Levelling-up and Regeneration Bill (Fifth sitting)

Tim Farron Excerpts

Committee stage
Tuesday 28th June 2022 Public Bill Committees

[Rachael Maskell (York Central) (Lab/Co-op)]

Thank you, Mr Paisley. I want to stress the importance of the legislation before us. In particular, I want to speak to amendments 3 and 5, and to new clause 1.

Clause 1 deals with the levelling-up missions, the foundation to the Bill and to building a stronger and more equal society. Representing a constituency in the north, I cannot stress enough the importance of this agenda in addressing the regional disparities that we see, and the inequality that my constituents experience. Across the House, we recognise the intergenerational lack of investment and the cost that has caused, biting particularly hard through the past decade of austerity, covid and now the cost of living crisis.

Clause 1(2) deals with levelling-up missions: what, when and how. However, the “who” is omitted. In taking evidence last week, the Committee heard leading experts repeatedly highlight the need for independent evaluation. In the very last evidence session, as my hon. Friend the Member for Nottingham North said, Mr Tanner drew attention to the importance of independence in the scrutiny of the levelling-up missions. That was a consistent theme throughout the week, with good reason.

First, no Government should mark their own homework. The Government clearly want to succeed, and therefore the matrices through which the comprehensive auditing process is undertaken could skew, or even conceal, the extent to which progress has been made. I am sure that if Government Ministers were sitting where we are, they would make the exact same argument about wanting rigour and independence through the scrutiny process of the levelling-up agenda. If the agenda is of such importance, the Government should welcome independent scrutiny of it.

Secondly, objective, independent scrutiny for such complex examination would provide Government with better insight into the progress made, and set out the path forward to address emerging inequalities or struggling areas that need concentrated focus to address those inequalities. It would give the Government the opportunity to step aside and then to invest in those areas. With the Government being so close to wanting levelling-up to succeed, there is risk of skewing the objectives.

Thirdly, I will make the comparison, as my hon. Friend the Member for Nottingham North did, to the Treasury establishing the Office for Budget Responsibility. That organisation has enabled independent scrutiny of Treasury assessments and has enabled Parliament and the public to hold the Government to account and to scrutinise the workings of the Chancellor of the Exchequer and wider Government respectively. In addition, the Climate Change Committee now has such authority that the nation looks to it: we know that academia particularly focuses on it, the Government certainly focus on and adhere to its calls, but so does industry. Having that rigour across industry enables us to see the seismic change that is necessary to meet our climate objectives. Seeing such scrutiny at work demonstrates the importance of independence. We can look at the power of COP26: had the Climate Change Committee not undertaken its vital work, we might not have seen the outcome that we did.

It is crucial that we see independent scrutiny not just of climate issues but across other national agendas. It does not matter who the Government of the day are; we want to bring about this change in order to apply that scrutiny to them. In order to tackle the inequality and injustices that we see across our communities, we must ensure that we set the right foundations for long-term measurement, and that the methodology is robust and independent, can attract cross-party support and is useful for all—not only in this place, which is often where the focus is, but across the country.

When we are dealing with such issues as those relating to criminal justice, housing and health, there are of course huge communities looking for robust measurement in order to understand how to advance those agendas. As we see more devolution in areas such as health, with the new integrated care systems, there needs to be a collective understanding of the mission that we are going on, not only through setting out the levelling-up missions but in scrutinising and measuring them as they advance. This is not just of use to the Government, or to the Opposition in scrutinising the Government; it is useful to all those parts of our society that move our levelling-up agenda forward.

In the light of the complexities of measuring levelling-up missions, it is of course necessary for measurement not just to be placed on the Government. There needs to be inclusion of, for instance, ICSs, local government, mayoralties and so on, so that there can be robust determination of how they feed into the levelling-up missions and how their work is scrutinised, given their arm’s length role in delivering many of these functions and the missions and aspirations of Government. As my hon. Friends on the Front Bench have set out in amendment 4, with proposed new subsection (4A), the Government must also publish an action plan to enable objective scrutiny of the missions’ impact. This is about not just looking backwards but projecting forwards, which helps to set the rhythm of Government but also of our nation.

The regeneration community—the professionals who will implement many elements of the Bill—talk about those golden threads where analysis is required not just in the silos of individual missions or Departments, but across them, to determine how they will intersect and work together so that, together, they are more than the sum of their parts. I am talking about drawing in multiple Departments to address inequality. We know that many of these issues are intersectional, so we need a body that can hold everything together and highlight the opportunities, because the Government are often too close to them to identify them.

It might be worth noting that the Hackitt report in relation to Grenfell takes that approach. It looks at intersectionality, which is so important for a robust response. Clearly, with such complexity as levelling up presents, having a space for independent scrutiny is all the more important. The independence will then, of course, build confidence across the country. This will not just be seen as a headline, a tweet or the next moment to talk about levelling up; it will gain public recognition and will bring focus across Government and beyond. Independence will take away suggestion of unconscious bias in Government decisions, and will give delivery partners greater confidence in the process and in Government. It will restore trust, which the Government are seeking and we all want to see. It will thus reduce conflict and increase motivation.

We have independent scrutiny across most functions in society. We have heard about the OBR and the Climate Change Committee, but I draw the Minister’s attention to Ofsted, Ofcom, Ofgem and the Care Quality Commission—independence is absolutely at the heart of all they deliver, so why not have it for something as fundamental as levelling-up missions? This is now recognised as the mechanism by which performance can be judged nationally, regionally and locally. A mature Government therefore have to understand the rigour of independence.

I move on to proposed new subsection (2)(c). We have had the what, the when, the how and the who, and we now need to talk about how much. It is vital that the Government quantify the resources available for investment in the nation’s regions, sub-regions and local areas. The entrenched disparities we see across the country are not due to a lack of aspiration or ability but are in large part down to a failure to invest in more than a generation. The Resolution Foundation has spoken in the past 24 hours about the importance of the scale of investment. When resources are concentrated, their impact is multiplied and we see decades of inequality being addressed.

As we know, London and the south-east suck in the lion’s share of resources. We have seen the evolution of the booming south at the cost of the north; that is what this agenda is all about. In the evidence sessions, Professor Leyser and the Mayor of the West Midlands, Andy Street, highlighted how to build a cluster economy to invest and create wider opportunities. Although the mission of levelling up is to address regional disparities, reviewing the impact it has on local inequity is so important, which is why independent scrutiny is vital.

If all that is achieved in the most affluent areas, then clearly, in order to extend opportunities for wealth, health and education, levelling up will need to be translated across the board. I truly recommend that we focus on opportunities to level up under the purview of an independent body, as opposed to the internal scrutiny systems of Government.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to serve under your chairmanship, Mr Paisley. I will not say very much, except to express my support for the amendments tabled by the hon. Member for Nottingham North.

It seems to me that it is entirely appropriate to push much of what is in the Bill through legislation—that would be normal for any Government—but for certain aspects, particularly those in part 1, it is quite unusual for a Government to choose this means to achieve their aim. If they want to level up, invest in regions and improve the quality of life in rural and urban communities in the north, the south-west and other areas where we feel that there has been a disparity of opportunity, they could simply do it. It does not take a Bill for us to invest and choose to act differently. The Government could just do something very novel: govern. They could invest and choose priorities to get behind.

Given that the Government have chosen this route, it seems odd that they should want to have their cake and eat it. They want to go down the legislative route but then not do anything commensurate with it—in other words, they do not want to allow themselves to be scrutinised and held to account. It seems entirely appropriate to me that there should be an independent body that is able to judge the success—or otherwise—of the levelling-up missions. It would see whether, for example, we are tackling the huge disparity, in every region of this country, between different age groups’ and income groups’ access to affordable housing, to allow them access to all other parts of society—that is what a decent, affordable, secure home does.

--- Later in debate ---

[Tim Farron]

This is an important amendment because it allows the Government to be up front about the level of resource that they seek to deploy region by region. It is also important because it refers to areas below the level of region. As the hon. Member for York Central has set out, there is a danger that the Government might sound somewhat patronising when they talk about levelling up, thinking from their London seat that the provinces are all terribly deprived and they should throw some money at them and level them up. Of course, the reality is that inequalities within regions are greater than inequalities between them.

Members will not be surprised by my focus on rural communities. The Minister might be aware of research that has come out in the past couple of days from the Rural Services Network. It has looked at the Government’s own levelling-up metrics and on that basis it reckons that, were rural England to be a separate region, it would perform more poorly than every other geographical region of England. Not only would it perform more poorly, but it is disadvantaged for different reasons. The metrics that the Government are seeking to deploy in order to understand deprivation and inequality do not do the business when it comes to understanding the issues that face rural communities.

In my constituency there will be fewer than 500 people unemployed. We have got very close to full employment. We also have average house prices that are between 10 and 15 times average incomes. We have people in work and in poverty. The clear, huge majority of people on universal credit in my constituency and in other parts of Cumbria are in work, and not just in work but in multiple jobs, seeking to make ends meet. Potentially, they will not tick boxes when the Government’s metrics are being considered and they may not be recipients of the resources that the hon. Member for Nottingham North seeks to get the Government to be explicit about.

Let us think about some of the needs that are present in that rural region of England, which is more needy than every other geographical region of England by some distance. We are talking about incomes. We are talking about house prices. We are talking about the fact that in the south lakes alone—a community with nearly full employment—5,500 people are on a council house list, waiting for their first home. By the way, an educated guess is that there are about 10,000 second homes in the same district. It is important to understand that the discrepancies and inequalities are of that order.

It seems very black and white to say, “These are the homes of people who already have one and these are the people who haven’t even got the one,” but if we care about inequality we are going to care about that. In a property-owning democracy, we might champion people’s liberty and their right to own more than one home, but when there is a conflict between someone’s right to a second home and someone else’s right just to have any home, we know whose side we should be taking, don’t we? If we do not, this Bill means nothing at all, and nothing to rural communities in particular.

Let us look at some other issues in respect of which rural communities are disadvantaged. The vast proportion of people in Cumbria are not on the mains for their heating; they are on oil—liquid fuel—and there is no price cap for that. There is no way of taking into account inflation beyond that which most of us are experiencing when it comes to energy prices. There is nothing to assess that, nothing to allow for it, nothing to ensure that resources are available to help communities so that they can be protected from the cost-of-living crisis that is particularly hard in rural communities.

In cities such as London, Manchester and Newcastle—wonderful places—it is possible to live without a car, and many people do. That is probably good for the environment and for people’s pockets as well. Mobility is more straightforward in a community like the one we are standing and sitting in now, but in a community like mine, people need cars. The chances are that people do not live in the village in which they work, and they need to get from one place to another. Fuel prices are higher and the distances are longer, and the bus journey from Kendal to Ambleside is the second most expensive in the country, so it is very expensive to travel whether via private car or public transport.

Let us also think about access to services. For people living in Sedbergh, for instance, the nearest FE college is 10 miles away and there is no bus, so their access to services is restricted in a way that the access of people in other parts of the country is not. What about health services? What about the one in two of us who at some point in our lives will end up with a cancer diagnosis, and the one in two of those who will need radiotherapy? In a community such as Cumbria they have to make a three or four-hour round trip to Preston every day to get life-saving treatment, for weeks and weeks on end.

The things I have outlined will not be taken into account if we are not honest about what regions actually are, about the categories of places within regions—sub-regions—and about how parts of the country, even though they might be in Northumberland, Cornwall, Cumbria or Kent, have commonalities despite geographical disparity. Without being clear about the resources, we are not going to tackle that need. We are not going to tackle the lack of connectivity that puts people at risk in rural communities, where we do not have the broadband roll-out the Government have promised. We do not have the commitment to bring health services and education close to home or to address transport costs. Above all, a massive flaw throughout the Bill is inadequacy when it comes to tackling the biggest driver of inequality in this country: lack of access to affordable and available housing.

I urge the Minister to look at the Rural Services Network report and to take into account the fact that rural England counts as the most deprived region of England, compared with the geographical regions. I urge him to accept the amendment, and in doing so to ensure that resources are allocated appropriately to every part of every region of this country.

[Patricia Gibson]

Amendment 13 would place

“a responsibility on the Government to publish the resources made available to communities in order to level-up”.

Who could argue with that? In not arguing with it, I cannot help reminding the Minister that Scotland was promised a £1.5-billion-a-year bonanza as part of the Brexit windfall. Of course, the reality is that Scotland has received 40% less funding than it did under the EU funding agenda, and it has suffered a 5.2% cut in its resource budget and a 9.7% cut in its capital budget. Perhaps the Minister can tell us how that supports the levelling-up agenda, because I certainly cannot understand. It is quite galling that as this Government show disrespect to devolved Parliaments—democratically elected Parliaments—by impinging on devolved powers and bypassing the democratic will of the Scottish people in devolved areas, they simultaneously cut their budget in the context of levelling up.

Despite the stated goals of the legislation, the Minister has been unable to say—perhaps he will do so when he gets to his feet—whether the levelling-up missions would result in a reduction in inequality to the point where we would see a reduction in child poverty. What kind of levelling-up commitment would not address the basic social scourge of child poverty? I cannot think what the point of any of this is if we are not committed to tackling that most basic and serious ill.

Of course, as we have heard, we do not need a fanfare to tackle inequality; we just need to get on and do it. We can exalt in our success if indeed we have it, but we do not need a Bill that runs to hundreds of pages but cannot even commit to transparency or to publishing details of the resources that it is willing to use.

In Scotland, the Scottish Government have tried, with their limited powers, to instigate levelling up—for example, with the Scottish child payment of £20 per child per week. That is real levelling up, and these are the kinds of measures that the Bill really ought to tackle to build a more inclusive society. As food bank use rises, we have a real opportunity if we are serious about levelling up, but it takes targeted political will and a determination to tackle the causes of inequality. That is not an easy thing to do—we have to put in a real shift—but a Bill that runs to a few hundred pages with vague missions that objectively cannot be held to account will not convince anybody.

It is clear to see that the resources for true levelling up will not be made available, certainly from the Scottish perspective with the figures I have cited. For all the warm words, and there have been many, it is difficult to have confidence that our communities will see any tangible difference as a result of this fanfare—sorry, this Bill. The Government should have no problem with amendment 13, because they know that no levelling up can happen without resources. Presumably, if they are serious about levelling up, those resources will be committed, so why not publish them? Why do the Government not exalt in their success and the resources they are willing to expend? If this levelling-up Bill and agenda do not reduce inequality or tackle poverty, child poverty or child hunger, I honestly cannot see the point of them.