Levelling-up and Regeneration Bill (Fifth sitting)

Rachael Maskell Excerpts

Committee stage
Tuesday 28th June 2022 Public Bill Committees

[The Chair]

I intend to call Back Benchers first, and then the Front Benchers. You do not need to bob, but if you are a Back Bencher who wishes to speak, please catch my eye.

[Rachael Maskell (York Central) (Lab/Co-op)]

Thank you, Mr Paisley. I want to stress the importance of the legislation before us. In particular, I want to speak to amendments 3 and 5, and to new clause 1.

Clause 1 deals with the levelling-up missions, the foundation to the Bill and to building a stronger and more equal society. Representing a constituency in the north, I cannot stress enough the importance of this agenda in addressing the regional disparities that we see, and the inequality that my constituents experience. Across the House, we recognise the intergenerational lack of investment and the cost that has caused, biting particularly hard through the past decade of austerity, covid and now the cost of living crisis.

Clause 1(2) deals with levelling-up missions: what, when and how. However, the “who” is omitted. In taking evidence last week, the Committee heard leading experts repeatedly highlight the need for independent evaluation. In the very last evidence session, as my hon. Friend the Member for Nottingham North said, Mr Tanner drew attention to the importance of independence in the scrutiny of the levelling-up missions. That was a consistent theme throughout the week, with good reason.

First, no Government should mark their own homework. The Government clearly want to succeed, and therefore the matrices through which the comprehensive auditing process is undertaken could skew, or even conceal, the extent to which progress has been made. I am sure that if Government Ministers were sitting where we are, they would make the exact same argument about wanting rigour and independence through the scrutiny process of the levelling-up agenda. If the agenda is of such importance, the Government should welcome independent scrutiny of it.

Secondly, objective, independent scrutiny for such complex examination would provide Government with better insight into the progress made, and set out the path forward to address emerging inequalities or struggling areas that need concentrated focus to address those inequalities. It would give the Government the opportunity to step aside and then to invest in those areas. With the Government being so close to wanting levelling-up to succeed, there is risk of skewing the objectives.

Thirdly, I will make the comparison, as my hon. Friend the Member for Nottingham North did, to the Treasury establishing the Office for Budget Responsibility. That organisation has enabled independent scrutiny of Treasury assessments and has enabled Parliament and the public to hold the Government to account and to scrutinise the workings of the Chancellor of the Exchequer and wider Government respectively. In addition, the Climate Change Committee now has such authority that the nation looks to it: we know that academia particularly focuses on it, the Government certainly focus on and adhere to its calls, but so does industry. Having that rigour across industry enables us to see the seismic change that is necessary to meet our climate objectives. Seeing such scrutiny at work demonstrates the importance of independence. We can look at the power of COP26: had the Climate Change Committee not undertaken its vital work, we might not have seen the outcome that we did.

It is crucial that we see independent scrutiny not just of climate issues but across other national agendas. It does not matter who the Government of the day are; we want to bring about this change in order to apply that scrutiny to them. In order to tackle the inequality and injustices that we see across our communities, we must ensure that we set the right foundations for long-term measurement, and that the methodology is robust and independent, can attract cross-party support and is useful for all—not only in this place, which is often where the focus is, but across the country.

When we are dealing with such issues as those relating to criminal justice, housing and health, there are of course huge communities looking for robust measurement in order to understand how to advance those agendas. As we see more devolution in areas such as health, with the new integrated care systems, there needs to be a collective understanding of the mission that we are going on, not only through setting out the levelling-up missions but in scrutinising and measuring them as they advance. This is not just of use to the Government, or to the Opposition in scrutinising the Government; it is useful to all those parts of our society that move our levelling-up agenda forward.

In the light of the complexities of measuring levelling-up missions, it is of course necessary for measurement not just to be placed on the Government. There needs to be inclusion of, for instance, ICSs, local government, mayoralties and so on, so that there can be robust determination of how they feed into the levelling-up missions and how their work is scrutinised, given their arm’s length role in delivering many of these functions and the missions and aspirations of Government. As my hon. Friends on the Front Bench have set out in amendment 4, with proposed new subsection (4A), the Government must also publish an action plan to enable objective scrutiny of the missions’ impact. This is about not just looking backwards but projecting forwards, which helps to set the rhythm of Government but also of our nation.

The regeneration community—the professionals who will implement many elements of the Bill—talk about those golden threads where analysis is required not just in the silos of individual missions or Departments, but across them, to determine how they will intersect and work together so that, together, they are more than the sum of their parts. I am talking about drawing in multiple Departments to address inequality. We know that many of these issues are intersectional, so we need a body that can hold everything together and highlight the opportunities, because the Government are often too close to them to identify them.

It might be worth noting that the Hackitt report in relation to Grenfell takes that approach. It looks at intersectionality, which is so important for a robust response. Clearly, with such complexity as levelling up presents, having a space for independent scrutiny is all the more important. The independence will then, of course, build confidence across the country. This will not just be seen as a headline, a tweet or the next moment to talk about levelling up; it will gain public recognition and will bring focus across Government and beyond. Independence will take away suggestion of unconscious bias in Government decisions, and will give delivery partners greater confidence in the process and in Government. It will restore trust, which the Government are seeking and we all want to see. It will thus reduce conflict and increase motivation.

We have independent scrutiny across most functions in society. We have heard about the OBR and the Climate Change Committee, but I draw the Minister’s attention to Ofsted, Ofcom, Ofgem and the Care Quality Commission—independence is absolutely at the heart of all they deliver, so why not have it for something as fundamental as levelling-up missions? This is now recognised as the mechanism by which performance can be judged nationally, regionally and locally. A mature Government therefore have to understand the rigour of independence.

I move on to proposed new subsection (2)(c). We have had the what, the when, the how and the who, and we now need to talk about how much. It is vital that the Government quantify the resources available for investment in the nation’s regions, sub-regions and local areas. The entrenched disparities we see across the country are not due to a lack of aspiration or ability but are in large part down to a failure to invest in more than a generation. The Resolution Foundation has spoken in the past 24 hours about the importance of the scale of investment. When resources are concentrated, their impact is multiplied and we see decades of inequality being addressed.

As we know, London and the south-east suck in the lion’s share of resources. We have seen the evolution of the booming south at the cost of the north; that is what this agenda is all about. In the evidence sessions, Professor Leyser and the Mayor of the West Midlands, Andy Street, highlighted how to build a cluster economy to invest and create wider opportunities. Although the mission of levelling up is to address regional disparities, reviewing the impact it has on local inequity is so important, which is why independent scrutiny is vital.

If all that is achieved in the most affluent areas, then clearly, in order to extend opportunities for wealth, health and education, levelling up will need to be translated across the board. I truly recommend that we focus on opportunities to level up under the purview of an independent body, as opposed to the internal scrutiny systems of Government.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to serve under your chairmanship, Mr Paisley. I will not say very much, except to express my support for the amendments tabled by the hon. Member for Nottingham North.

It seems to me that it is entirely appropriate to push much of what is in the Bill through legislation—that would be normal for any Government—but for certain aspects, particularly those in part 1, it is quite unusual for a Government to choose this means to achieve their aim. If they want to level up, invest in regions and improve the quality of life in rural and urban communities in the north, the south-west and other areas where we feel that there has been a disparity of opportunity, they could simply do it. It does not take a Bill for us to invest and choose to act differently. The Government could just do something very novel: govern. They could invest and choose priorities to get behind.

Given that the Government have chosen this route, it seems odd that they should want to have their cake and eat it. They want to go down the legislative route but then not do anything commensurate with it—in other words, they do not want to allow themselves to be scrutinised and held to account. It seems entirely appropriate to me that there should be an independent body that is able to judge the success—or otherwise—of the levelling-up missions. It would see whether, for example, we are tackling the huge disparity, in every region of this country, between different age groups’ and income groups’ access to affordable housing, to allow them access to all other parts of society—that is what a decent, affordable, secure home does.

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[Neil O'Brien]

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

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

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

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

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

[Rachael Maskell]

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

[Neil O'Brien]

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

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

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

[Rachael Maskell]

Will the Minister give way?

[Alex Norris]

Will the Minister give way one more time?

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[Rachael Maskell]

Thank you, Mr Paisley. I want to develop the argument on what the Minister was saying about the Office for Budget Responsibility. The reality is that, over generations, we have seen entrenched inequality that successive Governments have been unable to address. It was the same with climate challenges, on which successive Governments have not placed a focus. Yet through the OBR and the Climate Change Committee, that focus has started to bring about change.

The Government’s determination to have a levelling-up framework through which to assess the levelling-up missions does not meet the same kind of scrutiny that will pivot society towards seeing the importance of levelling up. That is why I want to hear from the Minister why inequality, which is so entrenched in our society, and regional disparities, which are so well known and yet have not shifted for generations, do not deserve the importance given by Government to other elements, such as the climate and the economy. Surely, inequality and people’s lives are of equal importance.

[The Chair]

Before I call Matthew Pennycook, I remind Members that this is line-by-line scrutiny; it is not like the Chamber. We have time to go through these issues and we are not under any pressure in that regard. If there are matters that need to be raised, please let us consider them. That is what the Committee is for and what the public expect.

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[Alex Norris]

Exactly, so I am very much enjoying it at the moment because we can fight these battles outside the rarefied atmosphere of the Chamber. However, one consequence of my liking these Committees is that I have frequently volunteered to take Bills on—something is not quite right with me, probably. The one thing I have learned from them, which is particularly interesting for a Bill with 200 clauses, is that a person can tell from the first amendment to the first clause how the rest of the discussions are going to go and how minded to take on change the Government are going to be. With that in mind, I am disappointed to hear that the Minister is not minded to accept the amendments.

Our discussion has been good. My hon. Friend the Member for York Central made excellent points about the impact of the Climate Change Committee and COP26. The points about arm’s length bodies and the broader partnership involved in levelling up are important. This legislation is not just about holding the Government to account, but holding to account all parties involved in levelling up, including all of us in this room, in whatever guise—be it as Members of Parliament, as volunteers in our communities, or in local government, as a number of us have been. We all have different stakes in and must hold each other to account on what is a shared endeavour rather than an endeavour of the Government of the day.

[Rachael Maskell]

My hon. Friend is making an excellent point. This is not just about Government, but about the whole of our society, across party lines, including mayoralties and local government. Does it not make sense therefore to have a framework that all partners can buy into and have confidence in when scrutinising their functions?

[Alex Norris]

That is very much the spirit in which I tabled the amendment, which is the first Opposition amendment to the Bill. That might be construed as the Opposition wanting to make life hard for the Government or wanting a stick with which to beat them, but far from it. The amendment would ensure that partners all have a mutual responsibility to each other, and that is partly about holding each other to account and having difficult and supportive conversations about why we have not been able to do things that we have sought to do.

The Minister made a point about unconscious bias being woven out with independence, and that is important. The listed regulators—Ofsted, Ofgem, Ofcom and so on—are good comparisons for this space. We have offered the Government a kind of menu of comparisons, and I am surprised that none of them is seen as the right one. My hon. Friend the Member for York Central finished her remarks by addressing the particularly pertinent point about inequalities. It is hard to understand why those inequalities are not considered to have same level of importance as the other agendas. That is disappointing.

The hon. Member for Westmorland and Lonsdale made an interesting point, which I hope will come up later in the debate. Part 1 of the Bill is a bit unusual. We have not yet had the clause 1 stand part debate, but I am not sure why those provisions have to be in the Bill. Usually, Ministers argue that things do not need to be in the Bill and the Opposition argue that they do. I will not argue against them, but it is unusual that the Government should have chosen to include the provisions.

I dare say that what is involved is the trick of planting a stake in the ground and saying, “We are going to deliver on these important things.” However, when we consider the point made by the hon. Member for North Ayrshire and Arran, we see that there is an asterisk against this part of the Bill: the Government still want the flexibility to mark their own homework and change it if they want. Those two things are a little oddly juxtaposed. The Government want to put their head above the parapet and make the legislation central to what they want to do. That is quite a brave and risky thing to do, so I am surprised that they are not able to go a tiny bit further.

The Minister mentioned the Levelling Up Advisory Council and the esteemed people on it. We are lucky that they have chosen to take part in public life in that way, and we are grateful to them. I completely agree with all that has been said about their independent-mindedness and capability to speak for themselves, but I say gently to the Minister—this is not a point against him personally, but against the Government—that it is not those people who we do not trust. Of course we trust their independence, but how on earth can we know what they are saying and what their views are? That is the problem.

As we have seen before with various such advisory bodies, in reality the Government will sit on the difficult things and trumpet the good things. Perhaps there is an element of human nature in that—there is huge element of sadness in it—but that is what will happen. If the Government are really committed to delivering on this matter, why not go that little bit further?

I accept the point about the technical annex and, as the Minister put it, the unprecedented detail. This is a saddening thought in many ways, but I would probably go so far as to say that if I thought he was going to remain in his Department until 2030, a lot of my anxieties would disappear—although, I would have anxieties about how we had managed to lose another two elections. Putting that to one side, because I do not think it is likely to happen, I have no doubt about the Minister’s personal commitment to the agenda, his personal probity, and his willingness to have difficult conversations and to explain on the record where things have not gone as they ought to. However, I would argue strongly that that is not a characteristic that applies across Government—I do not think anybody could say that is really a feature of this Government. He says that I could go through and update each technical annex every year—I am surprised that I should have to do that on the Government’s behalf. The problem is that what we will see overtime is the booklet getting thinner, because the difficult ones will drop out or they will be replaced by another one—that is what we normally see. The Government will say, “We have got advanced metrics now that better understand the nature of life in the UK.”

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[The Chair]

Do any Back Benchers wish to catch my eye before I go to the Opposition spokespeople?

[Rachael Maskell]

Thank you, Mr Paisley, and I thank my hon. Friend the Member for Nottingham North for his excellent speech; I will continue his theme about making the right judgments on investment.

During the seven years that I have been in this place, we have seen little pockets of money being distributed in different ways to different parts of the country. Some of that will have had value, but essentially it is about addition rather than multiplication and is not necessarily getting the best out of public resources. As we have seen, the high street fund has gone to various places in the country, as opposed to investing to achieve the economic growth that would benefit a community in the long term, which is what the levelling-up agenda is about.

We have seen competitions for funding being set out and we know the level of resource that local communities are putting into them. For example, the headquarters of Great British Railways was going to come to York because of the high-tech economy on rail there, and to develop that rail cluster. Suddenly we had a competition and local authorities are now spending hundreds of thousands of pounds of public money in order to try to win the bid. At the end of the process there will be only one winner, which I trust will be York, but hundreds of thousands of pounds of public money has been spent on those bids and disappeared from the wider economy. That cannot be a wise way of spending public money—our constituents’ taxes—whether locally or nationally. They want greater value for money out of the Government.

A more consistent approach to growing the economy is important when it comes to where Government place their investments. The drawdown—this is what the whole agenda is about—in London and the south-east, has a cumulative impact, with the heating up of the economy there at the expense of similar interventions in the north. That is the powerful point that Professor Leyser and Andy Street, the Mayor of the West Midlands, made about the importance of the cluster economy.

I congratulate the Department for Business, Energy and Industrial Strategy on pouring its focus into that and on working with UK Research and Innovation to ensure that we bring together the components of an economy for the future, making sure the investment goes in the right place and building on the assets of a local community—the skills base, the industry, and what academia can bring. That can create the jobs and the skills for the future, to address the inequality that is so entrenched in our communities.

In my city of York, we are looking at the biotech industry, the rail and transport cluster, and the creative arts and digital creative sectors. Investment in those areas brings not just addition but multiplication—we are seeing inward investment, international investment and academia coming from overseas. The amendment is about putting the investment in the right place, ensuring that it goes to the nations, regions, sub-regions and local areas to ensure that we truly get the levelling up required, which will reach the Government’s objectives.

I believe that the amendment is important to ensure that the resources are available in the right place. We will then see economic disparities dispelled, health inequality reduced, educational attainment gaps closed and a better society as a result. I certainly see that getting this wrong has a significant cost. There are areas of York that need levelling up. While looking at regional disparities, we cannot ignore the local disparities.

My question for the Minister is this: does levelling up address all those socioeconomic inequalities? If there is investment in a particular region, city or town, but the affluent people get the gains rather than the people living in deprivation, we will not have levelled up the country; all we will have done is level up parts of it. We see that today in London: the greatest affluence in this city is just across the river, but we do not have to go far to see some of the greatest deprivation. We must ensure that levelling up is not just about the sum of the regions but the parts of the regions, to ensure that those individuals get a share of the wealth. I see how that can happen.

BioYorkshire, a project in York that we are taking forward as a green new deal, will see the upskilling of 25,000 people and the creation of 4,000 new jobs, getting people out of low-paid, insecure jobs and into good-quality jobs, which will bring significant benefit to my city and my region. We have to ensure that no one is left behind and that the impact is on everyone. Therefore, the investment is foundational. Where it goes, and how it goes, has to be a strategic decision, which is why the amendment is so significant, because otherwise we will see widening inequalities. I certainly see that in many places across the country.

I would also like to point out how investment in the right places can address other forms of inequality. We know, for instance, that single-parent families experience the greatest deprivation. How will the missions address that? How will the missions relate to disabled people, women and ethnic minority communities? We need to make sure that the methodology applied is robust, and that it looks not only at geography but at other areas, to ensure that investment is right and that it is measured. That goes back to our previous debate about independent scrutiny.

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It is not the case that we ignored or had pause, as the Opposition said, when we got the PAC report. It is just that there is an inescapable choice here. We have tried to have a balanced diet of some competitive funding, with the advantages that that has, and some non-competitive funding, which has a different set of advantages.

[Rachael Maskell]

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

[Neil O’Brien]

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

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

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

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

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[Alex Norris]

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

[Rachael Maskell]

It is not just about money that is coming from the centre into individual projects. The Government need to take note of the point that it is surely about enabling and empowering local authorities and bodies to make their own determinations about where the money is best prioritised. Whether it is from the shared prosperity fund, the levelling-up fund or the future high streets fund, a local authority might be in the best position to determine how the pot is spent in its local economy to drive up and level up, as opposed to the Government making a central determination about the governance of that funding.