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Levelling Up
16 March 2021
Lead MP
Eddie Hughes
Debate Type
Ministerial Statement
Tags
EconomyTaxationBusiness & TradeStandards & Ethics
Other Contributors: 35
At a Glance
Eddie Hughes raised concerns about levelling up in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister, Eddie Hughes, announced a significant investment towards the UK Government’s levelling-up agenda. The statement highlighted that the Government's capital spending plans for the financial year 2021-22 total £100 billion, marking a £30 billion increase compared to 2019-20. Over the next five years, the UK Government aims to deliver more than £600 billion in gross public sector investment, aiming at the highest sustained level of public sector net investment since the late 1970s. The Minister also announced a new £4.8 billion levelling-up fund designed to extend benefits for priority local infrastructure across all regions and nations, focusing on regenerating town centres, upgrading transport facilities, and investing in cultural assets. Additionally, he mentioned an index categorising places based on their need, where category 1 represents the highest levels of identified need. The minister stated that the UK Government will provide funding through various schemes such as the towns fund and freeport designation to support local infrastructure and economic recovery.
Steve Reed
Lab Co-op
Streatham and Croydon North
Question
Why has deprivation been excluded from the funding formula? Why were areas like Barnsley, Salford, Ashfield, and Bolsover deprioritised in favour of Richmondshire?
Minister reply
The Minister did not provide a direct answer to these questions but highlighted the Government's commitment to levelling up all parts of the UK. He emphasised that bids from category 2 and 3 places will be considered on merit, focusing on deliverability, value for money, and strategic fit.
Steve Reed
Lab Co-op
Streatham and Croydon North
Question
How much is being spent in total on red tape and consultants in the bidding process?
Minister reply
The Minister did not provide specific figures but emphasised that the Government aims to streamline processes to ensure efficient use of funds.
Steve Reed
Lab Co-op
Streatham and Croydon North
Question
How much of the levelling-up fund is recycled money from pre-existing funds like the local growth fund or towns fund?
Minister reply
The Minister did not specify the amount but highlighted that the levelling-up fund represents a new approach to investment, designed to complement existing funding streams.
Steve Reed
Lab Co-op
Streatham and Croydon North
Question
Will all data underlying the methodology be published to ensure transparency?
Minister reply
The Minister acknowledged the importance of transparency but did not commit to publishing all underlying data.
Steve Reed
Lab Co-op
Streatham and Croydon North
Question
Welcomes the Minister but criticises funding allocations as insufficient compared to pre-crisis levels, questions methodology used, and highlights exclusion of deprivation criteria in prioritisation.
Minister reply
Minister responds by defending the approach, mentioning provisions for £125,000 per council for bids in category 1 and refutes criticisms regarding prioritisation decisions.
Kevin Hollinrake
Con
Thirsk and Malton
Question
Welcomes the Minister to his position and asks confirmation that the levelling-up fund will welcome applications from rural areas with below average earnings due to lack of infrastructure investment.
Minister reply
Minister encourages local engagement with councils for bid development, highlighting criteria such as deliverability, strategic fit, and value for money.
Question
Welcomes the Minister but expresses scepticism over claims of levelling up, citing controversy surrounding towns fund and questioning prioritisation bias in Scotland.
Minister reply
Minister mentions North Ayrshire being in category 1 for funding despite Labour opposition, suggesting transparency and engagement with local councils.
Matt Vickers
Con
Stockton West
Question
Welcomes the announcement of over £4 billion levelling-up fund and invites Minister to visit Stockton, Ingleby Barwick, and Yarm for perfect projects.
Minister reply
Minister thanks MP and expresses willingness to convey invitation to Secretary of State and Minister for Regional Growth.
Clive Betts
Lab
Sheffield South East
Question
Questions the indicators and targets set by government to measure success of levelling-up initiatives.
Minister reply
Minister highlights criteria such as economic recovery, transport connectivity, and regeneration for funding allocations, suggesting public judgment at next election.
Sarah Atherton
Lab
Wrexham
Question
One of the many reasons why the Conservatives won seven out of the nine north Wales seats at the last general election was the two decades of financial neglect by the Welsh Labour Government in Cardiff. Does my hon. Friend agree that the levelling up fund is the opportunity for the UK Government to answer the call of the people and use true devolution, via local authorities, to directly improve areas such as north Wales and Wrexham, which has been starved of infrastructure funding and therefore progression?
Minister reply
I thank my hon. Friend for her question. I think we should just repeat part of it: seven out of the nine north Wales seats are now held by Conservatives.
Dan Jarvis
Lab
Barnsley North
Question
If the Government’s formula says that the Chancellor’s Richmondshire constituency is in greater need of investment than Barnsley, the Government’s formula is wrong. But it is not too late to do the right thing, so will the Minister commit to urgently reviewing how money is to be allocated from the levelling up fund?
Minister reply
We have no intention of reviewing how the money is allocated. The criteria were determined by civil servants. There was no political influence, so we are still comfortable with the basis on which funds are being allocated. However, the hon. Gentleman will probably not be short of cash.
Andrew Griffith
Con
Arundel and South Downs
Question
Can my hon. Friend assure the House that areas such as the districts of Arun, Chichester, Horsham and Mid Sussex, which all fall into my constituency but which are not in category 1, will still be able to succeed if we submit compelling bids?
Minister reply
I can absolutely offer my hon. Friend that assurance. What is important is that those bids will be assessed on deliverability, value for money and strategic fit.
Barbara Keeley
Lab
Worsley and Eccles South
Question
Despite having higher rates of child poverty and unemployment, Salford has been categorised as priority 2 for investment, behind the constituencies represented by the Communities Secretary and the Chancellor. We now know that the single biggest factor in prioritisation was the length of commute by car. Can the Minister explain why funding is being diverted to relatively affluent commuter towns, rather than being used to create jobs in areas that need them, such as Salford?
Minister reply
I suspect that like me, Mr Deputy Speaker, you are a keen reader of the Salford Star, where I read the hon. Lady’s comments about pork-barrel politics and accusations of Conservative party political influence on the allocation of funding.
Kieran Mullan
Con
Bexhill and Battle
Question
Crewe struggles with railway bridges and congestion, which risk holding it back. This fund gives us the chance to tackle that once and for all and to help level up the town and surrounding area. Can my hon. Friend confirm that the fund will support such local transport infrastructure projects?
Minister reply
I can absolutely offer my hon. Friend that assurance, but I urge him to work with the local council to identify a priority bid for his area and assess that against deliverability, strategic fit and value for money.
Toby Perkins
Lab
Chesterfield
Question
The cat is out of the bag. I am amazed that the Minister is being quite as brazen as he is. A moment ago, my hon. Friend the Member for Sheffield South East (Mr Betts) asked the Minister how we will know whether levelling up has been a success. The Minister’s response—I am paraphrasing—was, “Well, we’ll see if the Conservative Government get re-elected.” It is absolutely shameless. There is no attempt to pretend that this is a genuine process that has been properly worked through. It is purely about getting re-elected.
Minister reply
Who ultimately decides whether we continue to sit here? I thought we were beholden to the public. I thought it was our job to serve them.
Peter Gibson
Con
Richmond
Question
I welcome my hon. Friend to his place and thank him for all he is doing on levelling up. Whether it is investing £105 million in Darlington station, £23.3 million invested through the towns fund, or establishing “Treasury North” in my constituency, we are seeing the benefits of this Conservative Government, and I welcome the opportunity that the levelling-up fund will bring.
Minister reply
I have been a bit tired of seeing my hon. Friend’s face in my social media feeds over the past weeks and months showing him celebrating the various successes as funding and opportunity flows towards his constituency.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Question
During this pandemic South Lakeland has had the biggest increase in unemployment and has the highest proportion of its workforce on furlough of any community in the country, and yet the Government have our community in the bottom priority for levelling-up funding because they are using old pre-pandemic data.
Minister reply
As I said in answer to a previous question, the Government will not be rethinking the data or the methodology that they apply to distributing their funding, but given the circumstances that the hon. Gentleman has set out, I strongly urge that he engages with Ministers in the Department.
Rother Valley
Question
I welcome my hon. Friend to his place. High streets across Rother Valley have been ignored and neglected for decades. The levelling-up fund presents a once-in-a-lifetime opportunity to rejuvenate our high streets, providing up to £20 million of funding to bring them back to life.
Minister reply
I would suggest two things: first, that the council engages quickly with its excellent local MP to identify appropriate projects for this funding; and secondly, that it fully utilises the £125,000 that will be given to help it work up an impressive and commercially appropriate bid.
Ben Lake
PC
Ceredigion Preseli
Question
I, too, welcome the Minister to his place. He made reference in his statement to devolution and bringing economic decision making closer to the communities that it affects, but the levelling-up fund seems to do the opposite as far as Wales is concerned by excluding the Senedd from decisions that would be taken in Whitehall.
Minister reply
I think the thrust of the statement I have made today is that we fully intend to reach out to all four nations to ensure that everybody joins in our attempt to level up right across the United Kingdom.
Derek Thomas
Con
St Ives
Question
I am pleased that the Isles of Scilly were included in the recent Budget for category 1 capacity funding for the levelling up fund. The transport link to Scilly is the most important issue for everyone on Scilly.
Minister reply
Absolutely. One key aim of the fund is connectivity and transport in local need, so that is absolutely at the heart of what this fund is about.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
This Government have devastated the finances of local authorities, such as Newcastle City Council, cutting their funding year after year, breaking their promise to pay their covid costs and forcing them to raise council tax, which itself raises more in some areas than in others and takes money out of the pockets of those who need it most. This fund pits councils against each other to compete for meagre and recycled pots of money, with Government Departments taking all the decisions. Why does levelling up mean putting Whitehall in charge?
Minister reply
I thank the hon. Lady for her question but I am slightly confused. This process will allow local MPs to work with their local councils to identify priority projects for their area and will provide those councils with funding—£125,000 in the case of Newcastle upon Tyne, which is a category 1 authority—so that they have the funds available and they have the opportunity, working collaboratively, to identify a good project. I ask the hon. Lady to work with the council to get on and identify a project and bring money to her constituency.
Simon Fell
Con
Question
I was delighted when Barrow-in-Furness was awarded a £25 million town deal in October. It will make a huge difference to revitalising our town centre, bring a university campus to Barrow and improve our cycling and walking provision. Can my hon. Friend confirm that places that have benefited from a town deal will also be able to secure backing from the levelling up fund for other schemes that will support our communities?
Minister reply
I congratulate my hon. Friend on the funding that he has already secured for his local area, and I completely encourage him to continue to bid for the levelling-up fund. These are not mutually exclusive opportunities. If he has a high-quality bid, then it has a good chance of success.
Liz Twist
Lab
Blaydon and Consett
Question
If we are truly going to level up, much more radical and cross-departmental work and funding will be needed to address structural inequalities. I will be working with Gateshead Council to put in a bid to the levelling-up fund, but why have the Government not come forward with a plan to tackle child and family poverty and social care, as well as this levelling-up fund?
Minister reply
The hon. Lady has identified very important funding needs. The fund will tackle one element of the problems that we are seeking to address. As I set out, there will be about £600 billion of public sector investment funding over the next five years; through other funding opportunities, I am sure there will be the chance to tackle the concerns that she raised.
Mark Harper
Con
Question
The last award of funds to my constituency, from the Getting Building Fund last year, has already been worked on and constructed; a fantastic construction industry training centre will admit its first students next January. Therefore I welcome my constituency’s being a priority 1 area for the levelling-up fund. I am already working with my local authority—we had our first kick-off meeting last week—so will he confirm that bids that reflect genuine local need, supported by the local authority and the Member of Parliament, have the best chance of success in getting that funding to turn into real opportunities for our constituents?
Minister reply
I thank my right hon. Friend for his question, and for being an exemplar of how an excellent local MP can not only bring funding to his constituency but see the project through to completion—a great example for us all to follow.
Sammy Wilson
DUP
East Antrim
Question
I welcome the Minister to his place. I assure him that I am looking not for a pudding or a slap-up meal, but simply to ensure that Northern Ireland receives its fair share of the levelling-up cake. He will be aware that Northern Ireland is still one of the poorest regions of the United Kingdom, and that our economic advantage has been deteriorating. The Northern Ireland protocol has disrupted trade, which has added to costs and created uncertainty. In what practical ways will the levelling-up fund benefit Northern Ireland? Can the Minister assure the House that, although under the Northern Ireland protocol we are still subject to EU state aid rules and interference in how the Government can spend money, the Northern Ireland protocol will not interrupt the Government’s ability to spend money to level up the economic disparities between Northern Ireland and the rest of the United Kingdom?
Minister reply
I had the opportunity to visit Northern Ireland with the Secretary of State fairly recently, to see for myself the difficult conditions that the right hon. Gentleman has explained. We absolutely will work with Northern Ireland to ensure that we continue to provide funding and continue to level up.
Damien Moore
Con
Question
I welcome the Minister to his place. At the last election, people voted Conservative, some for the first time, because they believed in levelling up, and in our vision of spreading prosperity to areas neglected by Labour. Does my hon. Friend agree that by ensuring that every part of the country can bid and benefit from the levelling-up fund, we are accelerating our transformational levelling-up agenda?
Minister reply
I congratulate my hon. Friend on the £37.5 million that he has already secured for his constituency. He demonstrates that an active and able constituency MP can bring funding to their area.
Alex Cunningham
Lab
Stockton South
Question
May I also welcome the Minister to Stockton, to visit Billingham, which was told not even to bother to bid for town centre funds? We have lost 12,500 jobs across the Tees Valley in the past 11 months, yet Stockton local authority has to bid for levelling-up funds to carry out relatively minor road projects that should have been covered by the other road funds that were stripped away by the Government. Surely the Minister will agree that the £4 billion fund for the entire north of England—incidentally, it is a small fraction of the cash spent on Crossrail in London—needs to be increased considerably so that our areas can have a starter, a main course and a pudding, as well as big structural and support projects, rather than just a bit of tarmac here and there.
Minister reply
I thank the hon. Gentleman for his question but this is quite a significant pie—if we are going to continue to use the food analogy—that we are talking about splitting up. As I mentioned in my statement, £600 billion will be invested over the coming years.
Peter Aldous
Con
Question
In Lowestoft and Waveney, there are significant areas of poverty, and yet, as part of the wider East Suffolk Council area, we are in the priority 2 category. I would be most grateful if my hon. Friend could provide an assurance that applications from the Waveney area that support the creation of much-needed new jobs will be given full and fair consideration and will not be disadvantaged by our being in a lower category area.
Minister reply
I thank my hon. Friend for his question. He gives me the opportunity to say again that it is incredibly important that those who are not in category 1 do not feel in any way discouraged from submitting a good-quality bid.
Derek Twigg
Lab
Widnes and Halewood
Question
Halton is 23rd in the index of multiple deprivation but does not meet the criteria to be a priority 1 area in the levelling-up fund or a priority area for the community renewal fund. The Government’s criteria seriously disadvantage my constituents, who live in one of the most deprived communities in England, but not those in leafy Richmondshire, which is 256th in the index of multiple deprivation and which, remarkably, is in the priority 1 category. Can the Minister explain how that can by any stretch be levelling up, and can he share publicly the datasets used by the Government to perpetuate this gross inequality?
Minister reply
I thank the hon. Gentleman for his question. As I said earlier, the datasets are all publicly available information.
Siobhan Baillie
Con
Stroud
Question
I really welcome the range of opportunities we are being given by the Government to get investment into Stroud. The ideas are already flowing as part of a 20-year campaign to reopen Bristol Road/Stroudwater station. We also have high-street regeneration schemes, and cycling and walking schemes such as the greenway, and we are going to need that sustainable, environmentally friendly transport. Large rural constituencies such as mine have pockets of deprivation across them, so will my hon. Friend clarify whether the Government will consider a strategy bid that includes a series of connected projects to truly benefit and level up more lives across Stroud?
Minister reply
I thank my hon. Friend for her question. County councils with transport powers are eligible to submit one transport bid.
Chris Elmore
Lab
Bridgend
Question
Welcoming the Minister to his new position, Chris Elmore inquires about the £325 million shortfall for Wales from the levelling-up fund compared to promised structural funding. He questions whether this is another broken promise.
Minister reply
Eddie Hughes acknowledges the reservations and clarifies that while the levelling-up fund provides £50 million per year for Wales over four years, there are additional funds available which, in total, represent significant investment.
Question
Praising government efforts to regenerate town centres, Kate Griffiths asks if Burton and Uttoxeter can secure further backing from the levelling-up fund for road improvements or safe community spaces.
Minister reply
Eddie Hughes encourages Kate Griffiths to continue working with her local council to identify high-quality bids that meet the criteria for securing additional funding.
Question
Inquiring about Scotland's allocation under the levelling-up fund, Alyn Smith questions if it is less than what would be received from EU funding and whether this represents a power grab.
Minister reply
Eddie Hughes responds by noting that local authorities will be pleased with the £125,000 provided for developing high-quality bids to attract more funding to their areas.
Question
Welcoming Eddie Hughes and expressing interest in discussing Clwyd South projects fulfilling levelling-up fund criteria such as Wrexham Council's regeneration plans, Simon Baynes requests a meeting.
Minister reply
Eddie Hughes agrees to work with the MP and his local council to develop priority bids for funding and ensures that regional growth officials will visit the area.
Shadow Comment
Steve Reed
Shadow Comment
The shadow Minister, Steve Reed, criticised the Government's levelling-up funding formula for failing to address regional inequalities adequately. He pointed out that despite the announced funds, regions will receive less than they did before the crisis. He highlighted concerns about the exclusion of deprivation levels in the funding formula and questioned why wealthier areas were prioritised over those with greater need. Reed also expressed frustration at the waste of money on consultancy fees for bid preparation instead of actual levelling up initiatives. The shadow Minister demanded transparency from the Government, asking them to publish all data underlying their methodology.
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