South-west Growth Charter

Ben Bradshaw Excerpts

Tuesday 22nd November 2016 Westminster Hall

[Mr Gary Streeter (South West Devon) (Con)]

I beg to move,

That this House has considered the South West Charter for Growth.

It is a pleasure to serve under your chairmanship, Sir Roger—[Interruption.] That is a ringing endorsement. I am delighted to have secured this opportunity to bring to Westminster the campaign for the south-west to be seen as a centre for growth. The business community in the south-west is serious about introducing a framework for growth and economic prosperity in our important and much-loved region, which is what we are here to debate today.

We do not come to the Government with a begging bowl; we come to say that this is what the south-west business community plans to do for our region. The charter is not the brainchild of local authorities, politicians or quangos; it is the voice of business expressing its positive commitment to our region and saying to Whitehall, “This is what we will do. Now, Government, please do the part that only Governments can really do, namely infrastructure. Give us the tools to do the job.”

First, how do we define the south-west for the purpose of this debate? The Government usually describe the south-west as the seven counties from Land’s End to Gloucester, including Bristol and Stonehenge—a wide and disparate area. Not so today: the south-west for the purpose of this debate, the summit and the charter is primarily Cornwall, of course including the Isles of Scilly—I would not want to leave them out—Devon and most of Somerset, excluding the unitary authorities to the north. In other words, we are discussing the territory of the two local enterprise partnership regions of Cornwall and Isles of Scilly and the Heart of the South West.

The charter we are presenting the Government today builds on a growth summit held at the University of Exeter on Friday 21 October 2016. The summit was the initiative of one of the largest private-sector employers in our region, Pennon Group—the owner of South West Water, Bournemouth Water and Viridor—in partnership with the Western Morning News, a great champion of our region. The summit brought together the main economic interests of the south-west, alongside many of the region’s Members of Parliament. I am delighted that so many of my colleagues from Cornwall, Devon and Somerset, and from both sides of the House, are here today. The Opposition Members for our region are a tad depleted these days, but what Labour lacks in quantity the right hon. Member for Exeter (Mr Bradshaw) more than makes up for in quality. I am delighted to see him here today.

[Mr Ben Bradshaw (Exeter) (Lab)]

You won’t say that after my speech.

[Mr Streeter]

I probably won’t. I have never agreed with a single word the right hon. Gentleman has said.

The south-west growth charter calls for a new partnership between the south-west and central Government to achieve the goals agreed at the summit, which was attended by more than 200 people, more than 40 businesses, the CBI, the region’s two local enterprise partnerships, academic institutions and 14 local authorities from across the region. The summit was addressed by the Secretary of State for Communities and Local Government, who made an excellent speech that I know the Minister will replicate today. The Minister is a champion for progress, growth and prosperity. Indeed, he oozes them from every pore.

Despite our many successes and the beauty of our region, the south-west has not known the investment and prosperity of other parts of the United Kingdom in recent times—it falls below even the European Union average. What is more, the region has not always made itself heard with a clear, unified voice at Westminster, but we are open for business. We are looking for growth, and we want to build on the success of the northern powerhouse and the midlands engine. Today, we are setting out a positive vision for the south-west region.

The summit and the wider “Back the South West” campaign have shown a clear, unified business voice outlining a vision for the economic future of Cornwall, Devon and Somerset. The campaign has captured imaginations across our region and is a positive initiative from business, with strong support from local media. I always find that quoting local newspapers is a good way of getting in the local newspapers, and the front page of the Western Morning News on 3 October 2016 said:

“Clean beaches, sparkling seas and fresh air. The South West has it all. But while the natural beauty of the region is incomparable, its economy too often lags behind…given the tools, the South West can really fly”.

That is what this debate is all about.

A key part of the “Back the South West” campaign has been about creating a south-west narrative and speaking passionately at national level about why the south-west region is a wonderful place to live, work and do business. We are all immensely proud of our region, but we face challenges, particularly in light of the forthcoming Brexit. The local enterprise partnerships in our region are already showing how well they can work together to address those challenges and take opportunities.

Infrastructure investment needs and connectivity improvements were the overriding themes of the summit. To paraphrase a politician from years ago, we want to talk about three key things today: infrastructure, infrastructure, infrastructure. I remember going to India a few years ago with some Indian businesspeople, and they talked about the creativity of their people and all the resources and energy in that fabulous country. After the monsoons, they showed me roads that had been swept away and told me, “This is what holds us back in India. It is the infrastructure that we simply can’t manage to put in place.” I could say exactly the same thing about our region. All the creativity, the energy and the skills are there, but we need the infrastructure to get the job done.

We are all aware of the historical challenges in the south-west in relation to traditional infrastructure. For most of us, the key issue is the vital rail links to London and the rest of the country.

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[Mr Ben Bradshaw (Exeter) (Lab)]

I will try to adhere to that advice, Sir Roger, but as I am the sole Opposition MP in the region that we are discussing, it will be a challenge. I congratulate the hon. Member for South West Devon (Mr Streeter) on securing this debate, which as he said is timely because the autumn statement is tomorrow, and because once again, overnight, the south-west railway has been cut off by flooding.

I do not think that anyone can criticise the document that we are debating. It is an excellent document, and no one could find fault with it. However, the regular loss of our connectivity, which has happened yet again in the last 24 hours, is a more accurate reflection of the current reality on the ground than the vision that the charter rightly sets out for the future of the south-west. As the hon. Member for Taunton Deane (Rebecca Pow) said in an intervention, the reality is that we in the south-west feel neglected. When we look at all the investment going into London with Crossrail, the north of England with high-speed rail and all the other massive, multi-billion-pound infrastructure investments, we in the south-west feel like the poor relations. The electrification of the railway line to Bristol and south Wales has now been delayed, and even that will not come down to our part of the region, which needs it just as much.

We all remember the grandiose promises made before the last election. We could not move in the south-west, particularly after the Cornish rail collapse, for visiting Prime Ministers, Chancellors and Ministers promising £20 billion of investment in infrastructure in this Parliament. I remember the then Prime Minister saying that he would do whatever it took to put our infrastructure in a good condition, but we have seen very little of that investment so far. Some might even argue that those promises and all those visits helped to sweep an almost full house of Conservative MPs to power in our region, with Exeter the only surviving constituency with Opposition representation. My Conservative colleagues have a big responsibility. If I may give them a little gentle advice, at some stage they will have to play hardball with the Government and demand that the promises made to them before the election are actually fulfilled.

Rail infrastructure is not the only problem. The hon. Member for South West Devon has already mentioned broadband; our broadband roll-out in Devon and Somerset is badly behind schedule and the way it has been handled has been an absolute shambles. Broadband is vital in rural areas, particularly for our small and medium-sized enterprises. There is also an awful lot of uncertainty, as the hon. Gentleman said, about Brexit—particularly in Cornwall, given Cornwall’s reliance on huge economic support from the European Union. Sectors in our region such as farming and fisheries, which are disproportionately involved and engaged in importing and exporting within the single market, face big uncertainties. Our higher education sector is very dependent on the free movement of students and academics and on all the investment that our membership of the European Union brings. All that uncertainty, combined with historic under-investment in infrastructure, raises real concerns in our region.

To add insult to injury, we have learned that our local enterprise partnership in Devon and Somerset—Heart of the South West, which the hon. Member for South West Devon mentioned—has been told that it can expect only a tiny fraction of the money that it had originally hoped to receive in the next round of development support grants. That led to an unprecedented letter, which we all signed last week, to ask the Secretary of State for Communities and Local Government to think again—I cannot remember another time when every single MP in Devon and Somerset signed such a letter. As the hon. Gentleman said, it seems to be something to do with the fact that we do not have an elected Mayor model; we also have a shortage of big businesses to match-fund the Government money. That is stating the bleeding obvious, because our region’s strength is our small and medium-sized enterprises. We have some excellent big companies, but we do not have the large number of big companies that a northern powerhouse, or whatever, has.

I very much hope that the Chancellor’s autumn statement tomorrow will reflect some of the serious concerns expressed in this debate. I also hope that the Communities Secretary will look very carefully at our letter, because there is a lot of anger about how we in the south-west have been treated, and that anger will only get worse if our next growth funding deal is even worse than we expected or is a lot worse than the previous two. I congratulate the hon. Member for South West Devon again on securing the debate; it is well overdue, and I hope the Government are listening. Our region must get the investment that it needs. Sadly, that has been symbolised again in the last 24 hours by its being cut off by flooding.

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Roger. I, too, congratulate the hon. Member for South West Devon (Mr Streeter) on securing this debate. Owing to lack of time, I will not be able to reflect on all hon. Members’ contributions, which were extremely powerful in sending a message—I am sure the Minister received it—about the importance of the south-west and industry in the south-west. I want to reassure the hon. Gentleman that I do not see the south-west as a sleepy area. I am an MP for the north-east, which some may think is as far away from the south-west as one can get geographically, but in the north-east we are very fond of and admire the south-west. We share a history of mining and agriculture, as well as railways and great engineers, as other Members have mentioned.

The south-west has huge success stories, from the scientists of the Eden project to the engineers of the SC Group and AgustaWestland and the wine producers of the Campbell Valley. We would see such projects thrive if the Government sought fully to unleash the capabilities of all the regions of our United Kingdom. The charter for growth is a key step in achieving that. It is an opportunity for the Government to deliver on their promises, as has been pointed out by hon. Members, particularly by my right hon. Friend the Member for Exeter (Mr Bradshaw).

We could say that, before the election, the Conservative party issued letters of promise for investment in the south-west to be redeemed after the election, but they have yet to be redeemed, as is clear from the contributions so far. I look forward to the Minister setting out how he will make right on the promises so freely given before the election.

[Mr Bradshaw]

One of the welcome differences with the current Prime Minister was an apparent willingness to invest more in infrastructure based on borrowing, which had been a long-time Labour policy. Does my hon. Friend agree that tomorrow will be a test of whether she was serious about that?

[Chi Onwurah]

I thank my right hon. Friend for that intervention. It is absolutely clear that the economic failure of the previous Government to recognise the importance of counter-cyclical state investment has been rejected—in words at least—by the current Government. We will see tomorrow whether that rejection is made solid.

The previous Government’s abolition of the regional development agencies, which supported growth outside London, exacerbated the problem. Growth in the regions of the UK, particularly the south-west, faced economic hardship from austerity, particularly in the way in which it drained demand and reduced income for those in the public and private sectors. The Government have an opportunity to address those failings. I understand the sense of disappointment expressed by many MPs about the current indications that the local LEP will be materially disadvantaged in terms of regional funding because it does not have an elected mayor model. Now is the time for the Government to show they recognise that regions can achieve greatly without necessarily having a big man, a mayor, to meet the Government’s requirements.

The need for the charter is urgent. The south-west received €1.5 billion from the European structural funds throughout the 2014 to 2020 funding cycle and that stimulates development in the region. In fact, the south-west received the second highest amount of money from the European Union, second only to nearby Wales. Business in the area must be concerned about the Government’s toxic combination of indecision, doubt and confusion about Brexit. A commitment to a growth charter would be the first step in providing some answers for companies in the south-west.

Investment in physical infrastructure is one of the very important points in the charter. I must say I admire and respect the south-western Members of Parliament for making it to Parliament today, given the extraordinary lengths that some had to go to to make the journey from the south-west. For proper investment, we need long-term patient funding rather than the current short-term free market approach. For example, as has been mentioned, the A303, A30 and A358 corridor between Taunton, Honiton and Amesbury is key to reducing journey times to markets, promoting the inward investment that will help make the south-west’s economy more self-sustaining, as well as strengthening the already vibrant tourism in the area.

As hon. Members have said, rail links are equally important. The 20-year plan will bring jobs and growth to the region, as well as faster connections to the London airports. Businesses in the south-west should have better access to Bristol, London and the midlands, as well as to Heathrow and Gatwick. Rail links are key not just to link the south-west to other English economic hubs, but to support British industry and manufacturing. This investment should be brought forward and considered a priority. How will the Minister ensure that the Infrastructure Commission is independent and fully funded to make the much needed investment in our regional infrastructure?

However, physical infrastructure is not the whole story. As Member after Member has pointed out, in the face of the fourth industrial revolution, digital connectivity is just as important, so the plan for an ultra-fast south-west is welcome. The Labour Government left office with fully costed plans for universal broadband by 2012. As has been said today, we still have many businesses and individuals who cannot even get access to broadband speeds of 2 megabits, never mind the ultra-high speed mentioned in the announcements made today; and the universal service obligation is still four years away.

The European Union investment that was so welcome in Cornwall will not be available post-Brexit, and yet Ofcom researchers showed that in rural areas 48% of premises are unable to receive speeds above 10 megabits. I look forward to the Minister saying specifically how his Government will invest in rural broadband.

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[Mr Bradshaw]

The Minister talks about the Government bringing forward a consultation document. We do not need a consultation document. That is what Governments say when they are going to do absolutely nothing and kick something into the long grass. Clear and specific promises were made by the Conservative party in the run-up to the last general election, with money behind them, which all the Conservative MPs speaking in the debate today have referenced. When will those promises be delivered? Where is the plan to deliver them?

[Jesse Norman]

I detect a slight faux indignation on the other side, and I am sorry about that. The industrial strategy of this country is a serious, long-term matter. It needs to be agreed in a bipartisan spirit. It needs to include the whole country, including the devolved Administrations and nations. It is not something to be decided and cut off. That, if I may say, is an expression of Blairite, Napoleonic Government. We are looking for a consensus and a stable basis for future development, which can be shared by all and can survive a change of Government—it is essentially long term in character.

An industrial strategy has been attempted at various points in our past in this country, not always with great success. In the 1940s and 1950s, we had models of industrialisation based on the armed forces and people in Whitehall yanking levers that steered the ship of state. We had the corporatism of the 1970s. I suspect that we are looking to something somewhat different. If hon. Members doubt the necessity, let me remind them of two things. First, those who say they do not have an industrial strategy almost invariably have one without knowing it. Secondly, no company or charitable organisation would dream of attempting to take money from investors or donors and use it over a period of time without having a strategy for how to do so. Nor should the Government.