Levelling-up and Regeneration Bill (First sitting)

Neil O'Brien Excerpts

Committee stage
Tuesday 21st June 2022 Public Bill Committees

[The Chair]

Thank you. I call Minister Neil O’Brien to open the session.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Q Thank you, Professor Leyser, for coming this morning. I start with a very open-ended question. To what extent do you think the Bill will help achieve some of the goals set out in the levelling-up White Paper?

Professor Dame Ottoline Leyser: Goodness, that is a big question. My interest and expertise are particularly around the R&D aspects of the Bill. One of the really encouraging and exciting things going on across the Government at the moment is the attempt to tackle some of these huge cross-cutting issues, and levelling up is very much one of those things. That absolutely requires concerted, co-ordinated action, right across the Government, through virtually all the Departments, in a way that is aligned and co-ordinated and which really delivers on very broad priorities. Levelling up is a really good example. Net zero is another one.

Those kinds of things require different ways of working. This Bill is one framework in which that kind of joined-up thinking can be set out and embedded in the way in which government works. Yes, I think it absolutely has the opportunity to deliver on the ambitions set out in the White Paper. That depends very much on the alignment between the mechanisms and framework set out in the Bill and the missions element that is core to pushing forward the White Paper agenda.

[Neil O'Brien]

Q The Bill sets out various measures to widen the devolution agenda. It also puts into law the various missions set out in the levelling-up White Paper. For context, will you explain how in your particular area of expertise that fits with the wider agenda of ensuring that research and development spending serves the goals of levelling up, and what that means for UKRI as an organisation?

Professor Dame Ottoline Leyser: Absolutely. Research and development has an important role to play in the levelling-up agenda, in the context of economic regeneration right across the country. What we see at the moment is huge disparity in all kinds of measures, but one of them is total factor productivity across the UK, and R&D-intensive business and industry are critical to generating those high value-add activities that support economic growth across the UK, bringing with them a whole variety of high-quality jobs. One of the things that is important to emphasise is that innovation-led growth is not just about jobs for innovators; it is a huge ecosystem of activity that goes around that, which will provide economic growth and high-quality jobs and opportunities for people in local innovation clusters right across the country.

That is the goal. The role that UKRI needs to play is critical in that. We have this extraordinary opportunity, with the formation of UKRI four years ago, of bringing together all the disciplines and all the sectors. In the same way as I mentioned that cross-Government co-ordination is needed, cross-R&D co-ordination is needed to deliver some of the activities. We span the whole system in UKRI, so we can build back better aligned investment that can support open economic growth—as I said—right across the UK. We need that balance, co-ordinating across different inputs, to drive growth which is led by R&D and innovation. That is multiple things, some of which are in my remit and some of which are certainly not—that is another key point.

The co-ordination locally is important, but in the broader national context—that is also important. This is not about fragmentation; in fact, it has to be the opposite of fragmentation. While local empowerment and local choice are critical, that has to be embedded in a much wider national context. We cannot have a situation in which, across the country, every region decides that it aims to specialise in the same thing. That would obviously be incredibly counterproductive for everyone. That balance between national co-ordination and local empowerment is critical across my kind of investment and across the broader range of leaders as set out in the White Paper.

[Neil O'Brien]

Q One of the missions takes forward the Government’s ambition to increase our public domestic R&D spending outside the greater south-east by a third over the spending review period. How do you feel about that mission? On the level of ambition, are there things you would change about it; is the balance right; should we be doing things in a different way; should we be locking it in more tightly? Given all those different sorts of questions, is that balance between that objective and other priorities for UKRI right? How do you feel about the mission broadly speaking?

Professor Dame Ottoline Leyser: It is good to have those kinds of clear targets and goals. That is helpful. I think it is a long-term ambition, and that is another critical element of both the Bill and the missions, having those clearly articulated long-term goals to steer towards. The SR element of it is obviously much more rapid, and made in the context of the rising R&D budget across the SR, so I think it is achievable.

From my point of view, it is important to stress that our spend distribution does not meet the target from the Department for Business, Energy and Industrial Strategy. There is the broader Government target for the whole of investment, of 30% and 40% set out in the missions, and then there is a specific BEIS target of 55% outside the greater south-east. Our spend does not meet that at the moment—we are only part of the BEIS spend—but the critical element from that point of view is that in our open competitions for funding, we have flat success rates across the country. The news that we are investing more in the greater south-east than outside that area is because we do not receive the applications.

A lot of what we need to do is capacity building. We need to think hard about how we support the excellent research and innovation that we see right across the country to galvanise and bid into our schemes, making sure that the schemes we put forward are equally open to everyone right across the country and that the targeted interventions that we put in place, of which there are some—they are only going to be a small proportion of our overall investment—are carefully considered in the context of the wider capacity-building activity to drive up opportunity for everyone right across the country.

There is excellence everywhere, however, and we can see that, for example, in parts of the recent research excellence framework. One hundred and fifty-seven universities across the UK made submissions to have their research assessed in that exercise. There is world-leading research in 99% of them, according to the assessment process, which can lead activity. Harnessing the benefit of that will be critical to the levelling-up agenda and to the wider economic recovery from the pandemic that we need to drive.

Getting back to your question—are those the right ambitions?—I suppose I am inherently more in favour of outcome and output ambitions than I am of input ambitions but, none the less, I think having those clear targets behind which we can align our activity in UKRI and more broadly across Government is very helpful in embedding this agenda right across everything that we do. That will be critical to success.

[Alex Norris (Nottingham North) (Lab/Co-op)]

Q Thank you, Professor Leyser, for your time this morning. In your role as a member of the Levelling Up Advisory Council, with respect to levelling up, do you think that at the moment things are getting better, or are they getting better quickly?

Professor Dame Ottoline Leyser: That is quite a difficult question to answer. At the moment, things are very challenging right across the country. We have the inflationary pressures caused by a combination of the tail of the pandemic and the war in Ukraine. That has come on the back of the pandemic, which also caused a lot of economic and social shockwaves across the country. Both those things, if anything, amplify disparities for a whole variety of reasons. Because of those factors, it would be difficult to argue that things are getting better.



Having said that, and looping back to what I said at the beginning, I am very encouraged by the ambition—reflected in the Bill and the White Paper—to take on some of the really big, long-standing and multifaceted problems; to get to the root of them and tackle them through this concerted, aligned action. That is not typical, because we have tended to work in silos when dealing with particular aspects, which does not work as well as integrated, concerted actions. A lot of the important problems, such as health inequalities, are multifaceted, and we do not solve them by simply looking at, for example, the health system. I am encouraged by the new approaches that are being taken to try to address some of the problems, but I do not think they are yet biting.

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[The Chair]

Tracy, I am going to have to cut you off, because we need slightly shorter answers. I will ask the Minister—who does not believe in “churn of Ministers”—to ask you a question.

[Neil O’Brien]

Q Tracy, thank you for taking the time to be with us this morning—it is much appreciated.

Clauses 60 and 61 will simplify and streamline the processes for setting up new combined authorities. West Yorkshire is lucky, because it already had a combined authority from 2014. From your own experience of getting the mayoral combined authority set up and from the wider experiences of the M10 group, could you say anything about the complexity and time taken to set up new combined authorities? I appreciate that people are full of enthusiasm and want to get on with it, but that, at the moment, they have to go through some quite laborious processes to get going. What was your experience of that? Do you welcome provisions that would simplify and speed up the process of getting going with CAs?

Tracy Brabin: My role really started on election day—I was not here setting up the office and the CA. However, going forwards into combined county authorities and other models, I hope that whatever learning you get from that will come back and refresh our modelling, so that we can learn from these new MCAs and CCAs. Ben, would you like to add to that? You were here; you did it!

Ben Still: Briefly, there is a set of processes that we and the other CAs had to follow. The provisions in the Bill to simplify those processes are welcome in the sense that the statutory tests still need to be met; that is the important thing, I suspect. For us, though, the combination of the will on both sides—both locally and within the relevant Government Departments—to go through the processes at pace and to work collectively is just as important as the steps we need to go through.

[Neil O’Brien]

Q Thank you. When I was a child in Huddersfield, we originally had a metropolitan county council; we then went through a long period of having no elected city region-wide leadership. How do you compare the experience of having a directly elected Mayor to either of those previous regimes—either having no elected leadership, or having a county council or assembly-type model? Do you think the mayoral model is preferable?

Tracy Brabin: I would say wholeheartedly that the mayoral model is better. It is a single point of contact; it is a point of contact with Government. The Mayor is a champion, advocate and ambassador for the region, and somebody that can work collectively on strategic priorities. The role is not just local but national—and, I would suggest, international—to raise the profile of a region. It is great that Government are understanding and getting behind devolution. It really, genuinely is the way forward for our region.

[Neil O’Brien]

Q The Bill makes it simpler for Mayors to take on police commissioner powers. What are the advantages for Mayors of having police commissioner powers? Does it allow integration across different subjects in your activity?

Tracy Brabin: I cannot tell you. The gift that keeps on giving is the fact that I also have responsibilities for police and crime. It means we can take a public health approach to everything we are doing, getting people in the room or on Zoom from housing and transport, and—via the integrated care system—people from health talking about health inequalities that impact on crime. It is a really brilliant tool to address some of the greater challenges across West Yorkshire. There are obviously lots of different versions, and only Andy Burnham and myself have those powers, but they are really useful.

For example, they help us to deliver my commitment to the safety of women and girls across West Yorkshire. It feeds into everything, including transport. We have the safety app that allows bus users to feed back on whether women and girls feel safe travelling. On skills, we are able to support 750 more police officers and staff, and to work with the chief constable to try to find a pipeline of diverse young people wanting to go into the police. It is a really great strength.

I would say that giving police and crime commissioners and our teams in-year funding pots, with different expectations and timeframes, is incredibly difficult to handle. I hope that we can get multi-year pots of funding to do bigger projects that have a greater impact.

[Neil O’Brien]

Q I have one last quick question. West Yorkshire has what some people describe as a strong Mayor model, whereby the Mayor needs to be on the side of the majority for various decisions to be taken. There is a diversity of decision-making structures in the existing MCAs. What would you say are some of the advantages of having a strong mayoral model or strong decision making for particular subjects?

Tracy Brabin: It is helpful that we have real strength in our leaderships, because they are really experienced leaders. We are all focused on delivering for the people of West Yorkshire, and it has not come to a point where it has been down to my vote. We get a consensus before we go to a vote, and the opposition members on the CA are very helpful, because they provide the check and challenge to get us to a point of compromise so that we can bring everybody with us in delivering for the people of West Yorkshire.

[Tim Farron]

Q Thank you, Tracy; it is nice to see you again. Your region is significantly diverse, with both rural and urban areas. Like every other part of the UK, you will have seen a worsening housing crisis in the last couple of years, particularly in the private rented sector, which appears to be evaporating into short-term lets, especially in your rural communities. What powers does the Bill give you to ensure the availability of affordable for the people you represent?

Tracy Brabin: Affordable and sustainable homes are a priority for me, because it is personal—I grew up in social housing. My commitment to the people of West Yorkshire was to deliver 5,000 affordable and sustainable homes. Over the years, we have seen the number diminish, partly due to right to buy and partly due to the lack of funding. I am able to work with the councils and push them to get to further building target, which has been really helpful. The brownfield fund for housing has enabled us to really focus on the spots that blight our communities, and to work with developers.

For the first time, the West Yorkshire housing associations have all come together under one umbrella to deliver on my housing pledge and to help us get there, but it is still a challenge. Although the £22 million extra in the Bill for brownfield housing is welcome, it comes with the same strings attached and the same expectations from the Government, but with less time to deliver. There is an expectation that we have more freedom, but we need to get away from the strings that hold us back from delivering.

Let us not forget that we have areas in West Yorkshire where the housing stock is really low cost, and we are trying to square the circle of how we build more when we have the Government’s expectations about market failure. We have met Homes England since I became Mayor. I am very interested to see how that relationship develops and how we can work more closely on affordable housing, because the need in our region is growing exponentially. The lists of people waiting for a secure and affordable home are far too long. Ben, I do not know whether you want to talk more technically.

Ben Still: Thank you, Mayor. There is a lot in the Bill that could potentially be helpful to local authorities in unlocking and developing land. The issue that we face in West Yorkshire is much more about the viability of housing sites than about pressure on land and so forth. This is a good example of where the Mayor working in partnership with the local authorities is not just about the legislative provisions, but about the strength of the partnership. The Bill does not change the fundamental relationship between local authorities and Mayors with regards to who is responsible for the delivery of housing.

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[Patricia Gibson]

Q Do you think it would be helpful or desirable for an independent body to oversee and assess the UK Government’s progress on levelling up?

Mairi Spowage: Through the Bill, my understanding is that the UK Government have to publish regular updates on the progress that they are making towards the missions that it sets out and the metrics chosen to measure success. There is quite a lot of work to do to ensure that those metrics cover the whole of the UK on all the different missions. There is a significant amount of investment—I believe that the ONS is looking to try to do that better, but it is not for me to say whether an independent body should be set up to monitor what is, after all, a UK Government policy agenda that they can legitimately pursue.

[Neil O’Brien]

Q Professor Spowage, thank you so much for taking the time to be with us this morning. The Bill creates statutory requirements around the levelling ambitions that we were just discussing. One of those is on digital connectivity. Through Project Gigabit and the shared rural network, Scotland is likely to see particularly large increases in connectivity. How do we best drive growth, particularly in more rural parts of Scotland? How do we best measure progress in the roll-out of connectivity? Do you agree that the rise of online working is, potentially, a strong tailwind for the rural Scottish economy?

Mairi Spowage: Yes, if and when digital connectivity is of sufficient quality it will present a lot of opportunities for the rural economy. We still hear in parts of Scotland that it is a barrier to remote working. It would be hugely transformative for lots of areas, particularly of rural Scotland, but I am sure that lots of other rural parts of the UK would say the same. It would be transformative in terms of the connectivity of people working from home, perhaps for businesses in population centres but also for businesses that are operating in these areas, to have a more reliable connection. It could be extremely transformative to those areas.

We have heard from some of our work with businesses that to a certain extent it can also work the other way. Businesses based in remote and rural Scotland are employing people in the big population centres, but sometimes having to pay them more money because they are more likely to command higher wages in those areas, particularly in this very tight labour market that we have at the moment.

Improvements in digital connectivity present huge opportunities for rural Scotland. As much as there is quite a lot of focus on transport connectivity through the levelling-up funds, investment UK-wide—particularly in rural areas—in digital connectivity is one of the areas where we could get the biggest bang for our buck in transforming the economy and reducing regional inequality, particularly when we look at the population outlook if current trends continue in rural areas.

[Neil O’Brien]

Q Thank you. One of the other missions for which the Bill is creating statutory requirements is to increase domestic public R&D investment outside greater south-east England by a third over this spending review period. Alongside that, there has been the creation of an innovation accelerator centred on the Glasgow city region. How can we best harness the large public investment in research and development to drive growth right across Scotland?

Mairi Spowage: That is a great question, and one that policy makers in Scotland have been grappling with for a long time, particularly given the quality of our universities in Scotland and their international prowess in research and development. We seem to have an issue between the development of the ideas, the start-up, and the translation of that into commercial opportunities that can be scaled up into medium-sized businesses. In Scotland, we often find those opportunities are lost, particularly to the south-east of England, because the infrastructure is there to scale up that business to the next step. I think the sorts of investments that you are talking about, not just in Glasgow but in other locations in Scotland, will be really important. We have to think about how we take all of the great advances that have been made in academia in Scotland and turn them into commercial opportunities, have them scale up and feel that there is the infrastructure and capacity in Scotland so that they do not have to move or be bought by companies outwith Scotland.

[Neil O'Brien]

Q That is very helpful. In your earlier answer you drew attention to the lack of UK-wide indices of multiple deprivation. We know that in the first round of the levelling-up fund, the 50% of local authorities that had the lowest median pay got roughly three quarters of the investments—it is targeting poorer areas. Would it be attractive, as part of the data drive in the levelling-up White Paper, to create more UK-wide indices of deprivation and other things?

Mairi Spowage: Yes, I would be very supportive of that. We can see in the sorts of metrics that are used—not only those related to indices of multiple deprivation but educational outcomes or transport connectivity—that some of them are focused on England-only measures; sometimes they are GB only. We do not want to fall into the trap of, in some cases, using GB and UK inter-changeably here. It is really important that we think about the metrics that we are going to use to capture the reduction in regional inequalities across the UK. Wherever possible, we should invest in developing UK-wide measures.

In some cases I can see that there are data sources in the devolved nations that are very similar to those being used for England. I think there is work that could be done to develop more consistent measures right across the UK, for which, as I said earlier, there is a clear policy need for the UK Government’s programme.

[Alex Norris]

Q Thank you for your time this morning, Professor. Can you expand on an element of a previous answer you gave about the work that the Office for National Statistics, of which you are a fellow, is doing on developing a dataset in that area?

Mairi Spowage: I am not here to speak for the ONS, but I am a fellow, so they ask me and a group of other expert academics for advice on their work programme. They have published a subnational data strategy, which was worked up not just by the ONS but across the Government’s fiscal service, to think about how we can develop more sophisticated metrics across the UK to capture different levels of needs and progress. That would be to support not only the levelling-up agenda but things more broadly. In partnership with the Department for Levelling Up, the ONS is looking to develop more metrics across the UK. Some of that will be working closely with the devolved Administrations to develop data sources and think what might be comparable.

We have done a significant amount of work with the Economics Statistics Centre of Excellence. We published a paper recently on developing a suite of sub-national indicators across the UK. We made recommendations there, which included working closely with the devolved Administrations to develop data that was consistent across the UK, particularly on educational and environmental outcomes. A recent example would be something like fuel poverty, which is obviously a live discussion. It is measured differently in all four nations of the UK, so it is very hard to compare differential rates of fuel poverty in different parts of the UK at the moment.

Parks and Green Spaces: Manchester, Gorton

Neil O'Brien Excerpts

Wednesday 8th June 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

I thank the hon. Member for Manchester, Gorton (Afzal Khan) for securing this Adjournment debate on a subject that matters a lot to all MPs in this House. He is a committed champion and advocate for green spaces in his constituency; we heard about the breadth of that advocacy in his very good speech. Who can blame him, when his constituency is among the greenest in the country? Not a lot of people would immediately guess that 89% of neighbourhoods in Manchester, Gorton have a high level of accessible green space within 15 minutes’ walk.

The hon. Member touched on some of the fantastic things that are happening in his constituency. He mentioned places such as Gore Brook valley, which offers locals access to a butterfly garden, historic pubs, a grade II listed church, a water sports centre, 200-year-old cottages and handsome Victorian terraces. There are also outstanding family parks such as Alexandra Park and Platts Field Park, which had the first ever “Friends of” group, as he mentioned.

Members of this House do not always share the same politics, but I think we all have the same enthusiasm for our parks. During the covid pandemic, as the hon. Member says, we appreciated them like never before; they were incredibly useful in keeping our sanity and our health during that difficult period. With the worst of covid now behind us, it is right that we reflect on what keeps parks going and on how we keep them looking brilliant and being useful.

The hon. Member rightly drew attention to the many roles that parks have, from sucking up water—that vivid image that he conjured up—to being a place where communities interact with one another. They also host important events for particular communities; it sounds as if similar things happen in his constituency as in mine on the edge of Leicester.

The hon. Member asked me to draw attention to and praise the work of the community groups that have put in 11,000-plus hours of community work in Greater Manchester. It is a pleasure to do so; some fantastic things are being done. I draw particular attention to the Litter Wombles—I do not know whether they operate in his constituency, but they are a wonderful social movement with huge numbers of people making our country tidier and nicer. I pay great tribute to all those groups.

The hon. Member touched on several subjects to which I will try to do justice, including planning. The Government are committed to retaining the beauty and the majesty of places, so our national planning policy requires that planning processes seek to deliver

“high quality, beautiful and sustainable buildings and places”.

That includes encouraging the creation of appropriate green and public space within new developments. The national planning policy framework makes explicit just how important beauty and design are to development across the country, and to

“creating better places in which to live and work”.

The hon. Member will have heard during the earlier debate on the Levelling-Up and Regeneration Bill about the BIDEN principles that the Secretary of State is championing, access to nature being a crucial element of that agenda.

The hon. Member mentioned funding. That did not, of course, start in 2019. Between 2017 and 2019 alone, we made £16.3 million available to support parks and green spaces, including those in urban environments. We provided the £9.7 million local authority parks improvement fund, the £5.1 million pocket parks and pocket parks plus programmes, and the £1.4 million investment to test new models and new ways of doing things through the future parks accelerator programme. As the hon. Member said, we are keeping that investment going well into the future with the £9 million fund for levelling up parks, which was announced in the spending review. The aim of the fund is to create 100 green spaces on unused, undeveloped or derelict land. Although we are still to announce further details, I can assure the hon. Member that it will be focused on increasing access to quality green space in deprived urban areas in the UK. Such access is important, for exactly the reasons that he gave.

The hon. Member touched on the role of the mayoral combined authority. I was pleased to be able to play a part in helping to set up the authority, which will enable communities to regenerate themselves and find more ambitious ways of creating green spaces in urban environments through, for instance, the multi-year investment funds that we have given it.

We will, of course, go further. The Levelling-Up and Regeneration Bill contains a range of provisions for the creation of attractive green spaces, such as our planned reforms of compulsory purchase orders and our proposal to create liveable spaces by extending the temporary flexibilities on pavement dining. This is all about creating nicer places to be in, and about bigger area regeneration. The Bill also contains new legal powers, which we are backing up with funding streams such as the levelling-up fund, which can be used to create attractive new cultural and green spaces, and the highly flexible shared prosperity fund, which can be used to create new parks, among other civic amenities. There is also the programme that we have with Homes England to create 20 instances of transformative Kings Cross-style regeneration, using funding streams such as the £1.5 billion brownfield fund, and also the powers and expertise of Homes England to drive transformative urban regeneration. I am keen for that to include attractive new green spaces, because they are so important.

In the past, the link between public health and wellbeing and access to green spaces has not always been as well articulated as it could have been, but over time, evidence has built up. The hon. Member talked about some of it. Studies have found that contact with nature can reduce anxiety and stress, raise self-esteem, and improve psychological health. One 2009 study even concluded that people find it easier to resolve minor life problems when spending time in natural settings. It is difficult to think of any other resource that caters for so many different needs, from health to wellbeing to community integration.

I am delighted to have had the chance to talk about some of the things that the Government are doing, and about why and how we intend to continue to back our parks and make these wonderful and treasured community facilities even better in the future, and something of which we can all be proud.

Question put and agreed to.

Oral Answers to Questions

Neil O'Brien Excerpts

Monday 16th May 2022 Commons Chamber

[Kate Griffiths (Burton) (Con)]

20. What steps his Department is taking to help support the regeneration of towns and high streets.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

Regenerating our high streets and town centres is essential to the Government’s commitment to levelling up the country. The Levelling-up and Regeneration Bill includes measures to tackle vacant properties, improve compulsory purchase powers and make temporary pavement licensing permanent. It builds on the comprehensive funding package already announced, including the £3.6 billion towns and future high streets funds, the £4.8 billion levelling-up fund and the recently launched £2.6 billion shared prosperity fund.

[Jack Brereton]

I thank the Minister and the whole Cabinet for visiting Stoke-on-Trent last week. In towns across Stoke-on-Trent, encouraging new uses of property on our high streets has often been held back by complex ownership and the council not having the resources to tackle the issues. What more are the Government doing both to incentivise property owners to bring derelict spaces back into use and to make it easier to use enforcement powers where owners prove unwilling to do so?

[Neil O’Brien]

My hon. Friend is completely correct. It was a pleasure to join the Cabinet meeting in Stoke last week and talk about how we drive forward regeneration there. Stoke is really powering ahead, and the measures in the Levelling-up and Regeneration Bill—particularly those to reform compulsory purchase orders and crack down on empty shops—will help things go even faster. That is in addition to the specialised support that Stoke-on-Trent is receiving through the high streets task force. I have also set up a meeting next month with all the infrastructure and regeneration bodies across Government to plan how we can build on Stoke’s three levelling-up fund successes.

[Kate Griffiths]

Burton town deal board has worked hard over the past two years in putting together a town deal we can be proud of. It is clear that constituents are passionate about our town, and they have worked with the board to ensure that the final plan will offer a great future for Burton. The plan has now been submitted. Can my hon. Friend offer any thoughts on Burton’s plans, and can he give an indication of when approval might be granted so that we can crack on with levelling up in our area?

[Neil O’Brien]

I praise the proactive approach that East Staffordshire Borough Council has taken, which includes working cross-party to build consensus. Its plans for the riverside regeneration in particular will be absolutely transformative. The business case documents are currently being reviewed by officials, and I hope to be able to sign those off shortly so that the projects can get under way.

[Chris Bryant (Rhondda) (Lab)]

The Rhondda is absolutely beautiful, but some of our town centres are let down by hideous old buildings which, frankly, do not need any levelling up; they need some levelling down. So will the Minister please put in place a levelling-down fund that will allow us to destroy some buildings, such as the bingo hall in Hannah Street in Porth?

[Neil O’Brien]

At the same time as making an amusing point, the hon. Gentleman makes a very important point. The powers for compulsory purchase will help to unlock sites, including sites that the hon. Gentleman mentions which need fundamental change. The funding schemes we have put in place—the shared prosperity fund and so on—will help put financial firepower behind those regeneration schemes, too.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

One way to regenerate high streets is to repurpose old retail units as co-working spaces, and increasing the number of remote jobs available means people do not have to leave the place they love for the job they want. Would the Minister, and indeed any Member across the House, like to come to my Work Hull: Work Happy event on 23 June at 11 am to find out more about the benefits of remote working for productivity and opportunity?

[Neil O’Brien]

It sounds extremely interesting, and I would be very interested in coming along. The hon. Lady is completely correct that remote working is potentially a really powerful driver for levelling up, and some of the measures in the Levelling-up and Regeneration Bill, such as repurposing shops through the high street rental auction scheme, can potentially be really transformative for our high streets.

[Kelly Tolhurst (Rochester and Strood) (Con)]

2. What steps he is taking to ensure that leaseholders do not have to pay for remediation work in buildings where the developer is at fault.

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[Peter Aldous (Waveney) (Con)]

6. What steps his Department is taking to support economic growth across the UK.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Our levelling-up White Paper sets out our plans to support economic growth across the whole of the UK. Since September 2020, we have allocated more than £7 billion through our levelling-up funds, including the recently announced allocation for the shared prosperity fund.

[Peter Aldous]

I am grateful to my hon. Friend for that answer. Coastal communities such as Lowestoft and Waveney are the forgotten powerhouse of the UK economy. Can my hon. Friend confirm that the opportunities and challenges they face will be given the highest priority as the Government set about delivering their levelling-up agenda, and will the money from the Crown Estate that was originally used for the coastal communities fund be targeted at realising the full potential of coastal areas and meeting their needs?

[Neil O’Brien]

I have met my hon. Friend about this issue several times and I agree that coastal communities have the potential to be real powerhouses for our economy. That is why the future high streets fund has allocated £149 million to coastal local authorities, and why coastal local authorities got £287 million of funding in the first round of the levelling-up fund. That comes on top of the £229 million, which he mentioned, that we have invested in coastal towns and communities since 2012 through the coastal communities fund.

[Mr Speaker]

We come to the shadow Secretary of State, Lisa Nandy.

[Lisa Nandy (Wigan) (Lab)]

Look, can the Minister not see the crisis unfolding across the country? There has been the biggest fall in living standards since the 1950s. Pensioners are boarding buses just to keep warm. On every measure, the gap is widening; there is less for the regions, in terms of public spending; salaries are falling; homes are less affordable; and local economies are on the verge of collapse. Surely he recognises how absurd it is that all we have had from the Secretary of State in the past week is the promise of an al fresco dining revolution, and three full pages of legislation giving us the power to rename our Mayors. What exactly is stopping the Government scrapping business rates, bringing in a windfall tax to cut money off energy bills, uprating benefits now, rather than waiting till later, or doing any of the things that will get money back into people’s pockets and get our economy growing?

[Neil O’Brien]

The hon. Lady could also have mentioned the fact that our national living wage, which this Government introduced, is putting £1,000 extra in the pockets of working people. She could have mentioned the changes to universal credit, which will make full-time workers £1,000 better off. She could have mentioned the record increase in the national insurance threshold, which will make nearly 30 million households better off, or any of the other measures that we are taking through the levelling-up agenda: the £4.8 billion being spent through the levelling-up fund; the £3.6 billion being spent through the towns fund; and the £2.6 billion that is helping to transform town centres across the country. I notice none of those things got a mention in her question.

[Lisa Nandy]

It is increasingly as though the Government are living on a completely different planet. The other day, the Secretary of State was in Stoke, which has had £35 million taken off it by him—that money used to flow freely back to us via Brussels—and £20 million stripped out of the local economy because the Government scrapped the £20 million universal credit uplift.

The bigger problem is that a pattern is emerging. The Secretary of State could not get money from the Chancellor. He could not get visas from the Home Secretary. He could not convince his former junior Ministers to stop closures of Department for Work and Pensions offices in the north. He could not even persuade his civil servants working on levelling up to move out of London. For all the nonsense that there has been, two thirds of his civil servants working on levelling up are trying to level us up from the capital. At least now he knows what it is like for the rest of us—in the north, Scotland, the midlands, Wales and the south-west—to be treated with total contempt by a bunch of Ministers in Whitehall. Seriously, what hope has he got of convincing us in this country that he can level us up when he cannot even convince a single one of his colleagues around the Cabinet table?

[Neil O’Brien]

I thank the hon. Lady for drawing attention to the Cabinet’s visit to Stoke the other day; if she had been a Government Back Bencher, people would accuse her of toadying for teeing up this answer so brilliantly. She mentioned several things that allow me to mention the three successful levelling-up bids that we have had in Stoke, and she mentioned the shared prosperity fund, about which I will make a point. Under the last Labour Government, money was decided on in Brussels and then given to remote regional development agencies. That money is now going directly, with no strings attached, to the fantastic Conservative-run council in Stoke, which is transforming the fortunes of that city after years of Labour neglect.

[Mr Speaker]

I call the Scottish National party spokesperson, Patricia Gibson.

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

Despite the bullish posturing, the Minister knows that households across the UK are suffering terrible hardship because of the cost of living crisis, which has the Tories’ name written all over it. Despite the rhetoric, the reality is that Scotland’s resource budget allocation has been cut by Westminster by 5.2%, and the capital budget allocation has been cut by Westminster by 9.7% in real terms. How can he claim to support economic growth across the UK when the Scottish Government’s ability to support business, investment and people through the cost of living crisis can only be severely constrained by these cuts?

[Neil O’Brien]

The hon. Lady talks about Scottish public spending. The truth is that the record block grant that Scotland has just received is the biggest settlement since devolution—it is huge. For every £100 of spending elsewhere, there is £126 of public spending in Scotland. The implication in the hon. Lady’s question is just not correct.

[Andrew Percy (Brigg and Goole) (Con)]

The problem for the shadow Secretary of State is that some of us remember what 13 years of a Labour Government meant for the north of England: we received very little. Since the Government came to power, not only have they cut the Humber bridge tolls in half and supported the development of the Siemens wind turbine factory in Hull and the new Siemens train factory in Goole, but we have received huge sums of cash, including through the town deals that are coming our way. However, we want even more. Although we missed out on the levelling-up fund bid the first time round, will the Minister assure me that he will look very closely at the bids that are about to be submitted for my area for the next round of funding?

[Neil O’Brien]

I will look very closely at them. I hope that through the very exciting talks that are going on, and through the Hull and East Riding devolution deal, we can pick up many more of the exciting opportunities in the area. Of course, the reviews of Labour’s performance in Hull are so good that it has just been kicked out of the council.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

7. What steps he is taking to deliver long-term funding settlements for the levelling-up agenda.

--- Later in debate ---

[Simon Fell (Barrow and Furness) (Con)]

12. What steps his Department is taking to help empower local leaders to level up their communities.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

The Department is delivering the Government’s plan to empower local leaders, including offering devolution deals by 2030 to anywhere in England that wants one.

[Simon Fell]

I thank the Secretary of State for visiting Barrow recently to see how the £25 million town deal and the £16 million levelling-up funding will transform our community.

Cumbria has just elected its first ever councillors to the new Westmorland and Furness Council and Cumberland Council. This is a historic moment for our county. Does my hon. Friend the Minister agree that there is further to go and that the new councillors have the opportunity to secure a bountiful devolution deal that supercharges the county with an elected Mayor? What advice would he give to them?

[Neil O’Brien]

I agree with my hon. Friend. I was in Barrow and Furness a couple of weeks ago, and I was struck by the fantastic progress he is helping to drive using levelling-up funds, such as the marina village, the new bridge, the new university campus and more. I was also struck by the common linkages and opportunities across Cumbria, and I can see the case for an ambitious devolution deal covering both new authorities once they are up and running.

[Anthony Browne (South Cambridgeshire) (Con)]

T2. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Craig Tracey (North Warwickshire) (Con)]

T3. North Warwickshire Borough Council does a fantastic job of serving our local community, despite operating on a budget of only £9.5 million, which is certainly the lowest in Warwickshire and must be one of the lowest in the country. Will the Minister agree to come to my constituency to meet the council and to see for himself the excellent work it does, and to see how it could put the levelling-up funding on offer to excellent use?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

I pay tribute to David Wright and North Warwickshire Borough Council, because they have done a fantastic job, particularly during covid, in supporting the local community and local business. I would be delighted to visit—to hop across the A5—not least because it is only 20 minutes away from Harborough.

[Helen Morgan (North Shropshire) (LD)]

T5. Just last year, Shropshire’s Conservative-run council missed out on three levelling-up bids, and it missed out on a bus service improvement plan bid, under the Bus Back Better fund, this year. There is no doubt that Shropshire has need of these funds, so I would like to understand: what steps is the Secretary of State taking to ensure that levelling-up funds are allocated on the basis of need, rather than through some opaque bidding process that seems to be influenced by a council’s ability to direct resources at that bid?

[Craig Williams (Montgomeryshire) (Con)]

T4. I thank my right hon. Friend for delivering the shared prosperity fund, with historically high funding for mid-Wales and Montgomeryshire in particular, at more than £200 per head. I particularly thank him for the golden thread of rurality that we find in this formula, and I press him to continue delivering for rural communities.

[Neil O'Brien]

One reason why mid-Wales has one of highest shared prosperity fund allocations in the country is precisely because we have taken rurality and the additional costs that come with it into account, and I look forward to building on that.

[Stephen Morgan (Portsmouth South) (Lab)]

T6. It is clear that the Government’s approach to levelling up is a postcode lottery based on their own political ambitions rather than a genuine desire to help communities. With Portsmouth’s high streets in dire need of investment and our city’s cultural attractions struggling with the cost of living, when will the Minister stop moving the goalposts and finally stop short-changing Portsmouth?

UK Shared Prosperity Fund: Rural Areas

Neil O'Brien Excerpts

Wednesday 11th May 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

I congratulate my hon. Friend the Member for Rutland and Melton (Alicia Kearns) on securing a debate on this important topic and on her superb speech. I also acknowledge the important contributions from the hon. Member for Strangford (Jim Shannon) and my hon. Friends the Members for Loughborough (Jane Hunt) and for Penrith and The Border (Dr Hudson), who were making some similar and important points in a debate just a couple of weeks ago.

We should start by recognising that many positive things are happening in Rutland, Melton and the parts of the Harborough district that my hon. Friend the Member for Rutland and Melton represents, and many of them are happening because of my hon. Friend. She has been a relentless champion for fairer funding for Rutland and Leicestershire. She has secured the Melton Mowbray distributor road, which is key to levelling up Melton; after 40 years of discussions, she and local colleagues have finally made it happen. Rutland Memorial Hospital has been saved after the commitment she secured from the clinical commissioning group. She raised broadband, and I am pleased her efforts paid off and put Rutland in the very first tranche of the gigabit upgrades in the country. She also helped secure £150,000 for a community hub in Thurnby and £150,000 for a pub in Frisby from our community ownership funds, and I look forward to drinking in them at some point. Of course, her local authorities have also benefited from funding from the UK shared prosperity fund: Rutland, Melton and Leicestershire are receiving over £5 million of UK SPF funding, with Rutland getting over £1 million, Harborough over £2.1 million and Melton just shy of £1.2 million. On top of that, Leicestershire is receiving nearly £3 million in multiply funding.

On the SPF, my hon. Friend raised a series of important questions about flexibility and rurality which I want to address directly. Even the last Labour Government acknowledged that spending on regional economic policies should have been brought back from Brussels and decided here, but they never managed to bring it back or get the EU to agree to that. Now that we do have control back, we can do things differently. The SPF fund will be radically more flexible than previous EU funding, and also much more locally led. Under the last Labour Government, funding was given to remote and unelected regional development agencies based far from Rutland and Melton; under the SPF, it will be given to individual districts and elected local leaders so it is much more local. In addition, bureaucracy will be slashed and there will be far more discretion over what money is spent on. EU requirements for match funding, which impacted on poorer places in particular, will be abolished. The EU system—with payment in arrears, multiple rounds of auditing and multiple rules, and lengthy application documents that all made it difficult for small local voluntary groups in particular—will be swept away. Under the EU funding, only a narrowly defined set of things could be funded, but under the SPF the investment priorities deliberately cover a very wide range of possible interventions because that is what local leaders said they wanted from us. Whether digital connectivity, buses, skills, improvements to high streets, community events, or sports and festivals, the choice for the first time will belong to local leaders and local communities. Rural communities will be empowered to set and deliver against their own priorities through the fund, shaping things locally and not having to apply to a remote RDA based in a city far away.

In terms of allocations, the SPF matches in real terms the previous spend in each local enterprise partnership area because we were conscious of the need for continuity for ongoing programmes. Within those LEP areas we have used the same index of community renewal that we developed for the community renewal fund. One reason why we used that is precisely because, unlike previous funding formulas, it explicitly recognises the challenges of rurality and sparsity to tackle the very unfairness my hon. Friend raised.

The SPF is only one of the funds we are using to give financial firepower to places. The £4.8 billion levelling-up fund, which recently opened for its second round, could be used to boost some of the fantastic rural food businesses that she mentioned, or to make the most of the incredible cultural discoveries that she also mentioned. She noted that Rutland and Melton were in tier 2; again, that is because the index for the levelling-up fund recognises the challenges of rural and poorly connected areas in a way that previous Governments have not. We have also created new funds such as the community ownership fund, which particularly helps rural communities where hub assets are so important to villages and smaller places. The £3.6 billion towns fund is regenerating communities throughout the country, and there is more to come, with the £1.8 billion brownfield fund mainly still to be allocated, which will help drive regeneration and save valued green spaces.

[Alicia Kearns]

The Minister mentioned community ownership funds. There is a pub in Stathern in my constituency which, having seen the success of the Bell in Frisby, would like to do the same with the Red Lion. When will the next funding round be opening—I know the Department is keen to learn from previous rounds and help people apply for the next round of the community ownership fund?

[Neil O'Brien]

It will be opening extremely shortly. I will take that offline with my hon. Friend, and we have indeed tried to learn lessons to improve that aspect of the fund from the first round.

My hon. Friend raised a number of other critical issues. She talked about the need for more GPs surgeries. I wholly agree, and the Levelling Up and Regeneration Bill published today responds to exactly that issue and to the campaigning by her and other hon. Members here.

We must ensure that development always comes with the infrastructure that is needed. Section 106 has seen money handed back to developers, which is intensely frustrating for local communities: projects become outdated by the time money is available, money cannot be adequately pooled to add up to major projects, it is not a transparent system and it does not reflect the cumulative effect of development because funds cannot be pooled properly.

The new infrastructure levy that we propose through that Bill will change all that. It means more money for local communities, more of the benefits of development for the local community and not just developers, more local control over what it is spent on and matching of new housing to the infrastructure that is needed.

My hon. Friend also talked about the challenges of digital connectivity in rural areas and her success in the early roll-out. We are investing £5 billion so that hard-to-reach areas can get gigabit speeds. More than 67% of UK premises can now access gigabit-capable broadband, an enormous leap forward from July 2019, when coverage was just 8%. That is a spectacular transformation. The £1 billion that we are investing in the shared rural network will particularly help to improve mobile signal in rural areas such as Rutland and Melton, so that she can spend even more time when she is on the A47 lobbying Ministers with brutal effectiveness.

My hon. Friend talked about the critical issue of local government finance. The overriding ambition of the Government is to keep bills low by giving councils the tools and firepower to keep taxes low while offering first-rate services to their residents. The Russian invasion of Ukraine has an impact on that and makes the cost of living even more important. Our local government finance settlement for 2022-23 meets that ambition by providing an additional £3.7 billion of funding to local authorities, including support for adult social care reform, which is critical for rural areas with older populations.

In my hon. Friend’s constituency, that funding translates to a cash-terms increase in core spending power for Harborough council of 6% compared with last year; for Melton it is a 9.3% increase and for Rutland a 7.4% increase. For Leicestershire County Council it translates to a 6.9% increase compared with the previous year. The new funding we have made available is the largest cash-terms increase in grant funding provided through the settlement in the past 10 years and is testament to the support we are affording councils in every corner of the country, especially those outside our major towns and cities.

My hon. Friend is quite right to say that these things can always be improved, and I am sure she will continue to power forward on this agenda.

[Alicia Kearns]

The Minister is a neighbour of mine, and I just want to point out that without him I do not believe we would have made such progress on fair funding for this country and the improved settlements. While he cannot publicly lobby for his own Market Harborough constituency, I know that all Leicestershire MPs wish to put on record their gratitude to him. Since I cannot ask him to agree with that, I will instead ask him to confirm that he will continue to keep his eye on funding for Leicestershire and Rutland.

[Neil O'Brien]

I am not entirely sure what I should say in answer to that question. Instead, I will finish by thanking my hon. Friend for bringing this very important issue to the House today. In the past, the rural economy has not always had the attention or the credit it deserves, but Governments who undervalue rural communities do so at their peril, and we will never do that.

When I was in Uppingham just the other day on market day, I saw all the attractions and the wonderful things that my hon. Friend’s constituency offers in the incredible, vibrant town centre. It is a wonderful place. However, we as a Government also see the challenges of maintaining those rural bus routes and the challenges of an older population. It is wonderful that Rutland has the highest male life expectancy in the entire country, but that brings with it the higher cost of looking after a group of older people well.

Rural places do not have the momentum that larger cities have had, because of the changes to a services-based economy over the past 20 years that have helped capital cities and large cities particularly at the expense of rural areas. We are conscious of those challenges. We have made unprecedented changes to the funding formula to recognise the challenges that for too long, as my hon. Friend said, have been neglected. Under this Government we are addressing those things. I will disagree with one thing she said: she was worried that sometimes these things are forgotten in Government, but I can promise her they will never be forgotten in this Government.

Question put and agreed to.

UK Shared Prosperity Fund

Neil O'Brien Excerpts

Tuesday 19th April 2022 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Last week, my Department announced the launch of the £2.6 billion UK Shared Prosperity Fund, publishing a prospectus that sets out the fund’s objectives, priorities and local allocations, as well as how the fund will be delivered. This starts the process of places across the country developing local plans to deliver the fund.

It represents the culmination of concerted effort and joint working across Government, with the devolved administrations in Scotland, Wales and Northern Ireland, and local partners across the UK. It is a key component on our journey to transform the country, set out in the Levelling Up White Paper, and our central mission to level up and spread opportunity and prosperity to all of our communities.

We are investing in domestic priorities and targeting funding where it is needed most: building pride in place; supporting high quality skills training; supporting pay, employment and productivity growth; and increasing life chances.

The UK Shared Prosperity Fund is a marked shift from the EU structural funds it succeeds. Under the EU, organisations had to go through a lengthy application process. Indeed, the process between first application and approval could easily exceed 12 months. The UK employed hundreds of civil servants to facilitate this, with projects only getting paid in arrears. The EU had strict, rigid requirements on what money could and could not be spent on, but our approach is much more flexible, empowering local people who know best.

In contrast, the UK Shared Prosperity Fund provides a three-year allocation to local authorities, with the goal of approving investment plans within three months. The fund will be much more flexible and locally led, freeing communities from the bureaucratic, rigid and complex processes of the EU structural funds. Bureaucracy will be slashed, and there will be far more discretion over what money is spent on. EU requirements for match funding, which impacted poorer places, will be abolished.

Instead of regional agencies, funding decisions will be made by elected leaders in local government, with input from local Members of Parliament and local businesses and voluntary groups. The fund will lead to visible, tangible improvements to the places where people work and live, alongside real investment in people’s skills, giving communities up and down the UK more reasons to be proud of their area.

All areas of the UK are receiving an allocation from the fund, with even the smallest places receiving at least £1 million, recognising that even the most affluent parts of the UK contain pockets of deprivation and need support. Funding will also match in real terms what was previously spent through the European Social Fund and European Regional Development Fund in Scotland, Wales, Northern Ireland and each Local Enterprise Partnership area of England, meeting the UK Government’s commitment to match EU funding. We are ramping up UK Shared Prosperity Fund funding as EU funds tail off, and when that funding ends, the UK Shared Prosperity Fund will match the annual average spending of EU funds, reaching around £1.5 billion per year, which is more generous than the average EU funding budget, which is around £1.3 billion average per year.

As funding is confirmed for three financial years—2022-23, 2023-24 and 2024-25—this will facilitate places’ planning and allow the UK Shared Prosperity Fund to act as a predictable baseline element of local growth funding. It comes alongside other funding to level up the UK, including the £4.8 billion Levelling Up Fund and £150 million Community Ownership Fund, and builds on the £200 million for UK Community Renewal Fund projects that we announced last year.

A key part of the fund is Multiply, the adult numeracy programme. With up to £559 million in funding available, this programme will offer local and national support for people to improve their numeracy skills—equipping adults across the UK with the skills they need to progress in life. It is being led by the Department for Education in England and funding will be distributed to the Greater London Authority, all Mayoral Combined Authorities, and upper tier/unitary authorities outside of these areas in England. In Scotland, Wales and Northern Ireland, Multiply will be delivered alongside wider programmes of UK Shared Prosperity Fund activity.

Further information about the fund and the investment planning process, as well as local allocations, is included in the UK Shared Prosperity Fund Prospectus and the Multiply Prospectus, both of which have now been published.

The next step is for each place to work with the private sector, civil society and others, as well as the devolved administrations in Scotland, Wales and Northern Ireland, to develop a local investment plan. This should set out how they will target their funding on local priorities, against measurable goals. Once this is in place and agreed with the UK Government, they can unlock three years of investment.

This new fund is a clear manifestation of our commitment to level up all of the UK. Alongside historic levels of investment confirmed through Spending Review ’21, it will make a significant contribution to overcoming geographic disparities, spreading opportunity and boosting employment, wages and life chances right across England, Scotland, Wales and Northern Ireland.

[HCWS774]

Local Enterprise Partnerships

Neil O'Brien Excerpts

Wednesday 16th March 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

It is a pleasure to serve under your chairmanship, Ms Rees. I start by thanking my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) for securing this important debate. It has been inspirational to hear the many varied things that LEPs are doing across the country: in the south-east, Thames valley, Coventry, Warwickshire, Buckinghamshire, Gloucestershire, and D2N2 in Northamptonshire and the south midlands. They are doing everything from heritage to digital skills and, indeed, fusion power. They have a very exciting agenda and are playing an important role.

The short answer to my hon. Friend the Member for Hastings and Rye is that, through the White Paper, LEPs now have certainty about their overall role in the future and how they will fit together with mayoral combined authorities. LEPs will continue to exist where there are no MCAs; where MCAs exist, they can be folded in as the business sounding board where they are co-terminus. Where there is a part-in and part-out LEP, we will respond to whatever the desires of local partners are. They will also shortly have the funding certainty that a number have Members have asked about, because we will be writing to them very shortly.

The longer version of the answer to the great questions that colleagues have asked today is that LEPs have played a very important role in unlocking local economic potential and growth over recent years. Using the convening power that so many Members have talked about, partnerships have forged lasting and productive relationships between business, education and local government. At the same time, they have brought that crucial private sector perspective into local decision making, and indeed into combined authorities. They have delivered major capital investment schemes, some of which have been mentioned today, such as the £12 billion local growth fund and the £900 million Getting Building fund.

LEPs have been really instrumental in supporting businesses through the twin challenges of leaving the EU and responding to the pandemic. As if that were not enough, a lot of businesses are now turning to their LEP and growth hub for guidance and support regarding the current situation with the Russian invasion of Ukraine. As my hon. Friend the Member for Hastings and Rye said, that is just part of what is driving the 1.6 million visits that she talked about.

Over the past two-year period we have seen LEPs implement a series of actions to strengthen their governance and accountability, and it has made a big difference. In the most recent assurance review we found that every one of the 38 LEPs met our expectations on strategic impact and delivery, and all but one met our expectations on governance. The National Audit Office has noted the progress that LEPs have made over time. In its 2019 report, the NAO highlighted the marked improvement in LEPs’ financial transparency between 2016 and 2019. My hon. Friend the Member for Northampton South (Andrew Lewer) touched on the marked progress we have seen on the removal of boundary issues between LEPs—an issue that the Government recognise can blur accountability and transparency. Although there is further to go, the majority of those boundary issues have now been dealt with.

I want to thank the people working in LEPs who might watch this debate or read the transcript, because the Government place a huge value on the contribution that they have made and will continue to make to their local economy. We are grateful to the talented, busy people who serve on LEPs for giving their skills, knowledge and expertise to the community and to improve the functioning of LEPs over time. We look forward to the next stage in our partnership with LEPs.

In some areas of the country, such as the Liverpool city region, West Yorkshire and Greater London, business leaders are effectively integrated into local decision-making structures through combined authorities and the GLA. As Members know, LEP partnerships extend beyond their immediate combined authorities. In a LEP census in 2016, nine out of 10 LEPs reported that they have full engagement with businesses of all sizes and LEPs reported engagement with higher education bodies, so it is not just about the interface with local politicians.

The bigger geographical scale—beyond the council scale—which a number of hon. Members have pointed to, gives LEPs a unique vantage point to bring people together on lots of different subjects. For example, one of the reasons why we use and resource them is to develop local industrial strategies, which have flowed into such things as innovation accelerators. Where innovation accelerators exist, we hope that LEPs and the equivalent bodies in the devolved areas will play a role in shaping what they do.

There are lots of other such examples but today, in 2022, the local growth landscape looks very different from when LEPs were first launched. We have seen the introduction of combined authority Mayors and a number of funds, such as the towns fund, which involves local stakeholders potentially at a sub-local authority level, bringing together lots of partners in the most deprived half of towns. For example, through the local growth fund and the forthcoming shared prosperity fund, we are empowering those in lower-tier local government. Of course, LEPs still play a crucial role in all the different things that they are running and their wider role is also a crucial part of the local growth story.

We are in the process of continuing on the journey of growth in the number of mayoral combined authorities. In the White Paper, we talked about nine new areas that have started talks with Government, including a combined authority deal for York and North Yorkshire and widening the geography of the north-east deal, as well as deepening the deals that have been done for the west midlands and Greater Manchester. Even as we do that, LEPs will continue to have a crucial role outside the areas where there are not electively accountable mayoral-type figures operating across a strategic geography. As my hon. Friend the Member for Hastings and Rye said, in many parts of the country there will be no other body on that kind of scale with that kind of strategic overview of the wider economy, straddling a number of different local authorities.

Following the LEP review, which has concluded, we have clarity about the end state that we want to get to and why we want to continue to have LEPs: for that convening role, the private sector expertise, and the ability to broker lots of different local stakeholders and drive forward a wider strategic vision for the area. That is why we have chosen to keep LEPs and why I pay tribute to them today.

We appreciate the urgent need for certainty of the kind that various hon. Members have raised. We are working to provide that clarity to LEPs at the earliest opportunity. I am sure that Members will appreciate some of the wider pressures that the Government are facing, given the international situation. It has been useful to have this debate today and to be able to express my thanks and pay tribute to the work of LEPs. We will be in touch with our colleagues in LEPs in the very near future.

[Mark Pawsey]

One strength of LEPs is that the functional geography was delivered by the LEPs themselves. It was left to people in their own areas to determine what makes a sound economic unit. Does my hon. Friend intend to retain that autonomy within the LEPs, so that we keep that geography rather than relying on historical local government boundaries?

[Neil O'Brien]

Yes. My hon. Friend has given me a good opportunity to recognise that there is, I think—from my conversations with Coventry and Warwickshire—a strong desire to continue to work together. Without prejudging the outcome of anything, we have said that we will respond to what local places want to do where LEPs straddle areas, being partly in an MCA and partly outside. I am conscious, from all my conversations with those involved in Coventry and Warwickshire, that they have found it useful to work together. I was very impressed by the list of projects that my hon. Friend reeled off that they were leading in Coventry and Warwickshire. We are absolutely conscious of what local people want—yes, absolutely. Let me end by saying that we will continue to respond to what local places want and how they want to work together to drive forward their local economy and get more good jobs in all these different parts of the country.

The European Union (Withdrawal) Act and Common Frameworks Report

Neil O'Brien Excerpts

Thursday 10th March 2022 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

I am today laying before Parliament a report, “The European Union (Withdrawal) Act and Common Frameworks: 26 September to 25 December 2021” in line with the requirement under the EU (Withdrawal) Act 2018 for quarterly reports to be made to Parliament on the progress of the work to develop common frameworks. The report is available on gov.uk and details the progress made between the UK Government and devolved Governments regarding the development of common frameworks. This report details progress made during the 14th three-month reporting period, and sets out that no “freezing” regulations have been brought forward under section 12 of the European Union (Withdrawal) Act. A copy of “The European Union (Withdrawal) Act and Common Frameworks: 26 September to 25 December 2021” report has been placed in the Libraries of both Houses. The publication of the report reflects the Government’s continued commitment to transparency.

[HCWS672]

Oral Answers to Questions

Neil O'Brien Excerpts

Monday 7th March 2022 Commons Chamber

[Ian Paisley (North Antrim) (DUP)]

2. What recent discussions he has had with the Northern Ireland Executive on the potential opportunities for Northern Ireland of the levelling-up agenda.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

The Secretary of State met the then First Minister of Northern Ireland when the levelling-up White Paper was published to discuss the many opportunities for Northern Ireland as part of that agenda, and I met Conor Murphy, the Minister of Finance, last Thursday to discuss the delivery of the UK shared prosperity fund in Northern Ireland. I look forward to working closely with the Northern Ireland Executive on this in the coming months.

[Ian Paisley]

I thank the Minister for meeting me last week to discuss these important opportunities for regions such as Northern Ireland. The levelling-up White Paper identified hydrogen bus development as a key economic boost. So far, five strategic schemes have been put in place for zero-emission buses across the UK, and all five are very welcome but they are battery electric. Will the next five schemes be driven by hydrogen? Can the Minister ensure that there is joined-up thinking on this across the Departments?

[Neil O’Brien]

The hon. Gentleman is right to identify an important opportunity for Northern Ireland through the hydrogen agenda. As part of all the things we are doing on levelling up, including the third increase in research and development spending outside the greater south-east, the strengthening places agenda, or the many things we are doing with higher and further education in Northern Ireland, there are many opportunities to advance the important agenda that he has prioritised.

[Alun Cairns (Vale of Glamorgan) (Con)]

Until recently, European aid was the main means of regenerating communities in some of the devolved nations, but that European aid was restricted to certain parts of the nations. Now, the levelling-up fund and the shared prosperity fund will give us the opportunity to regenerate other parts of the UK, particularly those areas that did not qualify for European aid. When the next window opens for the levelling-up fund, will the Minister pay particular attention to communities such as Barry, which now qualify for the levelling-up fund but did not previously qualify for European aid?

[Neil O’Brien]

My right hon. Friend is absolutely right; the next round of levelling-up funding will be opening shortly. He is also right to draw attention to the fact that outside the European Union we have a lot more flexibility about how we spend, and we can use that to pick up some of those exciting opportunities in other places.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

3. What steps he is taking to reduce financial pressures on local authority budgets.

--- Later in debate ---

[Geraint Davies (Swansea West) (Lab/Co-op)]

11. What assessment he has made of the potential effect on levelling up in Wales of rail enhancement investments.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Investment in rail is a very important part of the levelling-up agenda. As well as the £2 billion for Network Rail in Wales over this control period, more than £340 million has been provided for enhancements in Welsh rail from 2019 to 2024. What is more, the UK Government are investing £30 million in the Global Centre of Rail Excellence, supporting about 120 jobs in Wales.

[Geraint Davies]

It takes three hours to get from London to Swansea; it takes three hours to get from London to Edinburgh. The reason is that only 1.5% of UK rail enhancement funding goes to Wales, even though it has 5% of the population and 11% of the railway lines. Will the Minister—with the support of the Secretary of State—urge the Treasury to provide funding as a share of HS2 to Wales on the same basis as it provides it to Scotland, given that HS2 is north-south, which would give us an extra £4.6 billion to level up and connect the Union?

[Neil O'Brien]

The 1% figure that the hon. Gentleman quotes is from a Welsh Government report, which looks only at a very small part of rail investment and does not give a correct picture of the wider investment in Wales that I described. HS2 will of course provide huge benefits to the people of north Wales, who will be connected much more rapidly to the rest of the country.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

13. What assessment he has made of trends in the level of second homes in Devon and Cornwall between 2010 and 2022.

--- Later in debate ---

[Robbie Moore (Keighley) (Con)]

T5. Does the Minister share my and my constituents’ deep frustration that, despite this Conservative Government making up to £20 million available to my constituents through the levelling-up fund, Labour-run Bradford Council did not even bother to submit a levelling-up application? When will it have the next opportunity to do that?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

Some £20 million is potentially available to Keighley and Ilkley through the levelling-up fund. Bradford is in a top priority category, and I really hope that it will bid so that we can build on the tens of millions of investment already being put into Keighley through the towns fund.

[Kirsten Oswald (East Renfrewshire) (SNP)]

T2. Communities across Scotland and the UK stand ready to help those displaced by Putin’s war on democracy in Ukraine. Every local authority in Scotland participated in the Syrian refugee resettlement scheme and I am sure they would want to do so again, but they cannot at the moment because of the shambolic response by the UK Government. The Secretary of State’s Department is meant to be doing whatever is needed to make sure that sponsors can be quickly matched with Ukrainians in need, so when does he expect significant numbers of Ukrainians to arrive under the humanitarian sponsorship pathway, and will he join me in urging the Home Secretary to remove the unforgivable blockage—

--- Later in debate ---

[Tim Loughton (East Worthing and Shoreham) (Con)]

T6. Can I ask one of the Ministers to outline the benefits the levelling-up White Paper will bring to West Sussex, particularly to coastal communities and constituencies such as mine, where economic disadvantage and deprivation are happening—whether north or south, east or west?

[Neil O’Brien]

My hon. Friend is completely correct. Some £19.4 million was allocated to projects in Bognor Regis and Littlehampton through round 1 of the levelling-up fund, in addition to the £21.1 million allocated to Crawley. I look forward to working with people in West Sussex to do more through round 2 of the levelling-up fund as well as the UK shared prosperity fund.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

T7. The Government announced the renters reform Bill in the 2019 Queen’s Speech, and they announced it again in the 2021 Queen’s Speech. My constituents desperately need this Bill to abolish no-fault section 21 evictions, introduce a national landlord database, apply the decent homes standard and much more, so will the Secretary of State confirm when he is finally going to get on with introducing this Bill?

Draft European Union (Withdrawal) Act 2018 (Repeal of EU Restrictions in Devolution Legislation, etc.) Regulations 2022

Neil O'Brien Excerpts

Thursday 3rd March 2022 General Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

I beg to move,

That the Committee has considered the draft European Union (Withdrawal) Act 2018 (Repeal of EU Restrictions in Devolution Legislation, etc.) Regulations 2022.

It is a pleasure to serve under your chairmanship, Dr Huq. As Members will be aware, the draft regulations that we are considering were made under the powers of the European Union (Withdrawal) Act 2018. The regulations were laid in draft before the House on 25 January 2022 and are subject to the affirmative procedure.

If approved and introduced, the draft regulations will repeal powers in section 12 of the EU (Withdrawal) Act, which gave a regulations-making power to temporarily freeze devolved legislative competence while UK common frameworks were finalised. The draft regulations will also make consequential provisions, including the removal of limits on devolved legislative and executive competence introduced into the devolution settlements, in addition to any cross-references to those powers.

The section 12 powers to freeze devolved competence, which the draft regulations will repeal, were always intended to be time-limited, and they expired on 31 January. The powers provided a useful contingency while common frameworks were being worked out by the Government and the devolved Governments, but they were never intended and never needed to be used.

The fact that the powers have not been used is credit to the collaborative spirit with which the Government and the devolved Governments have worked together successfully to develop common frameworks. Those frameworks now play an essential role in underpinning a common approach across the UK to policy areas that had previously been governed by EU law and that are within devolved competence. I am pleased to report that 30 out of the expected 32 common frameworks are in operation.

The EU (Withdrawal) Act contains an in-built duty on Ministers to consider the repeal of section 12 powers. As the powers were never used and can in fact no longer be used, there was almost no justification for retaining them. On top of removing those redundant powers, the draft regulations will remove the statutory obligation on the Government to report to Parliament on the use of the formal powers. As Members will be aware, the Government have produced 13 such reports and will shortly publish a 14th.

The draft regulations may appear to be little more than housekeeping, but I believe that they are also a reflection of the huge progress that the Government have made with the devolved Governments in developing new common frameworks. As we speak, those frameworks are fostering a consistent approach across the UK to a broad range of policy areas, from fishing to food labelling, and nutrition to hazardous substances planning. I commend the draft regulations to the Committee.

--- Later in debate ---

[Neil O’Brien]

We are in broad agreement with the hon. Members for Nottingham North and for Edinburgh North and Leith. These were one-time-only measures and were not used. This is probably not the place to relitigate everything to do with UKIM, but I am happy to discuss that further later. For all the reasons that I have set out, I hope that the Committee will support the draft regulations.

Question put and agreed to.

Shared Prosperity Fund: Devolved Administrations

Neil O'Brien Excerpts

Tuesday 1st March 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Belfast South (Claire Hanna) on securing this important and timely debate. It was also good to welcome the Minister of State for the Northern Ireland Office, my right hon. Friend the Member for Bournemouth West (Conor Burns), who was listening to all the extremely important points being made as closely as I was.

Given the short time available, I will come directly to the important points made by hon. Members. I am not here to argue the toss with them, but to try to start to set out how we will work together to do all these things. As hon. Members know, the shared prosperity fund will provide £2.6 billion of new funding for local investment by March 2025; it is a significant scheme. It will be provided through a funding formula, rather than a competition, which is important. While there are advantages in funding competitions, because they get people sharpening their pencils, there are a lot of advantages in formula allocations, because people have the same certainty that places used to have through some of the European structural funds.

[Stephen Kinnock]

On the point about funding, the Minister has just mentioned the figure of £2.6 billion. Does he therefore accept that the manifesto commitment has been broken? The manifesto commitment was to match the previous funding, which would mean £1.5 billion per year over a seven-year planning cycle. The comprehensive spending review is only a three-year time horizon, so will the Minister accept that the manifesto pledge has been broken?

[Neil O'Brien]

I will come to quantums later in my speech, but no, we will keep our manifesto promises.

The hon. Member for Belfast South raised really important points, and I hope I can start to set Members’ minds at ease. The hon. Member for Strangford (Jim Shannon), whose health I would have feared for had he not been here today, was right when he said that we are all on this journey together.

I agreed with the hon. Member for Ceredigion (Ben Lake) when he said that we must work with devolved Governments and local people, not over their heads. I also agreed with the sensible speech made by hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), who said that we must use the experience of local partners who know what is needed and how to run these kinds of schemes.

In Scotland, Wales and Northern Ireland we are very clear that we want local partners, at all levels, to be able to shape what is done to this funding and how it is allocated. In Northern Ireland, we have a unique local government landscape in our work on the UKSPF, so we proposed to deliver at a Northern Ireland-wide scale, which will enable us to have an allocation that is felt to be fair by all communities and that will make the most of all the fantastic opportunities that there are across Northern Ireland.

The development of that single Northern Ireland plan will draw on the insight and expertise of local partners, including the Northern Ireland Executive, local authorities, businesses, the community and the voluntary sector, in order to maximise all the local intelligence, insight and knowledge that they have. We have engaged with the Northern Ireland civil service, the Northern Ireland Local Government Association and Solace on UKSPF.

I have also reached out to the Northern Ireland Executive’s Minister for Finance and I plan to discuss the UKSPF further with him on Thursday. I had a very useful meeting with Minister Lochhead from the Scottish Government on Friday, and I am setting up a meeting with Vaughan Gething of the Welsh Government, as well. We are keen to work with all of the devolved Administrations to shape the way this funding is used.

[Deidre Brock]

When the Secretary of State for Levelling Up, Housing and Communities delivered his statement on the levelling-up White Paper, he acknowledged to me that the First Minister was advised of an innovation accelerator that was being put into Glasgow in a phone call only the night before. Can the Minister guarantee that that sort of behaviour will not continue in the future?

[Neil O'Brien]

I think that innovation accelerator is terribly exciting, but I can guarantee to the hon. Lady that as part of UKSPF we are engaging at all levels with devolved Governments and other local partners with important expertise. We will also be setting up an inter-ministerial group, with ministerial representation from all the devolved Governments, so that we have a regular forum on the breadth of my Department’s work to discuss these matters and to ensure there is an open dialogue across the whole UK.

The UKSPF has been designed to empower local places in all four nations of the UK. My Department is engaging with local government associations—including the Local Government Association, the Convention of Scottish Local Authorities, the Northern Ireland Local Government Association and the Welsh Local Government Association—ahead of and following the publication of the pre-launch guidance.

We will continue to engage with the devolved Governments and wider partners on the design and operation of the fund so that we can get the best outcomes across all the UK, because there are so many different priorities. The hon. Member for Strangford talked about fishing communities, and we heard from the hon. Member for North Down (Stephen Farry) about important community groups. There are many different partners that we have to engage in shaping this important programme.

We are engaging with the Northern Ireland Executive at an official level regarding the concerns they raised about programmes that are currently running under the European social fund. That dialogue will help to push on arrangements that maximise that fund delivery in Northern Ireland. However, it is worth thinking about the totality of these different funds because, as well as the shared prosperity fund, we also have the levelling-up fund and the community renewal fund, which is a one-year fund to transition us on to the UKSPF.

For Northern Ireland alone, if we look at some of those different sources of funding, my Department has provided £49 million via the levelling-up fund, £12 million as part of the community renewal fund, and funding through the community ownership fund, which enables different community groups to take things into community ownership. At the same time, we have made important long-term commitments in Northern Ireland, as in Scotland and Wales, through the city and growth deals. In Northern Ireland, those are worth £670 million—funding that is being matched by the Northern Ireland Executive. That is in addition to Northern Ireland-specific schemes, such as Peace Plus.

One of the challenges on my mind, as a Minister, is how we can all work together to ensure that the schemes work in such a way that they are more than the sum of their parts. I am conscious that there are a number of different schemes there; how do we ensure that the totality of the opportunities in Northern Ireland, which are very exciting, are best served by the confluence of all these different funding streams? It is useful, through t UKSPF, to have some funding that is not challenge-based but formula-based, and therefore, in that sense, a bit more flexible to provide bits of match funding to complement those other, existing funding streams.

[Patricia Gibson]

The Minister mentioned the importance of his Government working in partnership with the devolved Governments. I am sure we are all pleased to hear that. Would he therefore like to comment on the conclusion of the House of Lords Constitution Committee in its report in January that the UK Government have ignored—and continue to ignore—devolution and the devolved Governments in this process?

[Neil O'Brien]

There will always be a range of views on these questions. As my Secretary of State set out in his evidence to the Scottish Parliament the other day, our strong belief is that all these things will work best if we can engage not just the devolved Governments but local partners across the whole the UK.

It is worth putting these issues in the context of the wider funding settlement, as well as the funds that are specific for regeneration and community renewal. In the spending review, hon. Members will have seen that we have £15 billion for Northern Ireland annually for the next three years—the highest figure since devolution. There will be £41 billion for Scotland—again, the highest figure since devolution—and £18 billion for Wales, which is, again, the largest figure, in real terms, since devolution. So the context is that of a wider public spending settlement, and although we would always like to have more money to do things, that will enable us to do some really important things for some communities, particularly in Northern Ireland, which experienced extremely high levels of deprivation—I think that we would all recognise that.

Hon. Members have raised some of the things that the community renewal fund is doing. I would stress some of the positive things that that funding is doing, which leads into the work of the shared prosperity fund. The hon. Member for Belfast South rightly quoted the wise comment of her former leader that the best peace process is a job.

The hon. Member for North Down stressed the importance of skills—again, quite rightly. The community renewal fund is giving half a million pounds to the NOW Group to support people with disabilities through specialised employment academies and job mentoring. It is also giving nearly half a million pounds to South West College, Southern Regional College and Queen’s University Belfast to upskill construction operatives to fill that skills gap, and there will be just over £500,000 for a hydrogen training academy to deliver training for 180 people, to get a skilled workforce that can take advantage of the exciting opportunities that are opening up in Northern Ireland in hydrogen and clean technology. Those funds are doing a great deal of good. By working together, we will get the most out of these different spending streams.

The hon. Member for North Down asked a specific and very important question about section 75. We understand the importance of respecting the unique equalities considerations in Northern Ireland. We recognise the importance of not only meeting our legal obligations under the Equality Act 2010 but giving due regard to the additional equalities considerations that apply in Northern Ireland. I hope it is obvious from the tenor of my comments and from what I have said today that we are always—always—keen to have solutions that are felt to be fair by all communities and that see all communities working together.

I thank hon. Members, who have put forward genuinely important points in today’s debate. Over the coming weeks, we will work with other parts of the Government—represented here today—as well as partners across the UK, to finalise our policy development. Later in the spring, we intend to publish the full UK shared prosperity fund prospectus.

I hope I have got across in my comments the sense that our intent is not to go over the heads of anybody but to enable devolved Governments, local government and other partners to shape what is done in different parts of the UK and where the money goes, and to be involved in generating and contributing ideas at all levels, so that we can make the most of the opportunities that we collectively share. That is the tenor of where we are coming from on this entire agenda.

Once we have done that—we will be doing it, as Members can probably tell from the meetings I have talked about that are under way or that are forthcoming— we will publish the full UK shared prosperity fund prospectus. We want to try to keep the process as simple as we can so that we can give local partners the information they need to begin investment planning. I genuinely look forward to working with hon. Members from across this House; a number of them have already come to me with important suggestions and ideas about things we can do on this agenda. I look forward to working with all Members who are here today to deliver on our shared ambition.