Liz Truss and Rishi Sunak have made their pitch to the North, with both pledging extra cash for schools and transport and the devolution of more powers to local leaders if they win the race to Number 10.
The commitments come after newspapers across the North united to warn the former Chancellor and Foreign Secretary not to "turn their back" on the region once in Downing Street.
It followed reports that the levelling up agenda, which was a key promise at the 2019 general election, could be shelved after Boris Johnson's departure.
Read more: Rishi Sunak and Liz Truss told 'don't turn your back on the North'
The candidates, along with Labour's shadow levelling up secretary Lisa Nandy, were invited to answer five key questions facing our region by the Northern Agenda this week.
It comes as Mr Sunak and Ms Truss prepare to debate each other at a regional hustings in Leeds, one of three events in the North to help Tory members decide who they want to back as the next Prime Minister.
All three politicians acknowledged the issues, whether child poverty or low productivity, but there was a varying level of detail when explaining how they would be addressed.
Mr Sunak emphasised the fact he is a Northern MP and said he would "keep the North front centre of my mind in all that I do" if he were to become PM in September.
He said he would "double down" on levelling up and identified education as a key area which could boost the region's economy.
Listen to the Northern Agenda podcast to find out what Tory heavyweights Jake Berry and Jim O'Neill want to hear from the next Prime Minister
The Richmond MP also pledged to "work with local leaders on what the future of transport looks like in the North", something which was sorely lacking when it came to the cut-price Northern Powerhouse Rail plan unveiled last year.
Ms Truss meanwhile backed calls for a "levelling up formula", similar to the Barnett Formula used to distribute cash in Scotland as a means to ensure "areas that have been left behind get the support they deserve".
The Foreign Secretary also said she would roll out low tax "Investment Zones" across the region to attract private investment and outlined a series of tax cuts to ease the cost of living crisis in the short term.
Both candidates committed to retaining a Government department responsible for tackling regional inequalities with a Cabinet-level minister for whom this is their main job.
Lisa Nandy meanwhile outlined Labour’s offer to the region, saying her party in power would invest £280bn over a decade to close the North/South divide.
To address the cost of living crisis, the Wigan MP said Labour would uprate benefits, cut VAT on energy bills, scrap leasehold charges and “put rocket boosters” under the home insulation programme to cut bills.
Ms Nandy also said in office she would “end the Hunger Games-style grants” that force local authorities to compete for small pots of cash and instead give leaders the tools to have “financial autonomy”.
Read their responses in full below.
Rishi Sunak
1. What will you do to make sure the commitments made to the North by your predecessors as Prime Minister are kept?
As a Northern MP, I owe it to my constituents to ensure that the promises made to the North are kept. Frankly, every Brit, no matter where they are, should have trust in the people they elect to deliver what they promised. That’s why at the heart of my campaign is a commitment to you: if chosen to be your next Prime Minister I will do everything I can to restore your trust in politics.
Trust can take years to build, but only seconds to lose, and any Government that I lead will work night and day to earn yours, starting first with the basics - the economy, because levelling up can only go so far if the value of our investments in the North, and the cash in your pocket, is getting eaten by inflation.
We need to grip inflation because it is the single thing that will make families across the country poorer. I have a plan to do that, and once we’ve got inflation under control we will rebuild the economy.
As Chancellor I put over £100 billion towards Levelling Up, created the Levelling Up Fund which has already supported 105 projects across the country and delivered eight Freeports, including in Humberside, Liverpool and Teesside. I also set up the New Economic Campus in Darlington, moving civil servants out of London and closer to the communities and businesses they serve, providing a much needed change in perspective. If chosen as Prime Minister, I will double down on that work, with greater devolution and continued investment.
2. The average worker in the North is 50% less productive than one in London, what will you do to address this widening gap?
When we talk about productivity, we need to remember that behind the numbers are people. Yes, productivity is lower in the North than it is in the capital. To fix that we need to tool up the North to boost productivity and rebuild the economy.
First, investment. Targeted, strategic investment will be crucial to create better jobs with higher wages. I introduced the most generous business tax cut in modern British history, helping to accelerate business growth and investment - the Super Deduction. The Super Deduction was credited with shoring up business investment in these tough economic times and has helped to stimulate broadband roll-out - something we all know is crucial to closing the productivity gap.
Should I become Prime Minister, I have committed to permanently reform the tax regime to incentivise capital investment, seizing the opportunities presented to us by Brexit, and spreading this investment across our entire United Kingdom.
Second, innovation. This country has a proud history of innovation, from the light switch in Newcastle to the covid vaccine in Oxford. We need to encourage companies to invest more in research and development across the whole country, and we need to make sure the UK continues to attract the best and the brightest. The next great innovation will come from the North.
Finally, education. If we get the education of our children right today, we secure the economy of our, and their, future. That’s why we must invest in it, making sure everyone in the country has access to world-class education. We must focus relentlessly on improving standards in schools and look at how to get more children doing science and maths until they are 18, and how to make better use of technology to allow more personalised learning.
3. What will you do to address spiralling rates of child poverty in parts of Northern England?
As I have consistently shown as Chancellor, when the most vulnerable in society have needed support, I have delivered. In March 2020 when Covid took hold, I responded with the furlough scheme. When energy bills rose at the beginning of the year, I made sure that the most vulnerable had up to £1,200 in support. I also delivered a tax cut for hard working families by cutting the Universal Credit taper rate from 63% to 55%, ensuring people keep more of what they earn. As Prime Minister, I will again deliver for those that need it.
To improve prospects for our children we have to focus on our education system. Education has the power to level up the country and improve life prospects for all. It is the closest thing that we have to a silver bullet on social policy, and I believe that the best way to improve our children’s future is to focus again on the quality of education. It is fundamental to my vision for growth in the UK, and is a necessity if everyone is granted the opportunity to reach their potential. As Chancellor, I committed an additional £4.4 billion for the schools budget by 2024–25, and I will build on that work if chosen to be your next Prime Minister.
I passionately believe that we need to make sure our education system is preparing people for the world of work, making sure no one in any part of the country gets left behind. This is why I want to reform the education curriculum to make sure people are learning the necessary skills for the workplace. Only when the needs of the country’s labour market match the skills of individuals can every region in the United Kingdom prosper.
4. How far will you go to give Northern leaders control over education and skills, transport and health budgets currently held by Westminster, and will you give them more powers to raise or lower taxes to boost local economies?
This campaign is about more than who will be the leader of our next Government - it’s about who can bring our country together. We have been through a lot over the past few years, but there are more challenges to come. Education, transport and health all need a radical shakeup. I have a plan for how to do that, but the people who know how best to do that in your area are your local leaders. I believe in giving communities the power and autonomy to make their own decisions, and am a passionate supporter of devolution. That’s why my Government would give a devolution deal to anywhere in England that wanted one.
Ben Houchen, the Mayor of the Tees Valley, is a brilliant example of how Westminster and local Government can work together, to level up and rebuild the economy. In a recent visit to Teesside, I also committed to Ben’s plan to take levelling up one step further. I will look at giving local people more flexibility on post-16 education, and further flexibility on business rates for Mayors. I will also double down on the levelling up support I already delivered as Chancellor, and work with local leaders on what the future of transport looks like in the north.
5. Will you retain a government department responsible for tackling regional inequalities with a Cabinet-level Minister for whom this is their main job?
If chosen to be your next Prime Minister, I promise to keep the North front centre of my mind in all that I do. It’s what my constituents and family would expect from me. But of course, no Prime Minister can be everywhere all at once, which is why I would retain a Cabinet-level Secretary of State responsible for levelling up, who I will task with tackling regional inequalities, reuniting the country, and fueling the powerhouses of the North.
Liz Truss
1. What will you do to make sure the commitments made to the North by your predecessors as Prime Minister are kept?
I will deliver on our 2019 manifesto promises and do even more to deliver new jobs, new industry, and a better opportunity for all to reach their full potential.
We need to ensure that opportunity is equally spread across the entirety of the UK. That means equalising the levelling up formula to make sure that areas that have been left behind get the support they deserve. I strongly believe that levelling up means broadening economic growth from beyond London and the South East and supercharging the North.
2. The average worker in the North is 50% less productive than one in London, what will you do to address this widening gap?
I want to build an aspiration nation that unleashes opportunity for all, no matter where you live or where you grow up. We need to drive growth and business investment to bring new and better jobs to the North.
We will build the Northern Powerhouse Rail to link up communities and unlock potential across the North. We will take advantage of the opportunities this will bring by introducing new Investment Zones – full-fat freeports – to encourage industry to set up shop in the North. That’s how we will bring better jobs to the North and address productivity.”
3. What will you do to address spiralling rates of child poverty in parts of Northern England?
We must do what we can now to ease the cost-of-living crisis for families and give children a real opportunity to reach their full potential and break the cycle. That’s what my approach to levelling up is all about.
We’ll ease the squeeze on families now. We will bring down average energy bills by £153 by putting a moratorium on the green energy levy. And we’ll reverse the National Insurance rate rise, saving average workers another £240 every year.
And providing real, long-term opportunities for children means increasing rigour in education – especially in literacy and numeracy – to give children a real chance to reach their full potential. I want to help catch kids up after the pandemic, improve educational outcomes, and help parents with wraparound care. Education and job opportunities are essential to breaking child poverty rates in the long term.”
4. How far will you go to give Northern leaders control over education and skills, transport and health budgets currently held by Westminster, and will you give them more powers to raise or lower taxes to boost local economies?
We need to expand on the goals of the UK Shared Prosperity Fund and the Towns Fund to put vital resources directly towards the priorities of local communities. We need to empower local leaders and businesses to take the decisions that affect local people as much as possible.
And we need to make sure we listen to local leaders when we build infrastructure to grow Northern communities. That’s why I'll reform the planning system to place power back in the hands of local people and Councillors who know their community best. We will implement a ‘bottom-up’ approach to planning, which includes scrapping Whitehall-imposed top-down housing targets that too often overlook the schools, hospitals, and transport hubs needed to support communities.”
5. Will you retain a government department responsible for tackling regional inequalities with a Cabinet-level Minister for whom this is their main job?
Yes.
Lisa Nandy
1. What will you do to make sure the commitments made to the North are kept?
The only way to tackle soaring inflation is to get the economy growing again. This is why the promises to the North must be kept. Because when you refuse to invest in most parts of the country you write off the assets, talent and contribution that we need. The fact that Britain is one of the most geographically unequal countries in the world has been treated as a local or regional problem for too long. But it isn’t – it’s a national problem.
Britain is almost unique in trying to power a modern economy using a handful of people in a handful of sectors in one small part of the country.
In Labour we understand that this is a major factor that holds the whole country back. We need to rebalance our economy, not just to benefit the North where we’ve been starved of investment and government backing for too long, but so that London and the South East aren’t blighted by poor housing and soaring inequality as well.
That is why Labour will invest £28bn a year every year for a decade to bring good, well-paid jobs back to our coastal and industrial towns. There are a million jobs on the road to net zero and we will invest to bring them here. We will reinvigorate high streets by freezing and reforming business rates and getting money back into people’s pockets so they can spend locally again. And we will smash up a century of centralisation, handing powers over skills, transport and housing to communities and local leaders so they can do what works for them.
For me, this is personal. It’s about my family, friends and constituents in Wigan and many others across the North. For too long our town and so many places like it – places that built this country – have been written off and told we don’t have a contribution to make. But we do. The next Labour government will hand over powers and resources so we can make that contribution again.
2. The average worker in the North is 50% less productive than one in London, what will you do to address this widening gap?
The productivity picture is far more mixed than this. The North is home to some very high areas of productivity and it varies across particular sectors. For example in the Liverpool City Region, productivity is 20 per cent above average in manufacturing. We should be careful not to talk down the contribution we already make and, as Steve Fothergill at Sheffield Hallam University has warned, we should reject a one size fits all approach to fixing it.
That is why handing power to local areas is a central part of the solution. The Regional Development Agencies, scrapped by the Tories were instrumental in building the growing wind industry in Grimsby and the world leading Advanced Manufacturing centre in Rotherham. That is because they saw the assets and the potential in a coastal town that is one of the windiest in Europe and in a part of Yorkshire that had a strong legacy of skills from the steel industry that made it ideal for the jobs of the future.
By contrast the Tories genuinely seem to believe only two regions of the country – London and the South East have a contribution to make, hence the lack of any new money or powers in the Levelling Up plans published earlier this year.
This is how you get a Prime Minister who can scrap every levelling up promise – Northern Powerhouse Rail, the eastern leg of HS2 to Leeds, and bus funding, which was cut in half. On his watch the gap in public spending between London and the North has doubled and instead of keeping the promise to match EU funding for our regions they have cut it by 34% in the North. All we’ve had are small grants – part refunds on the money they’ve taken from us – handed out from Whitehall. This is because fundamentally they don’t believe we have a contribution to make. They are wrong.
3. What will you do to address spiralling rates of child poverty in parts of Northern England?
It is a scandal that in a country as rich as the UK, nearly two in five children in the North East are living below the poverty line. It is not inevitable. The last Labour Government lifted a million children out of poverty – all those gains were undone in the first few years of a Tory Government.
We have to act now to ease the pain and pressure on families. We would bring forward the uprating of benefits, as it is now lagging way behind soaring inflation, cut VAT on energy bills, scrap leasehold charges and put rocket boosters under home insulation programme to cut bills for most houses for good to the tune of at least £400 a year.
We need to think long term too. Many children in the north spent longer out of school during the pandemic than children elsewhere, because of the way decisions to take us out of lockdown were made. That’s why Labour has set out a Children’s Recovery Plan to ensure our children have the backing they need to catch up. As part of the plan we would extend free school meals over the holiday as a cash transfer, to support families this summer.
Child poverty isn’t just years in the making, it’s generations in the making. So much of the North is still dealing with the legacy of the Thatcher years. That’s why, in addition to these immediate measures, we would invest to bring good, secure, well-paid jobs back to places that have seen them disappear. The last Labour government lifted a million children out of poverty by growing the economy. 70% of children who are in poverty today are in households with at least one parent working. Those parents need a pay rise. We need to get money back into families’ pockets, and you can only do that by investing to build a high- wage, high-growth economy.
4. How far will you go to give Northern leaders control over education and skills, transport and health budgets currently held by Westminster, and will you give them more powers to raise or lower taxes to boost local economies?
We will replace the system that forces our northern mayors and council leaders to go cap in hand to Whitehall for small grants and permissions to do the things we know will work for us.
Instead of giving a few limited powers to places that accept a mayor, we will work with our northern leaders and communities so devolution reflects our identity, economic geography and the wishes of local people. It can’t be right that when most people in Yorkshire wanted a One Yorkshire deal, a junior minister in Whitehall could just say no.
Those powers – over transport, skills, housing, energy and raising revenue – will be on offer to all communities not just some. People deserve decent services wherever they are, not just in places that the Chancellor deems “functional” or where he likes the look of the leaders we’ve elected.
Finally, we will end the Hunger Games-style grants that force us to compete for small pots of our money and give communities the powers and resources to buy vital local assets when they come up for sale – like historic buildings, football clubs and live music venues. This is the first step towards financial autonomy for communities, creating revenue to be used and passed down through the generations and protecting us from a Tory Chancellor who promises to level up one day and govern like Thatcher the next.
5. Will you retain a government department responsible for tackling regional inequalities with a Cabinet-level Minister for whom this is their main job?
A seat at the Cabinet table is essential and I will make it my mission to deliver for the North - and by doing so for the whole of Britain – in Government. What is more important is that Keir Starmer will too. He has made clear that getting the economy growing again by tackling geographical inequality will be one of the defining missions of the next Labour government. While the last Levelling Up secretary couldn’t find backing from No. 10 or the Treasury, we are working as a team to set out a different future for Britain.
We know that change cannot be driven from Whitehall. But we will do our bit – investing in the North, putting communities in the driving seat, so that we can rebuild Britain from the ground up the only way we can - together.
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