North Staffordshire Potteries Towns: Levelling Up

Naz Shah Excerpts

Tuesday 1st December 2020 Westminster Hall

[Naz Shah (Bradford West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I thank the hon. Member for Stoke-on-Trent South (Jack Brereton) for initiating this important debate. Only last week I was in this Chamber speaking on a debate about levelling up. That, too, was about areas in the north. The stark reality is that the north has faced decades of underfunding, which has only been exacerbated during this pandemic. All hon. Members spoke passionately about that underfunding.

In times like these, those years of failing to fund statutory services show their actual cracks. Sadly, the results have been deadly. People in the north have been more likely to have their working hours reduced or to have lost their jobs altogether. As the shadow Chancellor put it, bluntly and tragically, they have been more likely to die of covid-19.

Years of underfunding means that investment per person in the Staffordshire pottery towns is less than half of that seen in London. Over the past decade in the region we have seen a decrease in both health and education investment per head. The north simply does not have enough beds and hospitals. The toll on hospitals in the north, therefore, is far more severe than those with capacity in the south. The impact on schools means that after years of underfunding, 75 out of 86 schools in Stoke-on-Trent are still in crisis, with an estimated £6.7 million shortfall in 2020 and £174 lost per pupil even before the effects of the pandemic.

At the beginning of this pandemic, I am sure Conservative Members will remember, the Secretary of State for Housing, Communities and Local Government promised to fund councils with whatever was needed. Councils are facing an estimated £1 billion funding gap this year. That estimate was made prior to the introduction of the national lockdown, so the gap could now grow to be in the region of £2 billion. We have already seen the Chancellor pursue a public sector pay freeze for those who worked day and night, the public sector workers putting themselves at risk to deliver for this nation during the hard times. If councils, including Stoke-on-Trent, do not receive the funding they need, those same people may also face job losses.

The hon. Member for Stoke-on-Trent North (Jonathan Gullis) recently raised the unfair formula from Government on pothole funding for Stoke-on-Trent. I share those concerns, though I would like to add it is not just in Stoke-on-Trent; our nation’s roads are plagued by a pothole epidemic and the road maintenance backlog is valued at more than £10 billion.

Important investment projects were axed in 2010, only to resurface at greater cost later. Consecutive Governments have failed to provide the funding needed and now, when our public finances are already stretched with the pandemic, we are forced to accept a price we would not have needed to accept.

I want to follow up on the welcome, if slightly belated, announcement of the Government’s plans for the UK Shared Prosperity fund and the levelling-up fund, both of which have the potential to provide much-needed funds to our communities. I hope the Minister can provide further clarity on both those funds. I understood from the Chancellor’s statement last week that next year would see the launch of pilots of the types of scheme that the UK SPF will fund when it is eventually launched.

Will the Minister provide further details on how communities and local authorities will be able to access those pilots, and what form they might take? I am particularly interested, for example, whether he could confirm if partnerships of community organisations, local businesses and local authorities will be able to access this preparatory UK SPF funding next year. We have seen this year the value of local authorities and metro Mayors to their communities. Will any of the UK SPF be devolved to local or regional government to be distributed by them, working in their local communities?

The Chancellor also said in his statement last week that the whole of the UK will benefit from the UK SPF and, over time, we will ramp up funding, so that local domestic UK-wide funding would at least match EU receipts on average, reaching around £1.5 billion per year. The total funding, however, from EU receipts has been, on average, £2.1 billion per year, according to the House of Commons Library. Will the Minister clarify why there is that stark difference?

Finally on the UK SPF, will the Minister clarify why, given that the fund was first announced in the Conservative manifesto of the 2017 general election, we are only now trialling the fund? It is a shame, given the three years since that election, that we have not seen the design of the fund launched and consulted on, as was originally promised.

I would like to move on to the levelling-up fund, announced for the first time last week. I understand it is to be jointly administered by the Minister’s Department, the Treasury and the Department for Transport from Whitehall. As with the towns fund, we welcome any investment into held-back towns across the country after a decade of neglect by this Government. There has, however, been much debate, both in Parliament and the press, about the way the towns fund was designed, with a host of deserving towns inexplicably losing out. Has the Minister taken any lessons from that into the design of the levelling-up fund, so that those bidding can be reassured that they will not be excluded from receiving investment at the whim of Ministers?

Will the Minister also tell us who will be able to submit bids to the fund, and who they will need to support bids? It would be helpful to understand, for example, how the value of an MP’s support would be weighed against the support of a local council. I am sure that the Minister would not want to see deserving bids for funding submitted by councils fail because of the intransigence of a local MP. I am making a particular reference. We would not like to see another situation where one Minister signs off another Minister’s £25 million for their local town when those are marginal seats. That would be a travesty.

We gather from the Chancellor’s statement that the fund will be based on competitive bids, so will the Minister clarify what steps his Department will take to ensure that all of our communities are able to put bids together, and that the poorest are not disadvantaged? Finally, I hope he will also confirm if the focus of the fund on growth and regeneration outcomes encompasses social values, community wealth building and inclusive economic development.