Commons Sense

House of Commons · Ministers' Questions

Regional Inequality

Monday 21 November 2022 · 5 questions

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

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • The autumn statement protected the most vulnerable by uprating benefits and pensions with inflation, strengthening the energy price guarantee, and providing cost of living payments.
  • The UK shared prosperity fund and the levelling-up fund have provided financial support to areas like Liverpool city region and other overlooked areas.
  • The Secretary of State acknowledged the need to help parts of the United Kingdom, including the west midlands, addressing issues related to high interest rates and property prices.

Topics (select to filter)

Questions & Answers

Context

The question follows concerns over the economic impact of recent increases in interest rates and inflation.

Question

What recent assessment has been made with Cabinet colleagues of the potential impact of increases in (a) interest rates and (b) inflation on regional inequality?

Answer from Michael Gove

It is because we are concerned about the impact of inflation and increases in interest rates that this autumn statement protected the most vulnerable by uprating benefits and pensions with inflation, strengthening the energy price guarantee, and providing cost of living payments.

Partly answered

Not addressed: Did not provide a specific assessment on regional inequality impacts from increased interest rates or inflation

How: Changed Subject To Football Scores

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Context

Concerns arise over a net loss of £206 million for the north-west under the shared prosperity fund, which has not been inflation-proofed.

Question

After promising to match EU structural funds and then taking £1 billion annually out of them, how can the Secretary of State claim to be levelling up when his Government have presided over a net loss in funding across the country?

Answer from Michael Gove

It is not just the UK shared prosperity fund, but the levelling-up fund that has seen money go to not just Liverpool city region, but all those areas we are targeting that have been overlooked and undervalued in the past. Specifically, the UK shared prosperity fund has provided £52 million for the Liverpool city region.

Partly answered

Not addressed: Did not address the net loss of funding or match EU structural funds promise specifically

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Context

Request to address areas of deprivation in Lichfield despite its general perception as an area with high property prices.

Question

In areas such as Lichfield, which have very high property prices, people who hold mortgages will also be affected by high interest rates. For that reason, may I urge my right hon. Friend to look at our levelling-up bid because it is desperately needed for Lichfield's people—not those in expensive houses, but those who are in more difficult positions?

Answer from Michael Gove

Lichfield is the jewel of Staffordshire, but even the most glittering jewels sometimes have flaws and, as a rough diamond himself, I know that my hon. Friend will appreciate that. I recognise that there is a need to help all those parts of the United Kingdom and the west midlands where, even though there may be prosperity, there is inequality that needs to be addressed.

Partly answered

Not addressed: Did not commit to considering or rejecting a levelling-up bid specifically for Lichfield's areas of deprivation

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Context

Criticism over the delay in allocating levelling-up funds, with some areas performing poorly compared to others.

Question

Only a third of the levelling-up funds has been allocated, and after wasting our time with the short-lived investment zones, the second round is months behind schedule. Can we bring some sense to this madness, end the “Hunger Games”-style competition, and allow all our communities—not just his favourites—to decide how their own money is spent?

Answer from Michael Gove

If it is “The Hunger Games” we are talking about, it is the Labour party leadership contest that is closer to that than any other contest in this House. On the substantive point that she makes, it is important that we look at how we fund local government overall.

Not addressed: Completely avoided addressing the inefficiencies or allocation issues of levelling-up funds

How: Changed Subject To Labour Party Leadership Contest

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Context

Criticism over perceived lack of support for regional economies in the autumn statement, with concerns raised about funding cuts.

Question

We have almost as many funding pots in the Secretary of State's Department as we have had Ministers in the past 12 months. Can he not see the problem? We both know that the only way out of this crisis is to get local and regional economies growing, so how can it be that the key Department responsible for that was the biggest loser in last week's autumn statement?

Answer from Michael Gove

The autumn statement was at a time of challenging news for the global economy. It was absolutely the right response and, again, not only did we secure a significant, record increase in funding for local government at the previous spending review, but we secured billions additionally for adult social care and for children's services.

Partly answered

Not addressed: Did not address why the department responsible for levelling-up was a budget loser in the autumn statement

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