House of Commons · Westminster Hall
11 November 2020 · 16 other contributors · 13,151 words
Opened by Dan Jarvis Lab Barnsley North
Responding minister: Kemi Badenoch
Summarised by AI from the official record, so it can contain mistakes.
Dan Jarvis raised concerns about north of england: economic support in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Government should extend the local growth fund beyond March 2021 and invest in transformative projects like Northern Powerhouse Rail and High Speed 2. Additionally, there is a need for critical structural changes such as reforming the Green Book to reduce bias towards more affluent areas and moving significant parts of the civil service.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Covid-19 has exacerbated existing economic disparities in the north of England, leading to higher unemployment claims and increased poverty. The region also faces planned cuts to universal credit, which could leave one in three working-age households £1,000 a year worse off. There are also ongoing issues such as regional inequality, unequal education and health outcomes, and underinvestment compared to the south-east and south-west of England.
The MP highlighted the challenges facing northern constituencies due to the economic impact of the pandemic, including higher unemployment rates. She called for greater support from the government to ensure local jobs, businesses, and strong economies in the north.
The speaker highlighted the economic impact of pandemic-related lockdown measures on Southport and other northern constituencies. He praised government support measures such as furlough, grants, reduced VAT, business rates relief, and the 'eat out to help out' scheme for hospitality businesses. The MP also called for delivery of town deals in the north, stressing the importance of infrastructure projects like the £50 million proposed package for Southport and its potential to unleash £400 million in investment. He supported a northern economic recovery plan.
The speaker discussed Halifax's economic challenges amidst flooding and the pandemic, emphasizing the need for properly funded local services and infrastructure investments such as HS2, Northern Powerhouse Rail, and electrification of the Calder Valley line. She noted that Calderdale Council faced a potential deficit of £15 million despite additional Government funding. The MP also called on the Minister to work towards making rail connectivity in the north a focus of the levelling-up agenda.
The disparity between north and south is evident with London's economy being 25% larger than the north's. Financial deprivation in Wakefield is higher compared to national averages, and there are more empty properties. The Government has pledged funds for freeports, bus and cycle links, and apprenticeships.
Discussed the impact of COVID-19 on northern football clubs and highlighted the growth of manufacturing in the north, noting that the September purchasing managers index showed the north growing faster than London.
Discussed the economic disparity in the north of England, highlighting that Leigh is an economically deprived area compared to wealthy regions like Richmond in Yorkshire. Noted a £1.5 million grant for Tyldesley's regeneration but stressed the need for better infrastructure and transport links to improve the economy.
The UK economy is fundamentally unbalanced, with the north suffering disproportionately due to the government's handling of the covid crisis. The Green Book assessment method skews investment towards existing growth areas rather than where it is needed most. Local restrictions and financial support have shown that northern needs are often ignored or an afterthought.
Critiqued the government's uneven handling of furlough payments during tier 3 restrictions and called for a green economic recovery plan with £30 billion in investment to create high-skilled jobs, noting that other countries are committing more funds to sustainable development.
The Government's handling of the pandemic has shown a lack of equal value for northern livelihoods and businesses. Investment is needed in hydrogen, Sci-Tech Daresbury, green growth opportunities, and local decision-making power.
Sheffield city region's renewal action plan identifies three key areas for support: people, employers, and places. Emphasised the importance of a skilled workforce, ongoing business support during the pandemic, and improving transport infrastructure. Encouraged focusing on existing strengths such as community ties, manufacturing history, universities, and rural capabilities.
Mr Fletcher advocates for the continuation of Treasury policy to reform the Green Book, which would lead to more infrastructure investment in the north. He believes the formula should no longer reward places with existing economic growth but instead look at potential and current need.
The city of York, despite its industrial past, is now facing a perilous economic condition with significant underemployment and retail losses. Ms Maskell calls for a shift in power to devolved authorities in Yorkshire to ensure economic change can be levered in, alongside clear investment data and prioritisation. Mentioned the BioYorkshire project, which will create 4,000 jobs and upskill 25,000 people in her constituency. Asked the Minister to bring forward investment for this project due to the current economic crisis.
Businesses in Furness are struggling due to poor infrastructure, despite a skilled workforce. Economic disparities exist between neighbouring wards, exacerbated by geographical challenges. The speaker urges the government to level up regions rather than offering handouts.
Unemployment in Barnsley East has doubled over six months. The speaker asks for a clear exit plan from lockdown, better control of track and trace by local authorities, and clarity on economic support for longer lockdown periods.
Stephen Flynn expressed concern about the lack of Government support for the oil and gas industry in Aberdeen, noting that no sector-specific aid was provided when prices plummeted during the pandemic. He also highlighted the absence of commitments to future industries like hydrogen and carbon capture storage, as well as the projected negative impact of Brexit on his constituency. Additionally, he criticised the Internal Market Bill for potentially removing devolved powers from Scotland.
Called for substantial investment in West Yorkshire, citing figures from the Institute for Fiscal Studies showing significant disparities between London and other regions. Emphasised potential economic hardship due to job losses and advocated for an integrated plan supporting economic recovery with a £2 billion proposal over five years.
Government Response
Kemi BadenochIt is a pleasure to serve under the chairmanship of Mr Efford, and I congratulate the hon. Member for Erith and Thamesmead on her first appearance as shadow Exchequer Secretary and the hon. Member for Barnsley Central on securing the debate. The Government are committed to protecting livelihoods throughout the country, including the north, with an unprecedented package of funding worth over £200 billion. This includes the coronavirus job retention scheme, which has protected the livelihoods of 9.6 million people, many in the north; welfare payments for the lowest earners; and self-employment income support grants totalling £1 billion to hundreds of thousands of people across the north. The Government have also provided £10.5 billion from the bounce back loan scheme and coronavirus business interruption loan schemes to businesses. Additionally, billions of pounds have been given to local authorities throughout the country to protect vital services during the pandemic. We will use the forthcoming spending review to continue the fight against covid and drive forward infrastructure projects that aid economic recovery and level up the whole UK, including £3.6 billion in the towns fund for regions such as Tyldesley. The Government are investing over £27 billion for strategic roads over the next five years, with £18 million to upgrade the A61 Westwood roundabout at Tankersley, dualling the A66 across the Pennines, and upgrading the M60 Simister Island in Greater Manchester. We are also developing an integrated rail plan to deliver High Speed 2 phase 2b and northern powerhouse rail more effectively alongside other transport schemes, including £900 million for local infrastructure upgrades through the Getting Building fund. The Government remain committed to fundamentally shifting how government policy is formulated with a levelling-up agenda, relocating civil servants to the north by establishing a new economic decision-making campus operational by the end of this Parliament with at least 750 roles in the north. We have agreed devolution deals with West Yorkshire and Sheffield city region, including £1 billion investment for a directly elected metro Mayor from May 2021 and substantial new funding and powers respectively. The Government are focused on ensuring that people and businesses in the region can weather the storm of covid-19 and benefit from an even brighter future.