Judith Cummins
Main Page: Judith Cummins (Labour - Bradford South)Department Debates - View all Judith Cummins's debates with the HM Treasury
North of England: Economic Support
Judith Cummins Excerpts(3 years, 5 months ago)
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Judith Cummins (Bradford South) (Lab)
It is a pleasure to serve under your chairmanship, Mr Efford. I thank my hon. Friend the Member for Barnsley Central (Dan Jarvis) for securing this extremely timely and important debate.
Even before the covid-19 crisis, the UK economy was fundamentally unbalanced. As the Institute for Public Policy Research North put it:
“The UK is more regionally divided than any comparable advanced economy.”
I have spoken before about the issues with the Green Book, and I continue to believe that the method used to assess potential projects skews investment, and therefore growth, into where it already happens, rather than where it needs to happen. The Treasury is committed to reviewing the Green Book, but I know that hon. Members will be interested to hear from the Minister the progress that it has made on that, because covid-19 makes it more urgent, given the disproportionate economic hit that the north has taken and the heavy price that people in the north are paying.
The Government’s handling of the covid crisis, especially their approach to local restrictions and regional packages of financial support, has shown that the needs of the north are still too often an afterthought—or, worse, ignored altogether. Instead of establishing a clear, transparent framework of support, proportionate to need, the Government have employed a strategy of divide and rule. Local areas, most of them in the north, were forced into unfair negotiations on entering higher levels of restrictions, but were then told that there was no negotiating to be done on the level or share of the financial support offered.
Worse still, it appears that the substantial packages of support came only when restrictions were imposed on London. For example, on 22 October, the Chancellor announced new grants for businesses in tier 2. That came the day after London entered tier 2. Areas including Bradford had been under the equivalent of tier 2 for months and months. That is yet another example of the Government’s having a deaf ear for the people of the north.
We are now in a national lockdown and the furlough scheme has been extended until March, but the Government need to set out exactly what will happen at the end of that period. They have suggested that we will go back into the tiered system, but many businesses in places such as Bradford will simply not survive if we go straight back into tier 2 or tier 3, with the current level of support.
In the short term the Government must ensure that, wherever there are restrictions after 2 December, there is a fair set of financial support packages, which take into account how long an area has been in local restrictions already. For each measure, the Government should produce an impact assessment, region by region, which includes the impact on regional inequality and the regional economy.
In the longer term, we need a fundamental rebalancing of our economy. Levelling-up rhetoric and the odd project here and there will simply not be enough. Trust is in short supply and the people of the north will hold the Government to account for their promises and their actions.