Levelling-up Missions: East of England

Giles Watling Excerpts

Tuesday 31st January 2023 Westminster Hall

[Peter Aldous]

I thank the hon. Member for that intervention, and I greatly enjoy working with him on the APPG. He is correct to raise those issues. I will comment on the rail issues in passing a little later, but they are vital to the east of England and to the whole UK.

I will comment in a little more detail on the five issues where there is low confidence and on what needs to be done so that we can get on course to deliver the 2030 targets. I anticipate that colleagues will home in on areas and issues that are important to them and their constituents. I should add that each of the issues warrants a debate of its own, and I am conscious that I will only scratch the surface of each mission.

Earlier this month the Government published the results of round 2 of the levelling-up fund. In the two rounds that have taken place so far, there have been 12 awards in the east of England, with a total value of £252.5 million. In both rounds we secured the fourth lowest amount of funding in the UK. Although, on an allocation per head basis, the situation has improved significantly, from £14 per head in the first round to £26 per head in the second, the east of England remains the region with the third lowest funding over both rounds.

It would be wrong to judge levelling up solely on the basis of those grants, but there is a worry that there is a lack of understanding in Whitehall of the challenges faced by many people in the east of England and of the exciting opportunities available in the region. With the right policies and support, the Government can help unlock these opportunities, which will benefit not just our region but the whole United Kingdom.

Down here in London, there may be a view that East Anglia is a comfortably-off region where levelling up does not apply. That is wrong, as we have relatively low levels of pay and there are deep pockets of deprivation in coastal communities such as Lowestoft, which I represent, in rural areas and in our larger cities and towns, such as Norwich and Ipswich.

[Giles Watling (Clacton) (Con)]

Does my hon. Friend agree that some coastal regions around the country suffer from pockets of deprivation that are unrecognised because the central hinterland looks wealthy?

[Peter Aldous]

My hon. Friend raises a good point. I am mindful of the fact that Jaywick, which is in his constituency, is statistically the most deprived area in the east of England. As he rightly says, pockets of deprivation can be hidden, because there are often areas of wealth within a few miles of them that camouflage that deprivation.

The east of England is an economic success story, and it is one of only three regions that are net contributors to the Exchequer. With the right policies and the necessary initiatives, we can significantly reduce poverty and create what, in effect, would be a global powerhouse, with specialist skills and expertise in such sectors as low-carbon energy, agritech, life sciences and sustainable fishing. Despite the drawbacks, a good start has been made locally in Waveney, and much of Lowestoft resembles a building site at present, with work well under way on the Gull Wing bridge—the long-awaited and much-needed third crossing of the port, which divides the town—as well as on the construction of permanent flood defences.

At this stage it is appropriate to pause and to recall that this evening is the 70th anniversary of the 1953 storm surge that hit our coast so cruelly, causing death, destruction and, ultimately, the demise of the beach village in Lowestoft. Today the region remains extremely vulnerable to rising sea levels and the threat of climate change, but the drive towards net zero presents our economy with significant opportunities, which we must grasp. In Lowestoft, work is also getting under way on the various towns fund projects designed to regenerate the town centre and the surrounds. These projects, together with the flood defence scheme and the new bridge, currently represent a public investment in the town of in excess of £220 million.

Due to inflation, the shortage of raw materials and supply chain challenges, delivering such construction projects is not easy at present, and I commend the project managers at Suffolk County Council, Coastal Partnership East and East Suffolk Council for their hard work. Our task locally is to ensure that the developments act as a catalyst for private sector investment and that they fit in with and complement the overall economic strategy for the region.

I will now briefly touch on the five missions where there is low confidence of meeting the 2030 targets.

--- Later in debate ---

[Giles Watling (Clacton) (Con)]

It is an honour to serve under your chairmanship, Mr Davies. I am incredibly grateful to my hon. Friend the Member for Waveney (Peter Aldous) for securing this great debate. He is a great champion of levelling up the east and I thank him very much.

As was mentioned, it is just a year since our last debate on levelling up the east of England. I am happy to say that my local authority has been successful in its bid to receive £20 million for the much-needed rejuvenation of Clacton town centre. It was a fantastic result and I want to thank the Minister. One does not always anticipate a great phone call, but it was a great one to receive. I also want to thank the leader of Tendring District Council, Neil Stock, the chief executive officer, Ian Davidson, and all the other officers who backed them to achieve that result.

We mentioned Jaywick earlier. Seventy years ago today, 37 people lost their lives in that very small village, of the 307 across the east of England. Although the local council is making great efforts to improve that particular area with flood-proof homes and building a brand new market area, it is still served by one very poor road. It is one of the areas in my constituency that needs investment.

We are not an urban city down in Clacton, like Chelmsford or Colchester. We are multiple communities spread across a rural landscape. We have two railway lines that come into Walton and Clacton, with an hourly service that takes 90 minutes to cover the 69 miles to reach London. I have always said that is not acceptable in this day and age. It is certainly not appealing to commuters and is a great barrier to levelling up my patch. There is the unfair and flippant view, about which we heard earlier from my hon. Friend the Member for Waveney, that the east of England is just universally wealthy. We know that it is not. Try telling that to pockets of my constituency, which have deprivation issues that outstrip anywhere in Scotland or Wales. That is just a fact.

The roads are a core part of that and some are in a very poor state. They are the only way to get from one end of my constituency to the other. If we throw in some roadworks, which we recently had in Kirby Cross, it is somehow quicker to get to London than it is to cross the 14 miles of my constituency. That is ridiculous. We must invest in my constituency’s roads, which means affordable homes and sustainable jobs, if they can be built in the right places. We currently lag behind urban neighbours. We talk about how future rail such as High Speed 2 will change the world. What about the old-fashioned, crumbling roads that are holding back areas such as Clacton?

The east of England has been granted a fantastic and brilliant opportunity with Freeport East. That will help enormously with the global powerhouse that my hon. Friend the Member for Waveney mentioned earlier. It will create jobs and provide long-term income for the area. We need to utilise it, and I can think of no better way than by investing in transport infrastructure, so jobs in the freeport can be accessed from areas such as Jaywick, which is the most deprived ward in the country. This is our opportunity not to gloss over the situation. It is a better chance than any for the Government to show their long-term ambitions for levelling up and really improve the lives of my constituents. My plea to the Minister is that she should not think the job is done following the latest round of investment. Instead, I urge her to work with colleagues in the Department for Transport and the Department for Work and Pensions, to maximise the benefits of levelling up in tucked-away coastal communities such as mine in Clacton.

[Priti Patel (Witham) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I begin by congratulating my hon. Friend the Member for Waveney (Peter Aldous) on securing the debate. I pay tribute to him and to the hon. Member for Cambridge (Daniel Zeichner) for their leadership of the important all-party parliamentary group. It is a pleasure to follow my hon. Friend the Member for Clacton (Giles Watling). I am very fond of Clacton. I have been a resident of the east of England for nearly 17 years, and I know my hon. Friend’s constituency well. We campaigned on a by-election together, with good long-term results.

It is important to say that the contributions so far have included some serious issues that need to be addressed, which I say as the Member of Parliament for Witham for just over 12 years. My hon. Friend the Member for Clacton is the chairman of GEML, which for the benefit of Hansard is the Great Eastern Main Line taskforce. I co-set that up nearly 10 years ago: GEML was all about getting infrastructure investment into that main line. We have been successful, though I will touch on some elements that have not materialised. There are important areas, highlighted by my hon. Friend the Member for Waveney, that speak to lamentable actions across Government and the low confidence that my hon. Friend touched on. I want to speak specifically about those.

First and foremost, infrastructure clearly covers road and rail. That has frankly become a joke in the overall way that Whitehall has failed to integrate. That is not to do with the Minister’s Department; it is a failure of the Whitehall system to work across Departments and integrate funding. Basically, securing investment in our infrastructure is one example of how we can support levelling up. It is a statement of the obvious.

We have new rolling stock on our line—part of the GEML taskforce—for a very good reason. A decade ago, I and colleagues across that network went to the Treasury and the then Chancellor of the Exchequer, the former Member for Tatton, and put forward a business case. Some of us are capable of putting together presentations and business cases. We put that forward in conjunction with Network Rail and it secured £600 million, linked to a nine-year franchise that was very much about delivering rolling stock, improvements on productivity, performance and so on. We achieved that, but it is only one example.

The failure to secure funding for Ely junction and Haughley junction was not the fault of the taskforce but of Whitehall, and its lack of integration. Those sites are not in my constituency, but they are east of England infrastructure projects that would unlock the economic potential not just of the east, but of the nation. It is interesting that, at a time when HS2 is again being vilified for a range or reasons, such as being over budget and not on time, we have to stick the course with infrastructure projects.

The problem is that the Armitt process has not been published. That is the funding mechanism, which sits in the Department for Transport, for securing these major infrastructure projects. The other problem, as we have already heard, is that the east of England is a net contributor. Our main line has been subsidising the rail network for the rest of the country for decades. That money goes to the Treasury. The revenue base sits with Treasury, and the Department for Transport is deprived of the funding stream to help with the financial pipeline of rail investment.

[Giles Watling]

Does my right hon. Friend not believe that the investment in Haughley and Ely is relatively low? We are not asking for a lot of money. It would unblock the blockage; it would take the cork out of the bottle of the entire east-west connection.

[Priti Patel]

My hon. Friend, the chair of the GEML rail taskforce, has hit the nail on the head: this speaks to a fundamental failure in Whitehall, and my hon. Friend the Member for Waveney repeatedly highlighted that. This is the core message that has to be taken away, and that is just on rail. Of course, rail supports economic growth. The west Anglia line is another classic case. With four trains an hour to Stansted airport, it feels like “Mission Impossible” right now. Some proper work needs to be undertaken, and the Government need to support that. We have been successful in getting Emirates into Stansted. We want to get other international airlines, as my hon. Friend said, including from India.

On roads, I have again secured funding, as a Member of Parliament, for feasibility studies on the A12 and A120, but yet again we are going round the merry-go-round of not getting the commitment from central Government to proceed with those schemes. Quite frankly, that is down to inadequacies with National Highways, which fails to operate in a transparent way, to engage with local community or the county council, which has responsibility for the strategic road network, or to engage with the Department for Transport, so we are not getting the road upgrades we need in the county. Those road networks are the economic arteries of the east of England.