King’s Speech (4th Day)

Baroness Morgan of Huyton Excerpts

Monday 22nd July 2024 Lords Chamber

[Baroness Morgan of Huyton (Lab)]

My Lords, I am delighted to be able to speak, albeit late, in response to the gracious Speech from a Labour Government for the first time in 14 years, and I am very pleased to see such talented Ministers on the Front Bench today.

I draw attention to my interests as set out in the register: master of Fitzwilliam College, Cambridge, current chair of the Royal Brompton and Harefield hospitals as part of Guy’s and St Thomas’, and chair-designate of Cambridge University Hospitals from the new year.

This is an ambitious Government, who now have the opportunity to deliver real and important change for the UK. However, we all know that it will be very hard and will demand absolute focus on priorities. Tough decisions will need to be made. I know from sometimes bitter experience that there are few easy decisions, but to govern, especially in challenging times, is to take those decisions in a clear-sighted and informed way. It is to say no as well as yes, but to be able to explain why.

This Labour Government have rightly made economic growth their most important mission in government. It underpins everything that we want to see change. It is great that Britain’s first female Chancellor, Rachel Reeves, is at the centre of this.

We need to recognise and invest in the engines that can propel the UK forward. Universities around the four nations are such engines and their contributions are far-reaching, and not just as educational institutions: they are the backbone of city and regional economies, and vital to the UK’s economic infrastructure and success. Each year, universities in the UK contribute £130 billion to the UK economy and support more than 760,000 jobs, training more than 100,000 public service workers, including nurses, medical specialists and teachers.

Of course, not all universities are the same, and nor should they seek to be, but in different ways, in different communities, they all have economic impact and, crucially, the potential to play a more significant role. They will need insightful and sustained challenge and support to make the necessary plans and reforms that will help to maximise their contribution economically. That must not be simplistic; it is about a lot more than current skill needs.

I will talk briefly about the role that Cambridge, as an example, has played as part of the system. Cambridge University’s net total economic impact on the UK economy is nearly £30 billion annually, supporting more than 86,000 jobs across the UK. For every £1 spent, Cambridge generates nearly £12 of economic impact. That has not happened by chance, but through a deliberate fostering of excellence in research and innovation. Cambridge has developed an ecosystem that fosters the successful commercialisation of these ideas.

The innovation is not just academic, significant though that is to the UK’s global standing; £23 billion of Cambridge University’s economic impact is generated by companies spun out from or closely associated with the university. This has helped to transform Cambridge into one of the world’s leading innovation clusters. It is now ranked first in the Global Innovation Index for the intensity of its science and technology cluster.

All of this generates substantial economic benefits for the region and the UK. The Greater Cambridge economy returns around a £1 billion net contribution to the Exchequer each year, increasing the resources the Government have to invest in the UK’s wider priorities.

However, and importantly, universities such as Cambridge not only benefit their local region but can have wider effect by working together. Over the last year, the new Growing Together Alliance was created, the centrepiece of which is the direct partnership between the Manchester and Cambridge innovation clusters. Two of the four biggest companies in the UK— global heavyweights, if you like—are headquartered in Cambridge: AstraZeneca and Arm. Crucially, though, AZ employs more people in the north-west of England than it does in Cambridge. Arm’s biggest UK presence outside of Cambridge is not in London; it is in Manchester.

This collaboration between Cambridge and Manchester therefore exemplifies how regional partnerships can enhance national economic growth across the country. It is strongly supported by both local mayors, Nik Johnson and Andy Burnham. Working together is good for both Cambridge and Manchester, and good for the UK. By leveraging each other’s strengths, these cities are creating a more interconnected and resilient economic landscape. That results in more good jobs created each year in future-facing sectors up and down the country. Cambridge’s internationally recognised academic excellence, scale-up ecosystem, early-stage investment and inward investment complement Manchester’s extensive research base, large talent pool, relative affordability and capacity for growth. They are stronger together.

Universities are not just educational institutions but pivotal players in the national economy. They are instrumental in developing the talented workforces and innovators of tomorrow as well as today, contributing to regional and national growth. But that will not happen without real engagement from the Government, so I urge them to commit to work with the UK’s HE sector to realise that potential in the coming decade.