Businesses (North of England)

Debate between Anne Main and Andrew Stephenson

Wednesday 14th January 2015 Westminster Hall

[Andrew Stephenson (Pendle) (Con)]

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.

[Mrs Anne Main (in the Chair)]

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]

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.