Economic Growth (London)
Debate between Diane Abbott and Kris Hopkins
The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)
I thank the hon. Member for Hackney North and Stoke Newington (Ms Abbott) for securing the debate. At the beginning of her campaign to become the Mayor of London, perhaps we need to develop a technique to grow a bigger crowd. It is quite lonely in here this afternoon.
The hon. Lady has picked up on several issues that I will try to answer, although I have limited time in which to do so. Local growth is an essential part of the Government’s long-term economic plan to secure Britain’s future. By trusting local people, backing businesses and investing in infrastructure, skills and housing we are creating thousands of new jobs. That means more economic security, peace of mind and a brighter future for hard-working people across the country. In London, it is the role of the Mayor, working closely with borough and the private sector, to develop sustainable growth. There is no doubt that London is an economic powerhouse and, as the Mayor rightly and repeatedly says, it is a global city that needs to ensure that its economy performs at an international level.
The Mayor has set out a clear vision for delivering growth in London by creating jobs, building new houses and providing the infrastructure that is needed. The opportunity areas, such as Battersea, the Royal Docks, Greenwich and Stratford, are seeing a renaissance, while new business areas, safe leafy neighbourhoods and vibrant town centres are rising from the ashes of former industrial areas.
Kris Hopkins
I thank the hon. Lady for her question, but as the Chancellor pointed out the other day, 85% of the 1.7 million jobs that have been created are full time. The issue of zero-hours contracts is important, but I suggest that the Labour party gets its own act sorted out first, as I understand from the Independent Parliamentary Standards Authority that some 62 Labour MPs use zero-hours contracts.
Let me return to my speech. The Mayor has overseen a massive investment in London infrastructure to deliver growth from Crossrail, the biggest engineering project in Europe, to the London light railway, the Northern line extension, which has unlocked development in Battersea, or the rail extension in the Barking riverside area, which will allow some 11,000 homes to be built.
In the autumn statement, the Chancellor announced a further £141 million to support the Mayor’s project to create a new cultural and educational facility at the Queen Elizabeth Olympic park that will deliver economic and social benefits for the east of London as part of the Olympic legacy.
Kris Hopkins
I would like to answer the questions that the hon. Lady asked, but I am more than willing to give way.
Kris Hopkins
Much investment across the country was put at risk by the reckless handling of the economy that left us with a £162 billion deficit and compromised many projects across the country. It is this Government who took a failing economy that was on its knees, with mass unemployment and mass business failure, and in a few years secured growth in this country that is not bettered by any country in the G7. This Government continue to promote, in London in particular, a diverse economy and local growth, which is about not just large-scale regeneration projects, but rejuvenating town centres. There are some 600 high streets at the heart of local communities in London.
The Mayor’s regeneration fund and the outer London fund are helping to support diverse local economies by establishing local businesses districts and improving retail, leisure, culture and arts provision to bring vibrancy back into those communities, and providing more security for those who live and work locally. The London enterprise panel chaired by the Mayor has invested some £111 million as Growing Places funding to create jobs, drive growth and enhance transport links to unlock potential and support small and medium-sized enterprises around London.
Within the Hackney council boundary some 2,530 properties have benefited from the £1,000 business relief that the Government have put in place in 2014-15. That was extended in the recent autumn statement. Significant projects such as MedCity, a £1 million investment, was launched this year, and a £1.5 million project to support SMEs via the National Apprenticeship Service has encouraged take-up. In Hackney and Stoke Newington, some 2,500 young people have started apprenticeships in the past five years.
Time is limited, but the hon. Lady raised some specific questions, one of which related to devolution. We should recognise the enormous amount of devolution that this Government have already offered. The Localism Act 2011 has transferred powers and money to deliver housing and regeneration projects. The Local Government Finance Act 2012 enables councils in 33 boroughs across London to retain a significant amount of business rates. That will grow. Across the country, more money is retained by councils from business rates than is raised through council tax. Through the local growth deal that the Mayor secured, some £63 million will deliver more housing in London.
The hon. Lady raised some important issues which it is worth spending a minute or so discussing. I said earlier that some 1.7 million jobs had been created. That is important, considering where we were in 2010. The massive deficit of £162 billion has been reduced by a half. The hon. Lady spoke about immigration. I agree that London is an amazing multicultural and global city that attracts people. I reflect on my own city, Bradford, a great melting pot of ideas and cultures that offer great depth to the place where I live. I agree that immigration makes a positive contribution to the economy and will continue to do so. As the Mayor says, London is a global city that attracts great people, and it attracts significant investment as well.
Question put and agreed to.