West Midlands Economy

Hugh Bayley Excerpts

Wednesday 19th December 2012 Westminster Hall

[Mr Jim Cunningham (Coventry South) (Lab)]

This is probably only the second time, Mr Bayley, that you have chaired a debate of mine, and I welcome you. This is a short debate, and all the issues relating to Coventry and the west midlands cannot be covered, so I will be brief. The present economic situation developed in America, but the Government’s policies have not helped the general situation nationally or locally. [Interruption.]

[Hugh Bayley (in the Chair)]

Order. Will the hon. Gentleman wait a moment while colleagues leave the Chamber? Their conversation should take place outside the Chamber so as not to disturb this debate.

[Mr Cunningham]

The present economic situation started with Lehman Brothers in America, and the bankers. Some bankers in America faced Senate inquiries, and some were charged, but I do not want to go into that today. I want to talk about Coventry in particular, the west midlands in general, and some of the issues that affect Coventry and the west midlands.

We have issues concerning the police, and the problem of police numbers and cuts are well known. There are also issues with fire brigade cuts, and a running issue during the next few months will be changes to employment law. I will not develop the arguments too much today. Some have been well rehearsed, and some will be. There is a west midlands campaign for a fair deal for Birmingham, but there must also be a fair deal for the other districts that make up the west midlands, including Coventry. I am looking for a fair deal for Coventry.

Coventry was mentioned once in the autumn statement. It is one of the 12 smaller cities that will be included in the super-connected cities programme, and will receive funding for ultra-fast broadband. I am obviously pleased at the news, and I recognise the impact that superfast broadband can have on growth. I particularly understand the importance of encouraging small and medium-sized enterprises to realise the opportunities that superfast broadband can bring. A Lloyds Banking Group survey found that 45% of digitally mature small businesses had registered growth, compared with 35% of digitally immature SMEs.

Some research suggests an £18.8 billion opportunity for SME revenue growth through more high-tech approaches to marketing, data optimisation and more, so I am pleased with the Government’s commitment to broadband expansion. We can say something positive about the Government for a change, but we will be looking to ensure that they proceed intelligently to ensure that small businesses make the most of the available opportunities.

I am also optimistic about the city deal in Coventry and Warwickshire. Over the past month, Coventry MPs and councillors in particular have lobbied hard, as have Warwickshire MPs and councillors. The city deal could bring great benefits to the region, including giving cities the powers and tools they need to drive local economic growth, unlocking projects or initiatives to boost their economies, and strengthening the governance arrangements of each city. Each city deal includes at least one major commitment specific to the city, which generally involves leveraging private sector funding. Many have included tax increment financing and community infrastructure levies, and there is a focus on investment and trade.

I very much hope that Coventry and Warwickshire local authorities will make the case for Coventry’s candidacy for the deal. Coventry is a strong contender, and has been working for months to develop infrastructure plans that are ready to go ahead given sufficient funding and support. The plans reflect local understanding of the asset base, transport issues, the financial situation, and what can be achieved. An example of the work that Coventry is already undertaking to stimulate growth is the gateway project. It is controversial because environmental issues are involved, but I understand that it is on the way to obtaining planning permission, or has already received it. I am not clear about that. The project will be interesting, but controversial.

Another excellent example in Coventry is the Friargate project next to Coventry railway station. It is a 300,000 square metre development, which will extensively renovate the area to include 14 grade A office buildings, two hotels, new pedestrian routes, high quality public spaces, new residential buildings, and space for retail outlets and bars. Outline planning consent was granted in July 2011, and the first phase of the development has started. I hope that the development will transform the city centre, making it welcoming and lively. More importantly, I hope very much that the renovated city centre will raise optimism and encourage investment in the city.

--- Later in debate ---

[Mr Robinson]

No, I will not. If I had the remotest hope of the intervention being intelligent or relevant to what we are talking about, which is the west midlands and Coventry, in the way that the intervention of my hon. Friend the Member for Central Ayrshire (Mr Donohoe) was, I would. However, we know that it would be a recital of what the hon. Member for Nuneaton (Mr Jones) believes are the great Government accomplishments. That is not what we are here to do. Nor are we here to criticise the Government point blank—there are one or two things that I am pleased to say that they have done well on. If he will forgive me—I will not expect to be invited to intervene in any of his speeches; I can give him that reassurance—I will not, on this occasion, give way.

My hon. Friend the Member for Coventry South gave us a tour d’horizon. In 15 minutes, he drew us through every aspect of Coventry’s activities, particularly the interface with the Government and the impact of Government cuts on the city. I want to pick up on one point, initially: the cuts to early intervention, to which he referred. Over two years, Coventry’s receipt from Government for early intervention has been halved from £22 million to £11 million. That is a massive cut by any standard. Those figures are from the council; I am sure that they must be pretty accurate.

I am not trying to say that that is the direct consequence of my next point, which is a sad fact: in Ofsted’s latest rankings, Coventry’s primary education has been ranked the worst in the country for giving opportunity to its youngsters. It is always argued by people who are much more knowledgeable about education than I am that early intervention in the primary stage is key to the child’s whole chances in life. In my opinion, education is the vital provider of life chances to all children. If, at that early stage, we are offering the worst possible opportunities in the country for youngsters, that is clearly a matter of great concern to Coventry and its Members of Parliament.

I have made some criticisms in that regard. Using the rather grand BBC euphemism, I suggested that the director of education should follow the director-general’s example and step aside. It was not well accepted, but I still say it. If someone asks me what that means, I will say, “Resign.” If someone has been in a position of public trust for so many years, as the director has been, but local children are judged to have the worst life chances at a key stage in their education, they have to ask themselves, “What am I here for?” I make no excuses for saying that, but nor do I say that we are in this situation just because the Government have cut the funding in half. I am not sure how far the correlation can be pushed; I do not think it can be pushed all that far. I think that what we are up against—I do not know whether my hon. Friend the Member for Coventry South agrees—is an acceptance of poor standards, a belief that we cannot do better.

For that reason, the first thing that I want to say today, pursuing the initiative that I have already taken through the local press and media in the city, is that much stronger, much more powerful pressure is needed on the education establishment in Coventry. Fortunately, we now have as a councillor—this was well timed, in that respect—a former head of a secondary school in my constituency who, after 21 years, can proudly say that his school was top in Coventry every single year, and was within the top 10% for performance in the whole country. He is now a Labour councillor; I am pleased to say that he is the council member for education. Again, I make no excuses for saying this: I pushed for him to be encouraged to take on the responsibility of replacing the director, and for much-improved status, quality and priority to be given to the education department in the council. I think that I am within my time limit, if there is one. Perhaps it will be indicated to me if I am not.

[Hugh Bayley (in the Chair)]

I should remind the hon. Gentleman that the debate ends at 5.10 pm. It is for him to decide how much time the Minister has to reply. There are eight and a half minutes to go.

[Mr Robinson]

I am grateful to you, Mr Bayley, but I know the Minister personally very well. He is extraordinarily succinct in everything that he has to say, and I am not sure that he is going to tell us very much when it comes to it, but I do have a question or two to ask him, if I may.

We are so pleased to be in the broadband scheme. Unfortunately, I do not think that broadband will play a big part in getting the primary education sector right, but I am sure that it will play a huge part in improving the secondary and tertiary sectors of our education system, and also in business. Can the Minister tell us how much money will come to us, given that we have been named, thankfully, as one of the cities involved? Can he tell us what the timing is, what speed is envisaged and, above all, when we in Coventry can expect to feel the benefit? Those are my few questions for the Minister. I am mindful of your advice, Mr Bayley, and would hate to build a reputation with you, Sir, for being other than adherent to your orders. On that note, I will sit down, but I do hope that the Minister can reply.