Levelling-up and Regeneration Bill (Fifth sitting)

Patricia Gibson Excerpts

Committee stage
Tuesday 28th June 2022 Public Bill Committees

I will not say much more than that, other than that it would seem odd for the Government to not wish to be independently scrutinised by a body established to do just that, so that those on both sides of this House, and everybody in the country, can get a sense of whether levelling up has been a success, sector by sector.

[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.

--- Later in debate ---

[Tim Farron]

This is an important amendment because it allows the Government to be up front about the level of resource that they seek to deploy region by region. It is also important because it refers to areas below the level of region. As the hon. Member for York Central has set out, there is a danger that the Government might sound somewhat patronising when they talk about levelling up, thinking from their London seat that the provinces are all terribly deprived and they should throw some money at them and level them up. Of course, the reality is that inequalities within regions are greater than inequalities between them.

Members will not be surprised by my focus on rural communities. The Minister might be aware of research that has come out in the past couple of days from the Rural Services Network. It has looked at the Government’s own levelling-up metrics and on that basis it reckons that, were rural England to be a separate region, it would perform more poorly than every other geographical region of England. Not only would it perform more poorly, but it is disadvantaged for different reasons. The metrics that the Government are seeking to deploy in order to understand deprivation and inequality do not do the business when it comes to understanding the issues that face rural communities.

In my constituency there will be fewer than 500 people unemployed. We have got very close to full employment. We also have average house prices that are between 10 and 15 times average incomes. We have people in work and in poverty. The clear, huge majority of people on universal credit in my constituency and in other parts of Cumbria are in work, and not just in work but in multiple jobs, seeking to make ends meet. Potentially, they will not tick boxes when the Government’s metrics are being considered and they may not be recipients of the resources that the hon. Member for Nottingham North seeks to get the Government to be explicit about.

Let us think about some of the needs that are present in that rural region of England, which is more needy than every other geographical region of England by some distance. We are talking about incomes. We are talking about house prices. We are talking about the fact that in the south lakes alone—a community with nearly full employment—5,500 people are on a council house list, waiting for their first home. By the way, an educated guess is that there are about 10,000 second homes in the same district. It is important to understand that the discrepancies and inequalities are of that order.

It seems very black and white to say, “These are the homes of people who already have one and these are the people who haven’t even got the one,” but if we care about inequality we are going to care about that. In a property-owning democracy, we might champion people’s liberty and their right to own more than one home, but when there is a conflict between someone’s right to a second home and someone else’s right just to have any home, we know whose side we should be taking, don’t we? If we do not, this Bill means nothing at all, and nothing to rural communities in particular.

Let us look at some other issues in respect of which rural communities are disadvantaged. The vast proportion of people in Cumbria are not on the mains for their heating; they are on oil—liquid fuel—and there is no price cap for that. There is no way of taking into account inflation beyond that which most of us are experiencing when it comes to energy prices. There is nothing to assess that, nothing to allow for it, nothing to ensure that resources are available to help communities so that they can be protected from the cost-of-living crisis that is particularly hard in rural communities.

In cities such as London, Manchester and Newcastle—wonderful places—it is possible to live without a car, and many people do. That is probably good for the environment and for people’s pockets as well. Mobility is more straightforward in a community like the one we are standing and sitting in now, but in a community like mine, people need cars. The chances are that people do not live in the village in which they work, and they need to get from one place to another. Fuel prices are higher and the distances are longer, and the bus journey from Kendal to Ambleside is the second most expensive in the country, so it is very expensive to travel whether via private car or public transport.

Let us also think about access to services. For people living in Sedbergh, for instance, the nearest FE college is 10 miles away and there is no bus, so their access to services is restricted in a way that the access of people in other parts of the country is not. What about health services? What about the one in two of us who at some point in our lives will end up with a cancer diagnosis, and the one in two of those who will need radiotherapy? In a community such as Cumbria they have to make a three or four-hour round trip to Preston every day to get life-saving treatment, for weeks and weeks on end.

The things I have outlined will not be taken into account if we are not honest about what regions actually are, about the categories of places within regions—sub-regions—and about how parts of the country, even though they might be in Northumberland, Cornwall, Cumbria or Kent, have commonalities despite geographical disparity. Without being clear about the resources, we are not going to tackle that need. We are not going to tackle the lack of connectivity that puts people at risk in rural communities, where we do not have the broadband roll-out the Government have promised. We do not have the commitment to bring health services and education close to home or to address transport costs. Above all, a massive flaw throughout the Bill is inadequacy when it comes to tackling the biggest driver of inequality in this country: lack of access to affordable and available housing.

I urge the Minister to look at the Rural Services Network report and to take into account the fact that rural England counts as the most deprived region of England, compared with the geographical regions. I urge him to accept the amendment, and in doing so to ensure that resources are allocated appropriately to every part of every region of this country.

[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.