East Midlands: Local Authorities and Economic Growth
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)
I am grateful to my hon. Friend the Member for Gedling (Michael Payne) for securing the debate, and for raising both the economic challenges and the opportunities faced by our communities in the east midlands. He and I have been friends for a long time and have talked about these issues a great deal, as members of our council in our day and, perhaps, over a pint in town from time to time, so it is a personal thrill for me to be able to talk about them here, on the occasion of what I believe is his first Adjournment debate. I agreed with much of what he said, and I shall now say a little about the potential and some of the investment that the Government are making to change the trends that he described.
The midlands has the largest regional economy outside London, and there is plenty for us to support—
Alex Norris
Our colleagues will have heard a lot from us about the primacy of growth. It is the Government’s firmest belief that economic growth should reach all communities and drive a real rise in living standards throughout the country, particularly in areas that have been left behind following years of declining investment. I agreed with my hon. Friend’s analysis of the lack of investment in the east midlands in recent years, but I also agreed with his analysis of our potential: our resources and our heritage, particularly our industrial heritage, as well as the benefits that our location brings. We know that there is a lot to do and a lot to back in our part of the world.
Let me now talk about some of the actions that we are taking as a Government. I was delighted and proud when last month, as a cornerstone of our plan for change, we announced our new plan for neighbourhoods, a £1.5 billion programme to ignite renewal and fight deprivation, revitalising local communities. The east midlands is at the heart of that programme, with 10 areas selected to receive a long-term investment of up to £20 million of funding and 20 years of support to help them to reach their full potential. Recipients include Boston, Skegness and Spalding in Lincolnshire, Chesterfield in Derbyshire and, in Nottinghamshire, Worksop, Newark-on-Trent, Mansfield, Ashfield, Clifton and indeed Carlton, in my hon. Friend’s constituency. They will all be worthy beneficiaries of this fund to rebuild, restore and rejuvenate neglected infrastructure and fractured communities.
We also believe that driving growth that is sustainable, innovative and green is an anchoring part of our mission to be a clean energy superpower. We in the east midlands, with our heritage in the energy realm, are poised, and brilliantly placed, to lead the green-energy revolution. In January we announced a record £410 million investment to develop cutting-edge clean energy, which will include the creation of a world-leading STEP—spherical tokamak for energy production—prototype fusion energy plant in Nottinghamshire. That investment puts the UK at the forefront of fusion delivery and firmly on the path to net zero, and recognises the east midlands region as a pioneer of the clean energy of the future.
As for housing, in October we allocated nearly £17 million of the £68 million brownfield land release funding to the east midlands. A dozen schemes in Derby, Derbyshire, Nottingham and Nottinghamshire have been identified for grants to support the construction of nearly 1,500 homes in the region. These housing developments will revitalise underused sites in our cities and communities, and work is already beginning in some locations.
One housing announcement is particularly close to my heart: I am proud to say from this Dispatch Box, as a Nottingham MP and a Minister, that following the announcement on 31 March, we are delivering a significant milestone boost to the regeneration of Nottingham city centre through the acquisition by Homes England of the Broad Marsh site. That feels good. Many people in Nottingham will say that it is overdue by years if not decades, and I would not fight that contention, but it is a huge step forward for the city.
The project will create 1,000 homes and up to 20,000 square metres of retail, office and community space, and will generate about 2,000 full-time jobs, complementing the establishment of the Nottingham college city hub next door, the opening of the central library, the bus station, the new car parks, and the completion of the Green Heart public realm. As I have said, this has taken too long, but it will be a wonderful development for our community. My hon. Friend mentioned the importance of local leadership, and I commend the leadership of Councillors Neghat Khan and Ethan Radford in driving this development forward.
My hon. Friend also mentioned the important work of the East Midlands combined county authority, and I entirely agree with him about that. As a new Government, we have made a commitment: we fundamentally believe in a new settlement in this country, and at the heart of that is the transfer of money and power from this place, and from Whitehall, to town halls. At the forefront will be our devolved Administrations and combined authorities. The anchor investment fund of £9.5 million will support key projects to break down barriers to opportunity and significantly boost economic growth in our region. The funding will be allocated to projects that invest in homes, jobs, manufacturing, clean energy and greener spaces in order to create thriving local places.
A number of specific projects are set to benefit, including the south Derbyshire growth zone. We have provided a £1.5 million investment for a new junction on the A50 trunk road, which will unlock plans to build 4,500 homes and nearly 3.5 million square feet of commercial floor space. The Trent clean energy supercluster in Bassetlaw will receive £3 million to advance the transformation of three former coal-fired power stations along the Trent into a world-leading clean energy and innovation centre—again, leaning into our past and helping us build our future. Derby will receive £3.75 million to transform priority areas in the city, creating a vibrant, sustainable and accessible urban quarter.
Catherine Atkinson
Derby city council is working with partners and beginning to deliver transformative regeneration. Vaillant Live, a new 3,500-capacity performance venue, has just opened. A refurbished market hall is about to open, a new university business school is nearly finished, and the Government are delivering £20 million to our two theatres. Does the Minister agree that regenerating our city centres is key to unlocking economic growth across the region, and can he outline how this Government are supporting council leaders to generate growth in their local areas?
Alex Norris
My hon. Friend adds a very thoughtful and well-judged counterweight to my love letter to Nottingham city centre on behalf of Derby city centre. Perhaps she knew it was just too far beyond me to overcome our traditional rivalry, but she did so better than I could have done. Derby has some very exciting days ahead because of the investments, and because of the creativity of local leaders and the local community in enhancing that space. On the final part of her question, it is important that we get them the tools and resources to do so. I will talk a little about local government finance in a second, but we want to make sure that councils have the power—whether through high street rental auctions or similar—to shape their community.
Adam Thompson
The Minister talks about the dichotomy between Nottingham and Derby. As the Member of Parliament for Erewash, which sits at the halfway mark between the two, I felt obliged to come in at this point. I have seen at first hand the massive improvements that the Labour administration has made at Erewash borough council in the two short years since it took control, from encouraging solar farms and helping community events to liberalising the grants programmes for businesses and introducing £2 million of new investments to Erewash. Will the Minister join me in congratulating the fantastic Erewash Labour group and Erewash borough council more broadly?
Alex Norris
I do not think we could litigate in the remaining 22 minutes whether Long Eaton is in Nottingham or Derby. My hon. Friend is perhaps better qualified than me to say so—but when I go to see him, I see a lot of Forest shirts. He is right to highlight the work of his council. It has not had very long in power, but it has taken a very progressive and ambitious approach to shaping place, and I am always proud to work with James and colleagues.
I will mention a couple more investments. Infinity Park in Derby will receive £1.5 million for a research and development facility within EMCCA’s investment zone to support the advanced manufacturing and nuclear sectors. North East Derbyshire will receive £1 million to create southern access to the Avenue site, improving access for vehicles and pedestrians and enabling future development. These developments show the vital role of devolution in unlocking the potential of regeneration across regions by putting investment back into the hands of local people.
EMCCA has not even had its first year, but the impact has been monumental, which gives us the perfect opportunity to recognise and reflect on the outstanding leadership of Mayor Claire Ward. She has had less than a year in post, but she has made a great impact in all the areas I have talked about. Projects are being developed on brownfield sites because of her leadership, and the reality is that decisions made in the east midlands should be taken by the people of the east midlands. That is why we will continue to back Claire.
The hon. Member for Strangford (Jim Shannon) mentioned freeports, and that is just another sign of our wanting to get the powers and resources to EMCCA so that Claire can show that leadership and we can all collectively drive forward the region. My hon. Friend the Member for Gedling made very important points about integrated settlements. He will not be surprised to hear that Mayor Claire makes exactly the same points to me and other Ministers on a daily basis, and the points are well made.
Turning to the important contribution from my hon. Friend the Member for Bolsover (Natalie Fleet), I think the insight about transport is best played through our combined authority. Again, it is incumbent on us at this Dispatch Box to deliver the right powers and resources to do so. There is of course the age-old problem—I say that, but it is actually quite a new one—of an east midlands mayoralty that does not quite cover all of the east midlands. I am delighted that the region is on the cusp of its second devolution success, with the upcoming election in less than a month of a Mayor for the Greater Lincolnshire combined county authority. That will bring £750 million of investment over 30 years, with an initial £20 million of capital funding to drive place-based economic regeneration. That is a great step forward and part of—something we are making good on in the English devolution White Paper—our commitment to a significant shift of power and resource from this place to local communities.
Amanda Hack (North West Leicestershire) (Lab)
When we talk about devolution, we cannot forget Leicestershire, which is in a devolution desert. My constituency of North West Leicestershire borders both Nottinghamshire and Derbyshire. We have an international airport, but, significantly, we have no passenger rail. Does the Minister agree that actual and effective public transport is key to unlocking growth across the whole east midlands?
Alex Norris
I very much do agree. It should be a point of great pride—and, again, it is one of our huge assets—that we have the biggest pure freight airport in the country. Frankly, our geographical location means that all journeys involving the transport of goods tend to come through our region at some point, but with the airport they do so very directly. My hon. Friend raises, as my hon. Friend the Member for Gedling did, the fact that one of our challenges in the east midlands is linking up our opportunities by having the right access and the right public transport. I think that is absolutely crucial, and it must be the next dimension of our efforts.
Having had exactly the same conversation with Andy Reed—formerly of this parish—who is chair of the business board in Leicester and Leicestershire, I want to reassure my hon. Friend the Member for North West Leicestershire (Amanda Hack) of our commitment to making sure that, although there are devolution gaps at the moment, people in Leicestershire can also secure a bright and more sustainable future for their communities. We will work with them in whatever way we can.
My hon. Friend the Member for Gedling was exactly right in saying that we cannot forget the importance of our local councils. I am very proud to be a former member of my council. Having seen how hard it has been for local authorities in recent years, I am also very proud that, at the recent Budget, we started the journey of rebuilding local finances. I think we will start to see much better services as a result—and we have to—and people will feel that change.
Before I close, I want to cover my hon. Friend’s point, which he said with a degree of boldness, about local government reorganisation. Having made the case strongly for the devolution of power, as I think I did, my hon. Friends will know that my belief is that decisions are better taken locally than in this place, and we will certainly shift power in that regard. I think we must have a degree of responsibility in that where we add tiers of government, we rationalise other tiers. I am thinking of parts of my constituency that have five tiers of government: they have an elected mayor; they have me and this place; they have a county council; they have a borough council; and they have a town council.
I do not think it is unreasonable that we should want to bring forward that reorganisation, but my hon. Friend made very significant points about the importance of getting the voices of local communities into the room, and the moment for that is now. In the next few months to November, when we expect proposals to be submitted, we have an opportunity to have those conversations. We are at the proposals stage, and we are going to make sure that communities have the right insight to make the right judgments about their future, and we will facilitate and be part of those conversations.
To conclude, the thing that frustrates me about my city and our region is that we have had four really difficult decades—there is no doubt about that—and we see that in the physical and societal scars all across the area and in the memories we have lived with. For too long, we have talked about—or even worse, been talked about—in the deficit: what is wrong with us; what we do not have. I am really pleased with the spirit of this debate. The spirit of debate about our region over the past year, and certainly in the new Parliament, is one that talks about the opportunities in the east midlands, which are huge and abundant. We as a Government will back them, but most importantly it will be local leaders, the elected mayor, council leaders, local Members of Parliament and the local community who shape, deliver and drive that. I think that is the right way around and I cannot wait to see what we, collectively, can achieve.
Question put and agreed to.