Lisa Nandy – 2023 Speech on Spending Decisions and Capital Projects
The speech made by Lisa Nandy, the Labour MP for Wigan, in the House of Commons on 9 February 2023.
It appears that nothing is going right in this place today. I have lost count of the number of times I have had to drag Ministers from this shambolic, failing Department to the House to account for their failures—failures to deliver and failures to understand the impact of our money that is being spent. An extraordinary report in the Financial Times today suggests that the Secretary of State for Levelling Up, Housing and Communities has been banned from spending any new money on capital projects without approval from the Treasury. It follows a damning National Audit Office report, which provided evidence that the Department had no idea about the impact of the money that it was spending, and the Chair of the Public Accounts Committee made an assessment that billions of pounds of our money were being wasted, because the Government had engaged in a programme without any understanding of the impact of that programme.
If this report is true, we are in the absurd situation of having a Secretary of State who does not even have the authority to sign off on a park bench. Is this true? If so, what is the Government’s assessment of what that means for the levelling-up agenda, of which a third round of spending has just been announced, and for tackling the housing crisis? Is it true that this decision by the Treasury was prompted by unauthorised spending commitments made by the Secretary of State at the convention of the north to spend money on improving appalling housing standards, after the desperate death of a two-year-old boy in Rochdale? I understand that the Secretary of State is in Rochdale today. How can he possibly tell housing associations to sort themselves out if he cannot sort out his own Department? We deserve to know whether the Chancellor of the Exchequer believes that a Secretary of State who is finally—belatedly—spending money on improving housing standards is a Secretary of State who has gone rogue, because that would be very serious.
The rumours are swirling that there is huge underspend in the Department. We are in the midst of a housing crisis, yet I understand that the affordable housing budget has not been spent and that there are levelling-up funds that have not been spent either, which will now be clawed back by the Treasury. Is that true? Will the Government publish the correspondence between the Departments about this matter? It is our money, and we deserve to know.
Lee Rowley
I thank the shadow Secretary of State for her questions. There was a significant amount of hyperbole in there and a significant amount of suggestion and inference, but the reality remains, as I confirmed in my initial response to her question, that there has been no change to budgets, capital or revenue. There has been no change to our policy objectives, no dilution of our ambition to level up, and no implications for the Government’s policy agenda. [Interruption.] The shadow Secretary of State does what she does best, which is to heckle from a sedentary position, but I will try to answer her questions. She suggests that there has been a failure to deliver. I would talk to the communities up and down the land that have been given these funds, opportunities and possibilities. We see delivery daily. I see it in my constituency; towns are being transformed through the towns fund, which has been providing funding since 2019.
The shadow Secretary of State asked a question about capital spending; I answered it in my last response. She also asked about the implications for the levelling-up agenda. There are no implications for the levelling-up agenda.
