Regional Economic Inequality

Treasury – in the House of Commons at on 7 May 2024.

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Photo of Liz Twist Liz Twist Shadow Minister (Levelling Up, Housing, Communities and Local Government)

What recent fiscal steps he has taken to help reduce regional economic inequalities.

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

At the spring Budget, we built on the £15 billion of levelling-up commitments made since 2019. We announced a trailblazer devolution deal for the north-east mayoral combined authority and a £400 million extension to the long-term plan for towns.

Photo of Liz Twist Liz Twist Shadow Minister (Levelling Up, Housing, Communities and Local Government)

The cross-party Public Accounts Committee has revealed that the Government’s levelling-up funds were subject to a “worrying lack of transparency”, with rules for accessing funding changing while bids were still being assessed. Will the Minister therefore apologise to the 55 local authorities rejected for funding that were not told in advance that their applications had no chance of success?

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

This is the Government who implemented £15 billion of support for communities outside of London and the south-east, which is one of the reasons why median pay growth is higher in every region outside of London and the south-east. Of course, there is a robust methodology and criteria for selecting places for funding, and I encourage the hon. Lady to look at those criteria.

Photo of Peter Gibson Peter Gibson Conservative, Darlington

With the Darlington economic campus now having passed 750 employees and being well on its way to providing over 1,500 roles in my constituency, what assessment has my hon. Friend made of its contribution to the local economy, to reducing inequalities and to our levelling-up agenda?

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

The Darlington economic campus is an important part of this Government’s operations and of our Government estate, but it is also important to the people of Darlington, and not just in terms of the jobs it has created. Of course, it builds on the back of significant funding on my hon. Friend’s watch: the £22 million town deal and the £6 million as part of the shared prosperity fund. That is one of the reasons why the people voted to elect Ben Houchen just the other day.

Photo of Emma Hardy Emma Hardy Shadow Minister (Flooding, Oceans and Coastal Communities)

Regional inequality may be made worse by my constituents facing having to pay again for funeral plans after they were sold fake funeral plans by Legacy funeral directors. Many simply cannot afford to pay for those plans again and, instead of having the funeral that their families wanted for them, they will only be able to have the free service offered by the council. Does the Minister agree that banks should offer more discretion when looking at victims of fraud, and will he meet with me to discuss this specific case further?

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

I am very sorry to hear of the circumstances that the hon. Lady has described. My hon. Friend the Economic Secretary, in whose portfolio this issue sits, will meet with her.

Photo of Martin Vickers Martin Vickers Conservative, Cleethorpes

For many years, coastal communities have suffered economic inequalities, and we all know that the best way of changing that is to create the conditions for investment and the jobs that go with them. Despite the good work that the Government have done, we still need more funding in areas such as Cleethorpes. Could the Minister outline what plans the Government may have for bringing forward further schemes in the near future?

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

It is right to acknowledge that funding has gone in. I completely appreciate the specific challenges that coastal communities face, but it is important to look at the package of measures to level up—not just funding such as the shared prosperity fund, levelling-up fund and towns fund, but the 13 devolution deals, 13 investment zones and 12 freeports. These are all packages and measures that will help areas such as my hon. Friend’s, but I will always keep his area in mind.