Businesses (North of England) Debate

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Department: Cabinet Office

Businesses (North of England)

Anne Main Excerpts
Wednesday 14th January 2015

(9 years, 3 months ago)

Westminster Hall
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Anne Main Portrait Mrs Anne Main (in the Chair)
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Seven Members have indicated that they wish to speak, and 13 from the Government Benches alone look as if they wish to make interventions. I ask for any interventions to be brief and in question form.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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It is a pleasure to serve under your chairmanship for the first time, Mrs Main. I am grateful to have secured this debate and I am delighted with the support of colleagues, for which I thank them, on a vital subject for us and our constituents.

This is a timely debate that goes along with other big conversation debates about the northern powerhouse. Just last week, the Prime Minister and the Chancellor went to Manchester and set out their commitments to the north-west. Obviously, other hon. Members will want to talk about what the commitments need to be in the north-east as well.

I am delighted that my right hon. Friend the Minister for Universities, Science and Cities is present. We are fortunate to have him here. He has been consistent in his approach, putting forward the agenda for the cities and for the north. He is also a Member from the north, from Middlesbrough. We regard him as a real friend for our cause and are delighted by the time and effort that he is putting into looking at proposals to take forward the economy in the north. We are delighted that he is here.

Last week, the Prime Minister talked a lot about the north-west. Obviously, that interests me as the Member of Parliament for Macclesfield, which, as a few colleagues have pointed out, is in Cheshire in the north-west. I will focus a lot of my remarks on the north-west, but no doubt other Members from the north-east and Yorkshire will want to put forward their views on what needs to be done to help move the agenda forward on the east of the Pennines as well.

There is a lot to celebrate in the north. British Chambers of Commerce has been in touch with me, having found out that this debate was taking place, and it highlights that a quarter of UK manufacturers are in the north; that Sheffield has world-leading expertise in advanced materials; that the second largest digital and creative sector cluster in Europe is in Greater Manchester; that the automotive cluster around Nissan in Sunderland accounts for one in three of the UK’s cars, although I think that more will be going on over in Merseyside to compete with that; and that there is a £6 billion petrochemicals cluster around the Humber. Macclesfield was famous for silk and is now leading the way in life sciences, with 2,200 working at AstraZeneca’s Macclesfield site.

This is something that we can be proud of. I spent a lot of my career—about 11 years—working in Leeds, which is now the second biggest financial and legal services cluster outside London. I worked with Asda and Halifax General Insurance. There are real case studies of best practice here that we need to celebrate, and we need to maximise the opportunities.

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Stephen Mosley Portrait Stephen Mosley (City of Chester) (Con)
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My hon. Friend is talking about life sciences, but it is worth saying that there has been a total renaissance of all science in the north-west. We have the Sir Henry Royce Institute in Manchester, the Cognitive Computing Research Centre at Daresbury, the Square Kilometre Array in Cheshire, the National Graphene Institute at the university of Manchester—

Anne Main Portrait Mrs Anne Main (in the Chair)
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Order. The hon. Gentleman has made his point.

Stephen Mosley Portrait Stephen Mosley
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Most importantly, we have the energy sub-surface test centre at the university of Cheshire.

Anne Main Portrait Mrs Anne Main (in the Chair)
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Order. I do want to get cross, particularly since Members are making excellent points, but I am sure the hon. Member who secured the debate would like to continue.

David Rutley Portrait David Rutley
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It is difficult to contain the enthusiasm of my hon. Friend the Member for City of Chester (Stephen Mosley) for this subject, and it is great to see, because it makes a difference. I understand and accept the points that he raised. He makes an important contribution through his passion and interest in these matters and through the Science and Technology Committee. At Prime Minister’s questions last week, in response to my question about what we can do at Alderley Park for life sciences, the Prime Minister talked about how it had a crucial part to play in the improvement of life sciences in the country. He said that we need to get more growth deal funding and other initiatives to help bolster life sciences in the north-west.

My hon. Friend the Member for City of Chester anticipated my next point: this is not just about life sciences; it is also about astrophysics. My hon. Friend the Member for Congleton (Fiona Bruce) will appreciate the importance of the Square Kilometre Array initiative. It is the world’s biggest radio spectrum telescope, and it is based in Cheshire. It is a globally significant project. We have seen the initial project phase based in Jodrell Bank, and we are pushing to ensure that further phases are headquartered there. I very much hope that the Minister will have a few things to say in support of that, because it will put astrophysics and science firmly on the map in the UK once again. That will not only ensure that the north is known as a leading edge in science, but encourage more leading-edge thinking across industry.

I will move on to infrastructure, because many other colleagues want to speak. One of the things we need to do in the north is ensure that we can get to it and get around it a lot more effectively. There is another powerhouse, I understand, in the south. Some refer to it as London, but people recognise that it is a conurbation of towns and villages from Uxbridge to Upminster and beyond. Crossrail will improve connectivity in that conurbation, but the truth is that we need to do a lot more in the north. As many people will know, it takes longer to get from Liverpool to Hull than from London to Paris, and that has to change. There are exciting positive initiatives such as the big new trans-Pennine high-speed rail project, which some people call High Speed 3, or overdue rail electrification, to which others have referred.

All those things are vital. HS2 will bring greater connectivity, but I want to ensure that we continue to have good, vibrant services with the same regularity and speed on the west coast main line. People will fully understand that HS2 is about driving capacity, which is what we need to ensure that we have the right connectivity. That will ensure that skills are easily transferred among the different clusters in the north that we need to see thrive and succeed in the years and decades ahead.

My last point on strategic priority is on transferring power to the north. It is compelling to see the Government propose an agenda that resonates with local authorities that might not have the same political sympathies and views. Anyone looking at the economic development of the north will realise that it is wrong to think that London should do everything. That is an over-centralised, metropolitan and outdated view of how a modern economy should run.

In the United States and in Germany, economic prosperity is much better balanced across major cities. We need to ensure that the situation is the same in the UK. I am delighted that the Government secured an agreement with Greater Manchester council and the Greater Manchester area to create a new mayor with powers brought in from the existing police and crime commissioner. That has gained real support from local leaders. It might not sit well with Labour Front Benchers, but locally it is sitting extraordinarily well with leaders who want more power. I welcome giving it to them, because with success and progress in Greater Manchester, the counties around will succeed, too, if we create those partnerships.

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None Portrait Several hon. Members
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rose

Anne Main Portrait Mrs Anne Main (in the Chair)
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Order. Before I call Simon Danczuk, I remind Members that, if we have interventions as long as that from the hon. Member for City of Chester (Stephen Mosley), we will be lagging somewhat. There are approximately seven minutes per Member, provided that every Member speaks for a similar amount of time. If not, I will enforce a time limit.

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Andrew Stephenson Portrait Andrew Stephenson (Pendle) (Con)
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I congratulate my hon. Friend the Member for Macclesfield (David Rutley) on securing the debate and on setting out a really good argument in favour of investment in the north of England and of supporting our businesses. I will keep my remarks focused on Pendle and the support that businesses there have received, as well as some of the challenges that we still face.

Pendle’s local economy relies heavily on manufacturing, and Government support for manufacturing is critical to Pendle and much of the north of England. Only last Friday the Chancellor of the Exchequer, wearing a hair net, visited Farmhouse Biscuits in Nelson to hear about its success and some of the challenges it still faces.

Some 1.8 million manufacturing jobs were lost under the previous Government and by August 2009, in Pendle, 2,239 people were claiming jobseeker’s allowance. That number had fallen to a little more than 1,000 by November last year—a drop of 55%. As a result, some of the larger employers are starting to increase pay and improve conditions. For example, boohoo.com recently significantly increased wages, and the Daisy Group, based on the Lomeshaye industrial estate, has just given all its staff an extra week’s holiday entitlement.

That situation did not come about by accident, but because of the hard work of local businesses and the actions of the Government and our local authorities to support job creation in the area. For example, the then Conservative-led Lancashire county council acted to support one of Pendle’s largest employers, Silentnight, when it went into administration in 2011. I have talked about that before in a Westminster Hall debate, so I will not go into any detail. All I will add is that I was proud to take the Prime Minister to visit Silentnight in May 2014 and to see a company going from strength to strength—it is staying in Barnoldswick and now has about 800 employees, 150 more than four years ago.

Other Government support for businesses throughout the UK has been welcomed, in particular by businesses in Pendle. Barnoldswick bicycle part manufacturer Hope Technology—also visited by the Prime Minister, in April 2013—took advantage of the Government’s significant research and development incentives, allowing it to expand and innovate more rapidly. The company’s latest plans are for a new £4.5 million centre for research and development and a 250-metre, Olympic-length velodrome, the first velodrome built outside a major city in the UK.

Hope Technology employs 110 people and exports about 65% of its products to Indonesia, Malaysia and Hong Kong. The company reckons that the self-funded flagship expansion will create more than 50 new jobs and put Barnoldswick firmly on the map. Any more support that the Government can give to such companies would be much appreciated.

Manufacturers in Pendle and throughout the north also welcomed the increase in capital allowances announced in the 2012 autumn statement. The Chancellor of the Exchequer said:

“I would like to help small and medium-sized firms more, and I thank my hon. Friends the Members for Burnley (Gordon Birtwistle) and for Pendle (Andrew Stephenson) for their thoughts on that matter. Starting on 1 January, and for the next two years, I will increase tenfold the annual investment allowance in plant and machinery. Instead of £25,000-worth of investment being eligible for 100% relief, £250,000-worth of investment will now qualify.”—[Official Report, 5 December 2012; Vol. 551, c. 881.]

The businesses located in Pendle and I are pleased that the Government not only continued the scheme after the initial two years, but increased the allowance further, incentivising manufacturing businesses in the north to invest in new plant and equipment.

Local businesses in Lancashire received another significant boost in July 2013, when the Government agreed with the arguments that many of my Lancashire colleagues and I were making and approved £5 million of additional business support through the regional growth fund to help local mid-sized manufacturers to expand. In the past 12 months, 14 businesses in Pendle have benefited from almost £1 million in grants, regenerating Pennine Lancashire, creating well in excess of 100 jobs and safeguarding many more. Such support is in addition to numerous other Government programmes, such as the textile growth programme and various supply chain initiatives, which have also been welcomed and used by many Pendle businesses.

The announcement of assisted area status for Pendle last year is another important step forward for my constituency. The previous assisted area status map, drawn up under the previous Government in 2007, included parts of Blackburn, Hyndburn and Burnley, but not a single part of Pendle. During the consultation on the new map, Pendle council and the Lancashire local enterprise partnership argued for four Pendle wards to be included. I met Ministers and made the case not only for those four wards, but for going much further. I am delighted that in the end it was agreed that 13 Pendle wards should be included—more than half the borough—with assisted area status now covering businesses stretching from Reedley and Brierfield through to Earby.

On support for the skills agenda, in addition to four new primary schools in Pendle, a major investment at West Craven high school and a new university technical college in Burnley, the outstanding Nelson and Colne college continues to go from strength to strength. Nelson and Colne college recently benefited from a £3.6 million investment in its facilities and has been pivotal in delivering the Government’s ambition of a record number of apprenticeships—the number of apprenticeship starts locally has more than doubled.

In my part of the country, we have some of the lowest property prices. Even with many more people in work, regeneration and private sector housing schemes can be tricky to stack up financially. In September 2013, I led a debate here in Westminster Hall on regeneration in Brierfield and Nelson. I talked about the Brierfield Mill development in my constituency. It was the largest redundant mill complex in Lancashire, and in March 2012 the Government gave Pendle council a £1.5 million grant via the Homes and Communities Agency to buy it.

Under the previous Government, the mill complex had been bought by a Birmingham-based Islamic charity, which planned to convert the site into a 5,000-place boarding school for girls. Now in public ownership, the 380,000-square-foot complex of buildings on a seven-acre site is located next to the M65 motorway and Brierfield railway station. The site has the potential to be a key driver of jobs and growth.

Bringing such a large grade II listed building back into use in such a deprived part of the north of England, however, will require some public funding in addition to private sector investment. Architects have come up with an impressive vision for the site, which will be renamed Northlight and include 71 retirement flats, a 78-bed hotel and spa, leisure facilities, business units, a new marina on the canal and a family pub. Using the Government’s business premises renovation allowance or BPRA scheme, now available thanks to the new assisted area status that I mentioned earlier, private sector investors are lined up for almost every part of the project, but they still need some more support to make the whole thing viable. The Lancashire LEP has bid for some of the funding in the second phase of the growth deals.

In advance of the decision being announced, I am delighted that the Minister responsible for the deals, who also happens to be responding to today’s debate, has kindly accepted my invitation to visit the site this Friday. I am hoping that, after visits to Brierfield Mill by the Secretary of State for Communities and Local Government, the Secretary of State for Business, Innovation and Skills, the Chief Secretary to the Treasury and two successive Ministers of State for Housing and Local Government, my hon. Friend can finally move forward the £34 million landmark regeneration scheme, which I have been working to resolve since my election.

Brierfield Mill is by far the largest regeneration project the local business community and the council are trying to undertake, but it also links in to the need for more Government support for developers in the north who want to redevelop brownfield sites. It is great that figures show that house building has increased by 20% over the last year, but in some parts on the north, such as Pendle, property prices are so low that developers struggle to make any money redeveloping ex-industrial brownfield sites. They therefore focus on easier-to-develop greenfield sites. That is especially the case in Pendle, where we still have about 1,200 empty homes, down from about 2,000 in 2010.

Anne Main Portrait Mrs Anne Main (in the Chair)
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Order. Could the hon. Gentleman start to bring his remarks to a close in the interests of colleagues who also wish to participate?

Andrew Stephenson Portrait Andrew Stephenson
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Yes, definitely.

We have a real challenge with brownfield sites, and we need funding for them. I am delighted that the Minister of State, Department for Communities and Local Government, who is responsible for housing and planning, announced last week that east Lancashire has been shortlisted as a brownfield housing zone. I am keen to see that go forward, but we still need more support.

I could go on longer, but many Members want to speak, so I will conclude by saying that significant progress has been made, but I look forward to more being made over the coming weeks and months.

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Fiona Bruce Portrait Fiona Bruce (Congleton) (Con)
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Some of the most exciting and innovative developments in this country today are along the science corridor, which a number of Members have mentioned. It crosses several constituencies, including mine and that of my immediate neighbour, my hon. Friend the Member for Macclesfield (David Rutley), to whom I pay tribute for calling the debate. The Government have rightly committed many millions of pounds of national funding to supporting the corridor and adjacent infrastructure—not least in my constituency, where £45 million of growth deal funding has gone towards the Congleton link road, about which I have spoken in the House on a number of occasions; I am grateful to Ministers for listening and responding to my points. It is of great importance to businesses in my constituency, such as Reliance Medical, Senior Aerospace Bird Bellows and Airbags International. However, that is not what I want chiefly to speak about today. I want to focus on Jodrell Bank.

The world famous dish of Jodrell Bank lies within my constituency, although I must confess that the controls are in the constituency of my hon. Friend the Member for Macclesfield, so we share an interest. Jodrell Bank is important locally, regionally, nationally and internationally. I want to highlight that importance and express concern about a threat to its work and to recent Government investment in it.

To provide some context, I should say that Jodrell Bank has been at the forefront of radar technology since it became world famous in 1957, as the Lovell telescope emerged as the only instrument capable of using radar to detect the Russian satellite Sputnik. It now hosts the e-MERLIN national facility as well as the Lovell telescope. It continues to produce world-class science. It also hosts the outstanding Discovery centre, which has done much to increase public awareness of science in the UK. That has more than 140,000 visitors a year, including about 16,000 schoolchildren taking part in its education programme, and it has received numerous awards. The BBC transmitted its “Stargazing Live” programme from Jodrell Bank from 2011 to 2014.

As we heard, the Square Kilometre Array is at the leading edge of astrophysics research, and continues to receive the full support of universities, businesses and public sector agencies across the north and beyond, which work together to underpin its activities. It is a very important area—a national and global network of telescopes, with Jodrell Bank at the centre, carrying out unique, world-leading science, across a wide range of astrophysics and cosmology. The facilities at Jodrell Bank are used by almost every university astrophysics group in the country and hundreds of scientists in the UK and Europe, and across the globe. The developments being undertaken by Jodrell Bank, and its potential developments, are of huge importance to jobs and the economy.

In 2013, the Minister’s predecessor as Science Minister, my right hon. Friend the Member for Havant (Mr Willetts), opened the SKA and Jodrell Bank as its centre. The SKA is a project that joins thousands of receivers across the globe to create the largest, most sensitive radio telescope ever built. Members of the SKA include Australia, China, Italy, the Netherlands, New Zealand, South Africa, Canada, Germany and Sweden; and the UK leads it. At the opening Dame Nancy Rothwell, of the university of Manchester, called it a “cutting edge science project” and said that it would

“become a real science and engineering hub”.

The Minister’s predecessor said:

“This project is pushing the frontiers and that is why the Chancellor has awarded some of the extra £600 m towards science development”

to it. He said it was

“a global strategic project but one that Great Britain is a major player in.”

The economic benefits of that work for the national economy cannot be over-estimated. However—and it is a big “however”—it is threatened. Professor Simon Garrington of the university of Manchester has spoken of the detrimental effect of radio interference from surrounding developments on the work at Jodrell Bank:

“Radio interference has an impact on almost all the experiments that are carried out at Jodrell Bank.”

He explains that in many observations radio interference is the main factor limiting the quality of the data and that

“every increase in interference...reduces the amount of useful data that are left”.

He adds that

“when there are lots of these…as might be the case for emission from housing developments then it has a significant impact on the data.”

Even a domestic microwave in someone’s home can have an impact on the work at Jodrell Bank. It is important to remember that decades ago Professor Lovell moved his work at the university from the centre of Manchester to Cheshire, to avoid such interference.

Professor Garrington says that the work of Jodrell Bank has already been hampered by local development, explaining that the

“discovery of pulsars was led by Jodrell Bank for many years”

but that

“now…we can no longer find new pulsars and our experiments are limited to timing the pulsars which are already known. We do make the most precise measurements...but really interference limits the extent to which we can search for new pulsars.”

He explains how researchers at Jodrell Bank have done the most extensive analysis anywhere, to understand how towns, developments and roads affect the work. He has given evidence to a planning committee in Cheshire in the past month, and says:

“We have in the last few months constructed a detailed map which quantifies this loss due to distance and terrain...What this model shows is that the largest potential contribution is often from local villages such as Goostrey”.

Goostrey is a village in my constituency, between 1 mile and 2 miles from Jodrell Bank. Professor Garrington adds that modelling of the proposed development in Goostrey

“shows that it will add significantly to what is a present and growing problem...We believe this continued development at this rate so close to Jodrell Bank poses a significant impact on the science that can be carried out at this international institution.”

Anne Main Portrait Mrs Anne Main (in the Chair)
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Order. Can I ask the hon. Lady to bring her remarks to a close, as we have winding-up speeches at 20 to four?

Fiona Bruce Portrait Fiona Bruce
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I will, Mrs Main. I am raising this concern because the village of Goostrey has 900 houses and there are now plans to build up to 250 additional houses. Applications have been put in and some have been agreed. The latest one is for a development of 119. A public meeting was held in the village only last Friday, attended by 250 people, asking for consideration of an exclusion zone for further housing development around Jodrell Bank of up to, say, 2 miles; no doubt the parameters could be established by discussion with Jodrell Bank, which I understand supports the proposals. I am keen that the Science Minister should be aware of the request, and I hope that he will consider it.

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Anne Main Portrait Mrs Anne Main (in the Chair)
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I am sure the hon. Gentleman’s colleagues will thank him for his consideration in keeping his speech brief.

Nigel Evans Portrait Mr Nigel Evans (Ribble Valley) (Con)
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I will also try to be brief, Mrs Main, as I believe my hon. Friend the Member for Pudsey (Stuart Andrew) wishes to speak. It is always a delight to follow my hon. Friend the Member for Calder Valley (Craig Whittaker). I congratulate my hon. Friend the Member for Macclesfield (David Rutley) on securing this debate.

I am incredibly fortunate in the Ribble Valley to have businesses both small and large. Between Salmesbury in my patch and Warton in a neighbouring patch, BAE Systems employs 11,000 people, and it is well known that for every job created at BAE Systems, about three are created in smaller businesses down the pipeline. The Consortium of Lancashire Aerospace has firms in a number of my hon. Friends’ constituencies, which do rather well from having BAE Systems nearby—and more power to their elbow.

There are also much smaller businesses in my constituency, such as the paper cup company in Clitheroe that has seen investment of £250,000 and brought jobs back from China to Clitheroe. Lancashire does rather well: in the area of high-end, high-spec jobs, the ability to get access to fast broadband has brought high-tech jobs into Clitheroe. A company called YUDU has created a tremendous number of jobs there. The skills available in Lancashire can lead to jobs for so many young and enterprising people working hard in firms large and small throughout the area.

Although it does not come under the portfolio of the Minister, I want to touch on an issue that, as I represent a rural constituency, worries me greatly. A lot of our small businesses are farms. Recently, a number of farmers have not been able to get paid for the milk they have produced. Indeed, in the month of December alone, 60 farmers went out of business throughout the country. We know how important dairy farming is to the United Kingdom and to the north of England in particular. I hope that the Government will get involved directly to ensure that farmers get their money and that something is done about the insane pricing of milk throughout the country, as it is now cheaper to buy milk than water. Something has to be wrong there. When milk is being sold at 89p for four pints, the contracts between farmers and those buying the milk must be insane, and it is no wonder that those businesses cannot make a go of it.

Tourism is also important to me, and the fact that we have our wonderful countryside is down to our farmers. If we want to attract people from large cities into rural areas, we must ensure that we have viable businesses there. We desperately need to do something about small farming businesses.

When the Minister goes to Pendle, I hope he will also spend some time in the Ribble Valley, where a number of businesses are built on tourism and on hospitality in particular. I went with the hon. Member for Rochdale (Simon Danczuk) to the Baum, which has won the Campaign for Real Ale’s award for pub of the year. I now have a CAMRA pub of the year next door to me, the Swan with Two Necks. Businesses such as those, and James’s Places, which runs the Emporium, the Waddington Arms, the Shireburn Arms and Mitton Hall, are providing lots of extra jobs to the hospitality trade in the area—James’s Places provides over 300—that help young people in particular.

Our farming, hospitality and hostelry industries mean that the Ribble Valley has some of the finest places for people to go. They are backed up by Ribble Valley council, which runs the Ribble Valley Food Trail. People can go to see where a lot of their food is produced and sold. There is a wonderful weekend when people can come into Clitheroe to celebrate what is wonderful about food production, hostelry and beer production. The Bowland Beer Company has been taken over by James’s Places and will be coming into Clitheroe shortly, bringing huge investment. Thwaites Brewery is also coming into Ribble Valley from Blackburn, which will help secure hundreds of jobs for east Lancashire.

The Ribble Valley is a rural area that has seen wonderful investment from small and large businesses over the year thanks to this Government. We now have an unemployment rate of about 1%. I want to see that continue—and with this Government’s policies and support, it will.

Anne Main Portrait Mrs Anne Main (in the Chair)
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I call Mr Stuart Andrew, who has just under four minutes to make a wonderful speech.

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Iain Wright Portrait Mr Wright
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No, but it is hon. Members’ interest in certain areas. There is a concern that because the Commission does not recognise the governance arrangements of LEPs, millions of pounds are being lost or certainly delayed on their way to the regions. My own area of the north-east has the potential to be delayed to the tune of £724 million, and for the north-west the figure is £895 million.

Anne Main Portrait Mrs Anne Main (in the Chair)
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Order. I ask Mr Wright to let the Minister respond.

Iain Wright Portrait Mr Wright
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Will the Minister respond—

Iain Wright Portrait Mr Wright
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And does he appreciate that the north is a fantastic place that has the potential to grow further?