Local Enterprise Partnerships

Neil O'Brien Excerpts

Wednesday 16th March 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Ms Rees. I start by thanking my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) for securing this important debate. It has been inspirational to hear the many varied things that LEPs are doing across the country: in the south-east, Thames valley, Coventry, Warwickshire, Buckinghamshire, Gloucestershire, and D2N2 in Northamptonshire and the south midlands. They are doing everything from heritage to digital skills and, indeed, fusion power. They have a very exciting agenda and are playing an important role.

The short answer to my hon. Friend the Member for Hastings and Rye is that, through the White Paper, LEPs now have certainty about their overall role in the future and how they will fit together with mayoral combined authorities. LEPs will continue to exist where there are no MCAs; where MCAs exist, they can be folded in as the business sounding board where they are co-terminus. Where there is a part-in and part-out LEP, we will respond to whatever the desires of local partners are. They will also shortly have the funding certainty that a number have Members have asked about, because we will be writing to them very shortly.

The longer version of the answer to the great questions that colleagues have asked today is that LEPs have played a very important role in unlocking local economic potential and growth over recent years. Using the convening power that so many Members have talked about, partnerships have forged lasting and productive relationships between business, education and local government. At the same time, they have brought that crucial private sector perspective into local decision making, and indeed into combined authorities. They have delivered major capital investment schemes, some of which have been mentioned today, such as the £12 billion local growth fund and the £900 million Getting Building fund.

LEPs have been really instrumental in supporting businesses through the twin challenges of leaving the EU and responding to the pandemic. As if that were not enough, a lot of businesses are now turning to their LEP and growth hub for guidance and support regarding the current situation with the Russian invasion of Ukraine. As my hon. Friend the Member for Hastings and Rye said, that is just part of what is driving the 1.6 million visits that she talked about.

Over the past two-year period we have seen LEPs implement a series of actions to strengthen their governance and accountability, and it has made a big difference. In the most recent assurance review we found that every one of the 38 LEPs met our expectations on strategic impact and delivery, and all but one met our expectations on governance. The National Audit Office has noted the progress that LEPs have made over time. In its 2019 report, the NAO highlighted the marked improvement in LEPs’ financial transparency between 2016 and 2019. My hon. Friend the Member for Northampton South (Andrew Lewer) touched on the marked progress we have seen on the removal of boundary issues between LEPs—an issue that the Government recognise can blur accountability and transparency. Although there is further to go, the majority of those boundary issues have now been dealt with.

I want to thank the people working in LEPs who might watch this debate or read the transcript, because the Government place a huge value on the contribution that they have made and will continue to make to their local economy. We are grateful to the talented, busy people who serve on LEPs for giving their skills, knowledge and expertise to the community and to improve the functioning of LEPs over time. We look forward to the next stage in our partnership with LEPs.

In some areas of the country, such as the Liverpool city region, West Yorkshire and Greater London, business leaders are effectively integrated into local decision-making structures through combined authorities and the GLA. As Members know, LEP partnerships extend beyond their immediate combined authorities. In a LEP census in 2016, nine out of 10 LEPs reported that they have full engagement with businesses of all sizes and LEPs reported engagement with higher education bodies, so it is not just about the interface with local politicians.

The bigger geographical scale—beyond the council scale—which a number of hon. Members have pointed to, gives LEPs a unique vantage point to bring people together on lots of different subjects. For example, one of the reasons why we use and resource them is to develop local industrial strategies, which have flowed into such things as innovation accelerators. Where innovation accelerators exist, we hope that LEPs and the equivalent bodies in the devolved areas will play a role in shaping what they do.

There are lots of other such examples but today, in 2022, the local growth landscape looks very different from when LEPs were first launched. We have seen the introduction of combined authority Mayors and a number of funds, such as the towns fund, which involves local stakeholders potentially at a sub-local authority level, bringing together lots of partners in the most deprived half of towns. For example, through the local growth fund and the forthcoming shared prosperity fund, we are empowering those in lower-tier local government. Of course, LEPs still play a crucial role in all the different things that they are running and their wider role is also a crucial part of the local growth story.

We are in the process of continuing on the journey of growth in the number of mayoral combined authorities. In the White Paper, we talked about nine new areas that have started talks with Government, including a combined authority deal for York and North Yorkshire and widening the geography of the north-east deal, as well as deepening the deals that have been done for the west midlands and Greater Manchester. Even as we do that, LEPs will continue to have a crucial role outside the areas where there are not electively accountable mayoral-type figures operating across a strategic geography. As my hon. Friend the Member for Hastings and Rye said, in many parts of the country there will be no other body on that kind of scale with that kind of strategic overview of the wider economy, straddling a number of different local authorities.

Following the LEP review, which has concluded, we have clarity about the end state that we want to get to and why we want to continue to have LEPs: for that convening role, the private sector expertise, and the ability to broker lots of different local stakeholders and drive forward a wider strategic vision for the area. That is why we have chosen to keep LEPs and why I pay tribute to them today.

We appreciate the urgent need for certainty of the kind that various hon. Members have raised. We are working to provide that clarity to LEPs at the earliest opportunity. I am sure that Members will appreciate some of the wider pressures that the Government are facing, given the international situation. It has been useful to have this debate today and to be able to express my thanks and pay tribute to the work of LEPs. We will be in touch with our colleagues in LEPs in the very near future.

[Mark Pawsey]

One strength of LEPs is that the functional geography was delivered by the LEPs themselves. It was left to people in their own areas to determine what makes a sound economic unit. Does my hon. Friend intend to retain that autonomy within the LEPs, so that we keep that geography rather than relying on historical local government boundaries?

[Neil O'Brien]

Yes. My hon. Friend has given me a good opportunity to recognise that there is, I think—from my conversations with Coventry and Warwickshire—a strong desire to continue to work together. Without prejudging the outcome of anything, we have said that we will respond to what local places want to do where LEPs straddle areas, being partly in an MCA and partly outside. I am conscious, from all my conversations with those involved in Coventry and Warwickshire, that they have found it useful to work together. I was very impressed by the list of projects that my hon. Friend reeled off that they were leading in Coventry and Warwickshire. We are absolutely conscious of what local people want—yes, absolutely. Let me end by saying that we will continue to respond to what local places want and how they want to work together to drive forward their local economy and get more good jobs in all these different parts of the country.

The European Union (Withdrawal) Act and Common Frameworks Report

Neil O'Brien Excerpts

Thursday 10th March 2022 Written Statements

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

I am today laying before Parliament a report, “The European Union (Withdrawal) Act and Common Frameworks: 26 September to 25 December 2021” in line with the requirement under the EU (Withdrawal) Act 2018 for quarterly reports to be made to Parliament on the progress of the work to develop common frameworks. The report is available on gov.uk and details the progress made between the UK Government and devolved Governments regarding the development of common frameworks. This report details progress made during the 14th three-month reporting period, and sets out that no “freezing” regulations have been brought forward under section 12 of the European Union (Withdrawal) Act. A copy of “The European Union (Withdrawal) Act and Common Frameworks: 26 September to 25 December 2021” report has been placed in the Libraries of both Houses. The publication of the report reflects the Government’s continued commitment to transparency.

[HCWS672]

Oral Answers to Questions

Neil O'Brien Excerpts

Monday 7th March 2022 Commons Chamber

[Ian Paisley (North Antrim) (DUP)]

2. What recent discussions he has had with the Northern Ireland Executive on the potential opportunities for Northern Ireland of the levelling-up agenda.

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

The Secretary of State met the then First Minister of Northern Ireland when the levelling-up White Paper was published to discuss the many opportunities for Northern Ireland as part of that agenda, and I met Conor Murphy, the Minister of Finance, last Thursday to discuss the delivery of the UK shared prosperity fund in Northern Ireland. I look forward to working closely with the Northern Ireland Executive on this in the coming months.

[Ian Paisley]

I thank the Minister for meeting me last week to discuss these important opportunities for regions such as Northern Ireland. The levelling-up White Paper identified hydrogen bus development as a key economic boost. So far, five strategic schemes have been put in place for zero-emission buses across the UK, and all five are very welcome but they are battery electric. Will the next five schemes be driven by hydrogen? Can the Minister ensure that there is joined-up thinking on this across the Departments?

[Neil O’Brien]

The hon. Gentleman is right to identify an important opportunity for Northern Ireland through the hydrogen agenda. As part of all the things we are doing on levelling up, including the third increase in research and development spending outside the greater south-east, the strengthening places agenda, or the many things we are doing with higher and further education in Northern Ireland, there are many opportunities to advance the important agenda that he has prioritised.

[Alun Cairns (Vale of Glamorgan) (Con)]

Until recently, European aid was the main means of regenerating communities in some of the devolved nations, but that European aid was restricted to certain parts of the nations. Now, the levelling-up fund and the shared prosperity fund will give us the opportunity to regenerate other parts of the UK, particularly those areas that did not qualify for European aid. When the next window opens for the levelling-up fund, will the Minister pay particular attention to communities such as Barry, which now qualify for the levelling-up fund but did not previously qualify for European aid?

[Neil O’Brien]

My right hon. Friend is absolutely right; the next round of levelling-up funding will be opening shortly. He is also right to draw attention to the fact that outside the European Union we have a lot more flexibility about how we spend, and we can use that to pick up some of those exciting opportunities in other places.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

3. What steps he is taking to reduce financial pressures on local authority budgets.

--- Later in debate ---

[Geraint Davies (Swansea West) (Lab/Co-op)]

11. What assessment he has made of the potential effect on levelling up in Wales of rail enhancement investments.

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

Investment in rail is a very important part of the levelling-up agenda. As well as the £2 billion for Network Rail in Wales over this control period, more than £340 million has been provided for enhancements in Welsh rail from 2019 to 2024. What is more, the UK Government are investing £30 million in the Global Centre of Rail Excellence, supporting about 120 jobs in Wales.

[Geraint Davies]

It takes three hours to get from London to Swansea; it takes three hours to get from London to Edinburgh. The reason is that only 1.5% of UK rail enhancement funding goes to Wales, even though it has 5% of the population and 11% of the railway lines. Will the Minister—with the support of the Secretary of State—urge the Treasury to provide funding as a share of HS2 to Wales on the same basis as it provides it to Scotland, given that HS2 is north-south, which would give us an extra £4.6 billion to level up and connect the Union?

[Neil O'Brien]

The 1% figure that the hon. Gentleman quotes is from a Welsh Government report, which looks only at a very small part of rail investment and does not give a correct picture of the wider investment in Wales that I described. HS2 will of course provide huge benefits to the people of north Wales, who will be connected much more rapidly to the rest of the country.

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

13. What assessment he has made of trends in the level of second homes in Devon and Cornwall between 2010 and 2022.

--- Later in debate ---

[Robbie Moore (Keighley) (Con)]

T5. Does the Minister share my and my constituents’ deep frustration that, despite this Conservative Government making up to £20 million available to my constituents through the levelling-up fund, Labour-run Bradford Council did not even bother to submit a levelling-up application? When will it have the next opportunity to do that?

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

Some £20 million is potentially available to Keighley and Ilkley through the levelling-up fund. Bradford is in a top priority category, and I really hope that it will bid so that we can build on the tens of millions of investment already being put into Keighley through the towns fund.

[Kirsten Oswald (East Renfrewshire) (SNP)]

T2. Communities across Scotland and the UK stand ready to help those displaced by Putin’s war on democracy in Ukraine. Every local authority in Scotland participated in the Syrian refugee resettlement scheme and I am sure they would want to do so again, but they cannot at the moment because of the shambolic response by the UK Government. The Secretary of State’s Department is meant to be doing whatever is needed to make sure that sponsors can be quickly matched with Ukrainians in need, so when does he expect significant numbers of Ukrainians to arrive under the humanitarian sponsorship pathway, and will he join me in urging the Home Secretary to remove the unforgivable blockage—

--- Later in debate ---

[Tim Loughton (East Worthing and Shoreham) (Con)]

T6. Can I ask one of the Ministers to outline the benefits the levelling-up White Paper will bring to West Sussex, particularly to coastal communities and constituencies such as mine, where economic disadvantage and deprivation are happening—whether north or south, east or west?

[Neil O’Brien]

My hon. Friend is completely correct. Some £19.4 million was allocated to projects in Bognor Regis and Littlehampton through round 1 of the levelling-up fund, in addition to the £21.1 million allocated to Crawley. I look forward to working with people in West Sussex to do more through round 2 of the levelling-up fund as well as the UK shared prosperity fund.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

T7. The Government announced the renters reform Bill in the 2019 Queen’s Speech, and they announced it again in the 2021 Queen’s Speech. My constituents desperately need this Bill to abolish no-fault section 21 evictions, introduce a national landlord database, apply the decent homes standard and much more, so will the Secretary of State confirm when he is finally going to get on with introducing this Bill?

Draft European Union (Withdrawal) Act 2018 (Repeal of EU Restrictions in Devolution Legislation, etc.) Regulations 2022

Neil O'Brien Excerpts

Thursday 3rd March 2022 General Committees

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

I beg to move,

That the Committee has considered the draft European Union (Withdrawal) Act 2018 (Repeal of EU Restrictions in Devolution Legislation, etc.) Regulations 2022.

It is a pleasure to serve under your chairmanship, Dr Huq. As Members will be aware, the draft regulations that we are considering were made under the powers of the European Union (Withdrawal) Act 2018. The regulations were laid in draft before the House on 25 January 2022 and are subject to the affirmative procedure.

If approved and introduced, the draft regulations will repeal powers in section 12 of the EU (Withdrawal) Act, which gave a regulations-making power to temporarily freeze devolved legislative competence while UK common frameworks were finalised. The draft regulations will also make consequential provisions, including the removal of limits on devolved legislative and executive competence introduced into the devolution settlements, in addition to any cross-references to those powers.

The section 12 powers to freeze devolved competence, which the draft regulations will repeal, were always intended to be time-limited, and they expired on 31 January. The powers provided a useful contingency while common frameworks were being worked out by the Government and the devolved Governments, but they were never intended and never needed to be used.

The fact that the powers have not been used is credit to the collaborative spirit with which the Government and the devolved Governments have worked together successfully to develop common frameworks. Those frameworks now play an essential role in underpinning a common approach across the UK to policy areas that had previously been governed by EU law and that are within devolved competence. I am pleased to report that 30 out of the expected 32 common frameworks are in operation.

The EU (Withdrawal) Act contains an in-built duty on Ministers to consider the repeal of section 12 powers. As the powers were never used and can in fact no longer be used, there was almost no justification for retaining them. On top of removing those redundant powers, the draft regulations will remove the statutory obligation on the Government to report to Parliament on the use of the formal powers. As Members will be aware, the Government have produced 13 such reports and will shortly publish a 14th.

The draft regulations may appear to be little more than housekeeping, but I believe that they are also a reflection of the huge progress that the Government have made with the devolved Governments in developing new common frameworks. As we speak, those frameworks are fostering a consistent approach across the UK to a broad range of policy areas, from fishing to food labelling, and nutrition to hazardous substances planning. I commend the draft regulations to the Committee.

--- Later in debate ---

[Neil O’Brien]

We are in broad agreement with the hon. Members for Nottingham North and for Edinburgh North and Leith. These were one-time-only measures and were not used. This is probably not the place to relitigate everything to do with UKIM, but I am happy to discuss that further later. For all the reasons that I have set out, I hope that the Committee will support the draft regulations.

Question put and agreed to.

Shared Prosperity Fund: Devolved Administrations

Neil O'Brien Excerpts

Tuesday 1st March 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Belfast South (Claire Hanna) on securing this important and timely debate. It was also good to welcome the Minister of State for the Northern Ireland Office, my right hon. Friend the Member for Bournemouth West (Conor Burns), who was listening to all the extremely important points being made as closely as I was.

Given the short time available, I will come directly to the important points made by hon. Members. I am not here to argue the toss with them, but to try to start to set out how we will work together to do all these things. As hon. Members know, the shared prosperity fund will provide £2.6 billion of new funding for local investment by March 2025; it is a significant scheme. It will be provided through a funding formula, rather than a competition, which is important. While there are advantages in funding competitions, because they get people sharpening their pencils, there are a lot of advantages in formula allocations, because people have the same certainty that places used to have through some of the European structural funds.

[Stephen Kinnock]

On the point about funding, the Minister has just mentioned the figure of £2.6 billion. Does he therefore accept that the manifesto commitment has been broken? The manifesto commitment was to match the previous funding, which would mean £1.5 billion per year over a seven-year planning cycle. The comprehensive spending review is only a three-year time horizon, so will the Minister accept that the manifesto pledge has been broken?

[Neil O'Brien]

I will come to quantums later in my speech, but no, we will keep our manifesto promises.

The hon. Member for Belfast South raised really important points, and I hope I can start to set Members’ minds at ease. The hon. Member for Strangford (Jim Shannon), whose health I would have feared for had he not been here today, was right when he said that we are all on this journey together.

I agreed with the hon. Member for Ceredigion (Ben Lake) when he said that we must work with devolved Governments and local people, not over their heads. I also agreed with the sensible speech made by hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), who said that we must use the experience of local partners who know what is needed and how to run these kinds of schemes.

In Scotland, Wales and Northern Ireland we are very clear that we want local partners, at all levels, to be able to shape what is done to this funding and how it is allocated. In Northern Ireland, we have a unique local government landscape in our work on the UKSPF, so we proposed to deliver at a Northern Ireland-wide scale, which will enable us to have an allocation that is felt to be fair by all communities and that will make the most of all the fantastic opportunities that there are across Northern Ireland.

The development of that single Northern Ireland plan will draw on the insight and expertise of local partners, including the Northern Ireland Executive, local authorities, businesses, the community and the voluntary sector, in order to maximise all the local intelligence, insight and knowledge that they have. We have engaged with the Northern Ireland civil service, the Northern Ireland Local Government Association and Solace on UKSPF.

I have also reached out to the Northern Ireland Executive’s Minister for Finance and I plan to discuss the UKSPF further with him on Thursday. I had a very useful meeting with Minister Lochhead from the Scottish Government on Friday, and I am setting up a meeting with Vaughan Gething of the Welsh Government, as well. We are keen to work with all of the devolved Administrations to shape the way this funding is used.

[Deidre Brock]

When the Secretary of State for Levelling Up, Housing and Communities delivered his statement on the levelling-up White Paper, he acknowledged to me that the First Minister was advised of an innovation accelerator that was being put into Glasgow in a phone call only the night before. Can the Minister guarantee that that sort of behaviour will not continue in the future?

[Neil O'Brien]

I think that innovation accelerator is terribly exciting, but I can guarantee to the hon. Lady that as part of UKSPF we are engaging at all levels with devolved Governments and other local partners with important expertise. We will also be setting up an inter-ministerial group, with ministerial representation from all the devolved Governments, so that we have a regular forum on the breadth of my Department’s work to discuss these matters and to ensure there is an open dialogue across the whole UK.

The UKSPF has been designed to empower local places in all four nations of the UK. My Department is engaging with local government associations—including the Local Government Association, the Convention of Scottish Local Authorities, the Northern Ireland Local Government Association and the Welsh Local Government Association—ahead of and following the publication of the pre-launch guidance.

We will continue to engage with the devolved Governments and wider partners on the design and operation of the fund so that we can get the best outcomes across all the UK, because there are so many different priorities. The hon. Member for Strangford talked about fishing communities, and we heard from the hon. Member for North Down (Stephen Farry) about important community groups. There are many different partners that we have to engage in shaping this important programme.

We are engaging with the Northern Ireland Executive at an official level regarding the concerns they raised about programmes that are currently running under the European social fund. That dialogue will help to push on arrangements that maximise that fund delivery in Northern Ireland. However, it is worth thinking about the totality of these different funds because, as well as the shared prosperity fund, we also have the levelling-up fund and the community renewal fund, which is a one-year fund to transition us on to the UKSPF.

For Northern Ireland alone, if we look at some of those different sources of funding, my Department has provided £49 million via the levelling-up fund, £12 million as part of the community renewal fund, and funding through the community ownership fund, which enables different community groups to take things into community ownership. At the same time, we have made important long-term commitments in Northern Ireland, as in Scotland and Wales, through the city and growth deals. In Northern Ireland, those are worth £670 million—funding that is being matched by the Northern Ireland Executive. That is in addition to Northern Ireland-specific schemes, such as Peace Plus.

One of the challenges on my mind, as a Minister, is how we can all work together to ensure that the schemes work in such a way that they are more than the sum of their parts. I am conscious that there are a number of different schemes there; how do we ensure that the totality of the opportunities in Northern Ireland, which are very exciting, are best served by the confluence of all these different funding streams? It is useful, through t UKSPF, to have some funding that is not challenge-based but formula-based, and therefore, in that sense, a bit more flexible to provide bits of match funding to complement those other, existing funding streams.

[Patricia Gibson]

The Minister mentioned the importance of his Government working in partnership with the devolved Governments. I am sure we are all pleased to hear that. Would he therefore like to comment on the conclusion of the House of Lords Constitution Committee in its report in January that the UK Government have ignored—and continue to ignore—devolution and the devolved Governments in this process?

[Neil O'Brien]

There will always be a range of views on these questions. As my Secretary of State set out in his evidence to the Scottish Parliament the other day, our strong belief is that all these things will work best if we can engage not just the devolved Governments but local partners across the whole the UK.

It is worth putting these issues in the context of the wider funding settlement, as well as the funds that are specific for regeneration and community renewal. In the spending review, hon. Members will have seen that we have £15 billion for Northern Ireland annually for the next three years—the highest figure since devolution. There will be £41 billion for Scotland—again, the highest figure since devolution—and £18 billion for Wales, which is, again, the largest figure, in real terms, since devolution. So the context is that of a wider public spending settlement, and although we would always like to have more money to do things, that will enable us to do some really important things for some communities, particularly in Northern Ireland, which experienced extremely high levels of deprivation—I think that we would all recognise that.

Hon. Members have raised some of the things that the community renewal fund is doing. I would stress some of the positive things that that funding is doing, which leads into the work of the shared prosperity fund. The hon. Member for Belfast South rightly quoted the wise comment of her former leader that the best peace process is a job.

The hon. Member for North Down stressed the importance of skills—again, quite rightly. The community renewal fund is giving half a million pounds to the NOW Group to support people with disabilities through specialised employment academies and job mentoring. It is also giving nearly half a million pounds to South West College, Southern Regional College and Queen’s University Belfast to upskill construction operatives to fill that skills gap, and there will be just over £500,000 for a hydrogen training academy to deliver training for 180 people, to get a skilled workforce that can take advantage of the exciting opportunities that are opening up in Northern Ireland in hydrogen and clean technology. Those funds are doing a great deal of good. By working together, we will get the most out of these different spending streams.

The hon. Member for North Down asked a specific and very important question about section 75. We understand the importance of respecting the unique equalities considerations in Northern Ireland. We recognise the importance of not only meeting our legal obligations under the Equality Act 2010 but giving due regard to the additional equalities considerations that apply in Northern Ireland. I hope it is obvious from the tenor of my comments and from what I have said today that we are always—always—keen to have solutions that are felt to be fair by all communities and that see all communities working together.

I thank hon. Members, who have put forward genuinely important points in today’s debate. Over the coming weeks, we will work with other parts of the Government—represented here today—as well as partners across the UK, to finalise our policy development. Later in the spring, we intend to publish the full UK shared prosperity fund prospectus.

I hope I have got across in my comments the sense that our intent is not to go over the heads of anybody but to enable devolved Governments, local government and other partners to shape what is done in different parts of the UK and where the money goes, and to be involved in generating and contributing ideas at all levels, so that we can make the most of the opportunities that we collectively share. That is the tenor of where we are coming from on this entire agenda.

Once we have done that—we will be doing it, as Members can probably tell from the meetings I have talked about that are under way or that are forthcoming— we will publish the full UK shared prosperity fund prospectus. We want to try to keep the process as simple as we can so that we can give local partners the information they need to begin investment planning. I genuinely look forward to working with hon. Members from across this House; a number of them have already come to me with important suggestions and ideas about things we can do on this agenda. I look forward to working with all Members who are here today to deliver on our shared ambition.

Teddington Police Station

Neil O'Brien Excerpts

Wednesday 23rd February 2022 Westminster Hall

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

I congratulate the hon. Member for Twickenham (Munira Wilson) on securing this important and timely debate. I am in the unusual position of being able to say that I agreed with the broad thrust of the hon. Lady’s comments, and that she is also correct in the points she made about the choices that MOPAC has. She has been a tireless and determined campaigner on the issue. She was against the original closure of the police station in her constituency, and I respect the way that she has thrown her weight behind this inspiring scheme to try and make it into affordable housing and a GP practice. The issue that we are talking about this morning has some wider implications.

I will go straight to the hon. Lady’s questions. On the specific points about the disposal of land, section A4.15.14 of “Managing Public Money” provides advice to public sector organisations disbursing land and property assets. Crucially, any consideration of disposal of property should demonstrate that wider value for money considerations and transparency have been taken into account. The hon. Lady said that it was apparently the case that they had to sell only for best value, but we should be clear that there are choices.

Local authorities, including MOPAC and other police commissioners, have powers under section 123 of the Local Government Act 1972 to dispose of land in any manner that they wish. Councils and other public bodies should generally dispose of surplus land at the best possible price. However, there is no requirement that local authorities must dispose of land at the highest possible price in all circumstances. The Government recognise that disposing of land at less than best value can sometimes create wider public benefits, such as supporting the delivery of community initiatives or facilitating regeneration.

Where land is disposed of at an under-value, the approval of my right hon. Friend the Secretary of State is required, either through a specific application or under a general consent. At present, that general consent allows the disposal of general land held by local authorities at an under-value of up to £2 million. The police station may well be already covered by that general consent. To answer the hon. Lady’s question, she is correct. If the under-value is less than £2 million, MOPAC would not need deluxe consent and would need only to demonstrate, if it was legally challenged, that the disposal supports economic, social or environmental wellbeing in the area.

As I listened to the hon. Lady, I thought that she made a very compelling case. Indeed, it is a belt-and-braces case, because she referred to the 2003 Act as well. The Government absolutely recognise that disposing of land at less than best consideration can sometimes generate those wider benefits.

[Munira Wilson]

I appreciate that the Minister may not know definitively at this point whether MOPAC is covered by that general consent. If he cannot put that on the record definitively now, will he write to me urgently to confirm whether that is the case, so that I can flag it up with the Mayor and the Deputy Mayor for Policing?

[Neil O'Brien]

I will write to the hon. Lady today on that exact point.

Let me turn to the wider issues that the hon. Lady raised. She powerfully advocated the views expressed by many of her constituents that the former police station should not be converted into luxury flats. We do not want to see London turning into a city full of luxury flats for millionaires; it needs to be a city that serves the whole community. That sentiment is widely felt across London and indeed beyond. The Government are clear that the answer to the problem is encouraging and increasing the supply of affordable homes across the board, and encouraging high-quality mixed developments. That is what we are delivering through the £11.5 billion affordable housing programme, which is part of the largest investment in affordable housing in over a decade.

The hon. Lady made the point that of course we all want to see additional resources going into our police as well and there are choices that MOPAC can make. However, it is worth putting that into some context. As part of our plan to recruit an extra 20,000 police officers, as of the end of last year the Metropolitan police had already recruited 2,121 additional uplift officers, and in 2022-23 the Metropolitan police will receive up to £3.24 billion, an increase of £164 million, or 5%, on the previous year’s settlement. Yes, of course we want more resources to flow into the police, but they are already flowing from central Government.

We should be clear that there are choices for MOPAC. In my letter to the hon. Lady I will absolutely clarify and underline what I have said in the debate, namely that there are choices that MOPAC can make.

[Munira Wilson]

I decided not to pursue this point in my speech, but if the Minister is writing to me about the choices that MOPAC can make on funding, I must point out that it was very striking that, when the deputy Mayor wrote to me about the sale of the police station, she was very clear the money was needed for frontline policing—that the Mayor was funding an extra several thousand police officers—and to tackle violent crime. That suggested to me that there was a need to spend what is essentially a capital receipt on revenue activity. I hope the Minister can address that point, too, in his letter, regarding how that money should be spent if it is raised from the sale.

[Neil O'Brien]

I am very happy to add some of those points to the letter.

In the time remaining, let me touch on a couple of the wider issues that the hon. Lady mentioned. We are keen to support councils such as the London Borough of Richmond to deliver on regeneration and more affordable housing. We are very keen to encourage more generally the reuse of suitable brownfield land and existing buildings for all kinds of environmental and social reasons. Across the country, we are increasing the assessment of housing need by 35% in our urban areas and supporting that with the £1.8 billion brownfield regeneration funding announced at the spending review. Also, we are trying to make it easier for things to change purpose.

The whole thrust of Government policy is in many ways towards more brownfield regeneration and more reuse, including for social reasons. We will match that with the actions we are taking through the £150 million community ownership fund to support the retention of local assets across the country. Therefore, as part of the wider thrust of Government policy, which is about regeneration and trying to encourage communities to hold on to and continue to use assets that are important to them, the vision the hon. Lady is sketching out is clearly in strategic alignment with what the Government are trying to do.

This case is clearly important to the hon. Lady’s constituents. She and her community will feel a legitimate frustration when people say, “We don’t have any choice, there are no options here. There is nothing we can do about it.” It is clear to me, however, that there are choices. Given the context and the recent financial settlement for police and for local government, we are in a period of increasing numbers of officers and increasing funding. The hon. Lady’s proposal for more affordable housing and for the regeneration of a building that is important to the wider community is absolutely in alignment with what the Government are trying to do.

I will endeavour to write to the hon. Lady as soon as possible to underline the points that I have made. I am conscious that, as she pointed out, the matter is subject to negotiations, even as we speak.

[Munira Wilson]

I thank the Minister for being so generous in giving way again. I may be pushing my luck here, but as well as writing to me, might I persuade him to write to the Mayor of London, or indeed to the Deputy Mayor for Policing?

[Neil O'Brien]

Let me mull on that exact point and come back to the hon. Lady. I am sure that she will certainly share more widely whatever I send her, and she is welcome to do so.

We have already established in the debate that there are some wider choices available to MOPAC. I am happy to put some of those in black and white for the hon. Lady if that is useful to her. I wish her the best in all her wider endeavours in supporting such community regeneration projects in her constituency.

Question put and agreed to.

Rural Communities in Cumbria: Levelling Up

Neil O'Brien Excerpts

Wednesday 23rd February 2022 Commons Chamber

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

Thank you, Mr Deputy Speaker. I congratulate my hon. Friend the Member for Penrith and The Border (Dr Hudson) on securing this important debate. He is a relentless champion for his community, and the many different issues that he touched on this evening are a small selection of the matters he has raised with us. He always makes important and serious contributions to driving forward the different policy agendas he has raised.

Let me address some of the specific points raised by my hon. Friend. One of the themes of his speech—appropriately enough for a vet, horses for courses—was about how the levelling-up agenda must be shaped to the needs of rural communities such as the one he represents in Cumbria. He raised the issue of second homes, and I am acutely conscious of the strong feelings held by him and his constituents about that. He will know that we recently closed the second homes tax loophole, which was being abused. That was a serious part of the problem, and a serious contribution to tackling it. Partly as a result of my hon. Friend’s work on this issue, we are considering what further steps we can take to address it. Many local people have a sense of their children not being able to live where they grew up, or of not being able to stay in their own community because it is a wonderfully attractive place. We all love those places, but we must not kill the thing we love by local people not being able to live there. My hon. Friend is completely correct, and it is something we are actively looking at.

[Tim Farron]

Given the urgency of this, I cannot stress how important it is that action is taken, well, yesterday really. In the South Lakeland District, there has been a 32% rise in the number of holiday lets in one single year. That is the private rented sector collapsing into the “not lived in” market. We need action now. Let us please not have another inquiry.

[Neil O'Brien]

I completely agree with that, and we have the same sense of urgency about this issue.

My hon. Friend raised a point about the need for small grants in the kind of community he represents. That is exactly why we have set up the new £150 million community ownership fund, which is helping people across the country take control of assets that are of importance to the local community, from pubs to sports pitches to important cultural locations. We are at the start of allocating that fund, and I am sure my hon. Friend will be assiduous in helping us to identify fantastic projects in his constituency that are deserving of such support.

My hon. Friend raised the issue of how things work in the kind of area he represents, and about parish councils sitting virtually. He has made numerous representations to us on that point, and again today he made a powerful argument. The Government launched a call for evidence last year to gather views and inform our longer term decision about whether to make express provision for councils to meet remotely on a permanent basis. The Department for Levelling Up, Housing and Communities is considering the responses to that consultation, and will respond shortly. I know that many local councillors found it extremely useful to have a wider range of voices able to attend, particularly in areas where the geography is large and the community is somewhat older. A decision has not been made, although once again my hon. Friend made a powerful case on behalf of his constituents.

Likewise, as part of my hon. Friend’s theme of how Cumbria is not London and has different challenges and different sorts of issues, he made important points about mental health. It is really a crusade for this Government to have true parity between the treatment of mental and physical diseases, of exactly the kind my hon. Friend called for. As part of that, one of the most exciting things that the Government are doing as part of the anti-loneliness agenda is rolling out social prescribing across the country. There is a target to have 900,000 people referred through the NHS to social prescribing by 2023-24. My hon. Friend is a vet, and a long time ago I was a medical student, and when I met patients I was struck how often both their medical needs in the traditional sense and many mental health issues were not being grappled with. Through the social prescribing agenda, we can start to have a proper plan to connect those people to the help that they need. He was right to raise that.

My hon. Friend was also right to raise terrestrial TV. There are places where people cannot just get on to an ultrafast fibre broadband connection, so that terrestrial TV signal will remain extremely important.

I will touch on some of the wider things that the Government are doing across the whole of Cumbria—of course, there are huge economic connections between all the parts of the county. Our levelling-up funds are making a big difference. Barrow, Carlisle, Cleator Moor, Millom and Workington are all getting a share of £110 million of investment through the towns fund to improve town centres and public services, which will also benefit my hon. Friend’s constituents. Through the first round of the levelling-up fund, £16 million is being invested, and there is much more of that £4.8 billion fund to come.

My hon. Friend will be acutely aware that the landmark and historic borderlands growth deal is helping both sides of the border—those in Cumbria and in southern Scotland. It is helping with projects such as the upgrade to Carlisle railway station and creating 5,000 new well-paying jobs. In total, I think it is bringing £452 million of fresh investment into Cumbria, Northumberland and southern Scotland.

The different funds are doing a lot, but there are also national programmes recognising the central importance of the connectivity issues that my hon. Friend raised—they have the potential to transform the economy of some rural areas—and addressing them. That is exactly why we did the £1 billion deal with mobile network operators. He talked about sharing masts, and that is exactly what we will be doing through the shared rural network. In Cumbria, the deal will mean that 4G coverage from all mobile network operators will rise to a minimum of 88%, up from 73%, and coverage from at least one network will go up from 94% to 98%. We are starting to close off those notspots that he correctly identified. Through Project Gigabit and our £5 billion investment, we will also be connecting broadband across Cumbria and driving up high-quality coverage.

My hon. Friend has been a brilliant champion on all these issues—he raised so many of them—but I am conscious of time and the need to bring my remarks to a close. He raised devolution and the future of local government in Cumbria. In the levelling-up White Paper we alluded to the prospect of a devolution deal for Cumbria, which is an exciting prospect that we can use to address many of the specific issues that he raised in this important debate.

My hon. Friend’s fundamental thesis is completely correct: we must have a levelling-up agenda that works with the grain of what is going on locally. When we go to Cumbria, we see its beauty, all the things that are fantastic about it and the new investment, but we are also conscious that, for many people, it is an area of low pay and one with a need for more high-quality jobs and new opportunities to learn and progress. He has been the most fantastic champion across all those issues and I look forward to working together with him as we drive them forward.

Question put and agreed to.

Local Government Finance (England)

Neil O'Brien Excerpts

Wednesday 9th February 2022 Commons Chamber

[Sir George Howarth (Knowsley) (Lab)]

Before I get into the substance of what I want to say about this settlement, I want to make a couple of remarks to the Secretary of State. There was a debate yesterday in Westminster Hall on local government funding in Merseyside—the Liverpool city region, as we now call it—which was covered by the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Harborough (Neil O’Brien). In his response, he chose not to answer any of the questions asked by me or my hon. Friends from the city region. The Secretary of State is unfailingly polite and always pays attention to what people say, so I say to him ever so discreetly—of course, no one else can hear what I have to say—that he needs to have a word with the Under-Secretary of State, who should understand that one of the basic requirements of replying to a debate is to respond to what people said during it.

Unfortunately, the local government finance settlement, as others have said, is still 20% lower now than it was in 2012-13. I will return to the implications of that for Knowsley, but I will first make some general comments, some of which have already been made, about the overall implications for local government. As my hon. Friend the Member for Wigan (Lisa Nandy) pointed out, it represents a one-year settlement and, in a typically fluent, well-informed speech, she made it clear why that is unacceptable. I simply add that it is impossible for local government to plan ahead unless local authorities know more than a year ahead—preferably three years—what they will receive in grants. I am sure the Minister and the Secretary of State are well aware that that is an impediment for local authorities, and I hope that they will address it in future settlements.

My hon. Friend also mentioned that the Government promised—if the Government deliver on this, I am sure that it will be welcomed—that the next settlement will better reflect local levels of need. That would be important if it did address the disparities in deprivation between local authorities in different parts of the country, rather than to continue with the shift towards sparsity and population-based measures, which are manifestly unfair on those areas with the greatest need. I therefore ask the Minister—perhaps he will take the time to answer this at some point—to confirm that need will be properly accounted for in any new grant distribution system.

There is also justifiable concern that if Knowsley does not increase council tax by 2.99%, it would forgo permanent funding that the Government might assume will be available when determining future funding allocations. Will the Minister reassure me that the Government will not penalise those local authorities that, for whatever reason, decide that 2.99% is unaffordable to their residents?

I also worry that the settlement will be insufficient to cover inflationary pressures—for example, democratic pressures, legislative cost pressures, and pressures as a result of the health and social care levy on national insurance and energy price rises of up to 50%. As my hon. Friend the Member for Sheffield South East (Mr Betts) pointed out, the general level is already above 5% and could, by the end of the year, be as much as 6%. That will mean that the settlement will be less generous than it appears to be at the moment. Will the Minister again give us some assurance that any additional inflationary pressures that influence the way that the grant will work for local authorities will be considered sympathetically?

The settlement includes funding for new burdens, such as adult social care, children’s social care and home-to-school transport. Unfortunately, however, it is wholly inadequate and will not cover, for example, the £12 million that Knowsley faces as a result of these additional demands.

I turn to the specific implications of the settlement for Knowsley. As the Minister will know, since 2010 Knowsley has had its grant support reduced by £116 million. That figure was referred to in a debate yesterday. The cumulative effect of that on a small borough such as Knowsley—the third most deprived authority in England, by the way—is enormous. It means not only that services that are badly needed by people cannot be extended or grown to meet need—I have referred to some of the pressures that brings—but that people’s life chances are impaired, sometimes irreversibly, by the lack of support that they get. That is nothing to do with any intention on the part of Knowsley; it is simply a matter of the money not being there to do everything that it needs to do. Will the Minister undertake to start the process of reversing that unfair and unacceptable trend whereby areas with high need, such as Knowsley, end up having some of the highest cuts in grant support anywhere in the country?

The picture I have painted so far is one of unrelieved gloom, particularly for Knowsley, so let me make a couple of positive points. First, as my hon. Friend pointed out, the 8.5% increase in core spending power that Knowsley will get is welcome, although, frankly, it does not do anything like address the problem of the £116 million that we have lost over the past decade.

Secondly, despite the crushing loss of grant that we have experienced, Knowsley Council, amazingly, managed to bring about some transformational changes, including the regeneration of Kirby town centre. As a result of the fact that there were years and years of successive private sector owners who failed to regenerate the town centre, the council, very bravely, bought it and is now in the process of wholesale regeneration, which is obvious for all to see. There is also the Shakespeare North project, which I do not know whether the Minister is aware of—probably not.

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

indicated assent.

[Sir George Howarth]

I am pleased to hear that, so maybe he is not completely a Shakespearean tragedy. The Shakespeare North project, into which, to be fair, the Government have put a substantial amount of investment, is a huge success. I pay tribute to the Government for putting money into the Arts Council, to Knowsley Council for putting in a substantial amount, and to the Liverpool City Region Combined Authority and metro Mayor Steve Rotheram for also contributing. I should also mention the private donors, including Lady Anne Dodd—the widow of Ken Dodd—who put £400,000 into the project for a comedy space.

Knowsley Council has been the driving force behind Shakespeare North, on which it should be congratulated, and much else besides that I do not have time to go into. However, there are important projects still awaiting Government support that we had hoped would come from the levelling-up fund, such as the regeneration of Huyton town centre. Knowsley Council put forward a really good project for regenerating Huyton town centre, and I totally reject the assertion that such projects were selected on merit alone because, frankly, this project would have been far better than some that were funded. As I said yesterday, there is real concern that the levelling-up fund has so far been politically skewed in a way that means Knowsley, yet again, loses out.

--- Later in debate ---

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

I begin by paying tribute to the work of councils across the country. Over the last two years, they have been our foot soldiers in the fight against covid. They have innovated, worked hard and done incredible things to keep our vital services going, and they cannot be thanked often enough. I also thank officials in central Government and the Minister for Levelling Up Communities, my hon. Friend the Member for Saffron Walden (Kemi Badenoch), for their work in producing this balanced settlement today. She is away following the death of her father but she has done a lot of work to bring us to this point.

I also thank Members from across the House for their thoughtful and considered contributions to the debate. I would like to take some of them in turn and, as I do so, I will highlight what the settlement will mean for their area’s spending power. My hon. Friend the Member for West Dorset (Chris Loder)—the spending power of his area will go up by 6.8%—made the important point that even though areas may look pretty, or “chocolate box” to use his words, we must recognise that there are areas of serious deprivation in some of them. That is one of the reasons why we are maintaining the rules over such grant. It is at the highest level—£85 million—that it has been. I know that his council leader has met with the former Minister for Housing, my right hon. Friend the Member for Tamworth (Christopher Pincher), and the letter that they sent has been replied to. I look forward to further conversations with my hon. Friend.

[Chris Loder]

I really appreciate my hon. Friend responding to these points. I should be clear for the record that I, my colleagues and the leader of the council have been asking to meet Ministers for a very long time. I appreciate my hon. Friend’s comeback, but it is important to note that we would appreciate it if the meeting were expedited. I do not think that it has taken place.

[Neil O'Brien]

I assure my hon. Friend that we will expedite that.

Let me turn to the thoughtful comments made by the Chair of the Levelling Up, Housing and Communities Committee, the hon. Member for Sheffield South East (Mr Betts)—the spending power of Sheffield will go up by 7.6% under this settlement. He noted, to use his phrase, that the settlement was better than in some years, which may be faint praise, but we will take it. He raised the very important long-term issue about the relevance of upward pressure on social care caused by an ageing society, and one in which we do a better job of caring for the sick and disabled. As a party, we have taken difficult decisions to adequately fund that and the NHS, and difficult decisions on tax. We are also taking steps, as we set out in the House earlier, to promote the integration of health and social care, because we all know that is one of the crucial things we can do to make that sustainable in the longer term.

[Mr Betts]

I mentioned the letter from the Secretary of State offering a meeting with officials. Perhaps it could be a meeting with Ministers, and perhaps I could be allowed to bring someone from the CCG and someone from the city council, who are doing great work together, to explain what they really want to see to marry up this place-based approach to health with local government.

[Neil O’Brien]

Absolutely, and the hon. Gentleman anticipates the point I was about to make.

Of course, deepening devolution is one way of driving the integration agenda to save money and produce better services. The hon. Gentleman referred to the important health and life expectancy gaps, and the White Paper sets out the steps that the Department of Health and Social Care will take through its health inequalities strategy and its new tobacco strategy.

My hon. Friend the Member for South Dorset (Richard Drax) noted the importance of keeping taxes down, and I strongly agree. That is why the settlement keeps the increase to 2%, with 1% for social care—far lower than the double-digit increases we saw in many years under the Labour party.

I will reply at length to the right hon. Member for Knowsley (Sir George Howarth). This morning I relayed all the points raised in the important debate on funding in Merseyside to my right hon. Friend the Secretary of State, and we talked it through. I completely agree about the need for a multi-year settlement. We had to have one-year settlements because of the turbulence around covid, but we aim to have a multi-year settlement. Yes, it will take account of the need for levelling up and of inflation.

I am pleased the right hon. Gentleman mentioned Shakespeare North, as I was previously involved in its central Government funding. It is a brilliant project, and he rightly paid tribute to some of the individuals who are helping to make it happen.

The right hon. Gentleman also made some important points about the levelling-up fund. Seventy-five per cent. of the money has so far gone to top-priority areas, and only 6% has gone to bottom-priority areas. It is highly skewed towards the poorest areas and, in the first round, £20 million went to Liverpool, next door to Knowsley, and £37 million went to the Liverpool city region as a whole. It is not correct that there is a political process. There is competition, and there are arguments for having non-competitive funding, which is why there will also be an allocation through the UK shared prosperity fund. There are arguments for competition to get good bids, but we must not traduce civil servants who score the bids and allocate the money.

My hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) will see spending power in his constituency go up by 6.2%.

[Sir George Howarth]

If, as the Minister says, I am wrong about how these decisions have been arrived at, will he apprise me of what was wrong with the Knowsley bids?

[Neil O’Brien]

Again, the right hon. Gentleman anticipates my next point. I am happy to facilitate a meeting between officials in Knowsley and officials in central Government to talk about the bid, but this is done on an objective basis. [Interruption.] It does not seem that the right hon. Member for Knowsley wants to make an intervention, as he is chuntering from a sedentary position. Liverpool, as I said, has received funding, so it is not politics; it is about getting the best bids and the right money to the right places. The spending settlement means an extra 8.5% for Knowsley.

My hon. Friend the Member for Bromley and Chislehurst made a verbal slip when he talked about when he was a young man. Of course, he meant to talk about when he was an even younger man, so I correct the record. He and the hon. Member for Westmorland and Lonsdale (Tim Farron), who is sadly no longer here, made important points about the public health grant, and those points are why we are protecting it in real terms across the SR period and why we have an extra £300 million to tackle obesity, an extra £170 million to improve Start4Life and children’s mental health services and an extra £560 million to improve drug and alcohol treatment.

The hon. Member for Westmorland and Lonsdale also made an important point about second homes, and we recently closed the tax loophole to try to address that issue.

The hon. Member for Harrow West (Gareth Thomas), in whose constituency spending power will go up by 6.8%, made the case for more devolution to more places. I agree: we are both widening devolution through the county deals process and deepening it where we already have it. I should point out that the only place in England that had devolution under the previous Labour Government was London, which is just part of the country; there was no devolution for the rest of England and we have put that right.

I hope that the right hon. Member for North Durham will reflect on the point he made and his serious criticisms of my hon. Friend the Member for Bishop Auckland (Dehenna Davison). Let me simply say that my hon. Friend is a superb, dynamic young Member of this House who has a lot of ideas and is making things happen for her constituency. Likewise, the same is true of the new council in Durham, where Labour is out of power for the first time in 100 years. Why is that? I do not seek to make partisan points in this speech, so let me simply say that perhaps one reason why voters in County Durham have turned away from Labour is that they are looking for people with a positive agenda who will get a devolution deal, and not people who just criticise from the sidelines.

Let me move on and address some of the other points made by the right hon. Member for North Durham that were slightly more becoming of him. He talked about having read all of the levelling-up White Paper; he will realise, then, that it marks an approach distinctly different from that under the previous Labour Government, when we saw the increasing concentration of research and development spending in Oxford, Cambridge and London. In the “Levelling Up” White Paper we increase spending outside the greater south-east by 30% over this spending review settlement period; we bring devolution to the rest of England, not just to London; and we get central Government back into the business of driving major urban regeneration in 20 places. Central Government were taken out of that business by the Labour Government’s decision to get rid of English Partnerships—a decision that, in retrospect, I think Labour will regret.

I am conscious that I am taking up time, Madam Deputy Speaker. In the year ahead, councils in England will be boosted by up to £3.7 billion in extra funding. That is a real-terms increase of 4.5% and includes an extra £822 million for services through a one-off services grant. The settlement puts councils on a firm footing for the year ahead—one on which they can build and grow. It maintains the things that are already working, such as the rural services delivery grant; it raises funding in areas where more support is needed, such as through the extra £72 million for the revenue support grant; and it makes sure that no council anywhere in England will receive less money by updating the funding floor.

The settlement reflects the reality of 2022 and the acute pressures faced by the social care sector, with an extra £1 billion made available to alleviate pressure in the year ahead and £162 million to pave the way for the landmark social care reforms we are putting on the statute book. With a core referendum principle of 2%, plus an extra 1% adult social care precept, the settlement protects taxpayers with the lowest expected average council tax rises since 2016-17.

Several Opposition Members made points about the wider context, which includes the £1,000 extra that people working full time will get from our massive increase to the national living wage—a Conservative achievement. It also includes the £1,000 extra that 2 million households will get because of our changes to the universal credit taper rate so that people can keep hold of the money they earn.

We are being asked to believe that there has been a road to Jericho moment and this is now a low-tax Labour party that also wants to spend more money on everything and cut the deficit. It simply does not add up. There have been moments in this debate when Labour Members have said, in short terms, that the funding for public services is paid for by taxation; we are on the edge of an intellectual breakthrough, Madam Deputy Speaker! If only they had learned that lesson before they left behind the biggest deficit in this country’s entire peacetime history—a deficit that we had to spend many years clearing up, with our coalition partners. On that non-partisan note, let me bring the debate to a close. I commend the settlement to the House.

[Hon. Members]

More!

Grit Bins

Neil O'Brien Excerpts

Tuesday 8th February 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my hon. Friend the Member for High Peak (Robert Largan) for bringing such an important topic to the attention of the House. He is a fantastic advocate for the people of High Peak, which is an area I know well, as it is just over the hill from where I grew up. I was on holiday there last summer. It is an area of outstanding natural beauty, with fantastic communities, but not one where anyone would want to be stuck on an ungritted road with a steep slope. My hon. Friend is quite right to bring this important issue to the attention of the House. I was haunted by the image in his speech of the ambulance stuck in the snow, which is exactly what we all fear.

I thank my hon. Friend for his contribution, and my hon. Friends the Members for Hyndburn (Sara Britcliffe), for Congleton (Fiona Bruce) and for North West Durham (Mr Holden), and the hon. Member for Strangford (Jim Shannon), for their important contributions. As several of them pointed out, the Department for Transport has overall responsibility for the approach to gritting. I am sure Ministers in that Department will be playing close attention to our debate.

In terms of current requirements on local government, my hon. Friend the Member for Congleton pointed out that the Highways Act 1980 includes the requirement

“to ensure, so far as is reasonably practicable, that safe passage along a highway is not endangered by snow or ice.”

It would be impossible for central Government to mandate exactly how often every single road in the country should be gritted, but Members of Parliament play an important role by highlighting where there are problems and where particular roads should be gritted more often.

I am sure the issues around Leadgate, Consett and Burnhope in north-west Durham, and around Mow Cop, which my hon. Friend the Member for Congleton mentioned, will now be firmly on the radar of those local authorities, who, I hope, will take appropriate action. Normally, local authorities tend to focus on A roads and busier B roads, but there are always particularly important roads that do not fit under those headings.

[Mr Holden]

In areas such mine, with new-build properties going in, does the Minister think it could be appropriate for the council to stipulate as part of the planning consent that grit bins must be provided? I am thinking particularly of Meadow Rise in Consett, where my Delves Lane councillors Michelle Walton and Angela Stirling have had to provide a new grit bin from their own resources. If that had been part of the planning consent, they would not have had to do it. Does the Minister think that the Government could nudge councils in that direction?

[Neil O'Brien]

That seems an entirely appropriate point for my hon. Friend to raise, and his local council will want to take it into account in its plan-making process, as would any council, particularly in a hilly area. It is for local authorities to decide whether grit bins are provided and, as a result, most do. As hon. Members have pointed out, the responsibility is divided between parish, district, borough and county councils. Although county councils can provide grit bins, the functions are typically delegated to other councils, such as towns, districts and parishes.

There are different ways to address the problems that my hon. Friend the Member for High Peak has brought to the House this morning. One is through greater devolution of power, and he will know that Derby and Derbyshire is one of the first areas with which we are seeking to negotiate a county deal to provide significantly greater local control over transport spending and policy. Derbyshire has a huge opportunity as part of that. Of course, my hon. Friend’s constituency looks as much to Greater Manchester as it does to Derbyshire and the east midlands, and we must be conscious of that in the negotiations, but clearly there are opportunities to improve local transport and local roads through that exciting devolution deal process.

[Robert Largan]

I am grateful to my hon. Friend the Minister. I just want to put on the record that I certainly welcome the levelling-up White Paper and some of the announcements in it, including the discussion of a county deal for Derbyshire. Also mentioned was the green light for enhanced bus services for Derbyshire, which is another big positive, and I know the Minister is playing a significant role in that. I want to put that on the record.

[Neil O'Brien]

I thank my hon. Friend for his comments. There are two potential solutions in the White Paper to the problem that my hon. Friend raised. The first is the devolution deal process that we have just talked about. The second is the plan to improve power at the very local and neighbourhood level. It is obviously not for central Government to mandate whether Glossop or Buxton should have a town or parish council. Personally, I am a huge fan of parish councils and recognise the work that they do in my constituency and, indeed, across the country. It is ultimately a decision for local people, but it is none the less a decision that we might make easier for people to take.

Under the Local Government and Public Involvement in Health Act 2007, local electors throughout England can petition their principal council—the district, in the case of my hon. Friend the Member for High Peak—for a community governance review to be undertaken. Principal councils have responsibility for undertaking community governance reviews and deciding whether to give effect to the recommendations made in them. In making that decision, principal councils are expected to take account of the views of local people. The final decision to create a new parish council rests with the local authority, although the decision can be subject to a judicial review if campaigners are not happy with it.

As my hon. Friend will have spotted, the levelling-up White Paper outlines how we will go further through our plans to remove barriers to community organisation and neighbourhood governance, supporting community leadership to take root and thrive. We will review the effectiveness of neighbourhood governance in England, including the role and functions of parish councils, with a view to making them much quicker and easier to establish. I hope that will be helpful to people in Glossop and Buxton. We will make it easier for local people and community groups to come together to set local priorities and shape the future of their neighbourhoods. That will include further exploration of the models of so-called pop-up parishes and community improvement districts that were recently recommended by the Kruger review, and further details of the plans to review neighbourhood governance will be set out in due course.

At the end of his speech, my hon. Friend raised an hugely important point about the role of developers in providing facilities for local residents. My hon. Friend the Member for North West Durham raised this point too, and the hon. Member for Strangford told us about an important and innovative way that communities are doing that for themselves in Northern Ireland. I could not agree more about the central role of providing essential neighbourhood infrastructure with all new developments. My hon. Friends will have noted the continuing turn towards a brownfield-led and urban regeneration-led model of development in the White Paper, which we have been pursuing particularly strongly under the current Secretary of State.

The Government are clear that local authorities are best placed ultimately to make decisions on local planning matters. The national planning policy framework requires local authorities to set clear policy requirements for infrastructure and affordable housing through plans. Those plans should be informed by appropriate and proportionate evidence, including on infrastructure needs and costs, which need to be taken into account. It is important that new housing always comes with the infrastructure needed to support it. In this House we all know that it is a bugbear for people when that does not happen, or when it has not happened appropriately.

Contributions from developers play an important role in delivering the infrastructure that new homes and local economies require. Local authorities can obtain contributions by charging a community infrastructure levy on new development, or through section 106 obligations. Those vehicles have some issues we might seek to improve on.

The levelling-up White Paper sets out the important role of the planning system in the Government’s wider mission to level up the country and regenerate left-behind places. Hon. Friends will have noted the ambition to produce a transformative King’s Cross-style regeneration in 20 different places around the country using the formidable experience, expertise and sweeping powers of Homes England to get central Government back into the business of providing powerful support for urban regeneration, a business they should never have got out of in the first place.

[Mr Holden]

I very much welcome the Minister’s commitment to levelling up. I know he has put a huge amount of work into it. I also welcome the discussions that he has already started to have with Durham County Council on a county deal for our area. We have started to see Government offices moving out of London and into the regions, and I know Durham is keen to engage in that space. Will the Minister comment on any discussions he has had, and will he engage further on that possibility?

[Mr Philip Hollobone (in the Chair)]

Order. If the Minister wishes to respond, will he make sure he references grit bins?

[Neil O'Brien]

Mr Hollobone, you rightly point out that it would be wrong of me to stray too far from our key subject of grit bins. None the less, I am extremely enthusiastic to pick up on my hon. Friend’s point about the Places for Growth programme, with the Treasury move to Darlington, the Ministry of Justice move to Wrexham and my own Department’s moving of a significant number of people to Wolverhampton. Those are hugely important investments in regeneration.

Returning to the core issue of grit bins and public safety, at the end of his speech my hon. Friend the Member for High Peak made an important point about how all new-build developments should come with that type of infrastructure. We are thinking about how we take forward the idea of an infrastructure levy, which would be an improvement on the section 106 and community infrastructure levy processes, to ensure that we have more developer contributions and much more flexibility about how the money is spent so that we can really pick up on all the different types of neighbourhood and community needs that hon. Members have raised this morning.

To conclude, I thank my hon. Friend the Member for High Peak and all hon. Members who have contributed this morning. The underlying theme of our discussion is that for too long a lot of the decisions that impact on local communities in our constituencies have been taken from far too far away, whether they are decisions about transport that are made in Whitehall and could be made in each of our shires, or decisions about grit bins that could be provided at the neighbourhood level through empowered local communities. If we change the rules, we can create more opportunity for people at the parish and neighbourhood level to do things for themselves.

On the subject of grit bins, I am sure my hon. Friend the Secretary of State for Transport will be interested in our debate today as he considers how winter maintenance might be improved further. I conclude simply by saying that although the issue of grit bins is a narrow one, and while various hon. Members have had the opportunity to highlight deficiencies in local provision, the issue strikes at a wider issue of power and decision making in this country. That is what our levelling-up agenda is all about: transferring control over important decisions from Whitehall to the local level through powerful devolution deals in places such as County Durham, Derby and Derbyshire, and also to the neighbourhood level through our changes to parish and neighbourhood legislation.

Question put and agreed to.

Merseyside: Funding of Local Authorities

Neil O'Brien Excerpts

Tuesday 8th February 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Wirral West (Margaret Greenwood) on securing this important debate. As she has shown today, she is a passionate advocate for not only her constituency, but the whole of Merseyside. She has done us a favour by bringing together Members from across the region on the eve of the local government finance settlement debate to look at the funding in Merseyside.

Merseyside is a place with a hugely proud history and present. It is a European capital of culture, has legendary musical exports and at least two iconic football teams, and has, over the course of my lifetime, made significant economic progress, bouncing back from a difficult period of de-industrialisation. On the other hand, while Liverpool is absolutely recovering and making progress, we recognise that the city region continues to face profound challenges of deprivation and poor health—challenges that are among the most severe in the country.

We are committed to delivering a more prosperous future for Merseyside, and we want to help the area to play to its considerable strengths while it adapts to the challenges that I mentioned. Our plan is to do that in two different ways: first, through extra resources for local authorities in the local government finance settlement; and, secondly, through our flagship levelling-up proposals.

[Mick Whitley]

Will the Minister give way?

[Neil O'Brien]

I am afraid that I do not have time to give way; I am so sorry.

[Dame Angela Eagle]

Oh, come on!

[Neil O'Brien]

I am up against the clock, as the hon. Lady knows.

As we announced on Monday, the local government finance settlement for the next year makes an additional £3.7 billion available to councils in England; that includes funding for adult social care reform. This is an increase in local authority funding of more than 4.5% in real terms compared with the previous year, and we expect core spending power—the measure of resources available to local authorities to fund service delivery—to rise from £50.4 billion in 2021-22 to £54.1 billion in 2022-23, which I am just about to come to. I emphasise that the Government are providing around £1.6 billion in additional grant in the next year through the settlement, and through additional funding for things such as the supporting families programme and cyber-resilience. What that means for Merseyside is that core spending power will increase for all authorities in the region by at least 7.7%, compared with last year.

[Maria Eagle]

Will the Minister give way on that point?

[Neil O'Brien]

I have made it clear that I will not give way.

[Mr Philip Hollobone (in the Chair)]

Order. The Minister has made clear that he is not giving way. I am not saying whether that is right or wrong. However, I point out that he has six minutes left. I know that feelings are running high, but everybody has had their say, so let us give the Minister the courtesy of hearing what he has to say.

[Neil O'Brien]

Thank you, Mr Hollobone. That 7.7% increase is above the average cash increase across England of 7.4%. It is a cash increase of 7.7% for Sefton, 7.9% for the Wirral, 8.1% for Liverpool city, 8.4% for St Helens and 8.5% for Knowsley.

However, as every Member here will know, we vowed to build back better from the pandemic, and that is not only about local authority spending. We plan to do that through a cross-government mission to level up the country. We will increase our support for local councils, such as those in Merseyside, taking control of their destiny and stimulating their own growth.

Last week saw the long-awaited publication of our levelling-up White Paper, which Members referred to. It set out our plans. Part of it is about helping people directly; that is why we have changed the universal credit taper rate, making the average full-time worker £1,000 better off. Part of it is about employment support and the extra £1 billion we are spending on helping sick and disabled people into work, so that they have a chance to earn more money. It is also about directly increasing wages through our record increase to the national living wage, which again will make people about £1,000 better off.

On the one hand, we are helping people in Merseyside directly, and on the other we are devolving unprecedented powers to Liverpool and Merseyside. When we came to power, the only part of England that had any devolved powers was London, the capital and the richest part of England. That settlement was obviously unbalanced—good for London, but not necessarily good for the rest of the country. As Members mentioned, the Secretary of State for Levelling Up, Housing and Communities is speaking at the Spine in Liverpool today, alongside council leaders and metro Mayors—a post that did not exist when we came to power—from across the north of England.

However, we know that our ambitions for Merseyside will not be delivered without proper investment, so our ambitions are backed up with funding. Since Steve Rotheram’s election as Liverpool city region Mayor in May 2017, the Government have provided the city region with £172 million through the transforming cities fund and £332 million through the local growth fund, and will provide it with £710 million over the next five years to transform local transport networks. Across the Liverpool city region, four areas have also seen substantial cash injections through the towns deal programme, which is designed to rejuvenate high streets. That includes £37 million for Southport; that is one of the biggest town deal investments to date. Through that kind of funding, we can help restore people’s civic pride in the place they call home in the years ahead. I also draw Members’ attention to the launch last year of the dedicated freeport in Liverpool, which estimates suggest could add £850 million to the local economy and create 14,000 new jobs.

To answer a question raised by Opposition Members, Members should look forward to further details on the UK shared prosperity fund, which we will set out shortly. That fund is worth £2.6 billion and will back the sort of projects that help people access opportunities in places of need. To respond directly to one of the questions asked, that will be an allocative process, not a competition. We are responding to the desire of places to have certainty about their funding. A number of Members raised questions about the commissioners. None of us wanted commissioners to have to go in. According to the independent Liverpool City Council commissioners report last year,

“The Council is emerging from a difficult, somewhat toxic period that has led to police investigations.”

I do not want to delve further into that. However, none of us wanted those commissioners to have to be there. We hope that their work will be complete soon.

A few hon. Members spoke about the wider context. The tax share of GDP is at a record high; there is increased corporation tax and capital gains tax, so the rich are paying more through that route; a crackdown on tax avoidance has raised £160 billion-plus; we got rid of the double Irish arrangement and various other tax dodges that flourished under the last Labour Government; and we introduced the first tax on private jets. We have done a number of things to ensure that those with the broadest shoulders are paying, and that is why we are able to produce the increases in spending power for local authorities that I outlined.

Provided that the local government settlement passes through the House tomorrow, we believe that Merseyside and the local authorities making up the region will be on a firm footing for the year ahead. We are moving to a multi-year settlement as soon as we can. It is important to get that right. I am confident that the hon. Member for Wirral West and all those who have contributed to today’s debate will share in my pride at the progress that has been made in Merseyside over the past decade. If I think back to when my brother and friends used to live there, there has been humungous progress across Merseyside.

In Liverpool’s heyday, when it dominated transatlantic trade, it was considered the New York of Europe. Today, the fusing together of the powerful role played by the Liverpool City Region Combined Authority and its Mayor with significant Government investment in the region has given the city region a new lease of life. The alchemy of science, health, technology, culture and education that we see in Merseyside in 2022 is testament to a truly great city region, and to its people looking not back but forwards with confidence. Although the city region is part way through its renaissance, there is a lot of potential still to be realised, and I look forward to further discussions with colleagues from across the House on how we can best support Merseyside.