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Towns Fund
18 November 2020
Lead MP
Robert Jenrick
Debate Type
Ministerial Statement
Tags
Benefits & WelfareStandards & EthicsLocal Government
Other Contributors: 32
At a Glance
Robert Jenrick raised concerns about towns fund 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 announced the £3.6 billion towns fund, inviting 101 places to develop proposals for a town deal. These towns are diverse in nature and have been underinvested in by central government historically. Town deals aim at reversing this trend through economic regeneration, growth, raising living standards, boosting productivity, and creating new cultural and economic assets for communities. Upfront grants of up to £1 million have already been spent on various projects such as the redevelopment of shopping centres and empty shops into vibrant community spaces in places like Burton-on-Trent and Newcastle-under-Lyme. Each selected town is eligible for an investment of up to £25 million, with exceptional cases like Blackpool receiving additional funding. The minister emphasises that this programme is not just about investment but also about whole towns coming together to create a vision for the future. He pledges ongoing commitment to levelling up all parts of the country.
Justin Madders
Lab
Ellesmere Port and Bromborough
Question
Madders questioned the selection process of towns under the fund, expressing doubts about its transparency and impartiality. He highlighted that all low-priority towns chosen were in Tory-held or target seats and cited concerns from civil servants and committees like the National Audit Office and Public Accounts Committee. Madders urged for full publication of the rationale behind decisions and a transparent merit-based approach for future funding rounds, while also enquiring about Ellesmere Port’s prospects for future funding opportunities.
Minister reply
The Minister responded by affirming that rigorous and robust procedures were followed in selecting towns based on the Department's methodology. He emphasised that civil servants advised to use judgement to include other finely balanced places beyond the top 40, consistent with the recommendations from the National Audit Office. The minister further noted over 60% of invested towns have Labour councils and pledged to work closely with them. He urged agreement on the importance of this fund for these places.
Jane Stevenson
Lab/Co-op
Wolverhampton South East
Question
Expresses disappointment at the attempt to score political points over a positive policy and asks for reassurance that any money allocated to Wednesfield will be ring-fenced.
Minister reply
States that funding can be devoted to a project within agreed boundaries, encourages Wolverhampton City Council to contact officials regarding Wednesfield's bid.
Steve Reed
Lab Co-op
Streatham and Croydon North
Question
Accuses the Secretary of State of diverting funding from deprived towns to Conservative seats, requests publication of correspondence and minutes.
Minister reply
Denies accusations, states that decisions were made following a clear procedure with civil servants, criticises Labour's position on the fund.
Lee Anderson
Reform
Ashfield
Question
Asks for support in securing funding for Ashfield and Eastwood through the towns fund.
Minister reply
Agrees to meet Lee Anderson regarding Ashfield's plans, contrasts current MP with predecessor.
Question
Raises concerns over lack of transparency in the towns fund process and criticises Conservative Government for cronyism.
Minister reply
Responds that decisions were made following a robust procedure, restates commitment to levelling up.
Question
Congratulates Warrington’s town deal board on securing £22 million and criticises the shadow Secretary of State for Croydon's mismanagement.
Minister reply
Agrees with Andy Carter, criticises Croydon Council’s financial management.
Cat Smith
Lab
Lancaster and Wyre
Question
Asks who authorised the 18 taxpayer-funded adverts placed on Facebook by the Secretary of State's Department.
Minister reply
States that all spending is approved through the accounting officer and permanent secretary.
Danny Kruger
Reform
East Wiltshire
Question
I very much support the towns fund, but I support even more the principle of the town deal. That is the right way to level up the country—not just by allocating dollops of funding from Whitehall but by working with local leaders, councils and LEPs that have a vision for their town to develop a plan to invest in it. Does my right hon. Friend agree, though, that we need to go beyond just councils and LEPs and ensure that money and power go directly to civil society and community groups that have a more granular vision for their place?
Minister reply
My hon. Friend has been a champion of this for some time, and his brilliant report published earlier in the year made the case once again. One of the ideas behind the town deal is not just for central Government to work directly with a particular local council but to broaden it out by bringing in members of the business community, civil society and MPs of all political persuasions. This approach is happening across the country.
Question
In my constituency, Workington will hopefully receive £25 million from the towns deal and Maryport £17 million from the future high streets fund. These figures will make a tangible difference to communities such as mine that have previously been let down by their political leadership. Does my right hon. Friend agree that the Opposition Benches might not be so empty if Labour had done more for its communities when it held those seats and local councils?
Minister reply
I welcome the fact that Workington has the opportunity to bid for funding, which will make a difference. The future high streets fund supports places that have not routinely received substantial amounts of Government funding, focusing on skills, culture, digital infrastructure, transport and revitalisation.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Question
The criteria for funding the towns fund were insufficient and vague, according to the Public Accounts Committee. So once again, I ask the Minister to release in full the accounting officer’s assessment of the scheme.
Minister reply
I know that the hon. Gentleman is an experienced Member but does not understand what accounting officer’s advice is or how it corresponds with permanent secretary’s advice before the Public Accounts Committee. The permanent secretary at the time wrote and gave evidence on the summary of the accounting officer’s advice to his committee.
Mark Pritchard
Con
The Wrekin
Question
I welcome the £1 million already given to Telford and Wrekin as part of the accelerated delivery fund. Can I put in a very strong plea that while we want to level up northern towns, we do not forget the west midlands towns? Can I also put in a very strong bid for the full £25 million?
Minister reply
I had the pleasure of visiting Telford recently and met with the chief executive who showed me some exciting proposals including the new bridge linking Telford railway station with the town centre, and the science and technology section. I look forward to receiving more detailed proposals in due course.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Question
Clearly, this issue is just as big north of the border as it is in the rest of the UK. May I ask the Secretary of State two things? First, is this going to be recognised by means of Barnett consequentials—that is, with the money going to the Scottish Government? If so, will he use his good offices to persuade the Scottish Government to spend the money where it desperately needs to be spent—that is, in the town centres the length and breadth of Scotland that are falling into ruination and disrepair?
Minister reply
The question of Barnettisation will be settled at the spending review. The challenges facing smaller cities and towns are consistent across the UK; that is why we set up the towns fund to do city deals in all parts of the UK, including a large number in Scotland.
Question
The residents of Bishop Auckland are incredibly grateful to have been shortlisted for both the towns and future high streets funds, receiving £750,000 of accelerated funding. If the towns fund is opened up in future, will he seriously consider including Spennymoor in that?
Minister reply
I thank my hon. Friend who has been a fantastic champion since being elected. The Labour party wants to pour cold water on this good work but local councils want to succeed with these proposals. We will do another competitive phase next year and I look forward to an application from the other parts of her constituency.
Kerry McCarthy
Lab
Bristol East
Question
From this towns fund being handed out to Tory seats, to the money being squandered on covid contracts and the ferry contract awarded to a company with no ferries, how can my constituents have any confidence at all that public money is well spent when cronyism, mates’ rates and political manoeuvring seem to be at the heart of Government decision making?
Minister reply
There was no question there other than pointless innuendos. We will keep focusing on investing and levelling up in communities despite all the challenges of covid.
Question
The towns fund is an England-only fund, but the Government’s levelling-up agenda means supporting towns right across the UK, including Rhyl in my constituency. Will my right hon. Friend commit to exploring opportunities for the shared prosperity fund and other sources of financial assistance to help redevelop Rhyl’s Queen’s Market?
Minister reply
The shared prosperity fund will be a great opportunity for the whole UK; we are designing it and bringing it to fruition in early next year. I will certainly listen to my hon. Friend and his colleagues in Wales.
Question
Among the damning judgments issued last week by the Public Accounts Committee was that the rationales for selecting some towns were vague and based on sweeping assumptions; some towns chosen despite being identified as the very lowest priority. Why will his Department not allow that summary to be published, so hon. Members can do their job?
Minister reply
The accounting officer’s advice is not routinely published within Whitehall but has been shared with the Public Accounts Committee and I am pleased at least one member of the Committee actually read it.
Bob Blackman
Con
Harrow East
Question
London is effectively a network of towns and villages, not just the centre. What hope can he give to parts of London that are suffering from deprivation and need investment?
Minister reply
Communities within larger cities have been included in both the towns fund and the future high streets fund. Examples include Putney in London which is now being considered for funding. The Department will work with Mayors, city council leaders, and GLA to support these places.
Question
Will he ensure that Stoke-on-Trent’s bid process for the next round of town deals allows for a deal featuring three towns within Stoke?
Minister reply
The criteria designed by the Department placed an upper limit on community size, which excluded Stoke. However, in designing the criteria for the competitive phase, consideration will be given to collections of towns within a broader city.
Question
Who took the decision to exclude Ellesmere Port town centre from the money allocation and what criteria were used?
Minister reply
The 40 most highly ranked communities were given an opportunity to bid for a town deal. A qualitative judgment was then applied by civil servants. Ellesmere Port is one of the pilots for the high streets taskforce.
Question
Will he look at another round of the towns fund and share it around communities like Holmfirth, Marsden, Slaithwaite, Milnsbridge, and Lindley to do something similar to what is being done in Dewsbury?
Minister reply
A competitive phase will be brought forward next year. The Department will take into consideration the support for more towns benefiting from the fund.
Derek Twigg
Lab
Widnes and Halewood
Question
Will he give an assurance that Runcorn will not be treated less favourably than other town centres in Conservative constituencies?
Minister reply
Absolutely not.
Question
Does the pandemic present an opportunity to rethink our town centres, particularly Newcastle-under-Lyme, by repurposing retail space into office or residential space?
Minister reply
Covid will accelerate market forces in towns and city centres. The investment is more important than ever as it helps communities recover from the pandemic and adapt.
Andrew Gwynne
Ind
Gorton and Denton
Question
What attracted him to Cheadle for the town deal funding?
Minister reply
The people of Cheadle will welcome the investment. The Department is working with Labour councils and MPs throughout the north-west.
Question
Will he do future towns funds and include Baildon and Bingley?
Minister reply
The minister will bear this in mind when coming to the competitive phase. He made a point that Labour Front Benchers are now explicitly opposed to investment in these places.
Jim Shannon
DUP
Strangford
Question
It is my understanding that local enterprise partnerships—
Minister reply
The fund he refers to was established by the Secretary of State at the Department for International Trade. The minister will ensure a fulsome answer as quickly as possible.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Question
Apologising for having to rush off, Mr. Newlands inquired about the Conference of Peripheral Maritime Regions’ estimate that Scotland will lose €840 million by 2027 due to loss of access to EU regional development funds. He sought confirmation from the Secretary of State on whether the UK shared prosperity fund would cover this gap and ensure Scotland does not lose out.
Minister reply
The Secretary of State confirmed a manifesto commitment for a UK shared prosperity fund, stating that further details will be announced at the spending review. Each nation of the UK will receive the same level of funding as they did from EU structural funds.
Wansbeck
Question
Expressing excitement for Burnley’s towns deal bid, Mr. Higginbotham urged the Secretary of State to move at pace and release the next tranche of towns fund deals.
Minister reply
The Minister promised a competitive phase early next year and announced plans to invest up to £25 million in dozens of communities through the future high streets fund, acknowledging its importance post-covid.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
Concerned about political favouritism affecting the shared prosperity fund's allocation, Ms. Onwurah asked for steps to ensure it does not suffer the same fate and requested confirmation that the north-east will receive at least £1 billion from the UK shared prosperity fund.
Minister reply
The Minister reiterated that each nation of the UK would receive similar funding levels as under EU structural funds, asserting they can design better-focused funding streams.
Christchurch
Question
Referring to the Public Accounts Committee report, Mr. Chope questioned whether the Secretary of State’s Department misrepresented the National Audit Office by falsely asserting that it concluded a robust selection process was used.
Minister reply
The Minister affirmed his respect for the National Audit Office and clarified that the permanent secretary gave clear evidence at the hearing that the procedure was robust.
Bill Esterson
Lab
Sefton Central
Question
Citing officials’ advice to choose relatively few low priority towns, Mr. Esterson questioned why Southport qualified while Crosby did not, implying political influence.
Minister reply
The Minister denied politicisation and highlighted examples like Birkenhead and St Helens benefiting from the towns fund despite not being key Conservative seats.
James Wild
Con
North West Norfolk
Question
Having read the accounting officer’s assessment, Mr. Wild confirmed that it said the permanent secretary was satisfied with the selection process's propriety and regularity, welcoming £25 million for King’s Lynn.
Minister reply
The Minister apologised for an earlier statement on community numbers and agreed to visit King’s Lynn to discuss their plans, acknowledging its eligibility under future high streets fund.
Shadow Comment
Justin Madders
Shadow Comment
The Shadow Minister criticised the selection process of the towns fund, expressing concerns about its transparency and impartiality. He questioned whether the allocation was influenced by political considerations, given that all low-priority towns chosen were in Tory-held or target seats. Madders also cited concerns raised by civil servants and committees like the National Audit Office and Public Accounts Committee. He urged for full publication of the rationale behind decisions and a transparent merit-based approach for future funding rounds. Additionally, he enquired about Ellesmere Port’s prospects for future funding opportunities and highlighted the urgent need for action due to pandemic-induced challenges.
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