Business Investment (Outer-City Estates)

Debate between Graham Allen and Toby Perkins

Thursday 18th December 2014 Westminster Hall

[Toby Perkins (Chesterfield) (Lab)]

It is traditional at this point in a contribution to say what a pleasure it is to serve under your chairmanship, Mr Davies. It is always a pleasure to see you on the Back Benches as well. You are always keen to make contributions, some of which have been among my favourites and will no doubt find their way into my leaflets in April.

I congratulate my hon. Friend the Member for Nottingham North (Mr Allen) on not only the contribution he just made, but the wider work for which he is recognised and admired across the House. His description of the specific work being done on rebalancing outer estates was informative and thought-provoking. He described it as long-winded, but the time positively flew by for me. It was also a pretty strong sales pitch for cross-departmental work and the impact that that can have on areas such as his constituency. He was typically pragmatic and non-partisan, which may be something for me to aspire to in future years, but we cannot escape the political dimension of many of the challenges that his community faces. However, I understand why he would choose not to introduce that into this debate and into his promotion of his cause. He made some thought-provoking points about the challenges and the positive steps that his project can take to make a difference. He spoke at length about the importance of partnership working and bringing on board the private, voluntary and public sectors, local enterprise partnerships and various other networks.

My hon. Friend highlighted that a project such as this will face a lack of core capacity, so where will that capacity come from? In the main Chamber today, we had a statement on local government funding. In many areas, local government would have been the glue that pulled together the fantastic work that he described. We have already seen unprecedented local government cuts over the past four and a half years, and if the events of the past few weeks have taught us anything, it is that if we continue down the path the country has taken over the past few years, local government will experience even greater ravages. In somewhere like Nottingham, which has an excellent local authority, that will inevitably have an impact on capacity.

[Mr Allen]

Since we have a little time to spare, I am prompted by my hon. Friend to mention two things. First, in terms of all-party working or working “across the aisle”, it will often be the case that the serious things that we need to do will stretch across more than one Government and more than one political complexion. When talking about intergenerational change, it is important that we attempt to find some common ground across all parties, but there will always be differences.

Secondly, further to my hon. Friend’s point about today’s statement, local government funding is relevant to today’s debate, because I am a strong advocate of proper devolution to local government. Even in the direst circumstances, those in the localities will spend money, limited and diminishing though it is, much more wisely. I pay tribute to the men and women in Whitehall, but local people will spend money more wisely than those in the centre. I hope that my hon. Friend, in his exalted position on the Front Bench, will continue to push that point with his colleagues in Her Majesty’s Opposition.

[Toby Perkins]

I do not think that it needs a great deal of pushing. My hon. Friend will be aware of the report produced by Lord Adonis, and the Labour party is enthusiastically pursuing many of its ideas, which would represent significant steps towards devolution. We recognise that whatever Government follow the next election will still be working in straitened economic times and tough decisions will still need to be made, but we disagree about the sustainability of the scale of the proposed cuts. Projects such as my hon. Friend’s must be able to survive from one Government to the next as Governments change colour. The local authority devolution agenda, involving combined authorities working with local enterprise partnerships and bringing in the best of the public, private and voluntary sectors, is a vision that we share.

My hon. Friend also mentioned the impact of austerity on his constituents, which cannot be overstated. We are all conscious of the link between poverty and educational underachievement, but for too long the focus has been on spending more on education to deal with educational underachievement, rather than dealing with poverty, which is an approach that this Government could have taken. In communities that have faced challenges over many years, people will often have to deal with welfare cuts, may have a greater reliance on food banks and may have to deal with other social ills, which will inevitably have an impact on the educational attainment of the area and on other things that my hon. Friend is attempting to address. Placing that on the record is important.

I entirely agree with my hon. Friend about the importance of careers guidance, and I hope that that aspect of his plan is taken up and supported. Careers advice and getting careers advisers in schools in his constituency is a key goal of his project. In fact, one of my most loyal party members in Chesterfield was previously a careers adviser in a school in my hon. Friend’s constituency.

I know how important such work is in raising the aspirations and expectations of people from more deprived communities. My hon. Friend should be reassured that, more broadly, the Labour party has publicly identified previous attempts by successive Governments to boost social mobility as having too often focused on getting more young people from disadvantaged backgrounds into the traditional professions. In many cases, we need to see those young people’s aspirations and expectations opened more broadly, in particular with support for them to set up and run their own small businesses, which is a key part of his focus.

My hon. Friend will also be pleased, I hope, to know that a future Labour Government intend to get a representative of the business community on to every board of governors in every secondary school in the country. Schools do excellent work to ensure that young people pass exams, but alongside that there is real potential in ensuring a focus on the links between schools and the business community, which can have a positive impact on the educational aspirations of young people. He is very much pushing at an open door on the broader approach with what he is looking to introduce in his constituency through that project. I am supportive of his specific initiatives as well as of what needs to be done more generally.

My hon. Friend spoke about personal employability being one of the key criteria that his project wants to support. He is absolutely right to acknowledge the wide recognition of the need for an education system that supports people in their personal employability at the school level and through further education. He was entirely right to say that, although some streamlining of qualifications was necessary, there is a real worry about the focus moving away from vocational education and about the great narrowing of the further education opportunities available to people.

When people leave school, we need to get them on to courses that will not only give them rewards for studying, but get them turned on to study, or there is a real possibility of all of the prevalent problems that come from the absence of that. My hon. Friend was absolutely right about personal employability, but he was also right about the importance of the vocational further education landscape.

I want to touch on and take up the business support challenge set by my hon. Friend. He is absolutely right that if we want to see more people from deprived communities setting up businesses, we need them to have the support. I ran three businesses, at least one of which was successful, so I know how important business support is for people when they first set out on that path. It gives them the huge array of knowledge necessary.

When people become a new business owner, they instantly become the salesperson, the marketing person, the buyer, the legal person and the accountant—they are supposed to have all those skills and knowledge bases. Having someone able to support people and understand the kind of environment that they come from and the kind of challenges that they will face, ensuring that they are given correct guidance on the process, is incredibly important business support.

In recent years, in particular in the absence of Business Link, we have seen that business support tends to collect where most businesses are, so the areas already doing well and growing well are pretty well provided for with business support networks, but in areas such as my hon. Friend’s on the exterior of cities, or even more so in small towns and rural areas, business support networks are much more spread out and patchy. As a result, we tend to find most businesses being set up in exactly the areas that are already performing best, and the fewest businesses being set up in the very areas that need them the most. I support what my hon. Friend is attempting to do with the project that he has set up. I make the wider point that his project is perhaps providing a road map for some of the ills that face our country more broadly. That is a challenge that the Labour party will be enthusiastic to take up.

I congratulate my hon. Friend again on his excellent contribution and on the work that he is doing. I support his approach and, even more than that, the need for broader devolution in tough times. He provides a road map that gives us all food for thought about some of the challenges that face a future Government. The principles that he has set out for how Nottingham North can be developed would be listened to by a sensible Government in a much broader context.