Backing Business to Create Economic Growth

Debate between Helen Maguire and Steve Race

Monday 18th May 2026 Commons Chamber

[Steve Race (Exeter) (Lab)]

I warmly welcome the measures in the Gracious Speech, which will enhance the lives and prospects of the people of Exeter. The starting point for the King’s Speech was

“an increasingly dangerous and volatile world”.

Few Governments have had to simultaneously tackle a decade and a half of under-investment and a dire fiscal situation, alongside the shock waves of trade tariffs, terrible wars and a cost of living crisis—not to mention the rapacious pace of technological change, and a fast-changing climate driving global instability.

Despite all the obstacles, the Government continue to set out a prospectus for change that is working. In the last year, the British economy grew faster than any other economy in the G7, and Members will note today’s IMF upgrade to growth prospects this year. We have also seen the biggest fall in NHS waiting lists for 17 years. In Exeter, more than 4,000 fewer people are on waiting lists, and ambulances are already arriving 30 minutes faster than they were last year. We are delivering new Sure Start-style services, breakfast clubs, and investment in our schools and colleges, and the 30 hours of funded childcare is already making an enormous difference to families. This is real change, but for change to accelerate and to last, we need economic growth.

It is clear that we are engaged in a battle of ideas, both in this Chamber and around the world. In any such battle, we should turn to Tony Crosland, who famously argued in “The Future of Socialism” in 1956 that economic growth is central to social solidarity and greater equality. By growing the economy, we can share the proceeds of growth fairly and invest in our social realm, making us all richer economically, socially and culturally, and more secure.

Seventy years on from Crosland’s masterpiece, the global economy is very different, so where will growth come from? First, through greater trade with Europe. In our unstable world, and with uncertain partners, our stability, prosperity and security rely on meaningful partnerships with like-minded nations, so I welcome the European partnership Bill, which will boost growth in the south-west. At a time of balkanisation and uncertainty around the world, the UK must redefine and enhance our relationship with Europe, and our geography, values and economy all point in one direction. The Bill will increase trade with Europe, break down barriers and erase frictions.

Secondly, we must embrace the technological revolution. Exeter already leads the way in green energy, digital infrastructure and research. Artificial intelligence presents great challenges but also great opportunities, and I want Exeter to be at the heart of the tech revolution. From our world-leading universities to our thriving science parks, such as Exeter science park, and science institutions such as the Met Office, the south-west has become a powerhouse for scientific discovery and technological advancement.

As my right hon. Friend the Chancellor has often said, growth cannot be purely powered from a narrow base in financial services, and from London and the south-east. As in the 19th century, growth must be powered by strong regions and cities, by innovators and entrepreneurs, by small and medium enterprises, and by science and technology.

Growth will come from tackling the climate emergency, developing the post-carbon technologies that will save us, and managing the just transition to an environmentally sustainable economy. All this requires an active state to take long-term decisions on investment and research. It requires successful and supported world-class universities, such as Exeter University, to deliver the job-ready graduates our businesses need, and to actively help innovators to commercialise and productise their research—to start up and spin out, and to scale up. It needs more active and deeper capital markets so that British innovation can more easily become British success.

Thirdly, we need to unleash the potential of every young person. I welcome the new national focus on skills and apprenticeships, and the education for all Bill. We must tackle the scandal of hundreds of thousands of young people not being in employment, education or training. Exeter’s young people do not lack ambition or drive; they lack the platforms on which to stand. Exeter college, the best tertiary college in the country, now delivers 95 different apprenticeship standards and pathways in partnership with 1,100 employers, meaning it is ranked third nationally for apprenticeship starts, which is remarkable in the 48th biggest city in England. I am delighted that the Government will further equip the college to help young people to reach their potential, by becoming a construction technical excellence college.

We are working with Exeter city council, and with our universities, schools and businesses, to put rocket boosters under the ambition of Exeter’s rising generation. Trade, technology and young people—three sure-fire routes to economic growth. Let us never forget that politicians can encourage and craft the conditions for growth, but it is businesses that create the growth itself. I particularly welcome the small business protections Bill. I know from my own business experience over 15 years, and from speaking to Exeter’s small businesses, that cash flow is the lifeblood of any business.

[Helen Maguire (Epsom and Ewell) (LD)]

The hon. Gentleman is talking about the small business protections Bill. Small and independent businesses are the backbone of the economy in my constituency. Many of them are really struggling at the moment, and they are not seeing much else in the King’s Speech. They are struggling with the increase in national insurance costs and the cost of living. Does the hon. Gentleman agree that more needs to be done to support small businesses?

[Steve Race]

I am sure the Minister on the Front Bench will answer in more detail at the end of the debate, but I absolutely agree. We can all do more to support small businesses, and measures in the King’s Speech will help such businesses across the country. I welcome the regulating for growth Bill, which will embed the presumption of growth in the work of regulators. Too often the framework of regulators has failed to balance the need to deliver with the duty to regulate. I look forward to seeing the details of that Bill.

As ever, I take my inspiration from Exeter and its businesses, entrepreneurs and workers. New Motion Labs, Intelligent AI, Brain in Hand Ltd and RoleMapper are four examples of the new economy that is thriving in Exeter. Across my city and region, we are fashioning the answers and forging the future. The King’s Speech lays the foundations for economic growth and shared prosperity—based not on trickle-down economics or anarcho-capitalism, but on investment and modernisation. We are engaged in a battle of ideas, both here and around the world, and I say bring it on.