Asked by
To ask Her Majesty’s Government what discussions they have had
with the Local Government Association on how national and local
government can work together to promote economic recovery after
the COVID-19 pandemic.
The Minister of State, Home Office and Ministry of Housing,
Communities and Local Government (Lord Greenhalgh) (Con)
My Lords, there has been regular and substantive contact between
Ministers and the Local Government Association during the
Covid-19 emergency. A ministerial-led economic recovery working
group has been established, made up of local government leaders
from the LGA and including several metro mayors and local
enterprise partnership chairs, to help inform the Government’s
plans for economic recovery. The Government continue to work
closely with local leaders to restart the economy and move into
recovery.
(Lab) [V]
I thank the Minister for that reply. I urge the Government to
include representation from the English regions, in addition to
London, in future COBRA meetings on Covid. I also urge the
Government to ensure that, after a decade of cuts, local
authorities have the resources they need to play their crucial
role in our economic recovery in the future.
Lord Greenhalgh
My Lords, attendance at COBRA is on an issue and topic basis, as
opposed to a standing membership. On supporting local economies,
it has to be noted that £27 billion has been spent to support
local areas, including £10.7 billion that has been paid out to
819,000 business properties. There are many other examples of
government support and that will continue as we move into
recovery.
(Lab Co-op)
[V]
My Lords, I declare my registered interest as a vice-president of
the Local Government Association. Before the Covid-19 pandemic,
our high streets and town centres were in crisis. There is a real
fear that, even when it is safe to do so, many will never
recover. What work are the Minister and his department doing with
local government to develop a package of measures to get our high
streets back on their feet and, when safe, encourage the public
to use them?
Lord Greenhalgh
My Lords, the high street is the very heart of a local economy
and a number of measures have been taken by the department. The
places, urban centres and green spaces guidance which has been
issued will help operators and owners on the high street and in
our town centres. In addition, on 25 May the Government
established a £50 million Reopening High Streets Safely Fund, as
well as enabling an additional £6.1 million funding for business
improvement districts in high streets and town centres.
[V]
I declare my interest as a vice-president of the Local Government
Association. What discussions have taken place about reviewing
business rates, so that large online retail companies, which
perhaps have no actual shops and many of which pay relatively
small amounts of tax, do not have an unfair advantage over our
small shops in our high streets which are under threat at the
moment?
Lord Greenhalgh
The most important measure that has taken place during this
pandemic is the deferral of business rates, and that is a
significant measure to support businesses. I will have to write
to the right reverend Prelate about the specifics on the review
of business rates.
(Con) [V]
My Lords, it is critical that businesses are included in the
decision-making around reviving local economies. In my city of
Leicester, many businesses have fallen through cracks because of
poor communication from the council on the massive funding
packages the Government have provided for businesses. Will my
noble friend assure the business community that it will be
closely involved in the recovery plans and that councils must
demonstrate that what they are doing is open and transparent?
Lord Greenhalgh
My Lords, my noble friend makes the important point that, in any
economic recovery, businesses will need to transform themselves
and respond to the pandemic. It is fair to say that, when we
looked at supporting the reopening of high streets, we engaged
with businesses as well as the Association of Town and City
Management. It is important to get all the stakeholders around
the table so that guidance is appropriate and the support
measures adequate.
(LD) [V]
My Lords, the response to lockdown has shown that, where a full
range of digital tools is available, people and businesses can
locate almost anywhere. This could be transformative for rural
economies, so will the Minister commit that, when we get details
of the shared prosperity fund, there will a dedicated stream for
rural areas that could work alongside new funds outlined in the
Agriculture Bill?
Lord Greenhalgh
My Lords, I have already made the commitment that the UK shared
prosperity fund will see no diminution in the support to enable
us to level up our economy, including support for rural areas.
(Con)
[V]
My Lords, will my noble friend join me in paying tribute to North
Yorkshire County Council and the close partnership it has formed
with the local LEP to ensure that local businesses are able to
access the loans, funds and grants that the Government are so
generously operating at this time? I invite him to press the case
for recognition of rurality and the particular plight of
microbusinesses in rural areas being able to access these funds—a
not dissimilar question to that asked by the noble Baroness, Lady
Scott of Needham Market.
Lord Greenhalgh
My noble friend raises an important point: support for the
economy needs to include those microbusinesses in rural areas.
The figures and support mechanisms indicate that a number of
businesses have received support, whether it is by grant or by
business premises rates deferral, but we will look specifically
into those measures as well so that we support all businesses
during this pandemic.
(CB) [V]
My Lords, technological innovation is key in this interconnected
world. I follow others in their questioning; however, the
Government’s future fund appears more likely to favour larger
enterprises, with SMEs possibly left behind. Will the Minister
consider what role economic development departments in local
authorities could play in allowing smaller businesses to benefit,
thus promoting a more localised approach to economic recovery?
Lord Greenhalgh
My Lords, it should be noted that so far the grant scheme has
gone to some 804,000 business premises. The spread of the economy
for those who are self-employed, as well as small businesses, is
quite considerable at this stage. I know, as a former local
authority leader, that economic development is very important,
not just for large businesses but for the small and medium-sized
enterprises that are the backbone of this economy.
(Lab) [V]
While co-ordination between local and national government is
essential for our recovery, are the Government also looking to be
part of the European Union’s €750 billion stimulus and recovery
package, which, as the Minister will know, has a regional and
local dimension?
Lord Greenhalgh
My Lords, I am not in a position to answer that directly. I know
that we are moving towards establishing a free trade agreement
and a deal with our European Union counterparts, as we are
leaving the EU. I will write to the noble Baroness on that
specific matter.
(LD) [V]
My Lords, I too declare an interest as a vice-president of the
LGA. Local government has a key role to play in the provision of
cultural services, including museums, art galleries and theatres.
All these play an important part in the recovery of the economy
post Covid-19 and in the mental well-being of our population.
What plans do the Government have to support councils to help
them reopen these vital facilities?
Lord Greenhalgh
It is critical to support our cultural institutions, our museums
and theatres and also the people who keep those places running.
Many of them are self-employed, and access to funding has been
granted to many people who are self-employed as well as through
the furlough scheme. On the specifics, I am sure this will
feature in the local government settlement that will be finalised
in the next month or so.
(CB)
My Lords, while I recognise the importance of regions and local
authorities in England towards the recovery of the United Kingdom
economy, can the Minister confirm that there will also be
consultations with the three devolved states in the United
Kingdom—Scotland, Wales and Northern Ireland—which can contribute
to the overall recovery of the United Kingdom economy?
Lord Greenhalgh
My Lords, the mission of this Government is to ensure that all
four nations recover from the shock of this ghastly pandemic. Of
course, there will be continued engagement and consultation with
the devolved Administrations
