Levelling-up and Regeneration Bill

Baroness Lister of Burtersett Excerpts

Committee stage
Monday 20th February 2023 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, we have a lot of scrutiny of this Bill before us. Before we start, I want to explore what is meant by levelling up, and whether there is a broad agreement as to its definition and purpose. My amendment proposes to remove the words “levelling up”, as the content of the Bill fails to live up to the aspiration as described in the levelling-up White Paper.

Here is one definition. The purpose of levelling up is,

“to break that link between geography and destiny so that it makes good business sense for the private sector to invest in areas that have, for too long, felt left behind ... A vision for the future that will see public spending on R&D increased in every part of the country; transport connectivity reaching London-like levels within and between all our towns and cities; faster broadband in every community; life expectancies rising; violent crime falling; schools improving; and private sector investment unleashed.”

That is the former Prime Minister’s explanation, set out in the foreword to the levelling-up White Paper.

Does levelling up refer to this? The White Paper says:

“There are stark geographical inequalities between and within our cities, towns and villages … It is about unleashing opportunity, prosperity and pride in places where, for too long, it has been held back.”


These words were those of the Secretary of State for Levelling Up, Housing and Communities, and Andy Haldane, formerly of the Bank of England, in a further foreword to the White Paper.

The executive summary of the White Paper spells out the purpose very clearly:

“This requires us to end the geographical inequality which is such a striking feature of the UK … This programme has to be broad, deep and long-term. It has to be rooted in evidence demonstrating that a mix of factors is needed to transform places and boost local growth: strong innovation and a climate conducive to private sector investment, better skills, improved transport systems, greater access to culture, stronger pride in place, deeper trust, greater safety and more resilient institutions.”


Therefore, throughout the White Paper, on which presumably the Bill is based, there is a clear focus on geographical disparities and inequalities. These inequalities, it is argued, harm the whole of the country, not only for the lost opportunities of lower incomes and skills but because the consequence is lower growth, which has a negative pull on the country as a whole.

The levelling-up fund is, I assume, a precursor to a wider strategy. If so, it is instructive to analyse which areas have been granted funds in the first two rounds. If levelling up was to be laser-like in addressing the worst of the geographic inequalities, levelling-up grants would be targeted at those parts of the country deemed to be suffering the greatest inequalities as defined by the White Paper. Yet, as the House of Commons Library has shown, those areas categorised by the Government as priority 1 for grant funding had just 59% of the total funding available. Over £1 billion from the levelling-up fund was allocated to areas not deemed in greatest need; those were in priority 2 and even priority 3 areas.

That is not levelling up as defined by the White Paper; it is spreading the government funding jam way too thinly. Of course there will be, within every area, pockets of deprivation. Empowering and enabling local councils to tackle smaller areas of deprivation is probably the most effective way to do so. The levelling-up White Paper, however, is setting out a strategy, not for tackling individual poverty or small areas of deprivation but for finding solutions to economically underperforming places. Will the Minister clarify whether levelling up is to tackle individual poverty or to narrow the gaps as proposed by the metrics in the annexe to the White Paper?

The White Paper—it is a good read—also states:

“The UK has larger geographical differences than many other developed countries on multiple measures, including productivity, pay, educational attainment and health … While London and much of the South East have benefited economically, former industrial centres and many coastal communities have suffered. This has left deep and lasting scars in many of these places, damaging skills, jobs, innovation, pride in place, health and wellbeing.”


In chapter 1 of the White Paper the analysis is most clearly stated:

“The UK’s spatial disparities are also among the largest across advanced economies on a number of measures, including productivity and income per head … When assessed across 28 different measures—using different spatial units of analysis, different measures of prosperity and different indices of inequality—the UK has been found to be one of the most spatially unequal countries among the OECD.”


The Bill offers an opportunity to fulfil the aspirations set out in the White Paper. Currently, it fails to do so. The missions and capitals described in the White Paper must be part of this Bill. The Bill should then establish the legislation to enable those missions to be enacted. It fails to do so.

This is a complex Bill addressing, in part, one element of the White Paper missions, that of wider local devolution. It also has a detailed section on planning reform which may—or may not—add to a mission to narrow spatial gaps. Yet measures to enable the big strategy of levelling up are simply not there. Levelling up is a slogan seeking some substance. For the sake of millions of people, the substance and the financial commitment are desperately needed. I beg to move.

[Baroness Lister of Burtersett (Lab)]

My Lords, I thank the noble Baroness, Lady Pinnock, for tabling this amendment because it gives us the opportunity to pinpoint the tension at the heart of the levelling-up agenda. As the impact assessment reminds us, the problem it claims to address concerns unequal shares and opportunities, and levelling up

“is a mission to challenge, and change, that unfairness.”

It means

“giving everyone the opportunity to flourish”

and to have

“longer and more fulfilling lives”,

together with

“sustained rises in living standards and well-being”

for people everywhere. In fact, this is a statement about people, not places, as reflected in some of the missions. Yet the impact assessment states that achieving the aims of levelling up

“requires us to end the geographical inequality which is such a striking feature of the UK.”

The Minister’s levelling-up letter explains that the missions are necessarily spatial—but why are they purely spatial and geographical when inequalities of income and wealth between individuals are also striking features of the UK? A report published by the Social Market Foundation, called Beyond Levelling Up and written by a former senior adviser to recent Conservative Chancellors, argues that this approach to levelling up

“avoids the question of whether we think the gap between rich and poor is acceptable, and whether we are comfortable with the current levels of income and wealth accruing to the richest in society.”

I will leave those in poverty until a later amendment. To make matters worse, ONS data shows that inequality has worsened since he wrote the report, and it is worse still if we use alternative measures on inequality.

I ask the Minister if she thinks the gap between rich and poor is acceptable. How does she think that the levelling-up agenda’s ambitions can be achieved without addressing that gap between rich and poor?

[Lord Shipley (LD)]

My Lords, I declare, for Committee stage as a whole, that I am a vice-president of the Local Government Association and a vice-president of the National Energy Action advisory board.

I thank my noble friend Lady Pinnock for raising this issue; it is very important that we have a shared understanding of what we mean by levelling up. For me, I think it is the second option she gave, which is narrowing the gap. If we were to compare ourselves with Germany, we would find that there is a constitutional requirement in Germany for the 16 Länder to support each other, and the outcomes are assessed in terms of how well off the Länder are and using the many criteria we will be debating later today—there are so many criteria you can use. However, it is important that we understand the Government’s precise objectives with the Bill.

--- Later in debate ---

Moved by

[Baroness Lister of Burtersett]

4: Clause 1, page 1, line 14, at end insert—
“(2A) The levelling-up missions must include a mission to reduce the numbers and proportion of children in absolute poverty, relative poverty and deep poverty in each local authority and across the United Kingdom.”Member's explanatory statement
This would ensure that the levelling-up missions included a mission to reduce child poverty.

[Baroness Lister of Burtersett (Lab)]

My Lords, I rise to speak to Amendment 4 in my name and those of the right reverend Prelate the Bishop of Durham and the noble Baronesses, Lady D’Souza and Lady Stroud, whose support I am grateful for, although they could not speak today. The purpose is to ensure there is a levelling-up mission to reduce levels of absolute, relative and deep child poverty in each local authority and across the UK.

On Second Reading, I quoted the response of the Levelling-up Secretary to a Conservative Back-Bencher who had argued that levelling up applies to need, not geography. “Yes, absolutely,” said Mr Gove:

“It is critically important that we … address poverty wherever we find it”.—[Official Report, Commons, 2/2/22; col. 339.


The former Prime Minister Mr Johnson was asked by the Liaison Committee:

“Can you level up the country without reducing the number of children living in poverty?”


He replied, “No.” When he was told that child poverty was not mentioned once in the levelling-up White Paper, he assured the committee that this was a “purely formal accident”. So, while I appreciate the detailed letters sent by the Minister following Second Reading, it was disappointing that nowhere could I find an answer to the question I had posed—

“could the Minister please explain why a mission to reduce the level of child poverty has not been added to the list of missions in the White Paper?”—[Official Report, 17/1/23; col.1766.]

given that its omission was apparently an accident. Indeed, I could not find any mention of child poverty at all in her levelling-up letter. Is that another accident?

Part of my argument on Second Reading was that levelling up has to be about people as well as places if it is to meet its objectives, including giving everyone the opportunity to flourish. Indeed, although the existing missions are framed in terms of inequalities between areas, ultimately, many of them concern people rather than the places in which they live, and earlier, the Minister acknowledged that levelling up is about people and places.

However, apart from the education mission, children are conspicuous by their absence. Yet, to quote Action for Children,

“Levelling up can only succeed if this includes levelling up for children.”


Levelling up for children has to address the child poverty that blights our society, with nearly 4 million children in poverty, or getting on for three in 10, projected by the Resolution Foundation to rise to its highest rate since 1998-99 by 2027-28. Moreover, half of children in families with three or more children are projected to be in poverty by that year. A glimpse of what this means is provided in an open letter from participants in the participatory Changing Realities project:

“Our children are hungry. Schools report ‘short concentration’ and ‘unmanageable moods’. They have lost their childhood ... we are sick with anxiety, drowning in financial doom.”


The report in which this is reproduced, prepared by the APPG Child of the North just last month, noted:

“We know that poverty is the central driver of inequalities between children, leading to worse physical and mental health, poorer educational attainment and life chances and alarming … gaps in life expectancy”.


This underlines the importance of tackling child poverty through existing missions on education, health and well-being. Gaps in healthy life expectancy cannot be closed without tackling child poverty. As the BMA has warned, “poverty kills”. In a recent BMJ interview, the President of the Royal College of Paediatrics and Child Health observed that social deprivation is a far bigger problem for children’s health than it was five to 10 years ago. She warns that poverty

“essentially eats away at what we believe the kinds of key components of a healthy childhood are”

and that this is going to have a generational impact. She calls for long-term thinking and, in the absence of government action, the college is encouraging paediatricians to lobby politicians on their commitment to reduce child poverty and health inequalities. Indeed, the royal college has briefed in support of this amendment, presenting evidence that child poverty is a key driver of health inequalities.

As a recent open letter to the Prime Minister from leading public health bodies and others—signed by many Peers, including myself—makes clear, the impact of child poverty and food insecurity on health has knock-on effects on education and achievement levels in schools. The educational mission looks to level up the numbers of primary schoolchildren achieving the expected standard in reading, writing and maths. Yet there is no acknowledgement of how poverty prevents many children reaching their potential with, as the public health letter spells out, implications for the provision of free school meals and breakfasts.

While I have stressed the importance of the levelling-up agenda explicitly addressing inequalities between people as well as places, as I argued earlier and the Minister accepted, the case for a child poverty mission stands, even if one accepts the Minister’s assertion, in her levelling-up letter, that the missions are “necessarily spatial”. The amendment is thus deliberately framed so as to include a spatial as well as a national, aggregate dimension. The evidence provided in the APPG Child of the North report, and also by Action for Children, shows clearly the spatial dimension to child poverty. According to Action for Children, 60 out of 152 local authorities have child poverty rates above the average. The APPG report underlines how the risk of child poverty is consistently higher in the north than in the rest of the country. However, it should also be noted that, after taking account of housing costs, research by my university, Loughborough, for End Child Poverty found that some of the highest child poverty rates are to be found in London authorities. So, in order to level up all these areas, wherever they are, we need an explicit child poverty mission that addresses both the extent and depth of child poverty.

The Minister’s letter explains that the levelling-up missions aim

“to anchor ambition and provide clarity over the objectives of public policy for the next decade”

and that they will be varied only

“following careful review of all missions”.

Yet we are constantly told that the Government are committed to reducing child poverty, and earlier the Minister said that levelling up is about bridging the gap between rich and poor. So, I ask again: why is there not a child poverty mission which would underpin and complement the existing missions and help to bridge that gap? Such a mission is important, both because children experience childhood only once and because poverty in childhood can have longer-term effects on their education, health and general well-being and their ability to flourish and realise their potential. Thus, this is urgent. Children cannot wait for a review of existing missions some years hence.

If the Minister cannot accept the amendment, will she at least agree to take it away and consider the addition of a child poverty mission to the existing list? If not, we can only conclude that the Government do not care sufficiently about child poverty or children to include them in their levelling-up strategy. I beg to move.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I will read Hansard, then write to her and put a copy in the Library.

[Baroness Lister of Burtersett (Lab)]

My Lords, this debate has shown the importance of some of the gaps in the Government’s levelling-up mission. It also shows how social and environmental justice are intertwined in terms of child poverty, the environment and disability, as we have talked about. They gel together well as a set of amendments.

I am very grateful to noble Lords who spoke in support of Amendment 4. Some powerful speeches have enriched the case for adding a child poverty mission to the list of missions. I am very grateful to the noble Lord, Lord Young of Cookham, who looked for a way through without an extra mission but looking at how the current missions could be adapted. It was very disappointing that the Minister rather rejected that olive branch—that way out or way through—and has not even agreed to take it away and consider it as an option.

I thank the Minister for engaging with the issues raised, but, needless to say, I found her response very disappointing. I think she said that the Government accept that child poverty is an issue that we must keep an eye on, manage and act on—but where is the Government’s child poverty strategy? There is none. It is simply not good enough to say that it is all about getting parents into paid work, without even acknowledging the growth of in-work poverty and the number of children in families who have someone in paid work and yet are in real, serious poverty.

The Minister said that she did not want to have targets that would just take people above the poverty line. That is one of the reasons why the amendment talked about deep poverty, not simply getting those just below the line over it. It is a shame that the noble Baroness, Lady Stroud, could not be here, because her Social Metrics Commission has done a lot to draw attention to the increasingly serious issue of the depths of poverty. We now have organisations such as the Joseph Rowntree Foundation talking about destitution. In our modern-day society, this is really not something to be complacent about.

The Minister said, “we are not complacent”, but she then went on to repeat all the wonderful things that the Government are doing, none of which is reducing child poverty—they may be managing it but are not reducing it. It is irrelevant to this amendment to say that we are doing this and that, because those things are not serving to reduce the level of child poverty. I am afraid that, for me, that smacks of complacency.

I do not want to keep people from their dinner. The Minister said that she hoped that we would be reassured by what we had heard and withdraw the amendment. I will of course withdraw, but do not take that as me being in any way reassured. I am not. We will have to consider whether we want to come back on Report with an amendment on child poverty. But, for now, I beg leave to withdraw.

Amendment 4 withdrawn.