The Oxford-MK-Cambridge Arc

Charles Walker Excerpts

Tuesday 12th July 2016 Westminster Hall

[Grahame M. Morris (Easington) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Walker. I congratulate the hon. Member for Milton Keynes South (Iain Stewart) on securing this important debate. I am obviously proud to respond on behalf of the Labour party to the issues raised, and I pay tribute to my predecessor, my right hon. Friend the Member for Wentworth and Dearne (John Healey).

You will understand, Mr Walker, that I have been in post for only a short period and it has been rather a busy time for me, but I had the pleasure of serving as a local Labour councillor for 16 years in a previous life, and I understand the importance of strategising and of linking housing to economic development. I am pleased to see in the MK Futures 2050 Commission report a really good example of how a well run, Labour-led local authority—I accept that this is cross-party work—can provide leadership, direction and ambition for the future, even during a very difficult financial period for local government.

As the hon. Member for Milton Keynes South mentioned, Milton Keynes is approaching 50 years since being designated a new town by the Wilson Labour Government in 1967. I am familiar with new towns. Peterlee, in my constituency, is from a similar generation, or in fact a little earlier—the post-war generation—and just slightly to the south of that is Newton Aycliffe.

New towns have particular strengths and problems. As the hon. Gentleman pointed out, this new town—actually, it is a new city—has developed to the extent that it is home to 270,000 people. As Milton Keynes has grown, so too has its regional, national and, indeed, international importance. I understand that it is now the biggest economy in the South East Midlands LEP area. It has a strong and internationally recognised smart city project and is fast developing into what could be described as the Milton Keynes city economic region.

The city is acknowledged as offering a particularly high quality of life, with many parks and open green spaces. The concept of the original planners was that open green spaces and parks would run throughout the built environment—that was a feature of many new towns of the period.

The importance of Milton Keynes to the UK economy was recognised by no less a person than the Chancellor himself in his Budget speech, when he asked that the National Infrastructure Commission should investigate how infrastructure investment in the Oxford-Milton Keynes-Cambridge arc—the so-called innovation corridor referred to by the hon. Member for Milton Keynes South—could improve the overall output of the UK economy.

I therefore commend Milton Keynes Council for establishing the MK Futures 2050 Commission, a panel of independent, nationally respected figures from across the academic, business, public and private sectors who have come together to produce a report on how the city can continue to be prosperous into the future. Indeed, the commission has gone further, identifying the challenges and barriers to success and what the city can do in the short, medium and long term to ensure sustainable growth. It is a fine example of not taking the status quo for granted but instead ensuring that local authorities lead the way in innovating and adapting so that, as my right hon. Friend the Member for Oxford East (Mr Smith) mentioned, the citizens they represent can access affordable housing, well paid jobs and a clean, healthy lifestyle.

The commission undertook detailed research and gathered evidence, including more than 6,000 submissions from local residents and stakeholders. It highlights the fact that the factors that have made Milton Keynes a success in its first 50 years are the very issues that may have an impact on future growth: affordability, access to well paid employment, good infrastructure and the advantageous geographical position that the hon. Member for Milton Keynes South described—it is near the M1 and the west coast main line and between London, Birmingham, Oxford and Cambridge.

The commission identifies some of the risks to employment that could threaten many jobs, including well paid ones. Housing affordability is a key issue, as it is in much of the south-east, as unaffordable housing limits the supply of a skilled workforce. The city of Milton Keynes, like so many others, including Washington in County Durham, was designed on a grid system. That worked well originally, but is approaching capacity, which could have an impact on future growth. Finally, competition, not just from the UK but from our European and global competitors, will continue and intensify.

The commission concluded that to be successful, Milton Keynes needed to focus on the growth of high-quality, knowledge-intensive jobs and its continued development as a green and affordable place to live. To deliver that economic growth and prosperity, the commission has recommended six “big projects” that are vital to the future success of Milton Keynes. I will not talk about them all, because of the shortage of time, but I want to pick out a couple. The commission recommends that Milton Keynes’s population should grow in the future to at least 400,000 people. As the hon. Gentleman said, much of that growth would not take place in Milton Keynes itself; it would not be within the current local authority boundaries, but would take place along the Oxford-Milton Keynes-Cambridge corridor.

I am told that at a recent meeting with the National Infrastructure Commission, the leaders of Milton Keynes, Cambridge and Oxford expressed strong support for that idea, with support from their respective local enterprise partnerships. I am pleased to say that those councils, along with Norwich and Swindon, have come together to form the Fast Growth Cities network, which has also promoted the idea, with the support of the much respected Centre for Cities think tank. Again, the hon. Gentleman referred to that. The importance of those cities to our national economy, with their high-wage, high-productivity, high-skill and low-welfare economies, is significant. To highlight that, I will make a comparison with my own region, the north-east of England. The gross value added output of those cities is almost equal to that of the northern powerhouse. Given recent events and the UK’s intent to leave the EU following the recent Brexit vote, the continued success of those economies is even more vital to the success of the public finances.

If I may, I would like to put a few questions to the Minister. I would like to ask, in particular, when the infrastructure investment in the east-west rail link linking Oxford, Milton Keynes and Cambridge is to be delivered. The scheme has been subject to continued delays and time slippages. I understand that the local authorities, businesses and potential investors are concerned about the great uncertainty over the speedy delivery of that project. Will the Minister give top priority to making representations to the National Infrastructure Commission?

As the hon. Member for Milton Keynes South identified, there is a gap in university provision. I point out that Milton Keynes is home to another excellent creation of the Wilson Labour Government—the Open University, a pioneer in distance learning. The MK Futures 2050 Commission recommends the establishment of a Milton Keynes institute of technology—a kind of Massachusetts Institute of Technology concept, like they have in the United States, which seems a brilliant idea. It would take advantage of, and apply, advanced research and training and transform it into world-leading innovative enterprises. The UK currently lacks that type of establishment, and the idea has enormous potential. Again, I echo the hon. Gentleman by asking the Minister to engage with his colleagues in making representations to BIS, asking it to make contact with Milton Keynes Council to investigate how the idea can be taken forward.

This is a good point at which to highlight that the commission is clear that if growth is to be delivered, the population of Milton Keynes must be able to share in the benefits of growth. It calls it “inclusive growth”, and the point requires highlighting that growth must benefit not the few but the many. As my hon. Friend the Member for Hayes and Harlington (John McDonnell), the shadow Chancellor, has pointed out for some time, that will be easier to achieve with sustained investment in infrastructure. I am pleased that the report favours that approach to growth. Will the Minister agree to meet representatives from the Fast Growth Cities group to discuss their needs, and does he agree that the opportunity of having five local authorities that want to embrace growth, and housing growth in particular, should not go to waste?

I am sure the Minister agrees that the report is an exceptional and groundbreaking exercise by a local authority. It provides a context in which Milton Keynes and the surrounding authorities can discuss growth for the future and address issues they face. I am sure that many local authorities in other parts of the country would be very interested in learning from their experience and example. I therefore urge the Minister to meet representatives from Milton Keynes Council to discuss the benefits and potential of this approach, and to offer any assistance he can in co-ordinating responses from other agencies.

Finally, I would like to place on record my thanks and appreciation to Milton Keynes Council for commissioning this forward-thinking report, and to the hon. Member for Milton Keynes South for raising it today. In particular, council leader Councillor Peter Marland and the chief executive Carole Mills have shown excellent leadership throughout. The director of strategy, Geoff Snelson, the head of policy, Sarah Gonsalves, and the project manager, Fiona Robinson, have worked tirelessly to produce an excellent report. The Milton Keynes Futures 2050 report is a fine example of local innovation and the power of good local leadership. I look forward to hearing the Minster’s reply, and I hope that he will welcome the report; it is well worth considering taking it forward with Milton Keynes Council and the other local authorities.

[Mr Charles Walker (in the Chair)]

Minister, you have until 5.45 pm, but if you would like to leave two minutes at the end for the Member who moved the motion, that would be very well received I am sure.