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The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O’Brien)
It is a pleasure to serve under your chairmanship, Ms McVey.
I start by thanking my hon. Friend the Member for Waveney (Peter Aldous) for securing this important debate. He is a tireless—indeed, relentless—advocate, not just for his own constituency, but for the whole of the east of England.
I will address a huge bugbear of mine, which is the idea in the media that levelling up is about north and south. Recently, I was in Norwich—with the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Norwich North (Chloe Smith), and the hon. Member for Norwich South (Clive Lewis)—to visit an amazing new digital facility, which was part-funded by the towns fund. The first thing I said then was that the east of England is absolutely central to our vision for levelling up this country; indeed, the levelling-up agenda is for the whole of the UK. There was an intervention earlier by the hon. Member for Strangford (Jim Shannon), who is obviously part of the “greater” east of England, showing the cultural reach of the area. [Laughter.] The levelling-up agenda is an agenda for the whole UK, and the east of England is absolutely central to it, as I say.
Let me take on, right at the start of my speech, a question that my hon. Friend the Member for Waveney asked: the east of England will absolutely not be overlooked by the levelling-up agenda. Let me also take on, right at the start of my contribution, some of the other questions that were put. My hon. Friends the Members for South West Bedfordshire (Andrew Selous) and for South West Hertfordshire (Mr Mohindra) both talked about the challenges of growth in their areas, particularly in housing. We are absolutely conscious of those challenges in the fast-growing parts of the east of England and the need for infrastructure always to match that new housing development. That is a passion of mine and of my hon. Friends.
I will also take on the point made by my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) by saying that we absolutely do not regard the situation in the east of England as “job done”; there is a lot more to do. I say that because although the east of England has an economy with many strengths, it also has massive untapped potential that we must unleash, because the Government’s belief is that a more balanced economy is not just a fairer one but one that is stronger overall. If parts of the economy are overheating with sky-high house prices and people being unable to get on a train, and at the same time we have parts of the country crying out for investment, we can see the potential for a win-win that can benefit the country as a whole and make the economy stronger overall.
On the point that a lot of Members made about total public spending, it is completely fair for Opposition Members to talk about the difficult decisions we had to make in the coalition years. No one denies that they were difficult decisions, but it is also fair to flag that things have changed since then, particularly since 2019. From 2016-17 to 2020-21, total public spending in the east of England rose from £49.7 billion to £78.25 billion—a 57% increase. There is public funding, but we also need a different plan.
Levelling up is about four different things: growing the private sector and boosting living standards, particularly where they are lower; spreading opportunity and improving public services, particularly where they are lacking; restoring local pride—that je ne sais quoi—in important local institutions that mean so much to us all; and empowering local leaders and communities. There are no good examples around the world of places that have turned themselves round and taken it to the next level without strong local leadership, which is something that we are bringing to the east of England.
Levelling up is an idea that cannot be distilled into just one thing—there is no single magic bullet—but it fundamentally addresses the problem that, for too many people, geography has turned out to be destiny; where they are born and happen to live determines, and perhaps limits, their life chances.
At the moment the east of England finds itself on the wrong side of two averages, with qualification levels below the national average, as my hon. Friend the Member for Ipswich (Tom Hunt) pointed out, and the proportion of people aged 16 to 24 not in employment, education or training above the average. We have to address that. As everyone has said, addressing things at a regional level does not give us a sense of the huge differences within a region. As my hon. Friend the Member for Clacton (Giles Watling) pointed out, Jaywick in Essex is the most deprived place in the entire country. Other places, such as Great Yarmouth and Lowestoft, have great strengths, but at the same time there are significant challenges that we have to address. We absolutely must take that granular view.
As my hon. Friend the Member for Waveney pointed out, the east of England is one of only three regions in the whole country that makes a net contribution to the Exchequer, and that is a testament to the host of amazing companies and institutions that have built the east of England’s reputation as a powerhouse in fields such as life sciences, clean energy, agrifood and so on.
Over the last 18 months of incredible turbulence, we have done everything that we can to preserve the great strengths that we have already in the east of England, with financial support of £1.18 billion to help 100,000 businesses and more than 1 million individuals to preserve their livelihoods in the east of England. As we come out of the pandemic and have more good news about omicron, we can look forward to not just building back, but building back better and strengthening the underpinnings of the economy in the east of England.
One difference that a few colleagues have pointed out is the new Freeport East, centred on the port of Felixstowe, Harwich International port and Gateway 14. The freeport status will help the area to realise its potential of becoming a real energy capital for the UK, which my hon. Friend talked about. Meanwhile, the Thames freeport also opened its doors for business on 15 December, paving the way for a lot of new investment and growth in and around Thurrock.
We have talked about the different funding streams backing local opportunities. As a few people mentioned, the levelling-up fund is putting £87 million into a range of different local priorities, with transport upgrades in Bedfordshire, new science facilities in Peterborough, upgrades to the coastal attractions in Southend, and £20 million to help Great Yarmouth to recapitalise on its cultural heritage and the unique strength that it has in green energy. New money from the levelling-up fund could help to transform the fortunes of a town such as Luton, with new housing in the centre of town or the new community and business space. Those are important things to help turn around the fortunes of that town.
All these injections of cash are being complemented by our investments through the town deals and the lasting partnerships for enhanced growth. Some £280 million is going into the east of England through 12 town deals, including Norwich, Great Yarmouth, King’s Lynn, Ipswich, Harlow, Stevenage and Grays. At the same time we are putting £23 million into the east of England through the future high streets fund to help regenerate the high streets that have been battered by online shopping in places such as March, St Neots and Great Yarmouth. Through the community renewal fund, we aim to support at a local level the people in communities that are most in need by investing in their skills, their communities and their places. There are lots of different funding streams to try to build on those local strengths, while addressing the big infrastructure challenges that have been central to so many Members’ brilliant contributions.
In recent years, we have seen some really big road investments, such as the completion of the £1.5 billion upgrade to the A14, the dualling of the A11 and the new trains on the Greater Anglia franchise. Meanwhile, the lower Thames crossing, which forms part of the biggest investment in roads for a generation, will connect Essex to Kent via a road tunnel, supporting thousands of new jobs across both counties. We cannot stop there, which is why the Department for Transport is investing £73 million in the Gull Wing bridge, which has been mentioned, to link the northern and southern halves of Lowestoft, and to save commuters and families thousands of hours in an average year. In the western part of the region—there are, of course, huge difference across the east—£162 million is being provided for the A5 to M1 link road in Bedfordshire.
While we are upgrading the physical connectivity, which is hugely important for an area where often it feels surprisingly difficult to get to places that are not that far away, we are also focusing on digital connectivity. The east of England was provided with £233 million from the £5 billion Project Gigabit. We now have 60% of premises able to get gigabit-capable broadband, up from just 4% in 2019.
Matt Hancock
The incredible improvement in digital connectivity has been noticeable in the east, including almost all parts of my constituency, but we must complete the job. Will the Minister say a word about devolution? In his four elements of levelling up, the fourth was local leadership. In Suffolk, we have excellent local leadership under Matthew Hicks, the head of the county council. There is very strong support for a devolution deal, which will help to unleash the potential of Suffolk.
Neil O’Brien
My right hon. Friend is totally right. I will just finish addressing the question from my hon. Friend the Member for Broadland (Jerome Mayhew): 4G is essential. Dropping calls are incredibly frustrating in rural areas, and the shared rural network will enhance connectivity across the east of England.
Let me turn to devolution and local leadership. While no single place got everything right in the pandemic, we saw the incredible importance and strength of local government. Around the country we have seen trailblazers such as Ben Houchen and Andy Street—amazing local leaders who, when properly empowered, can really change the fortunes of the area. We have already seen how deals such as the Cambridge and Peterborough devolution deal can be a way to tackle important local issues such as affordable housing in Cambridge.
Local leadership simultaneously gives places a champion—to be their strong voice and provide leadership—and a single point of accountability. County deals will be a core part of that, and they will look different in different places. A few years back we tried to bring devolution to a wider part of the east of England, but we can return to that. We have seen some impressive, joined-up bids from leaders in the east of England who are seeking county deals. Nothing, including the health issues raised by my right hon. Friend the Member for West Suffolk (Matt Hancock) and my hon. Friend the Member for North Norfolk (Duncan Baker), is off the table. That could be a big win for the devolution agenda. Those deals will bring together all the local partners to really strengthen them, with the powers and funding they need to turn things around in their areas.
There is a lot still to do to realise the full potential of the east of England. A lot of exciting change is already happening. By working together on a cross-party basis with all local leaders and MPs in the region, we can realise some of the incredible potential in the east of England.