Disadvantaged Communities

Polly Billington Excerpts

Wednesday 4th June 2025 Westminster Hall

[Ms Polly Billington (East Thanet) (Lab)]

It is an honour to serve under your chairship, Sir Roger.

State failure can come in many different forms. When he was Leader of the Opposition, the Prime Minister said,

“we must restore the sense that this is a country that can rectify injustice, particularly when carried out by institutes of the state.”—[Official Report, 20 May 2024; Vol. 750, c. 668.]

He was referring to the infected blood scandal, but lack of investment is a different form of state failure, and the sentiment therefore still stands. The state has failed so many of our communities. We must restore the sense that this is a country that can rectify injustice.

This is not a new idea. In 2009, the Labour Government launched the Total Place initiative to improve the delivery of local public services and to increase the focus on communities. Frontier Economics analysis shows that a £2 billion investment in mission-critical neighbourhoods would deliver £2.4 billion in fiscal benefits to the Treasury. We reduce the cost of failure by investing in these communities.

I am the chair of the coastal parliamentary Labour party, and co-chair of the all-party parliamentary group on coastal communities, alongside my good friend and ally, my hon. Friend the Member for Scarborough and Whitby (Alison Hume). The ICON report highlighted yet again the need to invest in our coastal communities. Of the 613 mission-critical neighbourhoods in the report, almost half are on the coast. The 25 neighbourhoods identified with the highest need in all of England are all coastal—every single one.

Part of the reason why we have missed out on funding in Thanet and in other coastal areas is that the deprivation in coastal communities is often hidden by the upper-tier local authority statistics—forgive me for being a bit of a data nerd on this. East Thanet is one of the most deprived areas in the south-east, but because it is in Kent it is lumped in with Tunbridge Wells and Sevenoaks. The existing Treasury orthodoxy has meant that coastal communities have often missed out on vital funding.

I was encouraged by reports that the Green Book is being reformed in ways that will allow communities that have been overlooked for investment for decades to finally share in funding. If done right, that could be transformational for unlocking potential and economic growth in coastal communities.

[Several hon. Members rose—]

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[David Simmonds]

Ending child poverty has been a long-term commitment of the Conservative party. Reference has been made, positively, to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and the work that he did with the Centre for Social Justice, which enshrined that as a policy agenda during the years of the coalition Government. Again, this comes back to the question of how we most effectively achieve that. Evidence from across the country shows that growing up in workless households is one of the things that creates intergenerational poverty. The opportunity to grow up in a household where somebody works, even if it is only part time to begin with, is a fantastic boost to a child’s life chances. There are many other points within that.

[Ms Billington]

Is the hon. Gentleman prepared to accept responsibility for the significant increase in child poverty caused by the two-child benefit cap that was introduced by the last Tory Government?

[David Simmonds]

As Government Members are discovering, having voted to retain the two-child benefit cap as part of the Budget process last year, government is about making very difficult choices. The question becomes: is it fair for those who do not have children and who work in lower-paid jobs to pay additional taxes to cover the costs of other families? All of us who are parents need to face that choice, and I wish the Government luck with resolving that issue as they begin to think about it.

When we look at how Government resources are deployed across the country, it is very clear in our public spending figures—I commend the House of Commons Library for the excellent research papers that it produced on this—that spending is overwhelmingly focused on the relief of poverty. I commend the hon. Member for Blackpool South (Chris Webb) for his contribution. We see in health and social care, for example, that Blackpool has around £2,000 more per capita in public spending than Yorkshire. Governments and local authorities of all parties have prioritised those issues, and that is reflected in spending on all manner of public services. However, we also need to acknowledge that government is about choices and how we go about allocating resources. What we prioritise and the way we spend that will make a significant difference.

On creating opportunity and supporting the long-term delivery of healthcare, I ask the Minister to reflect on whether the cancellation of the level 7 apprenticeships programme, which is what trained specialist nurses for the NHS, has been a good step in creating opportunity for adults who can train to do more higher-paid work, or whether that will—as the NHS and other bodies have highlighted—result in a significant negative impact on the pipeline of specialist nursing and medical staff. Will the Minister reflect on whether the national insurance contributions increase, which leaves councils a net £1.5 billion worse off—a £1.5 billion cut in local government spending by the Labour Government—will contribute to addressing the agenda that many Members have set out?

The winter fuel payment has been touched on. The Prime Minister has hinted that a U-turn is coming; it is clear that many Government Members will welcome that. The same applies to the two-child benefit cap and the Government’s plans around disability. Under the previous Government, there was a programme, which I think the current Government are continuing in a different form, to enable those with a disability who want to work more hours to have that opportunity. But we will all have seen in our inboxes the level of concern that has been triggered among members of the public. Ultimately, it is for Members opposite to decide how they deal with pensioner poverty, the impact of cuts to disability benefits and the impact of the two-child benefit cap, as they are now in government.

There is the fact that rough sleeping has seen a remarkable increase, particularly in England and in London specifically, under this Government—there has been a 27% increase, according to St Mungo’s, since they took office—and there have been widespread reports about the impact of a significant reduction in house building under this Government. Building 1.5 million new homes was always going to be a challenge—I think we acknowledge that across parties—but a recent Guardian investigation highlighted that there has been a collapse in house building since this Government took office.

We are seeing the implementation of all these other policies, which are a choice made by Labour Members and their Government. Will all of those choices help to address and ameliorate the issues that Members have so passionately and eloquently set out? I would argue that that is not the case, and that the negative downward trends in the economy will see more households and families facing significant challenges. I would also argue that the fact, as widely reported, that all of the growth in the UK economy is due to rising household bills—in particular, higher energy costs under this Government—will be a significant headwind for the reduction and addressing of poverty, and that the toxic combination of rising unemployment, debt and taxes will create significant headwinds when it comes to addressing the issues that Members are rightly and passionately concerned about.

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[Rushanara Ali]

I could not agree more with my hon. Friend. Furthermore, billions of pounds were wasted in personal protective equipment scandals, contracts for donors and much else.

We are determined to address the issues affecting people across the country. We are building family security. It is essential to ensure that every child has a safe and loving home, and that is why we are committed to delivering the biggest increase in social and affordable homes and to delivering 1.5 million homes. Earlier this year, we committed to injecting £2 billion from 2026-27 to build up to 18,000 new affordable and social homes by the end of this Parliament.

[Ms Billington]

Will the Minister give way?

[Rushanara Ali]

I would like to make some progress, because I want to make a number of points about what this Government are doing.

We believe that everyone deserves to live in a safe and decent home. We have already invested in homelessness funding, which the Budget increased by £233 million to a total of £1 billion. That was a recognition of the mess that was left behind after 14 years of Tory government, when homelessness and rough sleeping skyrocketed. The previous Labour Government cut homelessness and rough sleeping by two thirds; the Tory Government increased it. We are having to clean up their mess.

We are investing in post-16 education, because children and young people from deprived backgrounds have been left behind and we are determined to tackle that. We are also introducing a youth guarantee for all young people aged 18 to 21 in England to ensure that they can access quality training and education opportunities to help them find work. We will publish an ambitious child poverty strategy, working across Government through an inter-ministerial group of which the Deputy Prime Minister and I, along with other colleagues, are members. We are taking action to make work pay and ensure that people are earning more; we have already increased the minimum wage.

Truly addressing the unique challenges faced by the most disadvantaged communities requires targeted and sustained support. My Department’s recently launched plan for neighbourhoods will turn the tide on decades of decline in our most deprived communities. It provides £1.5 billion of funding to 75 communities across the UK to tackle deprivation and turbocharge growth, ensuring that every area joins the decade of national renewal that we committed to in our plan for change. That funding will help revitalise local areas, support growth and fight deprivation at its root by zeroing in on three goals: thriving places, strong communities and taking back control. We will also unlock investment opportunities in every region through local growth plans. The interventions and investments developed through them will build on local sector strengths to boost productivity.

Like my hon. Friend the Member for Wolverhampton North East, I thank Baroness Hilary Armstrong for continuing to make the case for our most disadvantaged neighbourhoods and communities. I remember her work in the last Labour Government, and I agree wholeheartedly with her that our plan for change must be rooted in neighbourhoods.

I thank all hon. Members for their contributions, and I particularly thank my hon. Friend the Member for Wolverhampton North East for securing this debate. This Government are taking action to support the most disadvantaged communities as part of our long-term plan to deliver a decade of renewal by investing in our healthcare system, helping people get into employment and fixing the mess that the previous Government left behind. I look forward to working with colleagues across parties to take further action to tackle the disadvantage faced by people across our country, particularly in the most deprived communities. I know how much devastation is caused by those who face multiple disadvantage, because my constituency in the east end of London has the highest child poverty in the country. I am committed to working with colleagues to address these challenges and I am grateful for their commitment to tackling this issue, which is demonstrated by the excellent turnout at this debate.