Queen’s Speech

Lord Ravensdale Excerpts

Monday 17th May 2021 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, like other noble Lords, I very much look forward to the maiden speeches of the noble Lords, Lord Coaker and Lord Morse. I declare my interests as a director of the cross-party group Peers for the Planet and an engineer and consultant working for Atkins. I also bring to the attention of the House that I am co-chair of the Midlands Engine APPG. So it was most welcome for me to hear the focus of the gracious Speech on levelling up. I would like to build on the remarks of my noble friend Lord Taylor of Holbeach, who made some excellent points about the visitor economy in the Midlands, and to focus on the opportunities for a green recovery to level up the Midlands region.

As we emerge from the shadow of the pandemic, we need to build back better, greener and faster. With their unique strengths, the regions have a great opportunity to be at the forefront of this change. Data from the Midlands Engine shows that gross value added per capita in the Midlands is nearly £22,000, or 9% of the England minus London average. If this gap were closed, it would add an extra £76 billion each year to the UK economy—£76 billion. That is the scale of the opportunity here. Playing to existing regional strengths, the green recovery can be a key part of closing this gap.

The Midlands was at the forefront of the Enlightenment and the Industrial Revolution. The new thinking that led to these epochal events is perfectly symbolised by the painting “A Philosopher Lecturing on the Orrery” by Joseph Wright of Derby, who was himself a key figure in the Midlands Enlightenment. The painting depicts a lecturer giving a demonstration of a mechanical model of the solar system to an awe-inspired audience, their illuminated faces emerging from the darkness of ignorance and superstition into the light of reason. The region now has the opportunity to continue this historical thread by leading the way with a new, green industrial revolution.

One in four energy and low-carbon jobs in England is based in the Midlands and the sector is worth almost £27 billion to the region. It is home to nationally and internationally leading projects, assets and research in low-carbon transport, fuel, heating and energy. The Midlands Engine is the first pan-regional partnership to propose a plan for delivering this and will issue its plan for consultation within the next few months. Can the Minister say what plans the Government have to work with the regions on such initiatives, supporting existing regional strengths to enable a clean economic recovery?

Innovation will of course be vital in meeting our net-zero targets. The Government already have a desire to increase the R&D intensity of the economy to 2.4%, but additional focus is needed on how deploying research funding can help to level up the economy. If the Midlands receives its fair share of this funding, it will equate to a £2.3 billion increase in R&D spend in the Midlands, providing the potential to create tens of thousands of jobs. Crucially, R&D will bring in skills and wider investment from industry, which will boost the productivity of the Midlands and help the Government meet their targets for levelling up. I highlight here the fantastic universities and research assets that we have in the region.

Some thinking is required on the Advanced Research and Invention Agency, ARIA, to ensure that its spend is constructively deployed in aid of the levelling-up agenda, rather than defaulting to research capacity in the south-east. I look forward to returning to this when the Bill comes before the House.

There is a fantastic opportunity here to use the green industrial revolution, along with existing regional strengths, to level up the Midlands, which is home to 11 million people. A year ago, the Chancellor vowed to do “whatever it takes” to support households and businesses through the Covid crisis. If the Government are serious about delivering levelling up, they should make a similarly unambiguous commitment to do whatever it takes to level up the regions. A shock to expectations can in itself produce the momentum required to level up our economy.