Economic Growth: East of England

Geraint Davies Excerpts

Wednesday 10th October 2018 Westminster Hall

[Giles Watling (Clacton) (Con)]

It is an honour to serve under your chairmanship, Mr Davies. I thank my hon. Friend the Member for Waveney (Peter Aldous) for securing this important debate. It is a pleasure to stand here and discuss how we can promote economic growth across the east of England. Clearly that is one of my priorities as the Member for Clacton—a place my hon. Friend probably only inadvertently left off his list of great towns of the east.

Nationally, our economy is growing. At last, we are beginning to say goodbye to austerity and are getting the country back on track. However, while national economic growth is without doubt welcome, some communities are being left behind. One such community is my constituency of Clacton. As we begin to discuss the future of our economy, we must ensure that no community is left behind. I was encouraged to hear the Prime Minister argue the same in her conference speech last week.

I am here today to offer my thoughts on how we can be more inclusive as the economy grows. By way of further context, in 2013 my local authority, Tendring District Council, published an excellent economic development strategy. But in its pages was the somewhat troubling assertion:

“While there are some excellent businesses and highly resourceful residents locally, the district’s economy is not performing as well as it could—employment, job numbers and business formation have…been static or shrinking in recent years.”

In a former life as the cabinet member for regeneration and inward investment at Tendring District Council, I saw at first hand how eager our council officers were to correct that situation. I also saw how support for businesses can pay tremendous dividends in terms of economic growth. As I have said in previous speeches on the economy, in that role I prided myself on being able to make cash grants of up to £150,000 available to businesses in, and coming to, Tendring, so that they could grow, flourish and create inward investment. Many businesses did flourish thanks to that funding from the SME growth fund, which I introduced—businesses such as Nantmor Blinds, based in Clacton-on-Sea, which received a grant to assist with the purchase of an auto louvre machine. It also enabled it to hire new staff. In its own words, Nantmor Blinds said it was

“blown away by Tendring District Council’s hard work and determination.”

To date, the SME growth fund in Tendring has supported businesses, created 20 full-time jobs and leveraged over £200,000 of private investment into the district. I am delighted to say that, thanks to that success, the scheme is being widened and extended to 2020.

Clearly, in my area local government support is truly there for businesses. I have no doubt that that is the case across the east of England. We must ensure that that continues and expands to national support. Nevertheless, and despite our enthusiasm, something continues to prevent businesses from really committing themselves, and the prosperity they bring, to Tendring. That obstacle, which has been mentioned before and will be mentioned again and again, is the quality of our local infrastructure. In my view, a country’s economy will only ever be as good as its roads, rails and ports, and we are no exception in that regard. I have often argued in this place—some might say far too often—that there is a need to improve the connection to overlooked areas such as the Clacton constituency. As a regular commuter myself, I know that it takes far too long for my constituents to travel to the capital and vice versa. I have said it before and I will say it again: the 69-mile journey often takes the best part of one hour and 40 minutes—that is nonsense. Without more investment in our local transport infrastructure, I believe that we will limit the incentive for people and businesses to move to our area. That would mean that my district would continue to be excluded from the strong national economic growth, which is an unacceptable outcome.

Moreover, as I have said before, if we are to do our bit to tackle the housing crisis, we must improve our transport infrastructure before any major new housing developments break ground. We are leading the way with our garden community developments. We simply cannot build more dwellings without first making it easy to occupy, live in and work from them. Investing more in transport would do that.

That is why I will continue to push my “70 in 60” campaign at every opportunity. It aims for the people of Clacton to be able to cover the nearly 70 miles to London in less than 60 minutes, which is not an unrealistic proposition when we look at similar rail services in the area. For example, commuters to Ipswich cover the journey in about 70 minutes, and let us not forget that people can travel the 52 miles from London to Colchester in 58 minutes, only to crawl the final 18 miles to Clacton in about half an hour—on a good day. That clearly has a lot to do with the quality of infrastructure between Colchester and Clacton, compared with the main line to Ipswich, so we should change that.

When we commit cash to infrastructure in such a way, businesses get excited and want to invest, thereby laying the foundations for future economic growth, and I have been shown that clearly by my past experience and conversations I have had as the Member of Parliament for Clacton. If we are to promote economic growth in the east of England, we must adopt the “infrastructure first” mantra everywhere and ensure that our region has the best transport links going.

I therefore welcome the formation of Transport East, a forum that now meets regularly. It will be the vehicle for the delivery of a collective vision for transport and wider infrastructure for all communities in the east of England. Its formation is certainly a positive step. It will lead to the creation of a truly joined-up transport network that does not exclude any of our communities from infrastructure improvements, which are a precursor of economic growth. The forum will also help us to secure vital investment in future infrastructure. I encourage the Government to engage with Transport East in whatever way they can.

To turn to the roads, I ask the Government to look favourably on the application for RIS2—second road investment strategy—funding for the new A120, which will reduce pressure on existing roads used by residents of the Clacton constituency. Improving that road, which runs across the east of England from Stansted airport to Harwich, would also help move goods more quickly and deliver a boost to the local economy. Furthermore, upgrading that strategically important road is an essential precursor to further unlocking Essex’s economic potential, along with the wider east of England region.

That brings me back to the point of the debate. The east of England is a unique region, with strong economic growth prospects, thanks to places such as Cambridge, Peterborough, Ipswich, Stansted airport, Luton airport, Harwich and Felixstowe, Colchester, Waveney, Southend-on-Sea and, of course, the sunshine coast of the Clacton constituency—I get them all in. However, if we do not have first-rate infrastructure, and cannot successfully and efficiently link those economic sub-units together, we will not get the best out of the east of England. We will therefore not maximise our economic potential, and certain communities will continue to be left behind.

To conclude, I return to the economic development strategy to which I referred earlier. Despite the troubling conclusions drawn about Tendring in 2013, it was also argued that the area has the potential for growth which could create thousands of jobs. Good will and hard work from our council has allowed us to start unlocking that potential, and I am proud of our record so far. Real and sustained investment in our infrastructure, however, would allow us to deliver such results quicker. I have no doubt that, in the same way, there will be no shortage of good will and hard work throughout the east of England. To match that, we must now ensure that good infrastructure is in place across the region. That is how we will promote economic growth for all communities in the east of England.

[Geraint Davies (in the Chair)]

I hope to call the shadow Minister at 10 minutes past 5. It is a pleasure to call Priti Patel.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

It is a great pleasure to serve under your chairmanship, Mr Davies. Did you arrange the cabaret in the background?

[Geraint Davies (in the Chair)]

Especially for you.

[Richard Harrington]

I could not quite hear what they were saying, and it is probably better that I could not.

I congratulate my hon. Friend the Member for Waveney (Peter Aldous) not only on calling today’s debate but on his contributions to many other debates I have taken part in. He has always contributed in a non-partisan and a very statesmanlike way, and today was absolutely no exception. I welcome the east of England APPG submission, which we have read in my Department. I hope that some of my points respond to its recommendations.

I have a bit of a strange relationship with the east of England, simply because my constituency, as mentioned by my hon. Friend, is in the east of England, but most people who live in it do not think they are in the east of England, simply because it is such a large area, as was mentioned by several hon. Members. It varies from what some people think is outer London—it is not quite, but there is a more urban type of London demographic—to areas that are geographically quite remote. My right hon. Friend the Member for Witham (Priti Patel) mentioned—eloquently, as ever—that Essex is a huge county in its own right: it varies from outer London urban to quite remote country areas. It is difficult for any policy to take into consideration such a large area, and there is no simple solution. I accept the point about transport and more modern infrastructures being critical to everything, and I will come to that. It is easy for the European Union and national Government to talk of regions—as we talk about metropolitan areas—as being fairly homogenous.

I want to reiterate the Government’s commitment to promoting growth in the east of England. Any Minister would say that, and I would certainly say that to my constituents in the east of England. But the facts speak for themselves. The region is growing fast. It has seen continued growth in jobs and is one of only three regions that is a net contributor to the UK. Those are exactly the sorts of strengths the country needs to build on in securing a prosperous economic future for the UK as a whole.

As my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) said, the region has not always pushed its case well, probably because of its large area and the different organisations in it. The all-party group’s report clearly reverses that, but as my hon. Friend the Member for Waveney said, it is the beginning of a process, not a one-off report—the Government certainly do not treat it as such.

Hon. Members highlighted many of the strengths of the east of England. I will not repeat the comprehensive list, but there are world-famous brands in Cambridge, which the hon. Member for Cambridge (Daniel Zeichner) mentioned, as there are in Milton Keynes, Hertfordshire, the coastal region and so on. However, I agree with him that the future is not guaranteed, which is why we have an industrial strategy. The shadow Minister was really quite scathing about that strategy—I hope I have time to come on to that. Governments have industrial strategies and policies because nothing in the economy is guaranteed. She mentioned the effects of our leaving the European Union. None of us knows what they will be, but whatever happens while we are in the European Union or out of it, nothing is guaranteed. It is important that the Government realise the importance of the east of England to the economy.

The shadow Minister will disagree, but since 2010 the Government have made good progress on supporting businesses and people in the east of England. Unemployment has halved, the number of small businesses has increased by more than 100,000 and, although good points were made about apprenticeships, 350,000 people have started them in the area.

The hon. Member for Cambridge mentioned the CPIER report. I welcome that and look forward to seeing how it is reflected in the local industrial strategy. He also mentioned land value capture. The Treasury and I look forward to receiving further developed proposals on land value capture in Cambridgeshire and Peterborough from the Mayor in due course. We have yet to see the full effect of Mayors, but I am positive about them and pleased that we have them.

The east of England is at the forefront of industrial strategy. We have local enterprise partnerships and, as I said, mayoral combined authorities developing and implementing industrial strategies. We are at the beginning of that road, but the east of England is in good shape. The Cambridgeshire and Peterborough combined authority and the South East Midlands LEP have been identified as trailblazer areas as part of the Oxford to Cambridge arc. Those pilot areas have made good progress and are on track to publish their strategies in March next year, with the rest of the region publishing theirs in 2020.

I reject much of what the shadow Minister said—not because she has a premier league football team in her constituency. I have made rather unpleasant comments about that, which I would like to withdraw, and I apologise for any offence caused. I am sure Newcastle United will remain in the premier league at least for this season, if not beyond. If that does not happen, at least she can blame their relegation on our leaving the European Union, since she seems to blame that for everything else.

[Richard Harrington]

I think the hon. Lady just called for the nationalisation of Newcastle United football club. Another few billion for the national debt—it really doesn’t matter, does it? We have many billions more.

[Geraint Davies (in the Chair)]

Order. Minister, we need to focus on the east of England, not the ownership of Newcastle United.

[Richard Harrington]

Governments have learned the importance of giving local areas control of local growth. I have seen for myself that we have to be careful about that. I studied economics A-level and, being from Leeds, we went to Newcastle to visit the National Economic Development Council there. Those bodies, which were known as “Neddys”, showed that localisation in itself is not enough. That was not a very effective system, but at least it was an attempt to regionalise. We have developed significantly beyond that as a society, which means we do not just send civil servants from London to work in Newcastle and say that is regional.

I hope we will see the benefit of devolution, with LEPs, Mayors and everything else. [Interruption.] I am cantering because I have only five minutes—I cannot really take any more questions about that. The Cambridge and Peterborough devolution deal builds on the significant commitments made to the east through previous city deals. I am very optimistic about the greater Cambridge city deal. It is delivering, and I really think we will see a lot more from it.

My hon. Friend the Member for Central Suffolk and North Ipswich made many extremely helpful points. The Government are committed to dealing with local skills shortages, such as those in agriculture, through the establishment of skills advisory panels, which are being rolled out to all parts of eastern England and will help to ensure that training matches the needs of local businesses. That cannot be ignored, and I believe our policy will help to achieve it.

The east of England benefits from more than £700 million of local growth funding through growth deals, and the region’s business-led local enterprise partnerships determine how that funding is spent. I have seen different kinds of LEPs, but the range of products being delivered in this case—the aviation academy in Norwich, the STEM innovation campus at Stansted airport and the Watford health campus scheme in my constituency, for example—will lead to a more skilled workforce and are very important for the east.

Infrastructure was mentioned by many speakers, in particular my right hon. Friend the Member for Witham and my hon. Friend the Member for Central Suffolk and North Ipswich, who stressed the importance of the A12. That is why, in addition to the devolution city deals I mentioned, we have invested £1.5 billion to upgrade the A14 between Cambridge and Huntingdon, which is an important route, and £151 million in new river crossings. Those are just examples. The transforming cities fund will really help Cambridge and Peterborough, which have already received £74 million. I could go on, but time does not allow.

The Government are committed to working with local partners. Many Members mentioned transport, which is absolutely important. I intend to send a summary of the points they made about particular roads to the Department for Transport. I know Members have done that, but I feel it is my job—I am not in that Department, but I represent the Government—to ensure that those points hit home.

My hon. Friend the Member for Clacton (Giles Watling) spoke so well about no community being left behind. He feels that his community and others, particularly in coastal areas, have been neglected by the system. He stressed the importance of infrastructure in such areas. I will not forget the points he made about his experience on Tendring Council, and I am happy to chat with him separately about that.

We have had a wide-ranging debate in which we did not have time to consider some of the necessary detail. However, the east of England all-party group has set out a model for how such groups can focus their lobbying of the Government on specific points. I am happy to meet formally with the all-party group or with individual Members. I do not mean only those on the Conservative Benches, as I hope the hon. Member for Cambridge knows. These are important points, and I would like to see the successful implementation of many of the policies mentioned in the APPG’s report.