Commons Sense

House of Commons · Ministers' Questions

Economic Growth

Monday 16 May 2022 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • UK Department allocated over 7 billion through levelling-up funds since September 2020.
  • The national living wage introduced by the Government puts 1,000 extra in workers' pockets annually.
  • The Cabinet's visit to Stoke highlighted successful levelling-up bids and direct funding to councils without strings attached.

Topics (select to filter)

Questions & Answers

Q1 Peter Aldous Con
Economy
Context

The MP asks about economic growth support across the UK, focusing on coastal communities.

Question

What steps his Department is taking to support economic growth across the UK. I am concerned about coastal communities such as Lowestoft and Waveney being overlooked in economic development. Will the opportunities and challenges they face be prioritised under the levelling-up agenda? Additionally, will funds from the Crown Estate that were previously allocated for coastal areas continue to target their needs?

Answer from Neil O'Brien

Our levelling-up White Paper outlines our plans. We have allocated over £7 billion through levelling-up funds since September 2020, including recent allocations for the shared prosperity fund. The future high streets fund has provided £149 million to coastal local authorities, and coastal areas received £287 million in the first round of the levelling-up fund, alongside £229 million invested since 2012 through the coastal communities fund.

Answered
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Q2 Peter Aldous Con
Economy Taxation Benefits & Welfare
Context

The MP highlights a significant economic crisis with falling living standards, pensioners struggling to keep warm, widening regional gaps, and collapsing local economies. She questions the government's response.

Question

There is a severe economic crisis with the biggest fall in living standards since the 1950s. Pensioners are boarding buses just to stay warm due to high energy costs. On every measure, disparities are increasing. Local economies are on the verge of collapse. Despite this, all we've had from the Secretary of State is a promise for al fresco dining and legislation renaming Mayors. What stops the Government from scrapping business rates, introducing windfall taxes, uprating benefits now instead of later, or taking other measures to inject money into people's pockets and stimulate economic growth?

Answer from Neil O'Brien

The national living wage, introduced by this Government, is putting £1,000 extra in workers' pockets. Universal credit changes will make full-time workers £1,000 better off annually. The record increase in the national insurance threshold benefits nearly 30 million households. Additionally, through the levelling-up agenda: £4.8 billion from the levelling-up fund; £3.6 billion from the towns fund; and £2.6 billion to transform town centres are being spent.

Partly answered

Not addressed: The specific ask was not directly addressed, focusing instead on positive measures already in place without addressing pensioners' struggles or regional disparities.

How: Under Review, Under Consideration

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Q3 Lisa Nandy Lab Wigan
Economy Parliamentary Procedure Local Government
Context

The MP criticises the government's failure to support levelling up, pointing out that Stoke has lost £55 million due to policy changes and that civil servants are still based in London.

Question

Households across the UK are suffering severe hardship because of the cost of living crisis. The Secretary of State has failed to get money from the Chancellor or convince colleagues to support levelling up initiatives, such as moving civil servants out of London. How can he claim to be supporting economic growth when his own team is not willing to move?

Answer from Neil O'Brien

The Cabinet's visit to Stoke drew attention, highlighting successful levelling-up bids. Under the last Labour Government, regional development agencies decided funding from Brussels; now, money goes directly to councils like Stoke without strings attached. This transformation contrasts with years of neglect under Labour.

Not addressed: The specific ask was completely avoided, shifting focus to past Labour policies and the success in Stoke.

How: Change Of Subject

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Q4 Lisa Nandy Lab Wigan
Economy Scotland
Context

The MP criticises cuts to Scotland's resource and capital budgets, questioning how the government can claim to support economic growth across the UK with these constraints.

Question

Households are suffering due to the cost of living crisis. Scotland's resource budget allocation has been cut by 5.2% and the capital budget by 9.7% in real terms. How can the Minister claim support for economic growth when the Scottish Government's ability to help businesses, investment, and people is severely limited?

Answer from Neil O'Brien

The record block grant settlement for Scotland is huge. For every £100 of spending elsewhere, there is £126 in public spending in Scotland. The implication that Scottish public spending has been cut by Westminster is not correct.

Not addressed: The specific ask was completely avoided, focusing instead on the size of the block grant settlement for Scotland.

How: Change Of Subject

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Q5 Andrew Percy Con
Economy Transport Local Government
Context

The questioner recalls past underinvestment by Labour in the north of England, highlighting recent developments such as reduced Humber bridge tolls, support for Siemens factories, and receipt of significant funding through town deals. He mentions missing out on levelling-up funds previously but seeks assurances about future bids.

Question

We received very little from 13 years of Labour Government in the north of England. Since then, we have seen reductions in Humber bridge tolls, support for Siemens wind turbine and train factories, and significant funding through town deals. Although we missed out on levelling-up funds initially, will you assure me that you will look closely at our bids for future rounds?

Answer from Neil O'Brien

I will look very closely at them. I hope through exciting talks and Hull and East Riding devolution deal we can pick up more opportunities in the area.

Partly answered

Not addressed: Details of future levelling-up fund bids, assurances on specific funding

How: Of Course, The Reviews Of Labour'S Performance In Hull Are So Good That It Has Just Been Kicked Out Of The Council.

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