Capital Projects: Spending Decisions Debate
Full Debate: Read Full DebateDepartment: Department for Levelling Up, Housing & Communities
Patricia Gibson
Main Page: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)Department Debates - View all Patricia Gibson's debates with the Department for Levelling Up, Housing & Communities
Capital Projects: Spending Decisions
Patricia Gibson Excerpts(1 year, 3 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
Thank you, Mr Speaker. I know you have saved your favourite till last.
Mr Speaker
If the hon. Lady had not been complaining about my choices, she would not have been called last.
Patricia Gibson
Thank you, Mr Speaker.
The Minister has talked repeatedly today about the transformative effect of levelling up, but because levelling up is not inflation-proofed, councils that secured funding last October are facing shortfalls of about 30% in funding for projects because of soaring costs. So projects cannot be delivered as was envisaged and so they cannot level up as was envisaged—which is what led to the success of their bids in the first place. Can the Minister explain why levelling-up bids are not inflation-proofed and therefore cannot deliver on the Government’s own criteria?
Lee Rowley
We are happy to talk to councils about the challenges that they face, and we are happy to accept that inflation is a challenge. This is one of the reasons we need to get inflation out of the system. The difficult decisions made by the Chancellor will allow us to do that and will allow the money to go further, not just in the levelling-up fund but elsewhere in government, and in the private sector as a whole.