Oral Answers to Questions

Eric Ollerenshaw Excerpts

Tuesday 13th July 2010 Commons Chamber

The Chancellor of the Exchequer was asked—

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

1. What steps he plans to take to support economic growth in the north-west.

[Andrew Stephenson (Pendle) (Con)]

14. What steps he plans to take to support economic growth in the north-west.

[The Chief Secretary to the Treasury (Danny Alexander)]

I am delighted to have the opportunity to answer these questions on behalf of the Chancellor, who is at the ECOFIN meeting today.

In order to support private sector enterprise throughout the UK and ensure that all parts of the country, including the north-west, benefit from sustainable economic growth, the Government announced a number of measures in the Budget, such as using the national insurance system to encourage the creation of new businesses and establishing a £1 billion regional growth fund. Later in the summer we will publish a White Paper on a new approach to sub-national growth, including local enterprise partnerships, local incentives and more powers for major cities.

[Eric Ollerenshaw]

I thank my right hon. Friend for that detailed answer. My question relates to the abolition of the Northwest Regional Development Agency. Does he agree with the comments of Councillor Peter Gibson, leader of the excellent Wyre borough council in my constituency, who said last week that its abolition will give us the potential to relieve the bureaucracy on the backs of local authorities and businesses and the potential for a fairer distribution of resources throughout Lancashire?

[Danny Alexander]

I am very grateful for that question. It is precisely because of such concerns that we have chosen to establish local economic partnerships. The Secretaries of State for Communities and Local Government and for Business, Innovation and Skills jointly wrote to local authorities inviting submissions for the establishment of those new bodies, which will be partnerships between local authorities and local businesses. That is the right way to promote economic growth in localities.