New Deal for Communities

HC Deb 09 May 2000 vol 349 cc632-4

4. Mr. Bob Laxton (Derby, North)

If he will make a statement on the progress of the new deal for communities. [120142]

The Secretary of State for the Environment, Transport and the Regions (Mr. John Prescott)

Seventeen new deal for communities pathfinder partnerships have already received offers of long-term support of more than £770 million to help them implement strategies for real change. That funding will help communities tackle interconnected problems, such as unemployment, crime, educational under-achievement and poor health, in a fully integrated and joined-up way. A second round of 22 areas across England, including Derby, have submitted their proposals for achieving long-term sustainable regeneration.

Mr. Laxton

I thank my right hon. Friend for that reply. He referred to the bid from my constituency, Derby, North. May I stress the need for the bid to go through smoothly? Can my right hon. Friend assure me that the decision on that will be taken on 22 May? To illustrate the strength of the bid, may I read two quick paragraphs from a vision statement—

Hon. Members

No.

Madam Speaker

Order. This is Question Time. The hon. Gentleman should save that for an Adjournment debate.

Mr. Prescott

As my hon. Friend said, Derby is one of the new areas under consideration. It is clear that a number of areas in Derby are greatly in need of such a programme. We will make the decision as quickly as we can.

Mr. Archie Norman (Tunbridge Wells)

Can the Deputy Prime Minister say how much less the Government spent on urban regeneration last year than was spent in the last year of the previous Government?

Mr. Prescott

At well over £2.5 billion, our regeneration programme is considerably more substantial in its direction and concentration in regeneration areas and developments.

Mr. Norman

The Deputy Prime Minister has again failed to answer the most basic question. May I commend to him for bedtime reading his Department's own annual report, which states that £1.4 billion was spent last year on regeneration programmes, as against £17 million less under the previous Conservative Government? Does he accept that, whatever the good intentions, and for all the repeated announcements and reheating of old rhetoric, the new deal for communities has been treacly slow to get off the ground? Does he agree that the local election results last week in London, Hartlepool, the midlands and many other urban areas were a clear verdict on Labour's failure to deliver for its urban heartlands?

Mr. Prescott

When the hon. Gentleman has been in the House a little longer, he will understand the kind of problems that we inherited from the previous Administration. In the areas that we have identified to be new deal communities, the mortality rate is 30 per cent. higher than the average, and levels of unemployment, burglary and other problems associated with new deal areas are considerably higher. We have developed selected programmes in health, education and tackling crime, all to be added to the regeneration programme, in addition to the £800 million that has been designated for the new deal areas. That is the scale of resources that we are directing at those problems, and it is much greater than under the previous Administration.

The amount of money going into social housing was mentioned earlier. The Government put £5 billion of capital receipts from the sale of council houses into improving housing in those areas. Money on that scale was kept back by the Tories, who preferred to keep the interest payments rather than improve houses.

Mr. Hilary Benn (Leeds, Central)

May I draw my right hon. Friend's attention to the powerful film by Fergal Keane, which was shown on BBC television last night and dealt with the Lincoln Green estate in my constituency? I am glad to say that, since the film was shot, a start has been made on regenerating that area. Will my right hon. Friend join me in congratulating all the people in the area who are working to make it a better place to live? Incidentally, there was a swing to Labour in the local elections there last Thursday. Does my right hon. Friend agree that that is precisely the kind of estate that could benefit from new deal for community funding?

Mr. Prescott

I quite agree. My hon. Friend has drawn attention to the key point of community involvement in the schemes. They are not simply about councils getting together, but are about the community's active involvement and different Departments joining up to ensure that the schemes are directed positively. All the schemes show a willingness to innovate and a long-term commitment to deliver. We have adopted precisely that strategy, and it fits the example that my hon. Friend cited.

Miss Anne McIntosh (Vale of York)

Does the Deputy Prime Minister agree that the new deal has been a poor deal for constituencies such as the Vale of York, and that it has failed dismally to help the young unemployed or communities? The Deputy Prime Minister should focus the Government's attention on processing applications for state aid for pig farmers and for Rover. That would help industry much more than his four schemes.

Mr. Prescott

I think that the hon. Lady has mixed up several schemes. We are considering the new deal for communities, whereas she referred to the new deal on unemployment. The scheme that she mentions is working. As we promised, we are getting more and more people back to work, and there has been a 70 per cent. reduction in youth unemployment; that is an important achievement.

The hon. Lady also mentioned farming and Rover. We shall hear a statement on the latter shortly. I simply point out that the previous Government sold Rover for £1 and left us with all the problems.