Enterprise Zones: Waveney

(Limited Text - Ministerial Extracts only)

Wednesday 8th December 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)]

It is a pleasure to serve under your chairmanship, Mr Dowd, and I thank my hon. Friend the Member for Waveney (Peter Aldous) for securing this important debate. He has always been—I knew this even before I was an MP —an incredible community champion. He always has multiple projects that he is promoting, and he is normally very successful in making them happen, so I was interested and excited by all the different things that he set out he is trying to achieve.

Let me start with enterprise zones. Since their relaunch in 2012, enterprise zones have established themselves as a real driving force for local economies by unlocking development through infrastructure, attracting businesses and creating jobs. Enterprise zones are about delivering long-term, sustainable growth by harnessing cutting-edge technology and enterprise, and their purpose is to encourage local economic growth and support businesses. To that end, they have been a huge success, as my hon. Friend said.

I have listened to my hon. Friend’s proposal with interest, and I thank him for his thoughts on the subject. As he has pointed out, the enterprise zones in Great Yarmouth and Lowestoft are a testament to the success of those interventions, having created around 1,900 jobs, attracted over 70 businesses and brought forward somewhere in the region of £51 million-worth of private sector investment—an incredible record. They are helping to sow the seeds for our transition to a green economy, too. As my hon. Friend mentioned, Lowestoft is the base of operation for Galloper and Greater Gabbard wind farms, which together will produce over 850 MW of electricity. That is enough to power 800,000 homes across the UK—a really incredible amount. Lowestoft is also home to OrbisEnergy, a worldwide centre of excellence that drives innovation and investment in renewable power technologies.

We have said from the outset that the Government-backed business rate discount will last up to five years and the enhanced capital allowances, where they exist, will be provided for eight years. Business rates retention will last for 25 years, giving councils a long-term source of revenue that can be borrowed against to fund infrastructure, or pooled to spend on other barriers to investment. Local authorities can continue to offer business rate discounts, should they choose to do so, and many continue to use the brand of enterprise zones to attract investment.

I am afraid that we have no plans to extend any enterprise zones, and my hon. Friend’s proposition to change the boundaries of enterprise zones would signal a precedent that we are wary of setting. Such a change would take up significant resource, and we are now focused on delivering the freeports programme, which is influenced heavily by what we have learned from enterprise zones. However, there may be other ways to achieve many of the things that my hon. Friend seeks.

As our consultation on freeports in 2020 showed, key aspects of the model include business rates retention, business rates relief, commercial spots for councils and local development orders, plus the provision of seed capital. All those things were taken from what we have learned from enterprise zones and built into the freeports model. The freeports will be national hubs for trade, innovation and commerce, regenerating communities across the UK, attracting new businesses and spreading jobs, investment and opportunities to towns and cities up and down the country.

In March, we announced that Felixstowe and Harwich were successful in their bid for a freeport, and officials are now working with them to develop the proposal. The freeport will provide jobs to the area surrounding Felixstowe and Harwich and further afield, where specialist skills will be required. It will also draw the attention of international investors to the opportunities in the wider East Anglia area, including the enterprise zones in Great Yarmouth and Lowestoft.

I turn to the particular question of levelling up Waveney. As my hon. Friend will know, levelling up is the absolute heart of the Government’s agenda, and the enterprise zone programme and freeports are just some of the tools at our disposal to help level up our communities. Some £290 million has already been invested in local growth projects in and around Waveney through the New Anglia LEP, which I have had the pleasure of discussing offline with my hon. Friend. That will boost jobs, build houses, leverage private investment and increase skills, and the funding has been used for a variety of local interventions, including £10 million from the local growth fund for improved flood defences in Lowestoft harbour. The money was put towards the tidal gate for the inner harbour, which will not only safeguard over 400 households from flooding, but support 22,400 jobs. Some £73 million has been provided to build the Gull Wing bridge—an iconic and much-needed third crossing, which I remember my hon. Friend campaigning hard for. The bridge will reduce congestion, regenerate the area and attract new investment for the local economy.

I turn now to the towns fund process. The Government recognise that towns such as Lowestoft must be at the absolute forefront of our levelling-up agenda, which is why we launched town deals for areas across the country, to unlock their full economic potential. As one of the 101 areas selected to agree a town deal, Lowestoft received £24.9 million in March to support ambitious local projects, transform disused buildings and public spaces, deliver new green transport and create opportunities for people to develop new skills. That includes £14 million to develop a new cultural quarter in the town, providing a new leisure and cultural venue and enhancements to the Marina theatre. Over £2.8 million will go towards the development of Station Square, a meeting place and gateway point for the seafront and town centre, and £2.6 million will be used to improve the port area, which supports the growth in the clean energy centre about which my hon. Friend spoke, and to enhance the public realm. I thank my hon. Friend for his work on that town investment plan, which will see that initial public sector seed funding, catalytic funding, unlock a minimum of £354 million of private sector investment in the area—an incredible sum. He and his colleagues involved in the town deal process can be really proud of what they are achieving.

My hon. Friend talked about REAF, a brilliant local initiative. I welcome the way in which local industry and local government in East Anglia have come together to consider how to create a more sustainable fishing industry, and I thank my hon. Friend for his work as the chair of the steering group. The REAF report contains some interesting ideas that the Government will certainly consider as part of our ongoing work on inshore fisheries management. The Government welcome the work to review the REAF recommendations in the light of the EU-UK trade and co-operation agreement and to develop a new delivery framework. I know that officials from the Department for Environment, Food and Rural Affairs and the Marine Management Organisation have been discussing the framework with the REAF project team and are very encouraged by its focus on more effective fish marketing in the region and on using local opportunities and networks.

I know that my hon. Friend is passionate about the role that East Anglia could play in the emerging green economy, about which he talked in his speech. I share his enthusiasm for developing our emerging industrial strengths in areas such as offshore wind, the use of nuclear and hydrogen fuels, and carbon capture technology. The transition to net zero presents a real opportunity to support communities that may be impacted by climate change and flooding, and also to drive levelling up across the country. The Government are working closely with local partners to ensure that we maximise the economic growth opportunities that emerge from the transition to a low-carbon economy, as well as support communities around the country to adapt to the impact of climate change. I know that there are several examples in my hon. Friend’s constituency of communities taking advantage of those opportunities: for example, the ambition to create a self-sustaining hub at power park in Lowestoft, or Associated British Ports’ £25 million investment in the Lowestoft Eastern Energy Facility to create more quayside space, create deeper water, and provide officers and additional facilities for crew transfer vehicles. All that drives local economic growth.

We are proud to lead the world by ending our own contribution to climate change—not just because it is the right thing to do but because we are determined to seize this unprecedented opportunity to boost local economies. We want to build back better from the pandemic by building back greener and levelling up our country with high-skilled, high-wage, sustainable new jobs in every part of the UK. As part of that, “The ten point plan for a green industrial revolution” will mobilise £12 billion of Government investment, and potentially three times that from the private sector, to create and support up to 250,000 British jobs in clean energy, clean transport, nature recovery and innovative new technologies. Taken together, those programmes are helping to maximise the economic potential of my hon. Friend’s constituency.

We can and will do more. As my hon. Friend knows, the Government will shortly publish a White Paper that builds on existing action being taken across Government, and sets out a new policy regime that will drive change for years to come. Some of the challenges that my hon. Friend talked about, such as those pockets of stubborn deprivation in his constituency, will not be solved overnight, but we are determined to solve them. We want to restore pride in places across the country and we want people in those places once again to have the confidence that the Government are delivering their economic and social priorities, boosting long-term living standards and improving public services.

I thank my hon. Friend once again for securing this important debate. The Government are unwavering in our commitment to work with Members from across the House to spur long-term recovery from the pandemic.

[Peter Aldous]

I am most grateful to the Minister for highlighting the part that must be played in the transition to a low-carbon economy by Lowestoft, Suffolk and East Anglia and how that can create enormous opportunities for our area. It is not just a question of levelling up—we can be a global exemplar. I heard what he said on the simple, cost-neutral change of reallocating enterprise zone sites. He indicated that he did not want to go down that route because of concerns about the precedent that it would create. May I ask that, in correspondence between me, East Suffolk Council and him, we can continue to explore that a little further?

[Neil O’Brien]

I am grateful to my hon. Friend and am happy to correspond and continue to meet and discuss with him and local councillors all the opportunities in the area, which he has done a brilliant job of highlighting. There are many opportunities, including the UK shared prosperity fund, which is coming shortly, and the potential for devolution to drive a multitude of improvements in the area. He is right to make that point and I am happy to continue the conversation after the debate.

My hon. Friend is right to pick me up about not just tackling problems of deprivation but going from good to great. When I have been out in East Anglia, I have been struck by the sense that it is on the edge of something really exciting in many different ways. My hon. Friend’s ideas are central to the Government’s levelling-up agenda, building a recovery that sees all parts of the UK recover strongly from the pandemic and building a new and better economy and public services.

Question put and agreed to.