Levelling-up and Regeneration Bill (Fifth sitting)

Neil O'Brien Excerpts

Committee stage
Tuesday 28th June 2022 Public Bill Committees

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

There is a lot of interest in the idea of levelling up and its lofty and laudable aims, but warm words and good intentions, of themselves, will not reduce inequality across the UK. There is a real flaw in the Bill’s lack of accountability and ownership of each of the 12 levelling-up missions on the part of individual UK Government Departments. Amendments 3, 5, 10 and 12 and new clause 1 seek to address that lack of accountability.

Of course, the Government have given themselves the power to move the goalposts, change their targets, and look as if they are doing what they said they would do even if they are not. Rather than merely marking their own homework, they are also ready to lower the pass mark of the test if they fail it. That tells us how important the Government’s levelling-up plans are. If they really had the confidence in this flagship commitment that they profess to have, why would there be any baulking about objectively measuring their progress on levelling up?

These amendments seek to lock independent scrutiny of the progress of levelling up into this flagship Bill. Here we are, having to debate it, when it should be taken as read. The Institute for Public Policy Research has also called for an independent body, established in law, to oversee and judge the UK’s progress on levelling up. What Government with true confidence in their ability to deliver their goals, as this Government say they have, would resist that kind of scrutiny and accountability? Surely they would exalt in it; it would be the opportunity to demonstrate their success. What have this Government to fear from transparent and objective allocation mechanisms for delivery? The only conclusion that can be drawn is that the Government know that there is more bluster here than actual substance.

True levelling up, of course, requires actual investment, but the necessary financial backing appears to be absent. Any investment must be delivered in a non-partisan and transparent way. Let us not forget that the Institute for Fiscal Studies has pointed out that departmental budgets will actually be lower in 2025 than they were in 2010. How that chimes with and supports the idea of levelling up is something that I am struggling to understand.

Levelling up is an admirable principle, but if the Government are confident that they can deliver, as they say they are, what possible objection can there be to scrutiny? With such attempts to avoid independent scrutiny, it feels as if there is agenda beyond levelling up. If the levelling-up missions do not have the effect of reducing inequality across the UK, then they will have objectively failed in their goal. These amendments seek to measure that progress. Who can object to that?

If the very foundation of the Bill—the ability to deliver greater equality across the UK—is not open to full and transparent, evaluative, published scrutiny, and if that is not written into the Bill, the very principles on which it purports to stand are built on sand, will not inspire confidence and, I fear, will not deliver. I absolutely agree that we do not need the fanfare of a Bill to reduce inequality; it could just be done—a Bill is not needed. A Bill whose stated aims are not open to transparency and independent scrutiny is definitely not a Bill we need, and we are right to be sceptical.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

It is a pleasure to begin line-by-line scrutiny of this important Bill with you in the Chair, Mr Paisley. We have a very distinguished Committee and I look forward to some thoughtful and enlightening debates.

The Government’s defining mission is to level up our country—to close the gap in productivity, health, incomes and opportunity between different parts of the country. That goal is made all the more urgent in the face of cost of living pressures and the inequalities laid bare and deepened by the pandemic.

The levelling-up White Paper sets out that levelling up is a moral, social and economic programme for the whole of Government, not just one Department, to spread opportunity and prosperity more equally throughout the country. The Bill sets out the framework for delivering on our levelling-up missions and places a statutory duty on the Government for the first time to set missions to reduce geographic disparities and to produce an annual report on our progress.

The Government absolutely recognise that scrutiny and seeking expert advice will be important to ensuring that we deliver on our missions and level up the country. That is why we have established the Levelling Up Advisory Council, chaired by Andy Haldane, former chief economist at the Bank of England, to provide the Government with expert advice to inform the design and delivery of the missions.

The council is made up of an expert and distinguished group of people. It includes Katherine Bennett, chief executive officer of the High Value Manufacturing Catapult and chair of the Western Gateway, which brings together the research and development strengths of the Bristol region with south Wales; Sir Tim Besley and Sir Paul Collier, two of our most distinguished economists from the London School of Economics and Oxford; Cathy Gormley-Hennan from Ulster University; Sally Mapstone, principal of the University of St Andrews; Laxman Narasimhan from Reckitt Benckiser; Sacha Romanovitch from Fair4All Finance; Hayaatun Sillem, chief executive officer of the Royal Academy of Engineering; and Sir Nigel Wilson, chief executive of Legal and General. These are very independent-minded people—serious people with deep expertise. The reason why we have brought them together is that we respect and value independent, thoughtful, expert advice.

The Government are committed to enabling Parliament, the public and other experts outside the advisory panel to fully scrutinise progress against our missions. The proposed initial set of metrics have already been published in the levelling-up White Paper, in the technical annex—40 pages, which give all the different ways we will measure all the different missions in incredible, unprecedented detail. I do not remember such detail under any previous Government. The metrics were published in the White Paper and will be refined over time. The analysis included in the annual report to Parliament will be based on the metrics that are here and included in the statement of levelling-up missions that will be laid before the House.

Given the level of transparency and reporting, and the level of input from deep experts, it is unclear what value an independent body would add. The Government will be required to report on set missions within set metrics and methodologies. Instead of creating a new independent body, the Government believe that levelling-up missions can be better supported by focusing on delivering those missions themselves—by getting on with it, as the hon. Member for Westmorland and Lonsdale said. It is also wrong to argue that without an independent body, the Government’s progress towards delivering missions will not be subject to independent external scrutiny. Parliament, the public, think-tanks and civil society will all have an opportunity to comment and report on how well the Government deliver missions, in response to our annual reports.

[Patricia Gibson]

This has just occurred to me as the Minister has been speaking. I am curious: if child poverty does not reduce, will the levelling-up programme and mission be considered a success or a failure?

[Neil O'Brien]

The hon. Lady raises a really important point. The last Labour Government had a statutory child poverty target; that target was literally locked into legislation. Was it hit? It was not hit, no. That is why we have adopted the approach that we have; just writing something into law does not mean that it happens, unfortunately. That is why we have created the independent architecture around levelling-up missions: to provide both really serious external expertise in the work that we are doing—I do not think anybody disputes the fact that these are really independent, serious people; and an unprecedented level of detail, to give everybody who wants to criticise the programme all the resources and exact detail they need to do just that. I do not remember any of those things happening under previous Governments.

Missions are intended to anchor Government policy and decision making to level up the UK. However they should not be set in stone. As the economy adapts, so too might the missions, to reflect the changing environment and lessons learned. Of course, some of these things can be tightened over time; we have made remarkable progress on our missions to roll out Project Gigabit and the Shared Rural Network, which are a £5 billion intervention and £1 billion intervention respectively. Over the course of just the last two years, they have transformed the availability of gigabit internet and rural 4G.

Opposition Front-Benchers said, “Why do you have to change some of the missions? That seems very dodgy to us.” Some of the missions will literally have to change. For example, one of the missions that I am very proud of is the one to increase domestic public R&D spending outside the greater south-east of England by a third over the period covered by the spending review. Of course, that prompts the question, “What will happen after the spending review?” We will have to change that mission, otherwise it will just become meaningless. Things have to adapt over time, of course, and I think that everyone recognises that levelling up is a long-term mission; nobody thinks that any of these things, some of which are century-long problems, can be solved in the course of one or two years.

However, the Opposition Front-Benchers made a very important point: the Bill sets out that any changes to missions should be—indeed, have to be—fully and transparently explained and justified through a statement to Parliament where they occur. Nothing will happen without Parliament knowing about it.

Hon. Members on the Opposition front page—Freudian slip; Front Bench—would recognise that some of the missions will just have to change over time; there is no point locking in a three-year mission for the next 30 years. This layer of transparency enables the public and civil society at large to comment on the Government’s decisions. It is unclear what additional benefit an independent body would bring. The Bill sets out that any changes to missions should be fully and transparently explained and justified where they occur. The missions will be rolling endeavours.

[Rachael Maskell]

The big challenges facing our society, such as climate and the economy, have independent bodies, but inequality and the injustices that come from it will not. What do the Government see as the value of independence when it comes to the Office for Budget Responsibility and the Climate Change Committee that they do not see with this particular agenda?

[Neil O'Brien]

That is an extremely good and useful question. Everyone remembers the backstory about why we created the OBR. As Chancellor, Gordon Brown changed the assumption about how fast the UK economy would grow, to prop up and justify to the public extraordinarily high levels of public spending. When the financial crisis happened, his decision to change the assumption about how fast the UK economy would grow proved catastrophic, and we ended up with the largest structural deficit of any major developed economy in the world going into the financial crisis, with catastrophic effects on public spending and public services that lasted for a generation.

We changed that because it is very difficult for anyone outside the Treasury to challenge or see some of the forecasting assumptions being made; the macroeconomic and technical work that was happening only within the Treasury prior to the OBR was difficult for anybody to scrutinise externally. Anybody, even Opposition Front-Benchers, could tomorrow update every single bit of data in this document. All these things are public sources; it is straightforward for anybody to hold us to account for them.

However, when it comes to the OBR, it is not quite so straightforward to say, “No, I think the output gap should be different. I think that your assumptions about the fiscal impact of excise duty changes interacting with changes in consumer behaviour are wrong.” That is a fundamentally more difficult thing to do. Ultimately, the OBR was created to protect the Treasury from the kind of behaviours that, I am afraid, we saw under the last Labour Government.

[Rachael Maskell]

Will the Minister give way?

[Alex Norris]

Will the Minister give way one more time?

[Neil O'Brien]

We are going to have to make progress this morning, I am afraid, because we have a lot of clauses to get through. The Opposition amendments are well intentioned—given who the shadow Ministers are, it could not be otherwise—but they are unnecessary and that is why we must resist them.

[The Chair]

Rachael Maskell, you can make another speech, as this is line-by-line scrutiny.

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[The Chair]

Does any other Member wish to catch my eye? Does the Minister wish to respond?

[Neil O'Brien]

indicated dissent.

[Alex Norris]

I start by saying—given that one of my Whips is in the room, I should not say this—that, for the reasons mentioned, I enjoy these Bill Committees. I am not sure whether I will enjoy them in a few weeks’ time, because we will have been at it for a long time.

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[Patricia Gibson]

Amendment 13 would place

“a responsibility on the Government to publish the resources made available to communities in order to level-up”.

Who could argue with that? In not arguing with it, I cannot help reminding the Minister that Scotland was promised a £1.5-billion-a-year bonanza as part of the Brexit windfall. Of course, the reality is that Scotland has received 40% less funding than it did under the EU funding agenda, and it has suffered a 5.2% cut in its resource budget and a 9.7% cut in its capital budget. Perhaps the Minister can tell us how that supports the levelling-up agenda, because I certainly cannot understand. It is quite galling that as this Government show disrespect to devolved Parliaments—democratically elected Parliaments—by impinging on devolved powers and bypassing the democratic will of the Scottish people in devolved areas, they simultaneously cut their budget in the context of levelling up.

Despite the stated goals of the legislation, the Minister has been unable to say—perhaps he will do so when he gets to his feet—whether the levelling-up missions would result in a reduction in inequality to the point where we would see a reduction in child poverty. What kind of levelling-up commitment would not address the basic social scourge of child poverty? I cannot think what the point of any of this is if we are not committed to tackling that most basic and serious ill.

Of course, as we have heard, we do not need a fanfare to tackle inequality; we just need to get on and do it. We can exalt in our success if indeed we have it, but we do not need a Bill that runs to hundreds of pages but cannot even commit to transparency or to publishing details of the resources that it is willing to use.

In Scotland, the Scottish Government have tried, with their limited powers, to instigate levelling up—for example, with the Scottish child payment of £20 per child per week. That is real levelling up, and these are the kinds of measures that the Bill really ought to tackle to build a more inclusive society. As food bank use rises, we have a real opportunity if we are serious about levelling up, but it takes targeted political will and a determination to tackle the causes of inequality. That is not an easy thing to do—we have to put in a real shift—but a Bill that runs to a few hundred pages with vague missions that objectively cannot be held to account will not convince anybody.

It is clear to see that the resources for true levelling up will not be made available, certainly from the Scottish perspective with the figures I have cited. For all the warm words, and there have been many, it is difficult to have confidence that our communities will see any tangible difference as a result of this fanfare—sorry, this Bill. The Government should have no problem with amendment 13, because they know that no levelling up can happen without resources. Presumably, if they are serious about levelling up, those resources will be committed, so why not publish them? Why do the Government not exalt in their success and the resources they are willing to expend? If this levelling-up Bill and agenda do not reduce inequality or tackle poverty, child poverty or child hunger, I honestly cannot see the point of them.

[Neil O'Brien]

I agree completely with the spirit behind the amendment, and we are actively working to bring about what Opposition Members want. However, we do not think the amendment works, and I will explain why. Official statistics about public spending in different places are widely available already. Her Majesty’s Treasury already publishes a regional breakdown for total current and capital identifiable expenditure per head through PESA—Public Expenditure Statistical Analyses—which is my favourite regional statistical document.

We are also taking steps to improve the quality of spatial data. The Department for Levelling Up, Housing and Communities has established a new spatial data unit to drive forward the data transformation required in central Government. It is frustrating to us that many of the types of data that should have existed for years still do not. The spatial data unit supports the delivery of levelling up by transforming the way the UK Government gather, store and use sub-national data, so that it can underpin transparent and open policy making and delivery decisions. It is completely in that spirit that we are acting to improve data on all levels.

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[Rachael Maskell]

I am listening carefully to the Minister, who has talked about input as opposed to outcomes. In the light of our seeing gross inequalities and life expectancy for some people in our poorest communities decreasing, there is clearly something that is not working in the Minister’s methodology to deliver the outcomes we want to see to close the inequality gap. Will he expand on how he sees the shifting of the dial, as opposed to what we on the Opposition Benches perceive as more of a scattergun approach in terms of where the money still seems to be going through the methodologies he has described?

[Neil O’Brien]

We are the Government who are creating—literally, through the Bill and the clauses we are debating this very morning—a mission to close the gap in healthy life expectancy between local areas, and between the highest and lowest areas, and to raise it by five years by 2035. These are the missions that the Bill will be getting us to report on every year to Parliament, so we are addressing the hon. Lady’s point. Through the health disparities White Paper and the other things the Government are doing, we are addressing as one of our central priorities the underlying causes of lower life expectancy and the inequalities she mentioned.

To summarise, while we are completely with the spirit of the Opposition’s amendments—we are trying to get better data and have processes in place that are generating better data, because we recognise its importance to the levelling-up agenda—there is, in truth, no hard and fast difference between levelling-up resources and the rest of Government resources. Indeed, philosophically, it is important to recognise that one should not think just about levelling-up funds. Much as one can rattle off an impressive list, one should think about how we reform the totality of Government spending.

That is one of the novel aspects of the White Paper’s approach. For a long time, people thought of science funding in a science policy silo, and thought that it should be allocated to science excellence, with no spatial dimension. We are the first Government to set regional targets for science spending, recognising its importance to potentially addressing some of the inequalities that the Opposition have mentioned this morning. We have changed the Treasury Green Book. We have started to allocate housing and regeneration spending differently so that we can get out of the cycles that Tom Forth and other regional economic policy experts have talked about: some bits of the country are overloaded and people cannot get on a train or buy a house, while other parts are crying out for investment and have lots of scope to take on growth.

I hope that I have given the Opposition at least an honest account of why we are resisting the amendment, even though we absolutely agree with its spirit.

[Alex Norris]

I am really grateful for the contributions to what has been a good debate. I will cover some of the points made by my Opposition colleagues and then move on to what the Minister said. Turning to my hon. Friend the Member for York Central, Great British Railways is a brilliant example of what we are talking about. We remember the press release on, I think, 5 February, which came shortly after the White Paper and was seen very much as an element of the levelling-up agenda—indeed, it says that on the Government’s website. The location of Great British Railways will be determined through an online public vote. It is like “Love Island”, Mr Paisley. Anyone watching this series knows that we badly need a vote to try to shake things up, but I do not think it is how we should determine the location of—

[Alex Norris]

I apologise, Mr Paisley. I will get straight back to Great British Railways and levelling up. My hon. Friend the Member for York Central made a strong case for York and, if the hon. Member for Broxtowe promises not to tell my constituents, I might make a strong case for Derby. We are generally not allowed to do such things, but that is my one for the year—[Laughter.]

[Neil O’Brien]

There is some confusion on the Opposition Benches.

[Alex Norris]

Happily, it does not look like the hon. Member for Broxtowe is going to grass me up.

The whole process—we can already see this because people are being encouraged to use a hashtag—will involve TikTok videos and be nauseatingly modern. I know that the Minister does not like things as nauseatingly modern as that, so I cannot believe it for a second—he is sitting sphinx-like, which is of course fine. The constant beauty parade and artificial competition just take energy out of things. Of course, someone will win, and that will be wonderful news, and I will be very pleased for them, but multiple places will lose as a result. That cannot be the best way to level up. I know the Minister talked about a balanced diet, but I will cover that shortly.

My hon. Friend the Member for York Central spoke about where she sees the future for her community and her region, with an emphasis on biotech, rail and the creative sector, and that will be different in Nottingham, Leicestershire or West Yorkshire. That is a good thing. Part of levelling up will be about, as we understand it, sub-regions taking control of where they think their local economies are going to go and the skills they will need to ensure they get that. Getting the resources to make sure they can do that, which is what this amendment is about, is fundamental. This is about resource going to those communities so that they can make those decisions for themselves. I think that the people of York and the sub-region in which my hon. Friend works will have a better say about that than Ministers themselves.

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Let me finish on the Minister’s point about the inconsistencies that he perceives in our positions. Our positions are not inconsistent; they are entirely clear. We want to move away from the beauty parades and to proper funding, based on need, for communities to shape their own direction. That is our position. The Minister said that contrasts with the points that I made about value for money and the spending so far that pushes us instantly to half a dozen analyses, but that is not the point I was making. I was making the point that the Government spend so far has barely passed even the most basic financial tests.

[Neil O’Brien]

The PAC reported on the levelling-up fund. Are there any particular levelling-up fund bids that we are funding that the hon. Gentleman would like to say represent bad value for money and should be withdrawn?

[Alex Norris]

The Minister knows that is unkind. I am not going to stand here and pick at one. We could go down the entire list of 157 local authorities, virtually all of which are significantly worse off, by tens of millions of pounds; I am not going to turn around and say that one of their projects should not happen. Please—of course I am not going to say that. The Minister says that the Public Accounts Committee picked up on the levelling-up fund, but that is not true: it has reported on the towns fund, too. This is a long-running issue and there are more than three years-worth of reports.

Oral Answers to Questions

Neil O'Brien Excerpts

Monday 27th June 2022 Commons Chamber

[Ben Lake (Ceredigion) (PC)]

13. What recent discussions he has had with Cabinet colleagues on improving the digital connectivity of the hardest-to-reach premises as referenced in the levelling-up White Paper.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

I am in regular contact with other Ministers on this subject, which is very important for rural areas. Through Project Gigabit we are investing £5 billion in better broadband. At the start of 2019, just 7% of Welsh households could get gigabit internet; now 51% can. We are investing a further £1 billion in the shared rural network, which will increase 4G coverage in mid and west Wales from 86% to 97%.

[Ben Lake]

The Minister will be aware that some 19% of properties in Ceredigion currently receive broadband speeds of under 10 megabits per second. Although there are plans to improve connectivity in a number of these areas, there are other communities in villages such as Plwmp, Brynhoffnant, Blaenporth, Penrhiwllan, Ffostrasol and Rhydlewis that are not currently subject to any plans. How will the Government ensure that such communities will benefit from improved connectivity even when commercial companies have not thus far brought forward any plans?

[Neil O’Brien]

That is a very important observation. I mentioned some of the huge investments that we are making and the pace that things are moving, but we want them to happen even more quickly. I have a lot of respect for the hon. Member, and if he would like to discuss further how we can make the new roll-out go even faster, I would love to do that.

[Stephanie Peacock (Barnsley East) (Lab)]

14. What recent assessment he has made of the impartiality of criteria used to award levelling-up funds.

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[Sarah Atherton (Wrexham) (Con)]

T6. Wrexham’s levelling-up gateway bid is supported by a 16,000-signature petition, which we will present to No. 10, to redevelop the Kop stand at the racecourse and create an international sporting stadium in north Wales for the first time. Does the Minister agree that people are at the heart of the Government’s levelling-up agenda and the amount of people who have signed the petition shows its true value?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

My hon. Friend makes an important point. I pay tribute to her leadership on this issue. We look forward to seeing the bid.

[Mr Speaker]

I call the SNP spokesperson.

Levelling-up and Regeneration Bill (Fourth sitting)

Neil O'Brien Excerpts

Committee stage
Thursday 23rd June 2022 Public Bill Committees

[Stuart Andrew]

Q You have been quite a champion of brownfield sites and regeneration, particularly with a focus of trying to preserve many of the greenfield areas in the West Midlands. There are a number of planning reforms in the Bill. Do you see those as potentially helping you in your aim to deliver the housing that the West Midlands needs and, in particular, to level up the parts of the region on which you are really keen to focus?

Andy Street: I will give you a straight answer to the question in one moment if I may, Mr Andrew, but let me give a bit of general context. This, I think, is a very good example of where the combined authority has been able to demonstrate the fundamental principle that each can achieve things that individual local authorities working on their own probably would not have done. Of course, the critical point is that we achieve it by working with our local authorities, but we can clearly demonstrate that we have brought additional firepower.

The stats are very clear: we have hit our housing target in this region over the last four or five years, and we had, pre pandemic, doubled the number of homes being built every year in this region. One way that we were able to do that is, of course, working with central Government by deploying the brownfield land funding that the Department for Levelling Up, Housing and Communities had allocated to us in various tranches. We have made the existing system work, and very clearly we probably would not have had a negotiation—for example, Walsall or Wolverhampton separately—with DLUHC had we not existed.

Coming to your question, we are doing this against a good backdrop. We hope we will win further funding in due course to advance this even further, but on the reforms in the paper—it is a general question—essentially I would be supportive of them because they do bring simplicity to the operation. I do think that one of the challenges we constantly face is the time difficulty in drawing these items to a conclusion.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

Q Thank you, Andy, for joining us. The Bill makes various provisions to speed up and to simplify the creation of new combined authorities and to make it easier, as we have just discussed, for Mayors to take on PCC powers. It also makes it easier to create combined authorities in two-tier areas through the combined county authorities clauses. Do you think the extension of mayoral combined authorities to more areas of the country is a good idea, and what would your advice be to places that are setting up new combined authorities?

Andy Street: The answer to the first question, in one word, is yes. Let me explain why, and this is something that Minister O’Brien and I have talked about for probably a decade, since we were both in previous roles. If you look at the economic history of this country and compare it with other, similar countries, we definitely have a weakness in the out of London areas. There is nothing original there; we know that. Of course, part of the answer is to try to address that in what you might call areas of sufficient scale. I think the thing that the combined authorities have done, as you could argue that the more successful and bigger LEPs did as the precursor to it, is begin to think about economic policy at an appropriate spatial level, or what the books would probably call a natural economic area—a travel-to-work area or whatever. That, I honestly think, has been one of our great successes. Transport policies do not stop at the end of Birmingham when it moves into Solihull, as Gill’s market does not stop at the end of Wolverhampton when it moves into Dudley. We have been able to think about these determinants of economic success across the appropriate geographical area. In our case, that is not yet fully complete, and if you look around the country, you see that other combined authorities are more clearly incomplete in that sense. I would argue that they should be encouraged to expand to fill their natural economic areas.

In terms of the advice, I think there is one simple word: you have to make sure that everybody is up for it. I do not believe this should be imposed. I do not think this should be about unwillingness. I do believe there needs to be a sort of buy-in to the core principle that the very first question is that everybody has got to be prepared to compromise and make this work for it to be a success.

[Neil O’Brien]

Q Thank you. I have a very brief supplementary. One of the levelling-up missions that this Bill puts on a statutory basis is to increase the public domestic R&D spending outside the greater south-east by a third over the spending review period, and one of the institutions helping us to drive that is the new innovation accelerator in the West Midlands. How, other than through the legislation that we are passing, can we achieve that goal of driving high-quality public investment in R&D outside the golden triangle, and what role do you think the innovation accelerator can play?

Andy Street: Brilliant. I actually think this is probably one of the single most important parts of this Bill, and I am not sure it has had—what is the word?—the celebration it probably deserves. If you look at the long-term determinants of inequality, the intensity of R&D in an area is absolutely critical. You only have to look at the states of the Union and at an area such as Massachusetts and its leadership in R&D in medtech to see how Boston has become the most successful city in that sector by a country mile.

We have had a lopsided country in terms of public R&D—not just a little lopsided, but hugely lopsided. If you look at the West Midlands, we are very successful at drawing in private R&D, and we are very weak at drawing in public R&D. Our ratio here is four to one. It is definitely the worst in the whole country. It is ironic, isn’t it, because the private sector sees the opportunity and the public sector has not seen it in the same way? So for the Government to commit to tilting that and leveraging in even more private sector cash on the back of that is very important.

What has got to happen to do it? Frankly, we have got to change our approach to some extent. There is a whole piece here about cluster theory. Our public R&D has been incredibly focused in a very small number of research councils and research universities, which are basically around our automotive sector. We need to continue to play to that strength, but then to balance that by looking at the medtech sector, the fintech sector and clean growth. That is where we will be putting our focus in the innovator accelerator, so that it is a catalyst for us to improve our performance in new, adjacent sectors. So that diversification approach is a very important sprat to catch a mackerel—that’s what I call it.

[The Chair]

I call Rachael Maskell.

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[Matthew Pennycook]

Q Finally, do you believe that clause 117 could potentially lead to an erosion of existing environmental protections? Do you believe that clause 120 provides adequate protection? Will it ensure that, at a minimum, there is no regression from existing protections? If not, how would you ideally like to see the Bill strengthened?

Dr Benwell: I should have brought my copy of the Bill. There are actually some very good bits in clause 117. The Government have done quite a good job of writing in the mitigation hierarchy, which is welcome to see. The problem is linked through to clause 127, which allows everything in preceding parts simply to replace existing environmental law. It would be much better if the Government came forward with fully worked-up proposals for how to strengthen the existing system of the EIA and SEA, rather than taking the approach of giving themselves the powers to take out layers of environmental law and put in something different.

You mentioned clause 120, the so-called non-regression clause. It is obviously a good thing to have a commitment not to weaken environmental protection, but I am afraid that the efficacy of such a clause is really in doubt, for a number of reasons. First, it is the Secretary of State in whose opinion environmental law has to be maintained at an equal level. That is a highly subjective opinion left in the hands of Ministers—and, just to emphasise, not a court in the land would challenge that on the basis of ultra vires without it being patently absurd. Courts are really deferential to decision makers, so if a Minister were to say, “Yes, this is equivalent,” that statement would have to be really, really daft for a court to challenge it. So we think that that kind of non-regression provision is unlikely to be robust.

Secondly, the other noteworthy part of the non-regression provision is that it talks about overall levels of protection. That is where we come back to the idea of talking about the environment in aggregate and those big broad trends of species-level data, which is really important—like Carolyn, I think that we should be linking back to the Environment Act targets—but it is not sufficient. We must keep in place the rules that protect the particular, the peculiar and the exciting at the local level that matter to important people, and those local populations of species and habitats that are so important. Otherwise, we get into a runaway offsetting mentality where the assurance that things will be better overall can be taken to obscure a lot of harm to the natural environment at the local level.

So there are some good things in clause 117 and some nice sentiments in clause 120, but overall they do not give the reassurance that would be provided by simply taking time to work up provisions in full and bring them forward in primary legislation rather than giving Ministers the power to swip and swap through regulations.

Paul Miner: I have nothing further to add on this question.

Carolyn McKenzie: I have nothing further to add other than to reiterate the local element. You do get lots of peculiarities in different areas, and they can be lost, so we must make sure that they are not.

[Neil O’Brien]

Q This question is directed at Paul in the first instance. The Bill contains a number of measures from the infrastructure levy to strengthening compulsory purchase order powers, high street rental auctions and heritage protections that are intended to drive more brownfield, urban regeneration. It also contains measures to create more combined authorities with transport and regeneration powers as part of building on the Government’s urban uplift and shift towards a regeneration-led approach to planning and housing. What assessment have you made of the advantages in embodied carbon of building reuse and of denser, better public transport-connected cities in reducing pollution? What is your take on that model of development?

Paul Miner: We think that a brownfield-first approach to new housing and commercial building development can have a number of benefits. We have seen constantly over the years that there is enough brownfield land available for over 1 million new homes in any given year, and this supply of brownfield is constantly replenishing as more sites come forward, and it is possible to build at higher densities.

We think there are a number of clauses in the Bill that could help with brownfield regeneration, such as those relating to changing compulsory purchase order powers, as you have mentioned, and the infrastructure levy. Getting local plans in place more quickly will also help to bring brownfield sites forward. So we see a lot of benefits to a brownfield-first approach.

However, the problem we have consistently had over the past 15 years, under both Conservative and Labour Governments, is that it has been easier for large housebuilders to bring forward speculative developments through the planning system, often not contained within local plans, than to be able to get these schemes through at appeal. We think there are a number of measures the Government need to look at.

Some of these may involve legislation but more involve changes to policy to give councils more power to set targets for the amount of housing needed in their area, to make sure that housing targets reflect what is likely to be built in the area, as opposed to what house builders say when they claim to be meeting housing targets that they then do not build, and to identify local needs for affordable homes. In many areas of the country they are crying out for affordable homes, but the kind of housing that is being built is not meeting those identified needs.

We recognise that there is a lot in the Bill that is helping to bring forward the benefits of a brownfield-first approach, in terms of, as you say, embodied carbon, saving precious agricultural land and regenerating communities in of need levelling up. At the same time, we think there is scope to do much more.

[Neil O’Brien]

Q Let me extend that question to Carolyn.

Carolyn McKenzie: To build on what Paul has said, I think the circular economy is missing from the Bill. There is not much that is looking at what can be reused, recycled or reclaimed. It is about the new, and sometimes that is not the best way to go. Specifically around things like housing retrofits, it is about repair and regenerate rather than new housing. There is not that look at retrofitting that there should be, bearing in mind that the majority of housing we have is already in existence.

[Neil O’Brien]

Q One of the other things the Bill does is take forward measures to widen and deepen the devolution agenda by making it easier to set up new combined authorities, for authorities to join them and for them to gain new powers. How would you like to see the devolution agenda drive positive environmental outcomes? Is it primarily through helping towards our transport mission and better public transport? Is it through the housing quality mission? Or is it something else entirely? How do you think the devolution agenda can best serve a wider environmental agenda? I put that to Carolyn first.

Carolyn McKenzie: The first thing would be to actually have a mission in the Bill that relates to environmental outcomes, as the Bill does not have such a mission in there. Even though there has been some commitment to sustainable and non-competitive funding, if there is no mission then you cannot link that back. When you have funds such as the shared prosperity fund, which will take regard of the environment, if there is no mission you cannot just say, “Well, this is a priority.” So having a mission on the environment would definitely push this along.

There is a need within devolution to be clear about people’s roles. At the minute, everything that is done around climate change is done by local authorities, both at county and district level, because they have been driven to do so by the public through climate emergencies. It is not because we are being asked to do it. That drives action, absolutely, but it drives different types of action—inconsistent action—and the data is different so you cannot compare.

Also, when you get things like covid coming along, or Ukraine, or inflation, the risk of dropping down the agenda is really high, so that sustainable approach to funding is needed, rather than there being small pots of funding and grant-based funding, which can change and is short-run and competitive. That approach is not great for really putting down the foundations and encouraging local authorities to work with partners and to partner up. We are looking at working with the private sector, residents and other public sector bodies to really partner up their funding with our funding, to get more bang for our bucks and to achieve more through things like volunteering to plant trees, which involves health and social, and tackling fuel poverty, which keeps people out of hospital as well as reducing carbon emissions. As I keep saying, that integration is really key.

Again, when we look at things to spend money on, we really need to look at what is needed at the local level. There are lots of things that will be consistent that people need to spend money on, but there will be lots of differences and nuances at the local level that will make it better spent. I reiterate again that 41% of Surrey’s emissions—we are not unusual among other authorities—are down to the private car. With little or no funding for public transport, it is a really difficult target to hit to get people out of the car. You can get people to change to electric vehicles, but that has an equalities aspect to it: not everybody drives and not everybody can afford it. Public transport and good safe routes for walking and cycling are really crucial, as is the housing side, again.

[Neil O’Brien]

Q Thank you. Paul, on the transport powers that are devolved through devolution deals, as well as getting more people on to public transport, which is good for the environment, what is the potential impact of improved public transport in driving more brownfield regeneration rather than sprawl? You must have done quite a lot of work on this kind of thing.

Paul Miner: Yes, we have done plenty of work on that, which we can send to the Committee. In particular, we produced a report a few years ago on public transport-oriented development, which showed that you could get much higher densities in urban areas that were already served by an intensive public transport network. In turn, that mutually reinforced and made sustainable public transport improvements within that area. There is certainly more on that that we could send to the Committee, which we would be very happy to do.

In addition to Carolyn’s point, I also want to say something very quickly on the rural aspect as well. Cornwall in particular is a possible trailblazer on rural devolution, in terms of what it has been able to do to integrate its transport network—that is in trains, ticketing and single points of information. It has also done some great work in terms of setting housing policies and on retrofitting rural housing stock. It does seem to be an exciting model that others could look at.

[The Chair]

Richard, we have not forgotten you; we will ask you to comment in a second.

Carolyn McKenzie: The key point on that is that there are so many different actors and so many different funds in respect of devolution. It is about looking at how we co-ordinate that. I am proposing to my authority to look at taking a lead climate change authority approach, similar to the lead local flood authority approach, so that we can actually co-ordinate, get the data down, look at what is relevant for the local level and deliver on that. We can then use that data to influence the funding that we bring in or to influence Government funding pots, so it is appropriate. That co-ordination element among all the different sectors is really key. At the minute, it is not there around environment. There are lots of different people and lots of different areas to come from.

--- Later in debate ---

[The Chair]

I call the Minister.

[Neil O’Brien]

Q Through the devolution agenda, we have devolved powers at scale over things such as transport and regeneration, giving places the power to create things such as development co-operations. Through this Bill, we will make it easier and quicker to set up new combined authorities, particularly in two-tier areas, and make it easier for them to widen and take on new powers. There are also a range of measures in the Bill to drive more brownfield regeneration—the infrastructure levy, CPO reforms, high street rental options, street votes, heritage protections, and so on.

As we negotiate devolution deals with areas such as Derbyshire, where we are in talks at present, how do we best bring together the new instruments and new combined authorities to achieve everything we potentially can through spatial planning to drive the kind of join-up you have been arguing for in this session?

Dr Ellis: That is a complex question, but time is short. The single biggest issue is with trust and public consent—whether the people of Derbyshire understand the benefits of the combined authority. I am tempted to say, at the moment, that they do not. People have talked in the past about double devolution, and I think that is still important. You have two problems going on; you have the fantastic opportunity that devolution presents to empower local authorities and collections of local authorities, but then you have an important issue about the citizen and trust within communities, and how they relate to that.

In thinking about the devolution agenda, it is important to show regard and care to things such as parish and town councils—that lower tier—and what powers they might get. Otherwise, all that happens is that you shift the trust problem down a notch. The opportunity is there when resources and powers are provided for places to begin to set a new course that tells a story about that place. That is desperately needed in this country.

My only fear is that we need coverage across most of England—we do need that—and the ad hoc nature of this is giving different powers to different areas. The status of the strategic plan in Liverpool, legally, is different to the one in Manchester, which is different again to the London plan. That might be fine, but it also creates levels of legal uncertainty. There is a tension between those things, but I would continually emphasise the point on community trust and what communities can do, as well as what local authorities can do.

[The Chair]

Thank you, Mr Ellis, for your clear and concise evidence. We very much appreciate it. We must now move on to our seventh session of the day.

Examination of Witnesses

Gavin Smart and Kate Henderson gave evidence.

--- Later in debate ---

[The Chair]

Gosh. Is the Minister starting this one?

[Neil O'Brien]

What fun.

[The Chair]

What fun you will have, Mr O’Brien.

[Neil O'Brien]

Q Thank you, Mr Bone. May I apologise, as I will have to leave a few minutes before the end of the session?

Alex and Will, thank you for joining us in person. The Bill takes forward the devolution agenda by making it easier and quicker to set up new combined authorities, particularly in two-tier areas. It also contains a number of powers to speed up and improve regeneration, from the infrastructure levy to compulsory purchase order powers, high street rental auctions, street votes, heritage protections and land market transparency. How can we use both the devolution agenda and these new tools best to drive urban regeneration and more brownfield development—the kind of development that a lot of people want to see? How can we build on what we are doing in the Bill and make the powers that we are creating work most effectively? I will pick first on Will and then go to Alex.

Will Tanner: First, thank you for having me. It is a very important question, and the Bill goes some way towards answering it. The Bill tries—if I may infer Ministers’ intentions from it—to establish a much greater level of strategic authority in the planning system to bring together different elements that are important for regeneration and economic development in local areas. That includes building some of the institutional framework in the form of both more and stronger mayoral combined authorities or equivalents in counties and giving them clearer incentives to intervene and bring land together with other forms of intervention—I point to the infrastructure levy in particular in that regard, not just at mayoral level but below—as well as creating much greater transparency in information to allow the system to work more effectively and generate more community buy-in. That is both at a national level through the levelling-up mission framework that the Bill sets out, setting a clear direction on where the levelling-up agenda is due to go, and more information for consumers of the planning system through the digital planning framework and, indeed, through greater powers to require information on behalf of local authorities such as owners of high street shops and other parties locally.

Alex Morton: I am a little more sceptical on parts of the devolution agenda. It has worked very well in some places, such as Manchester, but less so in others. London has probably one of the biggest housing backlogs, and obviously it has had a Mayor for a very long time.

For me, the most interesting and best thing about the Bill is the focus or push around trying to make local plans more delivery-oriented, moving towards a system of local plans as delivery mechanisms and not huge, long lists of policies by moving some of that policy up to a national level. It would be good to discuss that further. I think that is the right aim, but there are some difficulties in how that is planned to be done. The shift away from a five-year land supply is also welcome.

Listening to people earlier, what often came up is planning issues x, y and z. Really, planning is just to deliver enough land, so that enough homes are built, we meet housing delivery targets and we do not have a housing crisis. Almost everyone else has a strong interest in planning doing mixed communities, planning doing sustainability, planning doing an ageing society and planning doing obesity. Planning is not really meant to do all those things; it is not some kind of titan that can hold the world on its shoulders. The whole point of planning is that there are sufficient land released to a different mix of developers who will build enough homes so that we do not have a housing crisis. If the Minister is inclined to put in place some kind of definition of what planning is, I would say that planning is designed to make sure that we build sufficient homes of sufficient quality in the right places—full stop. If the planning system could just focus on doing that, we might have less of a housing crisis, with everyone shoehorning everything else under the sun—important and noble though those other things are—into the planning system.

[Neil O'Brien]

Q Thank you. Can I press Alex on street votes? Is this something you welcome? What observations, if any, do you have about how we could potentially make a success of that policy?

Alex Morton: I think street votes are a very good idea. They are a way to try and encourage communities. They are not a solution to everything—I think we have to be honest about what street votes are. Street votes are in areas where there is high demand in housing and you have relatively low density—particularly Metroland, for example, in London—where you might be able to persuade people to replace a certain amount of terraced housing with four or five-storey terrace streetscapes, which would be quite attractive. That could be a good way in lots of high-demand areas, without building on green belts and green fields, to get a recycling of space. That used to happen. For most of our city’s history, that densification process was natural. You had a single landowner usually—sometimes aristocratic, sometimes merchants, sometimes commercial holdings—who would buy blocks, demolish them and build them up. You have to do that now in a way that is consensual and fit for the 21st century.

Street votes are a way to try to get people together and say, “Look, we can all, on our street, agree that we can build up another few storeys. We will all benefit from this. This will mean that we do not have to build on greenfield sites on the edge of London.” I do not think we should be too optimistic about it in the next, say, five years solving the south-east’s housing crisis. However, it has to be something that the Government moves at great speed on, to try and put pilots in place to get this going, so that if it can work—I think it should—we can then roll it out on a wider scale. That said, I do not think, sadly, that it will alleviate the pressure on green fields in the next five or 10 years, but it is a thing we need to do now if we are to stop building on more and more of our land surface.

[Neil O'Brien]

Q I have one last question, for Will. One of the things the infrastructure levy does is have the neighbourhood share, in the way that CIL does, but CIL only applies to a certain number of authorities. How might that connect to the work you have been doing on what you called double devolution and neighbourhood-level governance?

Will Tanner: I thoroughly welcome the commitment to maintain the neighbourhood share within the new consolidated infrastructure levy. As you say, the infrastructure levy is compulsory rather than optional and it will apply everywhere, so it represents an opportunity to share a considerable amount of revenue directly with communities where the right governance exists. Parish and town councils only cover about 37% of the English population at current levels—about a third of local authorities are fully parished—so only a relatively small number of places will be able to take advantage of this at first. The inclusion of the neighbourhood share will create a very strong incentive for local areas to put in place strong, hyperlocal governance to control local decision making and some local services within a general power of competence that exists for parish and town councils.

We know from our research that there are strong benefits from that. If you look at rates of volunteering, rates of group membership or rates of local philanthropy, all those things are higher in areas where parish and town councils exist. So I am very supportive of the Government’s efforts to try and create a stronger incentive for places to put in that local governance and to benefit from the gain from development. I would also suggest that it should create a stronger incentive for places to become more welcoming of development as a whole and therefore embrace new housing.

[Neil O'Brien]

Q On CPO powers, which the Bill streamlines by speeding up the process and simplifies by taking out bits of the process, while also potentially enabling the capturing of more value for the community and for wider infrastructure projects, with implications for consent and regeneration, what observations, if any, do you both have about the plans in the Bill on CPOs and how we make a success of them? Shall we go to Will first, then Alex?

Will Tanner: As the Minister will know, Onward’s first ever paper looked at this issue in some detail. As the Committee will know, at the stroke of a planner’s pen, the value of a piece of land can go up 100-fold. There is an opportunity for the UK to do much more to capture the gains from development in a way that other countries, such as the Netherlands, do more systematically. The Bill goes some way towards doing that through the simplification and clarification of when local authorities can use CPO powers, which will hopefully make CPO more widespread.

I think the greatest opportunity lies in the clarification of what constitutes fair market value. That is a relatively contested area of policy; there are lots of different views from different areas. I thoroughly welcome the proposed Law Commission review into this area of legislation more generally, because I think legislation has spread over a number of years. However, there is an opportunity for the UK to more systematically capture those gains for development, and allow local authorities to buy and assemble land—especially with regard to ransom strips and small plots that hold up development—to capture those gains for public benefit. So I am supportive in principle but keen to see a bit more detail.

Alex Morton: I support the idea of streamlining CPO. I would be quite nervous, as a small “c” conservative and a small “l” liberal, about the measure to have a direction from the Secretary of State setting out the value of land. As Will has just suggested, there is a potential area in terms of ransom strips or other areas. If that was narrowly defined in legislation, so that, for example, on brownfield sites where there is multiple land ownership, there may, in exceptional circumstances, be a direction by the Secretary of State, that would be quite different from the current powers, which look like they could be abused by a future Government that was not sympathetic to property rights.

There is a case, with some ransom strip owners and some landowners who hold out and are unreasonable, for there to be some kind of change to get those people. But that is a big shift in property rights, which should probably be set out in primary legislation and very tightly circumscribed to small areas of brownfield land where there are multiple landowners, or be more tightly defined than the current situation, which I think could be abused—probably not under this Government, but under a future, more radical Government that did not support property rights.

[The Chair]

Mr Pennycook.

Levelling-up and Regeneration Bill (Third sitting)

Neil O'Brien Excerpts

Committee stage & Committee Debate - 3rd sitting
Thursday 23rd June 2022 Public Bill Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Q Thank you, Mrs Murray. The Bill comes at a time when various processes to look at the reform of neighbourhood governance are still under way, but it still contains a number of important changes, be it the strengthening of neighbourhood plans or the changes to the infrastructure levy, with potentially larger sums for neighbourhood communities. There are also things such as street votes and high street rental auctions, which might give community groups, and indeed parish councils and the like, a chance to get on to the high street and increase their visibility. Reflecting as practitioners of neighbourhood governance, what is your advice on how best we can put into practice the different measures in the Bill so that they best channel the energies and pick up the concerns of neighbourhoods and local communities?

Jonathan Owen: We are really keen to see the detail on some of the other aspects of the neighbourhood governance review. The White Paper held out for us real promise to ensure that the opportunities of devolution and levelling up were really seized, so I hope you will not mind if start off by encouraging you to consider how you can build aspects of that wider review into the Bill. We are particularly keen to see the review conducted within quite a reasonable timescale, to be involved in the process and to make sure that any proposals that come out of it are enacted. We would quite like to see some sort of placeholder clause put in for street votes, to say that the neighbourhood governance review will be completed within a certain time and the agreed proposals enacted. I do not know whether that is possible, but I really do think you might miss an opportunity if you do not engage fully in that review and implement some of its actions.

The key things for us are about making it easier to set up parish and town councils. At the moment, about two thirds of the country has a parish, but only about a third of the population, which means that two thirds of the population are missing out on having the first tier of local government supporting community empowerment and helping them address the big challenges that we face. Many of you will be aware of the research done by Onward. Its social fabric index showed that places with parish councils tended to have a stronger community identity and so forth. I think there are some real opportunities that need to be picked up either as part of the Bill or as part of that wider neighbourhood governance review.

The other big area for us is funding of the sector. At the moment, our councils are not necessarily able to access some funding streams, such as the community ownership fund and other things. It would be good to look at making it possible for them to access that funding. An interesting example of that was how, through the covid pandemic, a lot of our 10,000 councils stepped up really early, as you will be aware, to set up volunteering arrangements and support local communities. Many of them did really great things, but many of them lost out from lost income. You were able to compensate the principal authorities but unable to compensate parish councils that had lost out. To be honest, principal authorities were reluctant to devolve much of the funding they received down to our level.

I think you should consider using the Bill to put in place a mechanism whereby you would be able to fund local councils directly. That could be really helpful to this Government and probably to future Governments when another big problem happens, such as the pandemic, so that you would be able to reach down to communities throughout the country and provide some financial support or lifeline as necessary.

On the street votes, we will be interested to see the detail on that and, again, picking up on my other point on neighbourhood planning, we just need to make sure that that complements and does not replace the wider neighbourhood planning role.

Finally, returning to the last question on digitalisation, the holding of remote meetings has been really useful in the last couple of years. We have seen evidence that lots of members of the public have attended parish and town council meetings because they are able just to attend for the one item that interests them, which is often a planning matter. Enabling councils to meet remotely and have engagement remotely from residents would be really good.

Tony Burton: I think it is a really helpful question to be asking at this stage. There is experience from similar questions that came through on the Localism Act 2011, from which some of the existing community rights measures stemmed. If we look back over those 10 years, we see that some have been successful and some have disappeared, frankly—they might be on the statute book but no one is using the power they provide. The things that worked are those that responded to what people want—there may be lessons here for the provisions you cited and others in the Bill. They were a response to what our communities were asking for, as opposed to us saying, “We’ve got a good idea. Please will you use it.” Some came with support and help, which allowed communities to really understand how to navigate and use the process and talk to others that are maybe slightly further ahead of them in the process. Some in a sense held the ring on some of the bigger questions.

That is why neighbourhood planning is so good. It is such a flexible and strategic tool, as well as being locally specific. You can make it a single policy about a single issue if you want, or you can make it a mini local plan that covers the bases. It is up to the community to drive that process.

I would also encourage you to anticipate where there will be blockages in the application of whatever powers or rights are being established. With neighbourhood planning we have had to retrofit a lot of those, and it has not been that helpful. There have been things such as the timetables for local authorities to make decisions and some of the powers to appeal to the Secretary of State. It is actually worth stress testing these against the worst cases within which they are trying to be applied as well as thinking that we are always going to be operating in a benevolent environment.

[Neil O'Brien]

Thank you. That was very helpful.

[The Chair]

I call the shadow Minister.

Levelling-up and Regeneration Bill (Second sitting)

Neil O'Brien Excerpts

Committee stage
Tuesday 21st June 2022 Public Bill Committees

[The Chair]

I call the Minister.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Q This question is for Eamonn and Laura. One of the missions the Bill will put on a statutory footing will increase public domestic research and development spending outside the greater south-east area of England by a third over the spending review period, and in both of your combined authorities there is an innovation accelerator on top of that. How can we best ensure that that mission is a success? How can we best ensure that the innovation accelerator does what it is supposed to do and catalyses significant amounts of further public and private investment into those two city regions? I will ask Eamonn to start.

Eamonn Boylan: Thank you. We were very pleased to be identified as one of the three innovation accelerator areas in the White Paper. We have been working very hard on developing a broader approach to innovation through an organisation imaginatively called “Innovation Greater Manchester”. We see the innovation accelerator as being effectively the fuel in the tank that can drive that forward.

It is fair to say that there needs to be a clear concentration on those areas where individual city regions can be globally significant and competitive, rather than having a broader approach. They need to be very clear that the purpose of the innovation accelerator is to improve not only the performance of business and employment in a particular location, but to drive prosperity for the UK as a whole.

There is a need for longevity in terms of the commitment, to make certain that the innovation agenda can be rolled out, developed and properly evolved over a period of time, but also concentration on those areas where, quite clearly, particular places have a significant, if not unique contribution, to make.

Laura Shoaf: I will do my best not to repeat the exact same answer, but we have another organisation, the aptly titled “Innovation West Midlands”. I reiterate all the points that Eamonn has just made and a point I made slightly earlier, which is that places have different areas of expertise. We want not to spread the jam so thin that it doesn’t make a difference in any one area, but to really invest and be very precise in each area, especially where there is a comparative advantage.

[Neil O'Brien]

Q Thank you both. The Bill makes it easier and quicker to establish new combined authorities, either with or without a Mayor, in new parts of the country. How important has the role of the Mayor been in terms of being a figurehead and attracting inward investment to your two city regions, and catalysing wider conversations with Whitehall and other stakeholders? What difference has having a Mayor made in Greater Manchester and the West Midlands? I will ask Laura to start answering this question.

Laura Shoaf: It has really been transformational. As an officer, I was working in the region before there was a Mayor, then in a Mayor’s first term and now in a Mayor’s second term. I would reflect on the fact that the role, with its accountability and ability to galvanise and be a figurehead, has grown over time. It definitely evolves alongside a region.

For us, with our Mayor, we have seen the ability to come together as a region, to make cohesive arguments, to attract a lot more inward investment and to be able to work at scale, if you take something like brownfield land, where we have been able to operate at regional level, so we can have a regional impact, then being very careful not to do what is already done very well locally. I often describe it as two plus two plus make five, instead of four. That is exactly what we have seen through the model to date.

As you can tell, my background is not from this country, but this model is well understood and recognised in other countries when trying to attract inward investment from abroad. It is a model that is understood, works well and helps make it easier, if that makes sense, to drive some of those big conversations.

[Neil O'Brien]

Thank you. Eamonn, would you add anything to that?

Eamonn Boylan: I would certainly echo Laura’s final comment about the international potency of the mayoral model, which is proving to be a real strength. We led the field with the creation of the first combined authority, which has been in operation since 2010. The first mayoral election was in 2017, so they had a lot of experience of working prior to having a Mayor, with strong local leadership provided—particularly by the city of Manchester.

I think the Mayor has had the transformative effect that Laura has described, not only in respect of areas where there is a very clear power vested in the Mayor, but also where the Mayor’s influence and use of soft power can be quite useful in helping to galvanise change and support and amplify activity. The example I would use in the Greater Manchester case is the work we have done collectively on street homelessness and rough sleeping, which has been very successful. A huge of amount of work has been done by individual local authorities, but it has also been galvanised by collaboration through the office of the Mayor. It is a very powerful office and tool for us to use both locally and internationally.

[Neil O'Brien]

Q The Bill strengthens and streamlines compulsory purchase order powers and creates the opportunity for local authorities to run high street rental auctions as part of a wider shift toward increasing places’ ability to do brownfield regeneration through the brownfield fund, with the new role of Homes England and so on. Are the strengthened CPO powers and the high street rental auctions and so on things you would welcome and which you could see your authorities and your constituent authorities using? I will aim that again at Eamonn and Laura mainly, but if anyone else wants to come in, please do.

Eamonn Boylan: It would be difficult to make CPO slower. Aiming to accelerate it is very welcome. The flexibility around the application of CPO to support a wider range of purposes is also welcome. I think we need to recognise that initiating a CPO is quite a high-risk activity for a local authority. Therefore, we would need to be certain about the legislative framework within which we were working, but certainly the principle of acceleration of CPO and its broader application is something we would generally welcome and would certainly seek to make use of.

Laura Shoaf: I will just pick up on the point about pride in place. Pride in place is a key goal that is outlined as part of the levelling-up agenda. I think that being able to speed up the delivery of projects where a compulsory purchase order is needed will bring clarity and help us to deliver pride in place. That is just one other aspect that I think is important.

[Sir Mark Hendrick in the Chair]

Joanne Roney: I will come in with three quick points to support Laura and Eamonn. Among the wider society of chief executives—who represent the views from up and down the country, including places that do not currently have combined authority or mayoral models—there is a welcome for these additional powers. The first point is that whatever replaces the existing CPO system needs to simple and inexpensive. The current process is very costly.

Secondly, there is a bit of a concern around capacity in local authorities to take advantage of these new powers. Talking with my Manchester hat on, one of the things we do in Greater Manchester is shared capacity between the 10 local authorities through the combined authority, but that capacity point to take effective new powers is important. Thirdly, we would like to see the revoking of permitted development rights to go alongside CPO powers to make the maximum impact in some of our communities.

[Neil O'Brien]

Q I have one last question to Laura. The Bill, among other things, makes it simpler for Mayors to take on the powers of the police and crime commissioner, effectively streamlining governance and creating a single point of accountability, which enables the join-up of different priorities between crime and transport and so on. If that were to happen and there were to be a decision in Westminster to do that, could you see that there would be some synergies from combining those two roles? You could join up transport and criminal justice policies.

Laura Shoaf: We have certainly seen it work well elsewhere, including in Greater Manchester. Initially, the combined authority did not have full support to transfer those functions in 2019. What I would suggest that we need to do now is look at the timing of the deal and of Royal Assent, and how we could align governance around that. We would need to look at the issues around co-termination and there would probably be quite a bit of work to make sure that it was something that the entirety of the region would get behind.

[Neil O'Brien]

Thank you, Laura. Unless Eamonn wants to add anything on that point, I am probably finished.

[The Chair]

I will move over to the Opposition. I call Alex Norris.

--- Later in debate ---

[Tim Farron]

Q Thank you. I have a quick one for Rich and/or Sacha about planning. How much do you think the campaign to increase communities’ power over their destiny depends on the level of planning control and the kinds of powers communities have?

Rich Bell: I think the destiny of communities is significantly shaped by their level of control over planning decisions. One thing we are at once encouraged by and slightly disappointed by in this Bill is the proposal regarding the neighbourhood share. This is the idea that 25% of the infrastructure levy could be controlled by either a parish council or a neighbourhood planning forum. That currently applies in the case of the community infrastructure levy, but not in the case of section 106. I think it is a very positive step on the Government’s part to extend that neighbourhood-level control over the investment of developer-generated public money—to devolve that directly to neighbourhoods. Unfortunately, parish councils are predominantly found in wealthy and rural areas. A report produced for the Department then known as the Ministry of Housing, Communities and Local Government by academics at the University of Reading concluded something very similar on neighbourhood planning forums just a few years ago.

We would suggest that members of the Committee should consider whether the Bill could be amended to expand the definition of a “qualifying body” on page 264. We would ask Members to introduce a clause amending the Localism Act 2011 that expands the range of organisations to whom that neighbourhood share could be passed. It should be possible for local authorities to designate community anchor organisations, such as the Wharton Trust in Hartlepool, as local trusted partners who could work with that local authority to spend that not insignificant amount of public money.

[Neil O'Brien]

Q This question is mainly for Sacha and Rich. It is about high street rental auctions, which the Bill introduces. As well as being an opportunity to improve our high streets and regenerate the local economy, do you think they are an opportunity for voluntary groups, small businesses and social enterprises to get themselves a place on the high street? How would you like to see community involvement in that high street rental auction process work?

Rich Bell: We were very encouraged by the detail of this proposal. We were very pleased to see that the Bill defines high street use in a way that recognises the use of high street premises as a communal meeting space. It is incredibly important that the legislation recognises that high streets are not just drivers of local economies; they are the sites of the bumping spaces and the meeting places that stitch together our social fabric. It is similarly positive that the Bill’s local benefit condition recognises the social and environmental benefits of high street premises as well as their economic benefits.

We encourage the Government to consider how they can shape accompanying regulations to ensure that local authorities feel that they have permission to work with social enterprises and local community organisations, and to shape their own criteria for high street auctions, so that those community organisations can gain access to high street sites. As I say, we were encouraged by the detail.

Sacha Bedding: High streets are absolutely about pride. There is nothing worse than seeing boarded-up places. The opportunity for local ownership and activity will help. People are full of ideas on how to do that. I will not go on too long; we absolutely agree with what Rich said, and there will be any amount of ideas, not just focused around retail, on how people can help make their high streets thriving places again.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Q I noted your comments, Mr Bell, about the importance of team spirit in levelling up communities. Do you have any thoughts or comments about the fact that the Scottish Government will not be involved at the decision-making stage in the allocation of levelling-up funding? That suggests that there will be implications for duplication, the inefficient use of resources, and lack of strategic overview.

Rich Bell: My only comment would be to say that it seems incredibly important, when taking what is a pretty radical step in promoting sub-regional devolution across England, to do so in a joined-up way which involves dialogue with all the national Governments across the UK. That said, I would say that the problem in the Bill is not the lack of emphasis on sub-regional and national devolution; the problem is the lack of emphasis on devolution at the most local level, as Sacha said, and the complete absence of genuine community leadership.

--- Later in debate ---

[The Chair]

Thank you—that is fine. We are just a bit anxious about the other two members of the panel not being able to connect yet. I will throw the questions open to the Government side first.

[Neil O'Brien]

Q Thank you, Sam, and thank you for making the time this afternoon. One of the goals of the Bill is to amend the law in order to make it easier for us to extend the devolution of powers to more areas outside our cities, particularly areas with two-tier governance, and to respect that two-tier governance. It both makes the process of setting up a combined authority quicker, and also creates combined county authorities. The Government’s intention through combined county authorities is to leave the option of having a mayoral combined authority in place, but to create a model in which the consent of every single district in the area is not needed for the creation of the combined authority.

However, it is the Government’s intention to have a strong role for lower-tier authorities once those combined authorities are created. I wonder if I could pick your brains on what sorts of things your members might want to combine powers on as voting members of those new CCAs or through joint committees, for instance as a single local authority devolution deal. What sorts of powers would your members potentially want to combine powers on, and to what end?

Cllr Chapman-Allen: Thank you for the question. Initially, I think we need to talk about the scale of ambition that local authorities and leaders are trying to achieve. The levelling-up framework sets out the clear positions of levels 1, 2 and 3 for what can be devolved within those nine vanguard areas. For me particularly, those six are in those two-tier areas.

Neil, you spoke about the county councils and unitary councils being enablers for the CCA and what districts would be willing to support moving forward. I think it is important to say that district councils in some areas where these deals are being suggested are being more ambitious than those counties and unitaries. Therefore, whoever is willing to be most ambitious should ensure that they have a seat around the table, but in turn ensuring that no sovereign body has those powers and/or responsibilities removed. There should be opportunities for districts, with those key enablers around business support and planning and growth.

Having spoken to colleagues across the country, but particularly in my area of Norfolk, which is one of those areas, I think we would be willing to have conversations with those that want to share strategic opportunities in the wider planning piece, be they in local planning, master planning, the duty to co-operate —although that is a blight, it is being diluted as we move forward, which is important—our housing challenges and how we support each other to ensure that our housing policies support residents in our localities and, in turn, how we deal with inward investment, to ensure that, regardless of where you want to land in a county locality, you have the same opportunities and support on business rates, business rate exemption and that planning process.

However, it is important that those individuals and sovereign councils buy into being a part of that CCA. In turn, they have to be a constituent part. We are talking about combined authorities, so district councils need to be combined in the decision-making process. There should absolutely not be a veto. I do not think that any individual in that combined authority should have the opportunity to veto, but if they are relinquishing some of that sovereignty through partnership and collaboration, they should have an equal say in how policies, strategy, spend and projects come forward.

[Neil O'Brien]

Q That is helpful. Can I press you a little further on that? Obviously, the Government completely agree that no sovereign body should lose power without consent, and that lower-tier councils should have a vote where they are pooling powers. In the light of what districts and boroughs do at present—culture, waste, democracy, tourism, leisure, inward investment, planning, homelessness and so on—how can we best use the new models of combined authority in two-tier areas? How can we best set things up to make it as easy as possible for districts to come together in the ambitious way that you have described?

Cllr Chapman-Allen: The frameworks and structures around MCAs already exist. Some individuals in Whitehall cite failures of governance in some of those MCA structures. We do not necessarily need to throw the baby out with the bathwater as we try to recreate a CCA. We can actually use the existing framework and governance structure, and tweak them to ensure that we are delivering for residents and businesses across our localities and communities.

It comes down to the bottom-up position. Localities and sovereign councils absolutely see the opportunities presented in the levelling-up framework and the Bill, but we have to make sure that we are able to help in shaping those opportunities moving forward. District councils across the country collaborate with each other through partnerships every single day. In my locality in Norfolk, we have a shared waste partnership across three councils—it is one of the biggest waste partnerships in the country—and, of course, as the collection authority across the whole of the county of Norfolk, all the district councils provide a set framework for how we collect that waste.

That district collaboration in some statutory service provision—be it waste, planning, housing, or homelessness —occurs not just in Norfolk, but across the whole of the country. We just have to make sure that we lift that to the new body—whether it is an existing MCA or the new CCA—which will be able to help shape the agenda as we move forward and ensure that there is equal say at the table on policy and spend.

[The Chair]

I call Matthew Pennycook.

--- Later in debate ---

[The Chair]

Thanks Stuart. Just before I bring in Tim Farron, I will give both Neil and Matthew the opportunity to ask a question to the other two panellists, who unfortunately were not present earlier. Neil, have you got any brief questions? I will then bring in Matthew.

[Neil O’Brien]

Q Thank you, Sir Mark. James and Tim, the Bill contains measures both to simplify and accelerate the process of creating new combined authorities, be they mayoral or non-mayoral, and to create a new type of combined authority, which is more regularly usable in two-tier areas and respects the division of powers in those areas. I do not know what your views are on how much interest there is among your members in forming further combined authorities and doing further devolution deals. What is your view of the powers to accelerate and create new models to enable us to move forward with devolution in two-tier areas and avoid the unintended consequence of the Local Democracy, Economic Development and Construction Act 2009, which gave each district in an area a veto over its neighbours and led to us not moving forward with deals in Lincolnshire and in Norfolk, Suffolk and Cambridgeshire previously? I suggest James answers first.

Cllr Jamieson: First, in broad terms, we welcome the move to enable every part of the country to have devolution. Previously it has been very much city focused and, of course, most of the country is not in cities, so we welcome that fact and the ambition that everywhere should have a devolution deal.

Obviously, simplifying the process is always welcome, provided that there is a fair and reasonable consultation, and involvement of all relevant parties. Clearly, we should not ride roughshod over various parties. However, as ever with devolution, we think devolution should be led by devolving and not by restructuring. That is one of the issues that has happened in the past, and we need to ensure it does not happen this time. There needs to be genuine devolution from Whitehall down to the local level, at which point we will find much greater acquiescence at the local level when it comes to how to come up with a structure that works.

When we first start talking about restructuring and then about devolution, I am always concerned that we should devolve the powers down and then look at what is the best way, on a local basis, which will be different across the country, to deliver the outcomes from that devolution. I would emphasise—Neil, I really appreciate the work that you are doing—that we certainly believe that far more can be done on a place basis than on a Whitehall basis in local devolution, simply because if I am in the north of England or Northumbria that is very different from Cornwall or central Bedfordshire. We have different priorities and issues, and that can only be done at the local place level, so the more that is devolved, that is clearly better. I emphasise devolution first, and then restructuring to match the powers that are devolved to us.

[Neil O’Brien]

Q Thank you. Tim?

Cllr Oliver: Thank you very much. The County Councils Network and my members are hugely supportive of the intentions set out in the Bill. We see this very much as an opportunity for the two thirds of the country that are not currently able to benefit from any devolution deal.

We see this as the devolution of powers from Parliament down to local government. The complications that exist at the moment will be taken away by the Bill. I think we will see members embracing the opportunity to have a devolution deal. In terms of the CCA, only 50% of my members would need that, where they have an adjoining county authority or unitary authority. The other 50% could benefit from a simple devolution deal.

My understanding is that this is not about the organisation of local government, either overtly or through the back door. This is about the flow down of powers from central Government to local leaders, where those leaders are clearly identified, and then the county level engaging with all our partners. This is as much about delivering the health system, and the integration of health and social care, as it is about any tier of local government. It is important that the process is simple, straightforward and quick. If at all possible, we want to get on with this. Then it is for the county authority to engage with the other two tiers of local government, if those exist, and to work out how best to deliver that.

I am very supportive, as is the CCA. I am grateful to the Minister for clarification on some confusion around clause 16. That seems perfectly workable and reasonable, so I very much support the direction of travel.

[Neil O’Brien]

Thank you.

[The Chair]

Matthew, do you have any questions for the two panellists?

Levelling-up and Regeneration Bill (First sitting)

Neil O'Brien Excerpts

Committee stage
Tuesday 21st June 2022 Public Bill Committees

[The Chair]

Thank you. I call Minister Neil O’Brien to open the session.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Q Thank you, Professor Leyser, for coming this morning. I start with a very open-ended question. To what extent do you think the Bill will help achieve some of the goals set out in the levelling-up White Paper?

Professor Dame Ottoline Leyser: Goodness, that is a big question. My interest and expertise are particularly around the R&D aspects of the Bill. One of the really encouraging and exciting things going on across the Government at the moment is the attempt to tackle some of these huge cross-cutting issues, and levelling up is very much one of those things. That absolutely requires concerted, co-ordinated action, right across the Government, through virtually all the Departments, in a way that is aligned and co-ordinated and which really delivers on very broad priorities. Levelling up is a really good example. Net zero is another one.

Those kinds of things require different ways of working. This Bill is one framework in which that kind of joined-up thinking can be set out and embedded in the way in which government works. Yes, I think it absolutely has the opportunity to deliver on the ambitions set out in the White Paper. That depends very much on the alignment between the mechanisms and framework set out in the Bill and the missions element that is core to pushing forward the White Paper agenda.

[Neil O'Brien]

Q The Bill sets out various measures to widen the devolution agenda. It also puts into law the various missions set out in the levelling-up White Paper. For context, will you explain how in your particular area of expertise that fits with the wider agenda of ensuring that research and development spending serves the goals of levelling up, and what that means for UKRI as an organisation?

Professor Dame Ottoline Leyser: Absolutely. Research and development has an important role to play in the levelling-up agenda, in the context of economic regeneration right across the country. What we see at the moment is huge disparity in all kinds of measures, but one of them is total factor productivity across the UK, and R&D-intensive business and industry are critical to generating those high value-add activities that support economic growth across the UK, bringing with them a whole variety of high-quality jobs. One of the things that is important to emphasise is that innovation-led growth is not just about jobs for innovators; it is a huge ecosystem of activity that goes around that, which will provide economic growth and high-quality jobs and opportunities for people in local innovation clusters right across the country.

That is the goal. The role that UKRI needs to play is critical in that. We have this extraordinary opportunity, with the formation of UKRI four years ago, of bringing together all the disciplines and all the sectors. In the same way as I mentioned that cross-Government co-ordination is needed, cross-R&D co-ordination is needed to deliver some of the activities. We span the whole system in UKRI, so we can build back better aligned investment that can support open economic growth—as I said—right across the UK. We need that balance, co-ordinating across different inputs, to drive growth which is led by R&D and innovation. That is multiple things, some of which are in my remit and some of which are certainly not—that is another key point.

The co-ordination locally is important, but in the broader national context—that is also important. This is not about fragmentation; in fact, it has to be the opposite of fragmentation. While local empowerment and local choice are critical, that has to be embedded in a much wider national context. We cannot have a situation in which, across the country, every region decides that it aims to specialise in the same thing. That would obviously be incredibly counterproductive for everyone. That balance between national co-ordination and local empowerment is critical across my kind of investment and across the broader range of leaders as set out in the White Paper.

[Neil O'Brien]

Q One of the missions takes forward the Government’s ambition to increase our public domestic R&D spending outside the greater south-east by a third over the spending review period. How do you feel about that mission? On the level of ambition, are there things you would change about it; is the balance right; should we be doing things in a different way; should we be locking it in more tightly? Given all those different sorts of questions, is that balance between that objective and other priorities for UKRI right? How do you feel about the mission broadly speaking?

Professor Dame Ottoline Leyser: It is good to have those kinds of clear targets and goals. That is helpful. I think it is a long-term ambition, and that is another critical element of both the Bill and the missions, having those clearly articulated long-term goals to steer towards. The SR element of it is obviously much more rapid, and made in the context of the rising R&D budget across the SR, so I think it is achievable.

From my point of view, it is important to stress that our spend distribution does not meet the target from the Department for Business, Energy and Industrial Strategy. There is the broader Government target for the whole of investment, of 30% and 40% set out in the missions, and then there is a specific BEIS target of 55% outside the greater south-east. Our spend does not meet that at the moment—we are only part of the BEIS spend—but the critical element from that point of view is that in our open competitions for funding, we have flat success rates across the country. The news that we are investing more in the greater south-east than outside that area is because we do not receive the applications.

A lot of what we need to do is capacity building. We need to think hard about how we support the excellent research and innovation that we see right across the country to galvanise and bid into our schemes, making sure that the schemes we put forward are equally open to everyone right across the country and that the targeted interventions that we put in place, of which there are some—they are only going to be a small proportion of our overall investment—are carefully considered in the context of the wider capacity-building activity to drive up opportunity for everyone right across the country.

There is excellence everywhere, however, and we can see that, for example, in parts of the recent research excellence framework. One hundred and fifty-seven universities across the UK made submissions to have their research assessed in that exercise. There is world-leading research in 99% of them, according to the assessment process, which can lead activity. Harnessing the benefit of that will be critical to the levelling-up agenda and to the wider economic recovery from the pandemic that we need to drive.

Getting back to your question—are those the right ambitions?—I suppose I am inherently more in favour of outcome and output ambitions than I am of input ambitions but, none the less, I think having those clear targets behind which we can align our activity in UKRI and more broadly across Government is very helpful in embedding this agenda right across everything that we do. That will be critical to success.

[Alex Norris (Nottingham North) (Lab/Co-op)]

Q Thank you, Professor Leyser, for your time this morning. In your role as a member of the Levelling Up Advisory Council, with respect to levelling up, do you think that at the moment things are getting better, or are they getting better quickly?

Professor Dame Ottoline Leyser: That is quite a difficult question to answer. At the moment, things are very challenging right across the country. We have the inflationary pressures caused by a combination of the tail of the pandemic and the war in Ukraine. That has come on the back of the pandemic, which also caused a lot of economic and social shockwaves across the country. Both those things, if anything, amplify disparities for a whole variety of reasons. Because of those factors, it would be difficult to argue that things are getting better.



Having said that, and looping back to what I said at the beginning, I am very encouraged by the ambition—reflected in the Bill and the White Paper—to take on some of the really big, long-standing and multifaceted problems; to get to the root of them and tackle them through this concerted, aligned action. That is not typical, because we have tended to work in silos when dealing with particular aspects, which does not work as well as integrated, concerted actions. A lot of the important problems, such as health inequalities, are multifaceted, and we do not solve them by simply looking at, for example, the health system. I am encouraged by the new approaches that are being taken to try to address some of the problems, but I do not think they are yet biting.

--- Later in debate ---

[The Chair]

Tracy, I am going to have to cut you off, because we need slightly shorter answers. I will ask the Minister—who does not believe in “churn of Ministers”—to ask you a question.

[Neil O’Brien]

Q Tracy, thank you for taking the time to be with us this morning—it is much appreciated.

Clauses 60 and 61 will simplify and streamline the processes for setting up new combined authorities. West Yorkshire is lucky, because it already had a combined authority from 2014. From your own experience of getting the mayoral combined authority set up and from the wider experiences of the M10 group, could you say anything about the complexity and time taken to set up new combined authorities? I appreciate that people are full of enthusiasm and want to get on with it, but that, at the moment, they have to go through some quite laborious processes to get going. What was your experience of that? Do you welcome provisions that would simplify and speed up the process of getting going with CAs?

Tracy Brabin: My role really started on election day—I was not here setting up the office and the CA. However, going forwards into combined county authorities and other models, I hope that whatever learning you get from that will come back and refresh our modelling, so that we can learn from these new MCAs and CCAs. Ben, would you like to add to that? You were here; you did it!

Ben Still: Briefly, there is a set of processes that we and the other CAs had to follow. The provisions in the Bill to simplify those processes are welcome in the sense that the statutory tests still need to be met; that is the important thing, I suspect. For us, though, the combination of the will on both sides—both locally and within the relevant Government Departments—to go through the processes at pace and to work collectively is just as important as the steps we need to go through.

[Neil O’Brien]

Q Thank you. When I was a child in Huddersfield, we originally had a metropolitan county council; we then went through a long period of having no elected city region-wide leadership. How do you compare the experience of having a directly elected Mayor to either of those previous regimes—either having no elected leadership, or having a county council or assembly-type model? Do you think the mayoral model is preferable?

Tracy Brabin: I would say wholeheartedly that the mayoral model is better. It is a single point of contact; it is a point of contact with Government. The Mayor is a champion, advocate and ambassador for the region, and somebody that can work collectively on strategic priorities. The role is not just local but national—and, I would suggest, international—to raise the profile of a region. It is great that Government are understanding and getting behind devolution. It really, genuinely is the way forward for our region.

[Neil O’Brien]

Q The Bill makes it simpler for Mayors to take on police commissioner powers. What are the advantages for Mayors of having police commissioner powers? Does it allow integration across different subjects in your activity?

Tracy Brabin: I cannot tell you. The gift that keeps on giving is the fact that I also have responsibilities for police and crime. It means we can take a public health approach to everything we are doing, getting people in the room or on Zoom from housing and transport, and—via the integrated care system—people from health talking about health inequalities that impact on crime. It is a really brilliant tool to address some of the greater challenges across West Yorkshire. There are obviously lots of different versions, and only Andy Burnham and myself have those powers, but they are really useful.

For example, they help us to deliver my commitment to the safety of women and girls across West Yorkshire. It feeds into everything, including transport. We have the safety app that allows bus users to feed back on whether women and girls feel safe travelling. On skills, we are able to support 750 more police officers and staff, and to work with the chief constable to try to find a pipeline of diverse young people wanting to go into the police. It is a really great strength.

I would say that giving police and crime commissioners and our teams in-year funding pots, with different expectations and timeframes, is incredibly difficult to handle. I hope that we can get multi-year pots of funding to do bigger projects that have a greater impact.

[Neil O’Brien]

Q I have one last quick question. West Yorkshire has what some people describe as a strong Mayor model, whereby the Mayor needs to be on the side of the majority for various decisions to be taken. There is a diversity of decision-making structures in the existing MCAs. What would you say are some of the advantages of having a strong mayoral model or strong decision making for particular subjects?

Tracy Brabin: It is helpful that we have real strength in our leaderships, because they are really experienced leaders. We are all focused on delivering for the people of West Yorkshire, and it has not come to a point where it has been down to my vote. We get a consensus before we go to a vote, and the opposition members on the CA are very helpful, because they provide the check and challenge to get us to a point of compromise so that we can bring everybody with us in delivering for the people of West Yorkshire.

[Tim Farron]

Q Thank you, Tracy; it is nice to see you again. Your region is significantly diverse, with both rural and urban areas. Like every other part of the UK, you will have seen a worsening housing crisis in the last couple of years, particularly in the private rented sector, which appears to be evaporating into short-term lets, especially in your rural communities. What powers does the Bill give you to ensure the availability of affordable for the people you represent?

Tracy Brabin: Affordable and sustainable homes are a priority for me, because it is personal—I grew up in social housing. My commitment to the people of West Yorkshire was to deliver 5,000 affordable and sustainable homes. Over the years, we have seen the number diminish, partly due to right to buy and partly due to the lack of funding. I am able to work with the councils and push them to get to further building target, which has been really helpful. The brownfield fund for housing has enabled us to really focus on the spots that blight our communities, and to work with developers.

For the first time, the West Yorkshire housing associations have all come together under one umbrella to deliver on my housing pledge and to help us get there, but it is still a challenge. Although the £22 million extra in the Bill for brownfield housing is welcome, it comes with the same strings attached and the same expectations from the Government, but with less time to deliver. There is an expectation that we have more freedom, but we need to get away from the strings that hold us back from delivering.

Let us not forget that we have areas in West Yorkshire where the housing stock is really low cost, and we are trying to square the circle of how we build more when we have the Government’s expectations about market failure. We have met Homes England since I became Mayor. I am very interested to see how that relationship develops and how we can work more closely on affordable housing, because the need in our region is growing exponentially. The lists of people waiting for a secure and affordable home are far too long. Ben, I do not know whether you want to talk more technically.

Ben Still: Thank you, Mayor. There is a lot in the Bill that could potentially be helpful to local authorities in unlocking and developing land. The issue that we face in West Yorkshire is much more about the viability of housing sites than about pressure on land and so forth. This is a good example of where the Mayor working in partnership with the local authorities is not just about the legislative provisions, but about the strength of the partnership. The Bill does not change the fundamental relationship between local authorities and Mayors with regards to who is responsible for the delivery of housing.

--- Later in debate ---

[Patricia Gibson]

Q Do you think it would be helpful or desirable for an independent body to oversee and assess the UK Government’s progress on levelling up?

Mairi Spowage: Through the Bill, my understanding is that the UK Government have to publish regular updates on the progress that they are making towards the missions that it sets out and the metrics chosen to measure success. There is quite a lot of work to do to ensure that those metrics cover the whole of the UK on all the different missions. There is a significant amount of investment—I believe that the ONS is looking to try to do that better, but it is not for me to say whether an independent body should be set up to monitor what is, after all, a UK Government policy agenda that they can legitimately pursue.

[Neil O’Brien]

Q Professor Spowage, thank you so much for taking the time to be with us this morning. The Bill creates statutory requirements around the levelling ambitions that we were just discussing. One of those is on digital connectivity. Through Project Gigabit and the shared rural network, Scotland is likely to see particularly large increases in connectivity. How do we best drive growth, particularly in more rural parts of Scotland? How do we best measure progress in the roll-out of connectivity? Do you agree that the rise of online working is, potentially, a strong tailwind for the rural Scottish economy?

Mairi Spowage: Yes, if and when digital connectivity is of sufficient quality it will present a lot of opportunities for the rural economy. We still hear in parts of Scotland that it is a barrier to remote working. It would be hugely transformative for lots of areas, particularly of rural Scotland, but I am sure that lots of other rural parts of the UK would say the same. It would be transformative in terms of the connectivity of people working from home, perhaps for businesses in population centres but also for businesses that are operating in these areas, to have a more reliable connection. It could be extremely transformative to those areas.

We have heard from some of our work with businesses that to a certain extent it can also work the other way. Businesses based in remote and rural Scotland are employing people in the big population centres, but sometimes having to pay them more money because they are more likely to command higher wages in those areas, particularly in this very tight labour market that we have at the moment.

Improvements in digital connectivity present huge opportunities for rural Scotland. As much as there is quite a lot of focus on transport connectivity through the levelling-up funds, investment UK-wide—particularly in rural areas—in digital connectivity is one of the areas where we could get the biggest bang for our buck in transforming the economy and reducing regional inequality, particularly when we look at the population outlook if current trends continue in rural areas.

[Neil O’Brien]

Q Thank you. One of the other missions for which the Bill is creating statutory requirements is to increase domestic public R&D investment outside greater south-east England by a third over this spending review period. Alongside that, there has been the creation of an innovation accelerator centred on the Glasgow city region. How can we best harness the large public investment in research and development to drive growth right across Scotland?

Mairi Spowage: That is a great question, and one that policy makers in Scotland have been grappling with for a long time, particularly given the quality of our universities in Scotland and their international prowess in research and development. We seem to have an issue between the development of the ideas, the start-up, and the translation of that into commercial opportunities that can be scaled up into medium-sized businesses. In Scotland, we often find those opportunities are lost, particularly to the south-east of England, because the infrastructure is there to scale up that business to the next step. I think the sorts of investments that you are talking about, not just in Glasgow but in other locations in Scotland, will be really important. We have to think about how we take all of the great advances that have been made in academia in Scotland and turn them into commercial opportunities, have them scale up and feel that there is the infrastructure and capacity in Scotland so that they do not have to move or be bought by companies outwith Scotland.

[Neil O'Brien]

Q That is very helpful. In your earlier answer you drew attention to the lack of UK-wide indices of multiple deprivation. We know that in the first round of the levelling-up fund, the 50% of local authorities that had the lowest median pay got roughly three quarters of the investments—it is targeting poorer areas. Would it be attractive, as part of the data drive in the levelling-up White Paper, to create more UK-wide indices of deprivation and other things?

Mairi Spowage: Yes, I would be very supportive of that. We can see in the sorts of metrics that are used—not only those related to indices of multiple deprivation but educational outcomes or transport connectivity—that some of them are focused on England-only measures; sometimes they are GB only. We do not want to fall into the trap of, in some cases, using GB and UK inter-changeably here. It is really important that we think about the metrics that we are going to use to capture the reduction in regional inequalities across the UK. Wherever possible, we should invest in developing UK-wide measures.

In some cases I can see that there are data sources in the devolved nations that are very similar to those being used for England. I think there is work that could be done to develop more consistent measures right across the UK, for which, as I said earlier, there is a clear policy need for the UK Government’s programme.

[Alex Norris]

Q Thank you for your time this morning, Professor. Can you expand on an element of a previous answer you gave about the work that the Office for National Statistics, of which you are a fellow, is doing on developing a dataset in that area?

Mairi Spowage: I am not here to speak for the ONS, but I am a fellow, so they ask me and a group of other expert academics for advice on their work programme. They have published a subnational data strategy, which was worked up not just by the ONS but across the Government’s fiscal service, to think about how we can develop more sophisticated metrics across the UK to capture different levels of needs and progress. That would be to support not only the levelling-up agenda but things more broadly. In partnership with the Department for Levelling Up, the ONS is looking to develop more metrics across the UK. Some of that will be working closely with the devolved Administrations to develop data sources and think what might be comparable.

We have done a significant amount of work with the Economics Statistics Centre of Excellence. We published a paper recently on developing a suite of sub-national indicators across the UK. We made recommendations there, which included working closely with the devolved Administrations to develop data that was consistent across the UK, particularly on educational and environmental outcomes. A recent example would be something like fuel poverty, which is obviously a live discussion. It is measured differently in all four nations of the UK, so it is very hard to compare differential rates of fuel poverty in different parts of the UK at the moment.

Parks and Green Spaces: Manchester, Gorton

Neil O'Brien Excerpts

Wednesday 8th June 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

I thank the hon. Member for Manchester, Gorton (Afzal Khan) for securing this Adjournment debate on a subject that matters a lot to all MPs in this House. He is a committed champion and advocate for green spaces in his constituency; we heard about the breadth of that advocacy in his very good speech. Who can blame him, when his constituency is among the greenest in the country? Not a lot of people would immediately guess that 89% of neighbourhoods in Manchester, Gorton have a high level of accessible green space within 15 minutes’ walk.

The hon. Member touched on some of the fantastic things that are happening in his constituency. He mentioned places such as Gore Brook valley, which offers locals access to a butterfly garden, historic pubs, a grade II listed church, a water sports centre, 200-year-old cottages and handsome Victorian terraces. There are also outstanding family parks such as Alexandra Park and Platts Field Park, which had the first ever “Friends of” group, as he mentioned.

Members of this House do not always share the same politics, but I think we all have the same enthusiasm for our parks. During the covid pandemic, as the hon. Member says, we appreciated them like never before; they were incredibly useful in keeping our sanity and our health during that difficult period. With the worst of covid now behind us, it is right that we reflect on what keeps parks going and on how we keep them looking brilliant and being useful.

The hon. Member rightly drew attention to the many roles that parks have, from sucking up water—that vivid image that he conjured up—to being a place where communities interact with one another. They also host important events for particular communities; it sounds as if similar things happen in his constituency as in mine on the edge of Leicester.

The hon. Member asked me to draw attention to and praise the work of the community groups that have put in 11,000-plus hours of community work in Greater Manchester. It is a pleasure to do so; some fantastic things are being done. I draw particular attention to the Litter Wombles—I do not know whether they operate in his constituency, but they are a wonderful social movement with huge numbers of people making our country tidier and nicer. I pay great tribute to all those groups.

The hon. Member touched on several subjects to which I will try to do justice, including planning. The Government are committed to retaining the beauty and the majesty of places, so our national planning policy requires that planning processes seek to deliver

“high quality, beautiful and sustainable buildings and places”.

That includes encouraging the creation of appropriate green and public space within new developments. The national planning policy framework makes explicit just how important beauty and design are to development across the country, and to

“creating better places in which to live and work”.

The hon. Member will have heard during the earlier debate on the Levelling-Up and Regeneration Bill about the BIDEN principles that the Secretary of State is championing, access to nature being a crucial element of that agenda.

The hon. Member mentioned funding. That did not, of course, start in 2019. Between 2017 and 2019 alone, we made £16.3 million available to support parks and green spaces, including those in urban environments. We provided the £9.7 million local authority parks improvement fund, the £5.1 million pocket parks and pocket parks plus programmes, and the £1.4 million investment to test new models and new ways of doing things through the future parks accelerator programme. As the hon. Member said, we are keeping that investment going well into the future with the £9 million fund for levelling up parks, which was announced in the spending review. The aim of the fund is to create 100 green spaces on unused, undeveloped or derelict land. Although we are still to announce further details, I can assure the hon. Member that it will be focused on increasing access to quality green space in deprived urban areas in the UK. Such access is important, for exactly the reasons that he gave.

The hon. Member touched on the role of the mayoral combined authority. I was pleased to be able to play a part in helping to set up the authority, which will enable communities to regenerate themselves and find more ambitious ways of creating green spaces in urban environments through, for instance, the multi-year investment funds that we have given it.

We will, of course, go further. The Levelling-Up and Regeneration Bill contains a range of provisions for the creation of attractive green spaces, such as our planned reforms of compulsory purchase orders and our proposal to create liveable spaces by extending the temporary flexibilities on pavement dining. This is all about creating nicer places to be in, and about bigger area regeneration. The Bill also contains new legal powers, which we are backing up with funding streams such as the levelling-up fund, which can be used to create attractive new cultural and green spaces, and the highly flexible shared prosperity fund, which can be used to create new parks, among other civic amenities. There is also the programme that we have with Homes England to create 20 instances of transformative Kings Cross-style regeneration, using funding streams such as the £1.5 billion brownfield fund, and also the powers and expertise of Homes England to drive transformative urban regeneration. I am keen for that to include attractive new green spaces, because they are so important.

In the past, the link between public health and wellbeing and access to green spaces has not always been as well articulated as it could have been, but over time, evidence has built up. The hon. Member talked about some of it. Studies have found that contact with nature can reduce anxiety and stress, raise self-esteem, and improve psychological health. One 2009 study even concluded that people find it easier to resolve minor life problems when spending time in natural settings. It is difficult to think of any other resource that caters for so many different needs, from health to wellbeing to community integration.

I am delighted to have had the chance to talk about some of the things that the Government are doing, and about why and how we intend to continue to back our parks and make these wonderful and treasured community facilities even better in the future, and something of which we can all be proud.

Question put and agreed to.

Oral Answers to Questions

Neil O'Brien Excerpts

Monday 16th May 2022 Commons Chamber

[Kate Griffiths (Burton) (Con)]

20. What steps his Department is taking to help support the regeneration of towns and high streets.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

Regenerating our high streets and town centres is essential to the Government’s commitment to levelling up the country. The Levelling-up and Regeneration Bill includes measures to tackle vacant properties, improve compulsory purchase powers and make temporary pavement licensing permanent. It builds on the comprehensive funding package already announced, including the £3.6 billion towns and future high streets funds, the £4.8 billion levelling-up fund and the recently launched £2.6 billion shared prosperity fund.

[Jack Brereton]

I thank the Minister and the whole Cabinet for visiting Stoke-on-Trent last week. In towns across Stoke-on-Trent, encouraging new uses of property on our high streets has often been held back by complex ownership and the council not having the resources to tackle the issues. What more are the Government doing both to incentivise property owners to bring derelict spaces back into use and to make it easier to use enforcement powers where owners prove unwilling to do so?

[Neil O’Brien]

My hon. Friend is completely correct. It was a pleasure to join the Cabinet meeting in Stoke last week and talk about how we drive forward regeneration there. Stoke is really powering ahead, and the measures in the Levelling-up and Regeneration Bill—particularly those to reform compulsory purchase orders and crack down on empty shops—will help things go even faster. That is in addition to the specialised support that Stoke-on-Trent is receiving through the high streets task force. I have also set up a meeting next month with all the infrastructure and regeneration bodies across Government to plan how we can build on Stoke’s three levelling-up fund successes.

[Kate Griffiths]

Burton town deal board has worked hard over the past two years in putting together a town deal we can be proud of. It is clear that constituents are passionate about our town, and they have worked with the board to ensure that the final plan will offer a great future for Burton. The plan has now been submitted. Can my hon. Friend offer any thoughts on Burton’s plans, and can he give an indication of when approval might be granted so that we can crack on with levelling up in our area?

[Neil O’Brien]

I praise the proactive approach that East Staffordshire Borough Council has taken, which includes working cross-party to build consensus. Its plans for the riverside regeneration in particular will be absolutely transformative. The business case documents are currently being reviewed by officials, and I hope to be able to sign those off shortly so that the projects can get under way.

[Chris Bryant (Rhondda) (Lab)]

The Rhondda is absolutely beautiful, but some of our town centres are let down by hideous old buildings which, frankly, do not need any levelling up; they need some levelling down. So will the Minister please put in place a levelling-down fund that will allow us to destroy some buildings, such as the bingo hall in Hannah Street in Porth?

[Neil O’Brien]

At the same time as making an amusing point, the hon. Gentleman makes a very important point. The powers for compulsory purchase will help to unlock sites, including sites that the hon. Gentleman mentions which need fundamental change. The funding schemes we have put in place—the shared prosperity fund and so on—will help put financial firepower behind those regeneration schemes, too.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

One way to regenerate high streets is to repurpose old retail units as co-working spaces, and increasing the number of remote jobs available means people do not have to leave the place they love for the job they want. Would the Minister, and indeed any Member across the House, like to come to my Work Hull: Work Happy event on 23 June at 11 am to find out more about the benefits of remote working for productivity and opportunity?

[Neil O’Brien]

It sounds extremely interesting, and I would be very interested in coming along. The hon. Lady is completely correct that remote working is potentially a really powerful driver for levelling up, and some of the measures in the Levelling-up and Regeneration Bill, such as repurposing shops through the high street rental auction scheme, can potentially be really transformative for our high streets.

[Kelly Tolhurst (Rochester and Strood) (Con)]

2. What steps he is taking to ensure that leaseholders do not have to pay for remediation work in buildings where the developer is at fault.

--- Later in debate ---

[Peter Aldous (Waveney) (Con)]

6. What steps his Department is taking to support economic growth across the UK.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Our levelling-up White Paper sets out our plans to support economic growth across the whole of the UK. Since September 2020, we have allocated more than £7 billion through our levelling-up funds, including the recently announced allocation for the shared prosperity fund.

[Peter Aldous]

I am grateful to my hon. Friend for that answer. Coastal communities such as Lowestoft and Waveney are the forgotten powerhouse of the UK economy. Can my hon. Friend confirm that the opportunities and challenges they face will be given the highest priority as the Government set about delivering their levelling-up agenda, and will the money from the Crown Estate that was originally used for the coastal communities fund be targeted at realising the full potential of coastal areas and meeting their needs?

[Neil O’Brien]

I have met my hon. Friend about this issue several times and I agree that coastal communities have the potential to be real powerhouses for our economy. That is why the future high streets fund has allocated £149 million to coastal local authorities, and why coastal local authorities got £287 million of funding in the first round of the levelling-up fund. That comes on top of the £229 million, which he mentioned, that we have invested in coastal towns and communities since 2012 through the coastal communities fund.

[Mr Speaker]

We come to the shadow Secretary of State, Lisa Nandy.

[Lisa Nandy (Wigan) (Lab)]

Look, can the Minister not see the crisis unfolding across the country? There has been the biggest fall in living standards since the 1950s. Pensioners are boarding buses just to keep warm. On every measure, the gap is widening; there is less for the regions, in terms of public spending; salaries are falling; homes are less affordable; and local economies are on the verge of collapse. Surely he recognises how absurd it is that all we have had from the Secretary of State in the past week is the promise of an al fresco dining revolution, and three full pages of legislation giving us the power to rename our Mayors. What exactly is stopping the Government scrapping business rates, bringing in a windfall tax to cut money off energy bills, uprating benefits now, rather than waiting till later, or doing any of the things that will get money back into people’s pockets and get our economy growing?

[Neil O’Brien]

The hon. Lady could also have mentioned the fact that our national living wage, which this Government introduced, is putting £1,000 extra in the pockets of working people. She could have mentioned the changes to universal credit, which will make full-time workers £1,000 better off. She could have mentioned the record increase in the national insurance threshold, which will make nearly 30 million households better off, or any of the other measures that we are taking through the levelling-up agenda: the £4.8 billion being spent through the levelling-up fund; the £3.6 billion being spent through the towns fund; and the £2.6 billion that is helping to transform town centres across the country. I notice none of those things got a mention in her question.

[Lisa Nandy]

It is increasingly as though the Government are living on a completely different planet. The other day, the Secretary of State was in Stoke, which has had £35 million taken off it by him—that money used to flow freely back to us via Brussels—and £20 million stripped out of the local economy because the Government scrapped the £20 million universal credit uplift.

The bigger problem is that a pattern is emerging. The Secretary of State could not get money from the Chancellor. He could not get visas from the Home Secretary. He could not convince his former junior Ministers to stop closures of Department for Work and Pensions offices in the north. He could not even persuade his civil servants working on levelling up to move out of London. For all the nonsense that there has been, two thirds of his civil servants working on levelling up are trying to level us up from the capital. At least now he knows what it is like for the rest of us—in the north, Scotland, the midlands, Wales and the south-west—to be treated with total contempt by a bunch of Ministers in Whitehall. Seriously, what hope has he got of convincing us in this country that he can level us up when he cannot even convince a single one of his colleagues around the Cabinet table?

[Neil O’Brien]

I thank the hon. Lady for drawing attention to the Cabinet’s visit to Stoke the other day; if she had been a Government Back Bencher, people would accuse her of toadying for teeing up this answer so brilliantly. She mentioned several things that allow me to mention the three successful levelling-up bids that we have had in Stoke, and she mentioned the shared prosperity fund, about which I will make a point. Under the last Labour Government, money was decided on in Brussels and then given to remote regional development agencies. That money is now going directly, with no strings attached, to the fantastic Conservative-run council in Stoke, which is transforming the fortunes of that city after years of Labour neglect.

[Mr Speaker]

I call the Scottish National party spokesperson, Patricia Gibson.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Despite the bullish posturing, the Minister knows that households across the UK are suffering terrible hardship because of the cost of living crisis, which has the Tories’ name written all over it. Despite the rhetoric, the reality is that Scotland’s resource budget allocation has been cut by Westminster by 5.2%, and the capital budget allocation has been cut by Westminster by 9.7% in real terms. How can he claim to support economic growth across the UK when the Scottish Government’s ability to support business, investment and people through the cost of living crisis can only be severely constrained by these cuts?

[Neil O’Brien]

The hon. Lady talks about Scottish public spending. The truth is that the record block grant that Scotland has just received is the biggest settlement since devolution—it is huge. For every £100 of spending elsewhere, there is £126 of public spending in Scotland. The implication in the hon. Lady’s question is just not correct.

[Andrew Percy (Brigg and Goole) (Con)]

The problem for the shadow Secretary of State is that some of us remember what 13 years of a Labour Government meant for the north of England: we received very little. Since the Government came to power, not only have they cut the Humber bridge tolls in half and supported the development of the Siemens wind turbine factory in Hull and the new Siemens train factory in Goole, but we have received huge sums of cash, including through the town deals that are coming our way. However, we want even more. Although we missed out on the levelling-up fund bid the first time round, will the Minister assure me that he will look very closely at the bids that are about to be submitted for my area for the next round of funding?

[Neil O’Brien]

I will look very closely at them. I hope that through the very exciting talks that are going on, and through the Hull and East Riding devolution deal, we can pick up many more of the exciting opportunities in the area. Of course, the reviews of Labour’s performance in Hull are so good that it has just been kicked out of the council.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

7. What steps he is taking to deliver long-term funding settlements for the levelling-up agenda.

--- Later in debate ---

[Simon Fell (Barrow and Furness) (Con)]

12. What steps his Department is taking to help empower local leaders to level up their communities.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

The Department is delivering the Government’s plan to empower local leaders, including offering devolution deals by 2030 to anywhere in England that wants one.

[Simon Fell]

I thank the Secretary of State for visiting Barrow recently to see how the £25 million town deal and the £16 million levelling-up funding will transform our community.

Cumbria has just elected its first ever councillors to the new Westmorland and Furness Council and Cumberland Council. This is a historic moment for our county. Does my hon. Friend the Minister agree that there is further to go and that the new councillors have the opportunity to secure a bountiful devolution deal that supercharges the county with an elected Mayor? What advice would he give to them?

[Neil O’Brien]

I agree with my hon. Friend. I was in Barrow and Furness a couple of weeks ago, and I was struck by the fantastic progress he is helping to drive using levelling-up funds, such as the marina village, the new bridge, the new university campus and more. I was also struck by the common linkages and opportunities across Cumbria, and I can see the case for an ambitious devolution deal covering both new authorities once they are up and running.

[Anthony Browne (South Cambridgeshire) (Con)]

T2. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Craig Tracey (North Warwickshire) (Con)]

T3. North Warwickshire Borough Council does a fantastic job of serving our local community, despite operating on a budget of only £9.5 million, which is certainly the lowest in Warwickshire and must be one of the lowest in the country. Will the Minister agree to come to my constituency to meet the council and to see for himself the excellent work it does, and to see how it could put the levelling-up funding on offer to excellent use?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

I pay tribute to David Wright and North Warwickshire Borough Council, because they have done a fantastic job, particularly during covid, in supporting the local community and local business. I would be delighted to visit—to hop across the A5—not least because it is only 20 minutes away from Harborough.

[Helen Morgan (North Shropshire) (LD)]

T5. Just last year, Shropshire’s Conservative-run council missed out on three levelling-up bids, and it missed out on a bus service improvement plan bid, under the Bus Back Better fund, this year. There is no doubt that Shropshire has need of these funds, so I would like to understand: what steps is the Secretary of State taking to ensure that levelling-up funds are allocated on the basis of need, rather than through some opaque bidding process that seems to be influenced by a council’s ability to direct resources at that bid?

[Craig Williams (Montgomeryshire) (Con)]

T4. I thank my right hon. Friend for delivering the shared prosperity fund, with historically high funding for mid-Wales and Montgomeryshire in particular, at more than £200 per head. I particularly thank him for the golden thread of rurality that we find in this formula, and I press him to continue delivering for rural communities.

[Neil O'Brien]

One reason why mid-Wales has one of highest shared prosperity fund allocations in the country is precisely because we have taken rurality and the additional costs that come with it into account, and I look forward to building on that.

[Stephen Morgan (Portsmouth South) (Lab)]

T6. It is clear that the Government’s approach to levelling up is a postcode lottery based on their own political ambitions rather than a genuine desire to help communities. With Portsmouth’s high streets in dire need of investment and our city’s cultural attractions struggling with the cost of living, when will the Minister stop moving the goalposts and finally stop short-changing Portsmouth?

UK Shared Prosperity Fund: Rural Areas

Neil O'Brien Excerpts

Wednesday 11th May 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

I congratulate my hon. Friend the Member for Rutland and Melton (Alicia Kearns) on securing a debate on this important topic and on her superb speech. I also acknowledge the important contributions from the hon. Member for Strangford (Jim Shannon) and my hon. Friends the Members for Loughborough (Jane Hunt) and for Penrith and The Border (Dr Hudson), who were making some similar and important points in a debate just a couple of weeks ago.

We should start by recognising that many positive things are happening in Rutland, Melton and the parts of the Harborough district that my hon. Friend the Member for Rutland and Melton represents, and many of them are happening because of my hon. Friend. She has been a relentless champion for fairer funding for Rutland and Leicestershire. She has secured the Melton Mowbray distributor road, which is key to levelling up Melton; after 40 years of discussions, she and local colleagues have finally made it happen. Rutland Memorial Hospital has been saved after the commitment she secured from the clinical commissioning group. She raised broadband, and I am pleased her efforts paid off and put Rutland in the very first tranche of the gigabit upgrades in the country. She also helped secure £150,000 for a community hub in Thurnby and £150,000 for a pub in Frisby from our community ownership funds, and I look forward to drinking in them at some point. Of course, her local authorities have also benefited from funding from the UK shared prosperity fund: Rutland, Melton and Leicestershire are receiving over £5 million of UK SPF funding, with Rutland getting over £1 million, Harborough over £2.1 million and Melton just shy of £1.2 million. On top of that, Leicestershire is receiving nearly £3 million in multiply funding.

On the SPF, my hon. Friend raised a series of important questions about flexibility and rurality which I want to address directly. Even the last Labour Government acknowledged that spending on regional economic policies should have been brought back from Brussels and decided here, but they never managed to bring it back or get the EU to agree to that. Now that we do have control back, we can do things differently. The SPF fund will be radically more flexible than previous EU funding, and also much more locally led. Under the last Labour Government, funding was given to remote and unelected regional development agencies based far from Rutland and Melton; under the SPF, it will be given to individual districts and elected local leaders so it is much more local. In addition, bureaucracy will be slashed and there will be far more discretion over what money is spent on. EU requirements for match funding, which impacted on poorer places in particular, will be abolished. The EU system—with payment in arrears, multiple rounds of auditing and multiple rules, and lengthy application documents that all made it difficult for small local voluntary groups in particular—will be swept away. Under the EU funding, only a narrowly defined set of things could be funded, but under the SPF the investment priorities deliberately cover a very wide range of possible interventions because that is what local leaders said they wanted from us. Whether digital connectivity, buses, skills, improvements to high streets, community events, or sports and festivals, the choice for the first time will belong to local leaders and local communities. Rural communities will be empowered to set and deliver against their own priorities through the fund, shaping things locally and not having to apply to a remote RDA based in a city far away.

In terms of allocations, the SPF matches in real terms the previous spend in each local enterprise partnership area because we were conscious of the need for continuity for ongoing programmes. Within those LEP areas we have used the same index of community renewal that we developed for the community renewal fund. One reason why we used that is precisely because, unlike previous funding formulas, it explicitly recognises the challenges of rurality and sparsity to tackle the very unfairness my hon. Friend raised.

The SPF is only one of the funds we are using to give financial firepower to places. The £4.8 billion levelling-up fund, which recently opened for its second round, could be used to boost some of the fantastic rural food businesses that she mentioned, or to make the most of the incredible cultural discoveries that she also mentioned. She noted that Rutland and Melton were in tier 2; again, that is because the index for the levelling-up fund recognises the challenges of rural and poorly connected areas in a way that previous Governments have not. We have also created new funds such as the community ownership fund, which particularly helps rural communities where hub assets are so important to villages and smaller places. The £3.6 billion towns fund is regenerating communities throughout the country, and there is more to come, with the £1.8 billion brownfield fund mainly still to be allocated, which will help drive regeneration and save valued green spaces.

[Alicia Kearns]

The Minister mentioned community ownership funds. There is a pub in Stathern in my constituency which, having seen the success of the Bell in Frisby, would like to do the same with the Red Lion. When will the next funding round be opening—I know the Department is keen to learn from previous rounds and help people apply for the next round of the community ownership fund?

[Neil O'Brien]

It will be opening extremely shortly. I will take that offline with my hon. Friend, and we have indeed tried to learn lessons to improve that aspect of the fund from the first round.

My hon. Friend raised a number of other critical issues. She talked about the need for more GPs surgeries. I wholly agree, and the Levelling Up and Regeneration Bill published today responds to exactly that issue and to the campaigning by her and other hon. Members here.

We must ensure that development always comes with the infrastructure that is needed. Section 106 has seen money handed back to developers, which is intensely frustrating for local communities: projects become outdated by the time money is available, money cannot be adequately pooled to add up to major projects, it is not a transparent system and it does not reflect the cumulative effect of development because funds cannot be pooled properly.

The new infrastructure levy that we propose through that Bill will change all that. It means more money for local communities, more of the benefits of development for the local community and not just developers, more local control over what it is spent on and matching of new housing to the infrastructure that is needed.

My hon. Friend also talked about the challenges of digital connectivity in rural areas and her success in the early roll-out. We are investing £5 billion so that hard-to-reach areas can get gigabit speeds. More than 67% of UK premises can now access gigabit-capable broadband, an enormous leap forward from July 2019, when coverage was just 8%. That is a spectacular transformation. The £1 billion that we are investing in the shared rural network will particularly help to improve mobile signal in rural areas such as Rutland and Melton, so that she can spend even more time when she is on the A47 lobbying Ministers with brutal effectiveness.

My hon. Friend talked about the critical issue of local government finance. The overriding ambition of the Government is to keep bills low by giving councils the tools and firepower to keep taxes low while offering first-rate services to their residents. The Russian invasion of Ukraine has an impact on that and makes the cost of living even more important. Our local government finance settlement for 2022-23 meets that ambition by providing an additional £3.7 billion of funding to local authorities, including support for adult social care reform, which is critical for rural areas with older populations.

In my hon. Friend’s constituency, that funding translates to a cash-terms increase in core spending power for Harborough council of 6% compared with last year; for Melton it is a 9.3% increase and for Rutland a 7.4% increase. For Leicestershire County Council it translates to a 6.9% increase compared with the previous year. The new funding we have made available is the largest cash-terms increase in grant funding provided through the settlement in the past 10 years and is testament to the support we are affording councils in every corner of the country, especially those outside our major towns and cities.

My hon. Friend is quite right to say that these things can always be improved, and I am sure she will continue to power forward on this agenda.

[Alicia Kearns]

The Minister is a neighbour of mine, and I just want to point out that without him I do not believe we would have made such progress on fair funding for this country and the improved settlements. While he cannot publicly lobby for his own Market Harborough constituency, I know that all Leicestershire MPs wish to put on record their gratitude to him. Since I cannot ask him to agree with that, I will instead ask him to confirm that he will continue to keep his eye on funding for Leicestershire and Rutland.

[Neil O'Brien]

I am not entirely sure what I should say in answer to that question. Instead, I will finish by thanking my hon. Friend for bringing this very important issue to the House today. In the past, the rural economy has not always had the attention or the credit it deserves, but Governments who undervalue rural communities do so at their peril, and we will never do that.

When I was in Uppingham just the other day on market day, I saw all the attractions and the wonderful things that my hon. Friend’s constituency offers in the incredible, vibrant town centre. It is a wonderful place. However, we as a Government also see the challenges of maintaining those rural bus routes and the challenges of an older population. It is wonderful that Rutland has the highest male life expectancy in the entire country, but that brings with it the higher cost of looking after a group of older people well.

Rural places do not have the momentum that larger cities have had, because of the changes to a services-based economy over the past 20 years that have helped capital cities and large cities particularly at the expense of rural areas. We are conscious of those challenges. We have made unprecedented changes to the funding formula to recognise the challenges that for too long, as my hon. Friend said, have been neglected. Under this Government we are addressing those things. I will disagree with one thing she said: she was worried that sometimes these things are forgotten in Government, but I can promise her they will never be forgotten in this Government.

Question put and agreed to.

UK Shared Prosperity Fund

Neil O'Brien Excerpts

Tuesday 19th April 2022 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Last week, my Department announced the launch of the £2.6 billion UK Shared Prosperity Fund, publishing a prospectus that sets out the fund’s objectives, priorities and local allocations, as well as how the fund will be delivered. This starts the process of places across the country developing local plans to deliver the fund.

It represents the culmination of concerted effort and joint working across Government, with the devolved administrations in Scotland, Wales and Northern Ireland, and local partners across the UK. It is a key component on our journey to transform the country, set out in the Levelling Up White Paper, and our central mission to level up and spread opportunity and prosperity to all of our communities.

We are investing in domestic priorities and targeting funding where it is needed most: building pride in place; supporting high quality skills training; supporting pay, employment and productivity growth; and increasing life chances.

The UK Shared Prosperity Fund is a marked shift from the EU structural funds it succeeds. Under the EU, organisations had to go through a lengthy application process. Indeed, the process between first application and approval could easily exceed 12 months. The UK employed hundreds of civil servants to facilitate this, with projects only getting paid in arrears. The EU had strict, rigid requirements on what money could and could not be spent on, but our approach is much more flexible, empowering local people who know best.

In contrast, the UK Shared Prosperity Fund provides a three-year allocation to local authorities, with the goal of approving investment plans within three months. The fund will be much more flexible and locally led, freeing communities from the bureaucratic, rigid and complex processes of the EU structural funds. Bureaucracy will be slashed, and there will be far more discretion over what money is spent on. EU requirements for match funding, which impacted poorer places, will be abolished.

Instead of regional agencies, funding decisions will be made by elected leaders in local government, with input from local Members of Parliament and local businesses and voluntary groups. The fund will lead to visible, tangible improvements to the places where people work and live, alongside real investment in people’s skills, giving communities up and down the UK more reasons to be proud of their area.

All areas of the UK are receiving an allocation from the fund, with even the smallest places receiving at least £1 million, recognising that even the most affluent parts of the UK contain pockets of deprivation and need support. Funding will also match in real terms what was previously spent through the European Social Fund and European Regional Development Fund in Scotland, Wales, Northern Ireland and each Local Enterprise Partnership area of England, meeting the UK Government’s commitment to match EU funding. We are ramping up UK Shared Prosperity Fund funding as EU funds tail off, and when that funding ends, the UK Shared Prosperity Fund will match the annual average spending of EU funds, reaching around £1.5 billion per year, which is more generous than the average EU funding budget, which is around £1.3 billion average per year.

As funding is confirmed for three financial years—2022-23, 2023-24 and 2024-25—this will facilitate places’ planning and allow the UK Shared Prosperity Fund to act as a predictable baseline element of local growth funding. It comes alongside other funding to level up the UK, including the £4.8 billion Levelling Up Fund and £150 million Community Ownership Fund, and builds on the £200 million for UK Community Renewal Fund projects that we announced last year.

A key part of the fund is Multiply, the adult numeracy programme. With up to £559 million in funding available, this programme will offer local and national support for people to improve their numeracy skills—equipping adults across the UK with the skills they need to progress in life. It is being led by the Department for Education in England and funding will be distributed to the Greater London Authority, all Mayoral Combined Authorities, and upper tier/unitary authorities outside of these areas in England. In Scotland, Wales and Northern Ireland, Multiply will be delivered alongside wider programmes of UK Shared Prosperity Fund activity.

Further information about the fund and the investment planning process, as well as local allocations, is included in the UK Shared Prosperity Fund Prospectus and the Multiply Prospectus, both of which have now been published.

The next step is for each place to work with the private sector, civil society and others, as well as the devolved administrations in Scotland, Wales and Northern Ireland, to develop a local investment plan. This should set out how they will target their funding on local priorities, against measurable goals. Once this is in place and agreed with the UK Government, they can unlock three years of investment.

This new fund is a clear manifestation of our commitment to level up all of the UK. Alongside historic levels of investment confirmed through Spending Review ’21, it will make a significant contribution to overcoming geographic disparities, spreading opportunity and boosting employment, wages and life chances right across England, Scotland, Wales and Northern Ireland.

[HCWS774]