UK Exports

Earl of Dundee Excerpts

Wednesday 8th March 2017 Lords Chamber

[The Earl of Dundee (Con)]

My Lords, I join others in congratulating the noble Viscount, Lord Waverley, on securing this debate. In my remarks on UK exports and a strategy for increasing them, I will touch briefly on three aspects relating to British cities: first, their current level of success, for any future trade deal with the EU must aim to preserve and raise this standard; secondly, the actions that the Government should now take further to strengthen the commercial muscle of our cities; and, thirdly, within Europe yet irrespective of the EU, the potential of certain useful and available methods and facilities for enhancing trade and exports.

British cities export three times as much to the EU as they do to the US and 10 times as much as they do to China. In 61 out of 62 cities, the EU is the largest market. Exeter heads the list. It sends 70% of its goods and services exports across the channel. So while it is right to be ambitious about expanding trade with other countries, does my noble friend the Minister agree that as we leave the single market the absolute number one priority arising from a new trade deal with the EU is to consolidate and build upon these current results and achievements?

To strengthen commercial abilities in the first place, there are a number of actions that the Government can now take. The key issue is skills. Clearly, an insufficiency will deter foreign investment. Already across the UK there is much divergence. In Exeter just 1.5% of people have no formal qualification, yet in Birmingham as many as 16.5 % do not. Nor do UK cities fare well against their European neighbours: only six of them manage to outperform the European city average in terms of low-skilled people in their economies. To reverse these deficiencies, does my noble friend concur that several government responses are now called for, including more-targeted endeavours to improve numeracy and literacy, particularly in schools in underachieving places; policies to redress the present shortage of qualified maths and science teachers; and guidelines for new metro mayors—some of whom are elected this May—for improving adult skills in their areas?

City centres themselves, particularly in the north, often deter foreign investment as well. Does my noble friend consider that funds should be allocated accordingly, partially from the £23 billion productivity fund for city centres announced by the Chancellor last year?

Also, so that transport gets better inside cities, and following this year’s buses Bill, is she in favour of reregulating bus services? The effect of this is not as high profile as more grandiose transport projects; nor is it expensive; yet it is likely to help the performance of cities rather more.

Then on city business rates, can she give an assurance that the revaluation of commercial property, which determines how much tax is paid, will in future be done on an annual or a biannual basis?

Finally, we may take heart from the new approach adopted and evidenced in recent years by both UK and European cities. For there is now a wider perception of “trade” and a feeling that people-to-people links best lay the foundations for mutual economic growth at local, regional and city level. This welcome development is supported by the Council of Europe, in whose parliamentary assembly I have the honour to serve, and by its Intercultural Cities programme. If my noble friend considers that this programme may as yet not be sufficiently known about, will her department be able to draw it to the attention of relevant parties which can then choose to benefit from it?

In summary, there is a hopeful prospect ahead, provided that, with quite some determination, threads such as these are properly identified and pulled together. As outlined, they include: necessary government measures to promote city exports; beyond the EU, making use of various other European opportunities and interventions; then, not least, an EU trade deal which ensures that current levels of exports are preserved and raised.