Levelling Up: South-west

Luke Pollard Excerpts

Tuesday 4th July 2023 Westminster Hall

[Mr Liddell-Grainger]

A superb synopsis, and I congratulate my hon. Friend on the work that he does. Leave the Lib Dems in charge and, as I said, the intelligence goes. I am sorry that the bid was lost, but we will be back. The Minister is listening, and I know that we will get the bid, because in rural areas such as that of my hon. Friend the Member for Totnes we have to fight our corner. That is especially important in places such as Cornwall. We are joined by my Whip, the hon. Member for North Cornwall (Scott Mann), to ensure that I behave.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

I backed a levelling-up bid from the then Plymouth Conservative council in St Peter’s, which is one of the lowest super output areas in the entire region. Sadly, we were turned down in that bid. I would be grateful if the hon. Member could lend his support for clarity on what a levelling-up round 3 might look like—whether it will be a “Hunger Games”-style competitive bid, or whether there will be devolution of funding so that local authorities can back the projects that they know would work in their area. Does he agree that it should be the latter, because local people know better?

[Mr Liddell-Grainger]

I completely agree, as I have already said, about local, intelligent, highly-motivated people. Having been in Somerset now for 25 years, St Paul’s is slightly legendary. It does need help. We have to say that. Talk to the police in Bridgwater: St Paul’s is always an issue. The Minister will have heard the second part of what the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) said, and I cannot disagree. It is vital. In the middle of Bristol is one of the most affluent areas of the south-west, but outside of Bristol it is completely different. The hon. Member’s seat has challenges. We all have to face up to that. I know the job that he does, and it is difficult.

I will move on—with more abuse, if I may. Yesterday morning, I received a self-congratulatory letter from Project Gigabit’s Minister of State telling me about the wonderful developments of bringing ultra-fast broadband to the extremities of Somerset and Devon. I had a giggle about that. There is no encouraging news for either of the counties, partly because the broadband roll-out has been left in the incapable hands of “Project Useless”, actually known as Connecting Devon and Somerset. CDS is a total cock-up. It was designed—I think that is loosely the word—by someone in a hurry and without a fully functioning brain. There does not seem to be anybody on the board capable of understanding the technology or writing a contract. How many times have we had problems? As a result, millions have been committed in public money to an organisation that could not deliver. Now Connecting Devon and Somerset is still failing to deliver, and it is two years behind schedule.

Do not bother storming round to the CDS office, because it does not have one, which is great. It is run by councillors, who are mostly part time, across the two counties, and employs only a handful of people, who are doing their best but are basically not up to the job. We need to move on. We have to sort out broadband in rural areas across all our counties. The same goes for the management of what turns out to be the worst water company in the United Kingdom. Never mind Thames Water, we have South West Water. It overpays its top team, dumps sewage in rivers, fails to invest in new reservoirs, yet wants to be treated like a paragon of virtue. It sells services in Bristol and Bournemouth as well as in Devon and Cornwall. They are up to their necks in it.

--- Later in debate ---

[Dehenna Davison]

My hon. Friend raises a really interesting point. As I said, we have been exploring alternative funding streams, such as the UK shared prosperity fund, but the most exciting opportunity we have is proper devolution. We are rolling out devolution deals around the country so that local powers and local cash are in the hands of local people. To me, that is the better and right approach to enable long-term strategic thinking locally, but I certainly heard my hon. Friend’s point loud and clear, and I will be happy to discuss it with him further.

[Luke Pollard]

I am trying to understand whether the third round of funding for levelling up will be allocated in a similar way to previous rounds. The Minister talks about devolution. I am in favour of devolution, and I think that most of us in the Chamber are, because people in Devon and the south-west know their communities better than any mandarin, no matter how good, in Whitehall. Will future rounds of levelling-up funding be allocated in parallel with devolution deals? Devon is looking at a devolution deal at the moment, but we are uncertain about the timescales for the levelling-up funding and the devolution bid. Could the Minister provide some clarity on what will come first and on how they will interact?

[Dehenna Davison]

As it stands, the two are separate strands, as the hon. Member will know. At level 3 devolution, there is the opportunity to access an investment fund, which is a fantastic way to fund local infrastructure projects and the like. It is up to local areas to decide what level of devolution they wish to pursue, and we are in talks with Devon, Plymouth and Torbay to explore opportunities there. As for round 3 of the levelling-up fund, we are dotting the i’s and crossing the t’s, so it would be inappropriate for me to make any announcements today, but I assure Members that we will provide full detail in due course and very soon. I hope that provides the clarity that the hon. Member seeks.

I am not suggesting that levelling up is a quick fix that will happen overnight, but our levelling-up plans, underpinned by 12 ambitious missions, are set to be achieved by 2030. For that to happen, they require serious cross-Government and cross-society efforts. The first mission, for instance, has a target for pay, employment and productivity to grow everywhere, which is vital for the south-west, where average productivity lags the national average.

As I have outlined, our plans will lead to more devolution in more places across England; rebalanced spending across regions in areas such as research and development, arts and culture, and housing; investment in infrastructure and skills to grow the economy; and, crucially, a renewed focus on regeneration, supporting community initiatives and community safety.

To many, the south-west is the region of cream teas, the world’s best cider and buildings made from the famous Bath stone. It is unquestionably a beautiful part of the world, and it is no wonder so many people choose to take holidays and make trips to the south-west. In fact, the south-west attracts more visitors than anywhere else in the UK bar London—but I reckon you guys can catch up if we work hard enough!

Relying on tourism to drive the economy is a double-edged sword, especially in the south-west. While it creates plenty of jobs, many are low-paid, and while it supports countless businesses, that can price local families out of their area. For example, a full-time worker earns an average of £33.40 less per week than the UK average and more than a third of local people do not have a level 3 qualification. The unfortunate reality is that for all the region’s incredible natural beauty, it is also home to significant pockets of deprivation and disadvantage. One in 10 of England’s most deprived neighbourhoods is in the south-west. I have always firmly believed that prospects should never be determined by postcode.

The challenges in the south-west are clear, but so too are the opportunities. The region is home to world-class universities, highly skilled workers and cutting-edge small and medium-sized enterprises. Bristol and Bath are centres of advanced manufacturing and engineering, aerospace and creative industries, Plymouth is a growing centre of expertise in maritime autonomy, and in Torbay, high-potential opportunities in photonics and microelectronics have been identified.

In my Department, we recognise the potential of supporting local projects and are investing—I hope hon. Members are ready for me to rattle off my list— £131 million in them through round 1 of the levelling-up fund. From creating a new training academy for health and social care in Bridgwater, which my hon. Friend the Member for Bridgwater and West Somerset referenced, to supporting the University of Gloucestershire to bring empty buildings back into use, we are supporting projects that are delivering on local priorities. We are investing a further £198.6 million across nine towns in the region through the towns fund, and an injection of £96.2 million is going to the south-west through the getting building fund. Those are just some examples of the diverse opportunities and incredible local projects that we are funding.

As I have said, we need to empower local leaders and communities, which is why we are carrying out an ambitious package of devolution—the biggest transfer of power away from Westminster to local government in modern times. I am delighted that Devon, Plymouth and Torbay, and Cornwall, are in the first wave, giving local leaders the tools they need to deliver for their communities, such as increased control over transport and infrastructure.

On transport, my hon. Friend the Member for Bridgwater and West Somerset raised the issue of potholes, that vital scourge on our society. I am pleased to say that there is an £8 billion pothole fund announced by the Government, which I hope he and his community can draw upon.

I am conscious of time, but let me again mention round 2 of the levelling-up fund, which will provide £186.6 million of funding across the south-west. The UK shared prosperity fund, which is worth more than £2.6 billion in total, is living up to the Government’s commitment to match EU structural fund receipts in each nation of the UK and in Cornwall and the Isles of Scilly. As I said, round 3 of the levelling-up fund will be announced very soon. I am pleased that we will be providing further funding in that way.

Levelling up is not just a slogan or a tagline; it is the central mission and commitment of this Government. We have defined the problem and drawn up a long-term plan based on measurable missions. Our focus now is on delivery. Work is under way. Funding has been allocated. Devolution deals are being negotiated. The whole of Government is being mobilised towards this goal. Decisions on transport, culture and healthcare are all being viewed through the prism of levelling up. That is no small task, but the size of the prize is clear, and I look forward to continuing to work with all hon. Members present to make levelling up a reality in the south-west.

Motion lapsed (Standing Order No. 10(6)).