Pride in Place

Order. Mr Waugh, you do not cross the Front Bench, even to take a shortcut. It is not on.

With permission, Madam Deputy Speaker, I wish to make a statement on the action we are taking to restore pride in place. Britain’s renewal is a driving mission of this Labour Government, and we know that that must be seen, felt and heard in every single neighbourhood. Our identity, sense of patriotism and feeling of belonging can all depend on the condition of our local area and the view from our doorstep.

Our neighbourhoods are the nation’s barometer for whether all of us in this House are doing our jobs. Under 14 years of Conservative failure, the needle of that barometer has increasingly pointed in the wrong direction. The effect of this decline in pride in place has been corrosive. It has eroded people’s trust in politics and the state, created a sense of unfairness and that some places have fared better than others, and opened the door to the plastic patriots in the Reform party, who say that there is a simple answer. Let me say from the start that we are under no illusions about the complex causes of, and answers to, this decline.

The failure of the Conservatives properly to fund local government, the sharp transition away from industry and the broken Tory promises of levelling up must shoulder part of the blame. We cannot and will not pretend that the legacies of any of those issues can be reversed overnight, but, as both a Labour Government and a Parliament, we can be confident that the way in which we restore pride in place lies not in this Chamber or the corridors of Whitehall; the answer is in the communities that we each represent.

Our job is to give our constituents the investment and powers that they need, so that they can deliver the change they want to see in their communities. That is why we have announced the pride in place programme, backed up by £5 billion. This is a priority for the Prime Minister, choosing renewal over decline and unity over division. This is our plan for change in action, giving power and pride back to the people who make Britain great.

There are two categories of investment. The first, the main programme, is the flagship pride in place programme, which will provide up to £20 million of funding and support to each area over the course of a decade, focused on specific neighbourhoods. Communities will need to decide how that funding is spent. We will establish a neighbourhood board in every place, made up of local people. Residents, business owners and community leaders will come together alongside their Member of Parliament to come up with a 10-year plan for this investment. They could choose to bring a derelict pub back into use for the community, transform a boarded-up shop into a wellbeing hub, improve local transport links, create a new playground or roll out a community-level service to help with the cost of living. Local people know best what change is needed.

This programme is about local communities taking back control. As long as the plan provides value for money, the board will have our full support to deliver the change that the community needs. We are taking inspiration from the new deal for communities, which, under the last Labour Government, put local communities in charge of renewing their neighbourhoods, but we are also adapting to the world as we find it today and learning the lessons of what did and did not work from the last time around.

I call the shadow Minister.

This statement speaks of pride. Conservative Members have pride in our local pubs, 200 of which have closed in the past six months, hammered by the Labour party’s business rates rises. We have pride in our restaurants, which are closing in record numbers under the business rates burden imposed by this Government. We are proud of our local shops, which—according to the British Retail Consortium—are buckling under an additional £7 billion of annual costs imposed by this Government. We are proud of our family businesses, the bedrock of our high streets, which are buckling under new taxes introduced by this Government. We are proud of our family farms, which are also buckling under the new taxes imposed by this Government. We are proud of our local councils, which face maxing out their council tax rates. We hear of £20 million at a local level, but councils across the country are maxing out their council tax, not to invest in new local services, but to pay an additional £1.5 billion of annual costs imposed on them by this Government’s job tax—every year, when it comes to delivering services, a net £1.5 billion worse off. We are proud of the workers of this country, of whom there were 4 million more when the Conservative party left office last year. In the retail sector alone, 97,000 have lost their jobs since this Government took office. As such, this programme is a fig leaf—elements relabelled from past programmes such as the long-term plan for towns, slightly redirected to Labour areas—that covers up a collapse in the ability of our elected local representatives to invest in their communities. As with so many things, that collapse gets worse every day under the Labour party.

Let me pose some specific questions to the Minister. First, why is there so much complex governance around this? Why not listen to the cries of our local leaders in Croydon, Somerset and Hertfordshire—people across the political spectrum who are saying, “Why not just give the councils the money to get on with this? Why tie this up in bureaucracy and red tape?” How much of this money has simply been rebadged from other, previously announced Government programmes? Why the change in methodology? In the interests of transparency, can the Minister set out for the House why the funding now seems to be landing in areas that are more likely to support the Labour party?

I am disappointed by the hon. Member’s lack of contrition and his failure to say sorry. The Conservatives presided over 14 years of failure, during which, over a period of austerity, local government and local civic institutions were denuded and deprived communities were hollowed out. He says that we are funding areas of deprivation—that is because we actually care about funding those areas. Candidly, if I had the record of the last Government, I would not stand at the Dispatch Box and give us lectures.

Let me pick up the specific questions that the hon. Member asked. First, why are we tying this up in process? There is no process, but we have said that communities should be in charge. The difference between this scheme and the things done by the last Government is that we want to put communities in the driving seat and give them power. We want local authorities to enable and facilitate, but we absolutely need our community leaders. Members across the House will know them—the people who are networking, championing and making change happen. We want them around the table, driving the change that their community needs.

On the methodology, the Conservative party obviously did some fiddling, but we do not do that. We have focused on two metrics: multiple deprivation and community needs. That is putting investment into the areas that most need it, because they are both deprived and, critically, have low social infrastructure and social capital. That is why we are funding the areas that we are funding. We all remember the Conservatives’ last Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak), saying that they actively diverted funding away from areas of deprivation. That is something that the Labour party will not do and has not done.

Finally, turning to the funding profile, we are desperate to move with momentum. We want to get the investment out. It is a 10-year commitment—that is an absolute game changer. No Government have ever said to communities, “Come up with an investment plan and we will fund you over a decade.” We think that is game changing for communities on the ground, but we are not going to wait. We are already giving programme capital investment to the 75 places that were in phase 1, in order to start the work of kick-starting that programme, and then their funding will flow next year. For those places in phase 2, capital and capacity investment will be going into them from next year and then flowing in the year after. We are very clear about this opportunity for our communities.

Order. “Because of your record”? My record? “Because of you”? Me? Let us temper our language, lower the temperature and continue.

Apologies, Madam Deputy Speaker. Because of the Conservatives’ record, I would expect a little bit more contrition.

We are focused on the task ahead, which is the opportunity to drive change in our communities. I hope Members across the House can join us in that endeavour.

The £5 billion investment in the pride in place programme means that Brinnington and Stockport will benefit from a £20 million investment. What does the Minister think of the former Government’s levelling-up slogan, which in reality was a levelling-down agenda for opportunity, ambition and trust?

My hon. Friend is completely right—levelling up was a hollow slogan. We see from the record that there was no substance behind it. Unlike the Conservative party, we are doing the job of investing in our communities, putting them in the driving seat. That will be a game changer in constituencies such as my hon. Friend’s.

I call the Liberal Democrat spokesperson.

I welcome the Minister to her place. Liberal Democrats welcome the Government’s commitment to invest in high streets and communities—making our local centres thrive is a cause that all of us across this House share. However, despite the strategy talking about empowerment and the Government previously announcing that they would simplify the system and consolidate grants, this strategy does the opposite by creating a patchwork of small ringfenced grants for certain areas with strict rules on how local authorities can spend their funding.

However, what goes unsaid in the strategy is perhaps as important. The importance of community assets such as libraries and swimming pools is acknowledged in the strategy, as is the lamenting of their loss, but the strategy neglects to mention the deeper causes of those sell-offs. Local authorities face ever-growing crises in funding statutory services that they have to fund according to Government rules, particularly social care and provision for special educational needs and disabilities, and are forced to sell assets to keep those services going. In this year alone £1.3 billion of public assets have been sold off, nearly three times the amount of the annual funding announced today. In my constituency, and in Somerset as a whole, more than two thirds of council tax payments go towards the funding of care for children and adults. Last year the county succeeded in plugging a £55 million shortfall, but that feat will become harder to achieve each year.

Pride in place will struggle to succeed unless the Government fix the care crisis. Council tax payers should not be bailing out the Government when it comes to their duty to provide a care and SEND system that works. Investment in the high streets is welcome, but is no substitute for giving local authorities the means to protect their services and assets into the future. Will the Minister tell us what plans the Government have to relieve the care funding crisis at local level, so that communities can keep and maintain the services and assets that they value most?

I will take each of those points in turn. This is about empowerment. We are driving through what we believe is the biggest boost to devolution in a generation, and there are three strands to that.

First, we are putting communities at the heart of the strategy. We have designed it in a way that does not just mean that local authorities are in the driving seat, because we consider it critical to put community leaders at the heart of it. This is an opportunity for us to galvanise our communities, to get people from diverse backgrounds round the table and, crucially, to build momentum to drive the change that they want to see. We do not resile from that, because we think it is absolutely the right approach.

Alongside it, however, we are giving more power to local authorities, whether that means multi-year funding or consolidating the local government finance system so that authorities have more flexibility. We see them as a key partner in the driving of change on the ground.

Thirdly, as we create strategic authorities there will be the biggest tranche of devolution to our city region and county region mayors that we have seen so far. Taken together, those three strands are about fundamentally shifting and transferring power from the centre to places, so that we can deliver the change that people want.

There has been a huge sell-off of assets. That is the legacy of the last 14 years, and it is a tragedy for our communities. We have introduced the community right to buy so that communities are able to identify assets of community value and to buy them, and support from pride in place gives them an opportunity to put investment behind that.

Finally, the hon. Gentleman asked about the critical issue of local government funding. Labour Members entirely understand the pressure that local government is under. There have been 14 years of austerity, driven by the Conservatives, and local authorities are having to deal with a very difficult context. That is why we have moved towards a multi-year funding settlement, and why we gave a huge boost to local government financing last year. Over the course of the spending review, there will be a real-terms increase in local government spending power. It is tight, but we are doing our part as a Government to ensure that local government can deliver for our communities. My colleagues in the Department of Health and Social Care are driving through critical reforms that will address some of the pressures that we know exist in our social care system.

I welcome this Labour Government’s £22 million investment in Fairfield in my constituency, which was ignored by the Conservatives. Does the Minister agree that it is crucial for this programme to provide not just new money, but new powers for local people to decide how it is spent? Will she confirm, for the avoidance of doubt, that the money should not be used to deliver core council services?

Absolutely. Let me put it on record that we want communities to be in the driving seat. That is how this differs from programmes organised under the last Government, and if we get it right, it will have a huge, galvanising potential. What we want to militate against is the possibility of its just going towards “business as usual”. If we can bring people from communities to the table and get them to invest in the things that matter to them, but can also generate community wealth, this will be a potential game changer.

May I congratulate the hon. Lady on her new role, and, perhaps, strike a more slightly consensual note?

In Sutton Coldfield we welcome this initiative. It is good that it builds on the towns fund set up by the last Government, and we in the royal town are very pleased to be part of it. I can tell the hon. Lady that we are undertaking extensive community consultation, led by Royal Sutton Coldfield Town Council and its leader, Simon Ward, and that our local board, under the chairmanship of Doug Wright MBE, is forging ahead and already making considerable progress. May I invite her—as I invited her predecessor—to pay a state visit to the royal town of Sutton Coldfield, where she can see how we will use this money to the best possible advantage?

I thank the right hon. Gentleman for telling us about the progress on his patch. It is incredibly encouraging to see the work that has already been done, whether through the local authority, existing boards or the coming together of community leaders. I ask all Members who can give examples of this working well to reach out to other Members, on both sides of the House, so that those examples can be shared. I look forward to travelling across the country and seeing pride in place in practice.