Levelling-up and Regeneration Bill

Simon Hoare Excerpts

Report stage
Wednesday 23rd November 2022 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Because so much of the Bill focuses on England only, I will concentrate my remarks on amendment 14. The fact that this amendment has to be tabled at all shows that the Government cannot, and do not expect to, meet their own expectations raised in the Bill. There is nothing more dangerous than raising expectations that will not be met.

This is not just a Bill in the usual sense; levelling up is not a run-of-the-mill promise that can easily be broken and forgotten. According to the Government, the very concept of levelling up is a flagship policy—a policy designed to change the face of the UK, genuinely to seek to spread prosperity and opportunity, and to make our communities better right across the board. Anyone who has such expectations based on what the Government have said about the Bill and its aims will, I fear, be disappointed. The very fact that amendment 14 exists illustrates that they will be disappointed. It is not credible that a Government so in love with austerity can be trusted to level up in any meaningful and sustainable way. Growth in the UK has been fatally undermined by both incompetence and Brexit. That is why amendment 14 matters and why we in the SNP support it.

In the absence of growth and grown-up and frank conversations about the damage of Brexit, we have instead vague missions, with no real plans for delivery—missions that are, according to the Institute for Fiscal Studies, of dubious quality. Yet still the Government have reserved to themselves the power to change the goalposts. That demonstrates that the Government are not even clear about how they will measure the success or the progress of the very missions that they have set themselves.

An annual report can apparently make everything all right, but it simply will not be enough to keep the Government on track to achieve their objectives. There is also a lack of ownership and accountability for each of the 12 levelling-up missions by individual Government Departments. None of this is news to the Government, of course, which is why they have retained that authority to move the goalposts and change their own targets if they are not going to be met. This is like someone marking their own homework and reserving the right to change the pass mark of the test that they have set themselves. That does not sound like a Government who are confident about their own delivery, even though we are talking about a flagship policy.

[Simon Hoare (North Dorset) (Con)]

Does the hon. Lady honestly think that there is something fundamentally wrong in a Government Department saying that it will have measures and targets, that it will review, and that it may recalibrate and tweak in order to reflect circumstances over a period of time? Governments do not straitjacket themselves. There has to be flexibility, particularly when taxpayers’ money is being deployed.

[Patricia Gibson]

The hon. Gentleman makes an important point. It is not about flexibility; it is about credibility. There is nothing wrong with the aims as articulated by the UK Government, but a Government cannot set themselves a task, call it a flagship policy and then reserve the right to move the goalposts as and when they fail to make progress. That is an important point.

The hon. Gentleman brings me to another very important matter. On the delivery of levelling up, what of the bids that were announced as being successful this time last year? We are in a different situation now, because the costs of labour and resources are being impacted by inflationary pressures. With regard to infrastructure projects, for example, road stone inflation is currently running at around 35%. This means that, in order to continue to support the levelling-up projects to which they have committed funds, the UK Government must increase the awards already made to take account of inflation, or councils must make up the difference because of the impact of inflation, which is difficult as council resources are already very stretched, or projects that were envisaged and costed last year are significantly scaled back. If it is the latter, that is very serious, because even successful levelling-up bids cannot have the impact that was first envisaged when the bids were made and approved. It is a mess.

There is also a significant impact on projects currently awaiting approval as they will be similarly hit with soaring inflation. I am very keen to find out how this will be dealt with. If this is not taken into account, bids already approved are hamstrung and cannot have the impact envisaged, which means that levelling up, as set out in the Bill, will amount to even less than it did before, with its vague missions and moving goalposts. It is no wonder that the Government want the ability to move the goalposts.

How ironic that, after more than a decade of Tory misrule and austerity, the UK is in a worse position than it should be, facing the worst downturn of any advanced economy in the world. No eurozone country is expected to decline as much as the UK, and, as a whole, the eurozone is expected to grow—so much for levelling up. In this context, marking their own homework and permitting changes to the mission, progress and methodology start to make the Government look more than a little suspicious. They could, of course, support amendment 14 and put all those suspicions to bed.

We are supposed to be persuaded simply by the mere passing of a Bill, vague and lacking in credibility as it is, that this Government can and will deliver levelling up. It is almost Orwellian. At the very point that we have a weakened economy, crumbling exports, rising food prices, rising energy prices, challenges with our fuel supply, and with the Government’s own forecasts predicting worse to come, the Secretary of State has the power to change the mission and progress of levelling up. That does not look like a Government who are confident and certain that they will actually deliver the meaningful levelling up that they say they want to deliver. However, if they support amendment 14, they could commit themselves in a way that would be far more credible.