East Midlands: Local Authorities and Economic Growth

Adam Thompson Excerpts

Monday 7th April 2025 Commons Chamber

[Michael Payne]

The hon. Gentleman is right to pay testament to the Chancellor and the Labour Mayor of the East Midlands, Claire Ward, for unlocking nearly £1 billion in growth and investment from the freeport at East Midlands airport. He knows Northern Ireland politics far better than I do, but I think my hon. Friend on the Treasury Bench will have been listening closely to his powerful argument on behalf of his constituents. I wish him well with his campaign.

Under the previous Conservative Government, we heard a lot of talk about levelling up, but certain local areas were favoured over others, while the rest of us wondered when it would be our turn at the table. I welcome this Labour Government’s change to that approach: less selective, no longer pitting area against area, and with a genuine desire to grow every part of the United Kingdom. Our Labour mayor, Claire Ward, has started working with the Government to find areas to grow the local economy. In the past year, she secured £200 million of transport investment that will grow our economy by allowing people to get about our region more easily; she secured £160 million for the east midlands investment zone, to attract new investment and create jobs; and she secured the brownfield housing fund, which will build 1,400 new homes. However, she is held back by the previous Government’s piecemeal approach to devolution.

[Adam Thompson (Erewash) (Lab)]

I thank my hon. Friend for securing this important debate. I was recently in discussion with the managing director of a local small and medium-sized enterprise based on Merlin Way in Ilkeston in my constituency. He expressed great frustration at the barriers to growth that his firm experiences with planning, high building costs and uncertainty. Does my hon. Friend agree that devolution via empowered regional mayors represents the solution to those problems and a route to prosperity through growth?

[Michael Payne]

My hon. Friend is a good friend and a powerful advocate for his constituents. He is right that devolution in the east midlands needs to go further and faster, because areas such as Greater Manchester and the west midlands are much further ahead on their journey. Giving the East Midlands mayoral authority trailblazer status would see a turbocharged approach to skills, investment and growth in our area. Giving Mayor Claire Ward an integrated funding settlement across local growth, place, transport, skills, housing and more to work with local authorities such as mine in Gedling would really get our economy moving. That approach has been proven elsewhere.

We should not need to wait any longer in the east midlands for power over our own future, but mayors and combined authorities are only one part of local government across the east midlands. Borough, county and unitary councils often do the overlooked, often-ignored hard yards that provide growth in our communities. The Government recognise that to grow the economy, they must work hand in hand with business, but they also have to work hand in hand with local government. Public services are essential for social and economic security. Vital services such as education, housing, healthcare and transport contribute to the economic productivity of the region, and local authorities provide the best investment in local areas.

The Local Government Association found that councils in the east midlands contribute directly to 20% of local GDP through projects that promote business growth, job creation and regional investment. Local authorities are key enablers for the Government’s promises around transport, housing, skills and growth. The Government are rightly reforming the planning system to allow council planners to do their job, but every single one of the 1.5 million houses built under this Government will have been approved by a council planner. Local authority workers will be instrumental in the roll-out of free breakfast clubs across schools. We have seen the impact on growth and economic confidence if simple things such as our bin collections go wrong.

Our local government workers keep our communities and this country ticking. They are all heroes. My plea to the Government is simple: do not ignore local government, local government finances or local government staff, and continue to invest in those areas.

--- Later in debate ---

[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.