Contribution
Much in this statement builds on the work of the previous Government, and we share the new Government’s ambitions for the growth and renewal of our neighbourhoods and high streets, which are so fundamental to our constituents’ quality of life. As the Minister knows, there is a history behind this statement that links back to the desire of all our constituents to have a proper say in the development of their home area. In a country that is as grossly centralised, by democratic standards, as the UK, that local voice is vital.
EU cohesion funds, which were the predecessor of the UK shared prosperity fund, were directly accountable to both the UK Government and local representatives. In the short timeframe in which the previous Government’s levelling-up strategy was in effect, it sought to bring to bear a wide variety of national resources on exactly the challenges that the Minister referred to in his statement. There was a £2.6 billion fund allocated for regeneration and communities; the £4.8 billion levelling-up fund, which was specifically designed to support treasured assets such as pubs and theatres, where there was strong community support; and the £1.5 billion long-term plan for tax. We know that local leaders welcomed that investment, and many Members across the House spoke very warmly of the benefits to their constituents, so the challenge to the Government today is to set out how this very small and limited project sits against that much broader levelling-up ambition and, in particular, where it sits against the £3.6 billion towns fund set out under the previous Government.
The House will acknowledge that this statement comes at a time when this Government’s financial decisions are bearing down very heavily on our communities. The massive rise in national insurance contributions, the increases in business rates on pubs, retail businesses and hospitality, the changes to business property relief and the multibillion-pound funding gap that opened up in council budgets as a result of the Government’s Budget last October all weigh very heavily in the balance against this modest announcement. That leaves aside the impact of the loss of things such as the rural services grant and the community ownership fund, which were specifically targeted at delivering support to communities that needed it.
While we welcome this rebadging and rehashing of a scheme that we progressed when we were in office and its allocation to largely the same list of recipients, we have some questions to put to the Minister. The first is about the accountability of the proposed neighbourhood boards. It is a significant concern that the Minister finds time to say that the boards will include trade union representatives, but not to mention the democratically elected representatives of those local communities—a trend that sits alongside the changes in the proposed planning White Paper. Local democracy is vital if these boards are to work effectively.
The second question is about the lack of a clear purpose for these resources. While it sounds like a positive thing to broaden the range of areas in which they can be spent, it is a serious concern that the Government again choose refurbishment and modernisation of social housing, which is already allocated for in other areas of local government funding. It begs the question of whether these funds will, in fact, go towards making up shortfalls that the Budget created in other areas of Government spending.
Finally, there is real concern that broadening the criteria, and choosing to use generalised national statistics rather than local understanding of need to decide how to allocate funding, will mean that the resource is allocated in a way that simply does not reflect needs and local circumstances. A bidding process allows local authorities—which lead and represent their areas, and can identify particular needs—to come forward to Government and present a plan. The process of allocation that is being suggested creates a serious risk that those who can do the most to regenerate and benefit our high streets and communities will lose out in favour of those who are simply able to meet the criteria of Whitehall box-ticking.