The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
I congratulate my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) on securing this debate. I congratulate other Stoke-on-Trent Members on their carefully crafted interventions, and I paid particular attention to the chair of the all-party parliamentary group on ceramics. Despite various party political comments with which I could take umbrage, it is right that most of this discussion is really of a cross-party nature, and I shall attempt to respond to the debate in the same way. As far as my constituency is concerned, I suppose that the only interest I have to declare, without having a pottery, is that I do have Harry Potter—that is about the nearest to it. [Interruption.] Mr Deputy Speaker, you are not supposed to laugh at these jokes; Mr Speaker might get to hear.
The Potteries have made an enormous contribution to this country, but we should not simply recognise the ceramics sector for its role in the country’s industrial past, as it is very much a linchpin of today’s modern UK manufacturing economy. There is significant potential for it to increase its contribution to our industrial landscape. I accept—this point was very eloquently made by my hon. Friend—that we should be doing all we can to help the ceramics sector to continue to thrive and grow, because things move on.
Ceramics has become a vital part of the supply chain for a range of advanced manufacturing sectors, including electronics, aerospace, automotive and healthcare, so we do not take it as just one industry on its own. That is very important. I pay tribute to Laura Cohen who, if she is not here, I suspect is hiding somewhere. I was speaking outside the Chamber to the right hon. Member for Doncaster North (Edward Miliband), who remembers her very well from when he was in government, so he has a long memory. She is clearly a very effective lobbyist for the organisation that she works for, and I know we all respect that.
With regard to the industrial strategy and the ceramics sector, we know that just short of 9,000 people work in the ceramics sector in Stoke and Staffordshire—a concentration just over 22 times greater than the national average. The Government’s industrial strategy White Paper, which we published at the end of November last year, recognised the ceramics cluster based in north Staffs and the leadership shown by local partners across industry, education and local government in working together to target growth in this important sector. Clusters are a major contributor to growth. The McKinsey report commissioned by Centre for Cities identified 31 economically significant clusters in the UK. These clusters contain only 8% of the UK’s businesses but generate 20% of the country’s output. The Government are therefore committed to ensuring that the ceramics sector continues to go from strength to strength. The White Paper highlighted our ongoing support for sector deals.
Stakeholders have welcomed our proposals to extend this successful model of collaborative working on sectors. My job is to deal with most of those sectors and to encourage those that have not come forward with proposals to do so. A number of sectors have signalled their interest in developing a sector deal. I welcome the proposal from the ceramics sector for such a deal. My officials have provided initial feedback, and I know that the sector is responding positively. The White Paper sets out criteria that sectors should consider when formulating their proposals. We have to strike the right deal: one that is balanced between the asks of Government—typically around skills, cost reductions and so on—and commitments from the sector, and one that will have a real impact on productivity for these industries. I look forward to opening formal negotiations in the coming months with sectors that meet these requirements and have submitted ambitious proposals for a sector deal with the Government. As part of that, I look forward to working with the ceramics sector.
My hon. Friend mentioned the proposed UK research centre for ceramics. I thank him and others who have sent me the details about the ceramics park, called “A deal for ceramics in the UK”, which is extremely interesting—particularly the picture of the giant Grayson Perry pot. It will be a pleasure to pass it on to you, Mr Deputy Speaker, for your night-time reading this evening—or whenever you choose to do it.
Investment in our science, research and innovation base is critical, as I have said. In 2016, we announced a £4.7 billion increase in R&D investment between 2017-18 and 2020-21. We have also committed to raising investment in R&D to 2.4% of GDP by 2027, which is the biggest-ever increase in public funding of R&D. The EPSRC materials engineering in ceramics portfolio is currently worth just over £12 million. The ambition of the UK ceramics sector is to be at the forefront of research and innovation, and that is exactly what we want.
The ground work is already being done by companies such as Lucideon, based in Stoke-on-Trent, which is recognised the world over. It will be leading the research for the new Faraday Centre on the application of field-enhanced sintering of novel ceramic electrodes for a sodium battery alternative to lithium. Again, while that is about ceramics, it has much wider aspects for big parts of the industrial sector. It is vital that we in the UK retain such expertise, and develop the future research and design talent that will ensure that we continue to lead the world.
The sector deal proposal from the ceramics sector sets out a compelling vision of how that might be achieved via an advanced ceramics campus. We welcome the proposal set out by the industry and are working closely with the sector to explore ways in which we can ensure that the sector continues to go from strength to strength.
I love the fact that the ceramics sector deal proposal has a strong place element. The industrial strategy White Paper recognised that while the UK has a rich heritage, with world-leading businesses located around our country, some places are not fulfilling their potential. We want to build on the strong foundations of our city, growth and devolution deals by introducing local industrial strategies. We want to introduce new policies to improve skills in all parts of the country and create more connected infrastructure.
Sector deals such as this, with a strong place-based focus, have a role to play in that. That is why the aim of this ambitious proposal is welcome. It rightly recognises the need to improve productivity by addressing the commercialisation of ideas, training and skills, science and technical innovation. It also recognises the role that culture can play in regeneration and local growth.
I end by reminding my hon. Friend that we are introducing a new £115 million a year Strength in Places fund to build excellence in research, development and innovation all the way across the UK. We are working closely to deliver that with Research England. I encourage the sector deal partners to consider bidding for that when it is launched.
I wish the ceramics sector the absolute best for the future, and not only for itself and locally, because all these different aspects of its development, as I have tried to explain, have really good implications for many other sectors. I am very happy to meet Members who have contributed to the debate, and particularly my hon. Friend, if I get the opportunity to do so.
Question put and agreed to.