Inequalities of Region and Place — House of Lords, 2021-10-14
Topic: Macroeconomics
William John Lawrence Wallace (Liberal Democrats, Centre to centre-left): My Lords, I have lived between London and West Yorkshire for 40 years, balancing two careers, family obligations and politics, and I have watched the inequalities between the south-east of England and the north widen. I have seen how the distribution of taxation and spending, under Labour as well as Conservative and coalition Governments, has reinforced the advantages of the south-east. For several years, we have paid significantly higher council tax on our house in Bradford than in Wandsworth, in spite of the sharp differences in income and wealth between these two local authorities This Government refuse to recognise that reducing regional inequalities cannot be achieved through central direction. As the noble Lord, Lord Young, and others said, local leadership has to be a central part—both political and business leadership. Powers and finance have to be returned to local government; local democracy must not be squeezed further or required to bid against others for limited pots of funding. I have to say to the Minister that Conservatives look to be hostile to local democracy Local enterprise and local business leadership are also important. That does not fit with the financial free-for-all in which successful local enterprises are taken over by distant private equity companies. Twenty-five years ago, Saltaire had two promising young electronics companies working out of the old textile mill; both were taken over by US multinationals. Their role in the local community shrank, as did the number of their employees. The innovation they created is now enriching California and Florida, rather than Yorkshire. The largest enterprise based in Bradford, and in many ways the most socially responsible corporate actor in Bradford, has been Morrisons. Will its new owners care about contributing to the prosperity of West Yorkshire or providing local economic leadership? How will the Government nurture the growth and financial sustainability of locally owned enterprises across our country’s regions, since banks and private equity seem committed to taking their short-term profits and selling them to others abroad? That does not fit very well with the Government’s insistence that they represent national sovereignty and patriotism, and the liberal elite, whom they attack, does not My wife, alongside the noble Baroness, Lady Eaton, sits on the advisory board of a Bradford academy trust. She sees the dedication of teachers and the challenges they face with pupils from some of Bradford’s poorest estates and with the children of first-generation immigrants and refugees. Long-term investment in education spending, on the scale recently proposed to but rejected by the Government, is an essential part of any coherent strategy to reduce regional inequalities. That has to include the transformation of the funding and status of further education colleges to provide the technical skills and apprenticeship training that Michael Gove and others say they care about but have neglected so far Others have talked about the gap in the funding and provision of transport infrastructure. Across much of the north, the buses are infrequent and expensive and the trains old and crowded—where they exist. If you cannot get to work, you cannot work. There are too many industrial communities across the north without much local employment and without transport links to where there is employment We also need to pull the cities of the north closer together. HS3, the proposed new line for Leeds and Manchester via Bradford, would transform the region, bringing the trans-Pennine area together in the same way that London transport brings Greater London together. It would also provide, incidentally, extra freight possibilities, which would reduce the enormous number of trucks that drive between Liverpool and Hull across the M62. We are desperately short of freight paths in the north. The eastern leg of HS2, which is also essential, would link Sheffield. It takes one hour to get from Sheffield to Leeds in this network I hope the Minister recognises how much cynicism there is in the north about the Government’s promises of levelling up. We were sold the northern powerhouse, which did not seem to extend very far beyond Manchester. We have listened to Ministers rattle on about northern powerhouse rail, while giving the Oxford to Cambridge line much higher priority. We hear the Prime Minister make jokey speeches with catchy slogans, promising that he will work wonders and bring prosperity to everybody. But nothing much will change unless power and finance are returned from London to our regions, cities and towns, and the Government commit to sustained investment in education and training, and in public transport outside the south-east.