Growth Strategy

Amanda Solloway Excerpts

Tuesday 21st January 2020 Westminster Hall

[Amanda Solloway (Derby North) (Con)]

I congratulate my right hon. Friend the Member for Wokingham (John Redwood) on introducing this important debate. May I add that it is absolutely freezing in here, and I am very cold?

One of the most important duties of any caring Government is to grow the economy. The question of how a Government should tend to and nurture the economy has been tackled by politicians of all stripes and colours, and answered in many ways, arguably to varying degrees of success. Fundamentally, people’s lives—whether they can support their families, get on the housing ladder, or enjoy some of the nicer things in life—rest largely on the Government’s safe stewardship of the economy. Governments have a responsibility to protect and promote the livelihoods of their citizens.

We should all be really proud of the Government’s record on growth. Since the crash of 2008-09, when the economy collapsed by 4.2%, the Government have managed to grow the economy every single year. That said, we cannot rest on our laurels. There is a lot more that we need to do. Libraries could be filled with writings on the north-south divide. In 2012, The Economist said, rightly or wrongly, that the divide was so broad that the north and the south were starting to resemble different countries. Growth continues to be stronger in the south. London recorded a 1.1% annual rise in output per person to £54,700 in 2018, increasing the per capita gap with the poorest region, the north-east, where growth was only 0.4% to £23,600 per head, according to data from the Office for National Statistics.

Less well documented, however, is the increasing gap between the east and the west. Across the midlands and the north, the growth of the west has been twice as fast as that of the east since the 2008 financial crisis. Do not get me wrong: London and the south, as well as cities such as Manchester, are assets to the country and we should be really proud of them. However, regardless of where we live in these isles, we should all share the fruits of economic growth.

To address the problem, we must not bring those places down, but bring areas such as the east midlands up with them. The Government are not blind to the problem: the midlands engine for growth, which we must ensure happens, and the northern powerhouse show that the Government are listening, and are determined to address the issue. The 2020s offer a unique opportunity to rethink how we can foster growth in our regions.

I could list a range of issues that we could talk about, including investing in transport, investing in our high streets, which I know we are doing, and supporting leadership in SMEs, which I am incredibly passionate about. However, I am conscious of time, and I know that my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) would like to speak, so I will limit myself to one topic: free ports.

As I am sure we all know, free ports are areas that are exempt from normal customs and procedural rules that are enforced by the Government. They aim to encourage businesses to locate and grow there, bringing growth, jobs and investment to local communities. I am glad that the Prime Minister will introduce free ports as we start our new relationships with trading partners across the globe. I would love one to be introduced in the east midlands, which already has the key ingredients to justify one: a wealth of manufacturing, the means to store goods, and the access to reach international markets easily, building on East Midlands airport’s cargo capability.

Proposals are being explored for a free port that might incorporate both East Midlands airport and the neighbouring East Midlands Gateway, plus the site of the Ratcliffe-on-Soar power station, just down the road from where I live, which will be decommissioned by 2025. A free port would position the east midlands as a viable and exciting proposition for businesses that need to import components for assembly before exporting assembled goods to overseas markets, while not being subject to excessive tariffs.

[John Redwood]

My hon. Friend might like to think about adding an enterprise zone to the free port. Obviously the free port allows people to import and export, but the enterprise zone allows people to sell to the domestic market as well.

[Amanda Solloway]

I thank my right hon. Friend. That is an excellent idea, which I will certainly look into.

Of course, as the MP for Derby North, I would call for an east midlands free port. However, I believe that they have the potential to unlock and boost all corners of our country, and will go far to reduce some of the current imbalances. It is important that regardless of where people live they are able to go as far as their abilities can take them. I believe that the Government’s free port plans will go a long way to achieving that.