Budget Resolutions
Sara Britcliffe Excerpts(3 years ago)
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Steve Reed (Croydon North) (Lab/Co-op)
First, I thank the Secretary of State for highlighting Crystal Palace’s glorious victory over Man City—I do so with apologies to my hon. Friend the Member for Manchester Central (Lucy Powell), who is sitting next to me. In their own way, Crystal Palace are attempting to level up the premiership.
Despite that happy news, I am afraid that the grim truth is that after a decade of Conservative rule, Britain is more divided and unequal than at any time in living memory. Many of the trends that led us here go back decades, but this Government have made the situation far worse. To address the problems that caused this, we need to repair the broken foundations of our politics and our society. We must re-establish the link between hard work and fair pay; support families as the essential bedrock of our society; rebuild the fabric of our communities; and remake Britain as a country that works for everyone.
This Government will not do that. Their Budget was supposed to be about levelling up, but it did not even convince their own MPs. The previous Secretary of State, who used to sit opposite me, laid into the Government over soaring taxes. The former Brexit Secretary, the right hon. Member for Haltemprice and Howden (Mr Davis), slammed the Government’s national insurance hikes. Conservative MPs past and present lined up to denounce the Budget in the media. Perhaps most surprisingly of all, the Chancellor himself seemed strangely unconvinced by what he read out to the House last Wednesday. He left the country facing the highest level of personal taxation for 70 years and then pleaded with us, rather unconvincingly, that deep down he is a tax cutter really. The Chancellor sounded for all the world like a hostage forced by the Prime Minister to read out a script on video.
So what does this tell us about the Government’s plans for levelling up? First, the Government are deeply divided between a Chancellor who does not believe his own Budget, and a Prime Minister and, I presume, the Secretary of State, who made him read it out. They are split down the middle between blue wall, low-tax, traditional Tories, including the Chancellor, and the red wall reformers, led by the Prime Minister and the Secretary of State, who are attempting a top-down coup against their own party.
Secondly, the Government are now distancing themselves from their own record, thereby disorientating their party. The Chancellor told us repeatedly that spending was reaching its highest point since his own party started cutting in 2010—as if getting back to where we were more than a decade ago was in any way good enough. The Prime Minister and the Secretary of State are trying to present this as a brand-new Government unconnected to the previous two Conservative Administrations, of which they were senior members. This is not levelling up the country; it is covering up their record.
Thirdly, the Secretary of State does not recognise the contradictions between an economic policy based on crony capitalism and his claims about national renewal. The Conservatives cannot build a fairer country while they are siphoning off billions to their wealthy mates through crony contracts. It is that simple.
Fourthly, the Secretary of State still cannot tell us clearly what he means by levelling up. I was hoping for a clue in his speech this afternoon but, sad to say, we did not hear one. At the Conservative party conference Ministers used at least eight different definitions, and they still cannot tell us how they would measure it. Let me help the Secretary of State: levelling up should mean opening up opportunity to people and communities in every part of the country. But that is not what the Conservative party is about. The Conservatives have broken Britain and they cannot bring it back together.
The pandemic exposed just how badly the Conservatives have broken the link between work and reward. It is the workers on the frontline who care for others, empty the bins or sweep the streets who are the lowest-paid and the most neglected. They kept this country going—they are the heroes we all applauded—yet their standard of living has been falling for a decade.
When the Chancellor announced an end to the public sector pay freeze, he did not provide the funding to put wages up. Pay in the north-east is now £10,000 a year less than in London. Average wages are down 4% in the west midlands, down 5% in Yorkshire and down 6% in the east of England.
Our held-back regions desperately need a radical plan to reindustrialise around the green economy and digital technology, and to bring good new jobs to every part of the country. The shadow Chancellor, my hon. Friend the Member for Leeds West (Rachel Reeves), has announced bold plans for a green new deal to do precisely that, but the Chancellor did not mention the climate crisis even once in his speech, just days before COP26 was due to start in Glasgow.
This Tory decade has been the weakest for pay growth since the 1930s, yet now the Tories are cutting universal credit for the lowest earners, hiking up taxes on working people and eating up what is left of people’s incomes with rising levels of inflation. As my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) said, workers are facing an assault on their living standards because of this Government’s economic mismanagement. The Conservatives are now the party of high taxes because for a decade they have been the party of low growth. In the words of the shadow Chancellor:
“Voters won’t be fooled by a smoke-and-mirrors budget that is presented as being on the side of working people but hands a tax cut to banks while hiking up council tax, national insurance and freezing personal allowances.”
Families are the fundamental building blocks of our society. Any Government who want to level up the country should support families to nurture the young and cherish the old, but under this Government half a million more children now live in poverty, with the most dramatic increase in the north-east of England. The Government have provided only a fraction of the funding that their own adviser told them kids need to catch up on the education they missed during the pandemic. We cannot level up the country by denying children the chance to learn. If kids do not have the foundation of a good education to build on, their life chances are stunted right from the start. No parent can accept that.
Older people are suffering, too. The Prime Minister ignored the social care crisis for two years, then introduced a punitive tax on jobs that will provide next to nothing for social care for at least three years. By relying on council tax rises to plug some of the gap, the Government create further divides, because council tax raises more money in richer areas than in poorer areas, creating a postcode lottery on care.
With all these new Tory taxes, the Resolution Foundation tells us that families will end up paying £3,000 more tax a year by the middle of this decade than when the Prime Minister took office. Families’ disposable incomes will be lower and the public services on which they rely will be cut harder, while a landlord with a portfolio of properties, a shareholder or a banker will pay nothing more. We cannot level up the country by clobbering hard-working families while letting the rich get away without paying their fair share.
Communities are a vital building block of our country. They give us a sense of belonging. They are a rich network of relationships, associations and shared values, but the Conservatives have spent 11 years undermining them. We have already lost 10,000 shops, 6,000 pubs, 1,200 libraries, 800 youth centres and a similar number of Sure Start centres under this Government, and they are now refusing to protect our high streets by levelling the playing field on tax between independent high street shops and the online giants, which pay far less. Because the costs of social care outstrip any increase in council funding, not least because of rising demand, communities now face yet more cuts to youth services, mental health services, street cleaning, bin collections, park maintenance, social housing and the voluntary sector. We cannot level up communities if we strip out the fabric that binds them together.
Sara Britcliffe (Hyndburn) (Con)
Does the hon. Gentleman agree that it is brilliant then that the Conservative-run Lancashire County Council has reopened all of the libraries that the Labour Administration closed and is continuing to invest in our libraries?
Steve Reed
I hope the Conservative council will also be opening all the Sure Start centres that were closed because of the actions of the Government.
The truth is that if we look at what the Government are doing with the towns fund, for instance, which is something that Conservative Members like to talk about, we can see that it operates in the same way as a burglar, who first strips a house bare and then expects gratitude for returning the toaster. Blackpool, Darlington and Hartlepool are all getting back barely a quarter of the funding that the Conservatives took away in the first place, but Conservative MPs have nothing whatever to say about the way that their communities have been stripped bare by this Government.
High Streets
Sara Britcliffe Excerpts(3 years, 1 month ago)
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Sara Britcliffe (Hyndburn) (Con)
It is a pleasure to serve under your watchful chairmanship, Ms Nokes. I must first put on record how brilliant my local businesses across Hyndburn and Haslingden are—I have had the pleasure of visiting quite a few of them in my campaign to shop local—but there is no doubt that our high streets have struggled.
The decline of high streets across the country in the last few decades is well documented. As our shopping habits have changed, first towards shopping at supermarkets and megastores, and then online, many of our high streets and their small shops have been repeatedly battered by the headwinds.
In my part of the world, beautiful Lancashire, the decline of the high street has been felt particularly hard by local people. Many of our high streets, which used to teem with independent stores, have been unable to innovate with the new reality, and have become shells of their former selves. In some places, charity and betting shops are now the most numerous, while other shops sit empty or change hands frequently. Along with that loss of amenity, the decline in our high streets has been enhanced by an equal loss of civic pride by some.
We now stand at a crossroads. Down one path lies a continuing decline of high streets and the inevitable conversion of many shops into flats or houses. That will be an acceptance that there is simply nothing that we can do but manage the decline and death of our high streets. The other path leads to a new, innovative model for the high streets, which sees them thriving once again. It is down that second path that I believe the Government are heading.
I know that today’s motion states,
“That this House has considered support for UK high streets”,
but that is incomplete. A more appropriate motion would be, “That this House has considered support for UK high streets and the effort and investment made by this Government in saving them”, for that is a reality.
I have witnessed, all too much, how my Labour councils have let down and ignored my high streets and town centres. We need to review the support that has been given to local councils. There is the £3.6 billion towns fund, including a £1 billion pledge for the future high streets fund, £4.8 billion across the country in the levelling-up fund, the coronavirus job retention scheme and business interruption loan scheme, bounce back loans, business grants, the establishment of a retail sector council and a high streets task force to provide expert advice to adapt and thrive. That is just a snapshot. There are many other measures, such as business rates relief retail discounts, that I have not even mentioned.
I am confident that, when we get to the spending review, even more will be announced by the Chancellor to help businesses and our high streets. When people ask me what levelling up is, in practical terms, this is it. In my area of Hyndburn and Haslingden, these packages of support are having a real impact. I have been working with Hyndburn Council to prepare a levelling-up fund application to regenerate our town centres. That will translate into real improvement on the ground, felt by shoppers, shopkeepers, and visitors to our towns. I hope that bid will be looked on favourably.
However, it is not just about the money. To me, levelling up and supporting our high streets means supporting them to change their thinking, giving businesses the tools and support to innovate and embed a culture of enterprise, new thinking and competition to challenge the online retailers. To help with that, I have lobbied hard for Hyndburn Council to employ an economic development officer to support businesses. That has finally been accepted. With that post now in place, we have someone at the council dedicated to supporting our local businesses and high streets. That is vitally important.
Equally important is restoring the sense of civic pride and community responsibility for our high streets and town centres. It is vital that we combine localism and levelling up to take advantage of the investment and help from Government to restore civic pride and create unique and vibrant high streets that people choose as their destination, rather than always just clicking a mouse.
Alex Cunningham
Public money does need to be well spent, and it was not exactly all public money that went to it, but that is another matter. I will not have anyone talking down my town and the ambition of our local council. The Globe is one of the finest art deco theatres in the country, and it has hosted everyone from the Beatles to Stevie Wonder—I know that appeals to my generation, rather than to some of the younger Members here. It has been refurbished and reopened, and it is the biggest venue between Newcastle and Leeds, so all the big acts are now following us into town.
Just a couple of weeks ago I visited Drake the bookshop to support Bookshop Day. Thanks to Stockton’s ambition, the bookshop has been able to expand. The council’s vision puts the wellbeing of our constituents at its heart, with the focus on supporting events, green space and independent shops more than paying off. Other local authorities are now knocking on Stockton’s door for the blueprints. Even Tory Ministers come to Stockton to see how it is done.
However, councils cannot be left to do it on their own. They should not have to spend so much time bidding to centralised funding pots. The administration of the £3.6 billion towns fund, for instance, still causes me serious concern. I can understand why Billingham in my constituency was deemed to be in greater need than Tory MPs’ towns, but I cannot understand why it has missed out.
Alex Cunningham
I will not, if the hon. Member does not mind.
A town in the previous Secretary of State’s constituency, which was 270th on the list, was successful. Yet Billingham was not, despite being much higher up on the list.
Oral Answers to Questions
Sara Britcliffe Excerpts(3 years, 4 months ago)
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Sara Britcliffe (Hyndburn) (Con)
Robert Jenrick
It is disappointing that proposals have not been brought forward so far, but we want to work with my hon. Friend and her local council. I saw from Accrington when she and I visited just how much potential it has. It is a very beautiful town centre, but in need of investment. We will bring forward proposals shortly for the second round and I or my right hon. Friend the Chancellor will set that out later in the year.
Oral Answers to Questions
Sara Britcliffe Excerpts(3 years, 5 months ago)
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Esther McVey (Tatton) (Con)
Sara Britcliffe (Hyndburn) (Con)
David Warburton (Somerton and Frome) (Con)
Robert Jenrick
My right hon. Friend is absolutely right that bringing back people to their towns and high streets is vital, including to the one that I know well in Knutsford. Local authorities should be doing everything they can to make those high streets as welcoming as possible. Covid-19 guidance and our al fresco dining revolution should not come at the cost of despoiling otherwise beautiful high streets such as that in Knutsford. With just a little imagination and creativity, it is perfectly possible for barriers to be made beautiful, even if they do need to be there. We want to see council officers apply thought and judgment, rather than being over-zealous. Put simply, if they will not take them down, they should build barriers better.
Sara Britcliffe
First, I thank the Secretary of State for recently visiting Accrington to discuss what a difference the levelling-up fund could make to my constituency. We know that it is important to build more houses, but on that visit we also spoke about our dilapidated housing stock both in the town centre and across Hyndburn and Haslingden. Will he agree to meet me to discuss the VAT placed on renovation and repairs for old housing stock and look at the potential for removing this as a trial in certain areas to encourage builders to rejuvenate old housing stock?
Robert Jenrick
My hon. Friend will know that such decisions are for the Chancellor to make. We have in place a reduced rate of VAT at 5% for certain residential renovations to encourage development and incentivise regeneration. However, she makes an important point that of course I would be happy to discuss with her. I thank her for hosting me in April, when it was great to see the town back open for business and still producing some of the best pies in Lancashire. She will know that I got into some trouble for saying that a particular shop in her constituency produced the best pies in the county, so all I will say on this occasion is that they are all pie-oneers and there is a slice for everyone if they visit Accrington.
Council Tax: Government’s Proposed Increase
Sara Britcliffe Excerpts(3 years, 10 months ago)
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The Minister for Regional Growth and Local Government (Luke Hall)
I appreciate that this has been a contentious debate, but may I start by expressing my huge appreciation for the incredible work that councils across the country have been doing to help lead the response to the pandemic? They have been at the frontline of the response in areas such as social care, testing and ensuring public safety, and they have continued to do an outstanding job in delivering the day-to-day services that we all rely on so much, including waste collection, highways maintenance, park management and so much more. May I also join my hon. Friend the Member for St Austell and Newquay (Steve Double) in praising parish and town councils, which have worked so hard over the course of this year to deliver their services?
Unfortunately, what we have heard today is an Opposition who completely misunderstand some of the basic rules of local government finance. The premise of their argument seems to be that the Government are somehow forcing councils to increase council tax by failing to provide adequate support in response to the pandemic. However, if we step back and look at the basic facts, we will see that nothing could be further from the truth.
If Members look at councils’ self-reported figures to our Department, which project that cost pressures for covid total £6.9 billion, and compare that with the £8 billion that we have already provided to councils since March, they will see that we have provided them with £1 billion more than they are spending in response to this pandemic. On top of that, we have provided a business rates holiday worth about £10 billion to retail, hospitality and leisure industries. We have also given councils over £17 billion to provide grants to thousands of businesses across the country, and we have seen some incredible work from councils in getting those grants directly to affected businesses. We have also introduced a sales, fees and charges scheme, supported leisure centres and supported councils with local tax losses. Councils will continue to receive funding through the contain outbreak management fund, to tackle the spread of the virus. That is worth over £225 million a month. We are backing local government all the way with the necessary funding now and into the future.
Sara Britcliffe (Hyndburn) (Con)
Does my hon. Friend agree that it is welcome that today Hyndburn Borough Council received an extra £492,000 to help with the community response? Does he also agree that it is important that our residents get the bang for their buck and that the basics get done, such as streets being cleaned, bins emptied and empty buildings on our high streets restored to their former glory?
Luke Hall
My hon. Friend is absolutely right that councils should be delivering efficient services with the settlement that they have received from this Government.
If we look at the provisional settlement that the Secretary of State published on 17 December, we see a 4.5% cash-terms increase in core spending power—a real-terms increase for the next financial year. We have also committed at least £3 billion of additional help to councils for next year. That includes the extension of the sales, fees and charges guarantee scheme, which we know has been a lifeline to so many councils during this pandemic. Our commitment to support councils is stronger than ever, and we will ensure that they have the resources they need to deliver first-class public services.
May I thank Members from both sides of the House for their contributions to this debate? I appreciate that it has been hotly contested and contentions, but some important points have been raised. I was surprised, however, to see numerous Opposition Members stand up and say how much they disagreed with the Government’s proposal, given that so many of their councils have not even bothered to respond to our consultation. The hon. Member for West Ham (Ms Brown) said how much she and her council disagreed with it, but Labour-run Newham Council has not responded to our consultation on council tax. The hon. Member for Slough (Mr Dhesi) told us how strongly he and his council feel about this issue, but it has not responded to our consultation, either. Perhaps that is because it welcomes fully the 3.9% increase in core spending power that it will receive next year. The hon. Member for Westmorland and Lonsdale (Tim Farron) told us how much he and his local Lib Dem council did not support it, but it has also not bothered to respond to the consultation. It is typical of a Lib Dem administration that it stands up, shouts from the sidelines and fails to do the necessary work.
The Future of the High Street
Sara Britcliffe Excerpts(3 years, 11 months ago)
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Naz Shah (Bradford West) (Lab)
As we have heard, this debate is not just about the economics of business. Our high streets are about more than just pounds and pence and GDP. As we have heard from many hon. Members across the House, including my hon. Friends the Members for Stockport (Navendu Mishra), for Coventry North West (Taiwo Owatemi), for Coventry South (Zarah Sultana) and for York Central (Rachael Maskell), this debate is about the importance of the idea of place—identity—to communities up and down this country. Our high streets are not just the locations that employ our workers, build our economy and provide goods and services; they are embedded in the very culture and heritage of this nation. As my hon. Friend the Member for Enfield, Southgate (Bambos Charalambous) eloquently pointed out, high streets are not just about transactional value but social value. They are part and parcel of all our lives. Whether we live in South Shields or Bradford West, growing up and visiting the high street is part of our way of life.
Of course, much of this debate has been about the economic health of our high street, as hon. Members across the Chamber have discussed. The coronavirus crisis has had a unique impact on many aspects of life globally by speeding things up that were happening already, and the high street is no different. Covid’s chilling effect on physical retail has dealt a further blow to a sector that was already under threat, and, in turn, has accelerated decline on high streets that were already struggling because of the neglect by consecutive Conservative Governments. As Members have said, since 2012, footfall on the high street has been down by 10%, and one in 10 high street shops were standing empty even before the pandemic. My hon. Friend the Member for Croydon North (Steve Reed) pointed out that since 2010 the Government have presided over the closure of 773 libraries, 750 youth centres, 1,300 children’s centres, and 835 public toilets.
Naz Shah
Due to time limits I will not give way—I will make progress.
Some 5,500 pubs and bars have closed in the past 10 years, since this Government have been in office. Because of the Government’s neglect, our high streets were already standing on the edge of a cliff, so why are they surprised that a crisis like the covid-19 pandemic pushed them over? As we have seen in the past few weeks, high street stalwarts like Debenhams and brands like Topshop, Burton and Dorothy Perkins have gone into administration or liquidation, putting more than 14,000 jobs at risk. Since March, up to 20,000 shops have closed and 200,000 people have been put out of work, but despite all this, the Government are refusing the levels of support they gave in March. As has been highlighted, 99% of beauty salons, 95% of cafes, 92% of gyms and 77% of pubs and restaurants are receiving less than they were in March.
My hon. Friend the Member for Croydon North pointed to the challenges that small businesses are facing from the threat posed by online retail and the Government’s total failure to level the playing field through addressing business rates. As my hon. Friend the Member for Coventry South pointed out repeatedly, this is about levelling the playing field. The Government talk a lot about levelling up, so perhaps the Minister will reflect on the fact that the business rates burden is hitting the north and the midlands hardest, as a report by WPI Strategy, written by former Treasury economists, found in October. The report told us that 77% of constituencies in the top 10% with the highest business rates burden are in the north and the midlands, compared with just 18% in London and the south. That is because the tax rate does not mirror economic performance, so for areas facing economic challenges, the burden is much higher.
Back in March, the Government promised to compensate councils fully for getting through the pandemic. They broke that promise, and the Institute for Fiscal Studies now estimates that the covid funding gap is £1.1 billion this year and £4.4 billion next year. That means more job losses, more cuts, and in turn less spending and less support for businesses. We know that there is light at the end of the tunnel with the arrival of the first new vaccine, but the reality is that businesses face a long and bleak winter unless the Government provide the support that they need now. That could mean that there are fewer high streets for people to visit, vaccine or no.
It is important that the Government learn the lessons from the past. Rather than neglect the sectors that need support, they must act now. The lessons from 2010 will be forgotten if the Government’s austerity drive chokes off business recovery. Since 2010, we have seen not only a physical decimation of the high street but significantly lower levels of growth. The Government are in danger of repeating the mistakes of the past. Just this week, Laurence Boone, the chief economist at the OECD, said:
“We made the mistake in 2010; we need to learn from the mistake. We need to keep up the support for the people and those in and out of jobs. We must make sure income is supported…When you’re in a battle and you know the cavalry is coming, you don’t stop fighting. In fact you keep fighting until the cavalry is around. In fact you keep fighting while the cavalry is there.”
The country is fighting. Retailers on our high streets are fighting. The pubs on the corner, the restaurants in the highest tiers that have closed, the small, family-run businesses that have been part and parcel of our local towns and are struggling to keep their doors open—they are all fighting. They are all waiting for the cavalry to arrive, but the Government are leaving them to fight alone on the battlefield.
Oral Answers to Questions
Sara Britcliffe Excerpts(4 years, 4 months ago)
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Mark Logan (Bolton North East) (Con)
Sara Britcliffe (Hyndburn) (Con)
The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)
Our £3.6 billion towns fund will drive the economic regeneration of towns to deliver long-term economic and productivity growth. The towns fund will play an important role in the support of our country’s economic recovery, bringing forward public investment to create jobs and boost confidence in towns, as well as levering investment in from the private sector.
Robert Jenrick
I congratulate Bolton and my hon. Friend on the very impressive work that they are doing with the council to transform the town. Bolton is one of the initial 100 towns selected to submit proposals for a town deal, and, again, I look forward to seeing the submissions shortly. As I said in my previous answer, Bolton can also apply to the Department for an advance of £1 million from the town deal to fund some of those projects that he describes. I also understand that, as a result of Bolton being part of the future high streets fund, it is likely to include support for Trinity Gateway, Le Mans Crescent, Church Wharf and Crompton Place—a number of extremely important regeneration projects.
Sara Britcliffe
Accrington town centre is one of the many places that have been left behind for too long. It is at the heart of my community and now that I am the Member of Parliament, I intend to be the strong voice that is needed to make sure that it is not a forgotten town any more. Will the Secretary of State accept my invitation to visit Accrington and our amazing local businesses to discuss with me how I can make sure that it gets the investment that is so desperately needed?
Robert Jenrick
I would be delighted to accept my hon. Friend’s invitation to Accrington. From what I have seen in her relatively short period in this House, she is exactly the strong voice that her constituents deserve. We have shown consistently through our initiatives, such as the towns fund, which we have been discussing, and the high streets fund, our commitment to levelling up all parts of the country, and we are doing that once again with our £900 million getting building fund, £34 million of which will benefit her constituents in Lancashire. I look forward to announcing, with her local enterprise partnership, those projects by the end of the month.