to do so, because there is of course more investment to come. At the spending review, we announced the levelling up fund, worth £4 billion, and that will bring infrastructure investment—