(2 years, 8 months ago)
Commons ChamberI suggest the hon. Lady reads the levelling-up White Paper. If she reads it, she will see that it is a very substantial document that deals with precisely the points she has just made. [Interruption.] I will deal with the specific question she asked about devolution and extending investment around the country. That is why we have made a pledge—a pledge that the Labour party never made, by the way—to increase R&D spending outside the greater south-east. Our Department, the Department for Business, Energy and Industrial Strategy, which is responsible for 75% of R&D, will move to being 55% outside the south-east. The point she misses is that we do not level up this country by destroying the golden triangle; we level up by building the clusters, moving from a discovery economy to a development economy. As a Member for the north-east, I thought she would be applauding the phenomenal growth in the north-east as a result of our policies.
Obviously, I welcome the targets to increase investment through levelling up in our regions, but the thing that really matters is not what the Government say in White Papers, but how the money gets to those businesses, particularly in Rossendale, Darwen and east Lancashire more widely. Will the Minister commit to publishing an easy guide for local businesses to work out how, through their innovation and their own R&D, they can access some of that new funding? Trash-talking levelling up by those on the Opposition Benches does not go down well in east Lancashire or anywhere in the north, because we believe in this programme.
My right hon. Friend makes a really important point. It was surprising to hear the Opposition not mention the phenomenal investment that is pouring in. In the end, levelling up will be achieved by the businesses of this country investing in partnership with us. I welcome the Bentley £2.5 billion investment and the Aston Martin investment in Wales. That is happening right now. My right hon. Friend’s point is well made. As part of our significant increase in Innovate UK funding, we are looking at how we can ensure small businesses find it easier to access grant funding. We are dramatically increasing Innovate UK funding. The key test will be whether small businesses around the country can access it.
(5 years, 4 months ago)
Commons ChamberWe are supporting the midlands engine through the £250 million midlands engine investment fund and £1.6 billion of local growth funding. I congratulate the west midlands, which recently published its local industrial strategy. I feel certain that this will ensure jobs and growth for many decades to come.
The ceramic valley enterprise zone in Stoke-on-Trent has been incredibly successful for our local economy by creating jobs. Will the Minister support continuing the ceramic valley enterprise zone and expanding it to include other sites in the city?
Having had the privilege of visiting the ceramic valley enterprise zone during a recent visit to Stoke-on-Trent, I am delighted to confirm that, once completed, it will have created over 7,000 jobs and redeveloped 140 hectares of former brownfield land. I hope to continue to work with my hon. Friend, who is a redoubtable campaigner for his constituency, to see what more can be done to expand this hugely successful site.
Yes, we agree that that is an important corridor for the south-west, increasing resilience and providing alternative routes. That is why the Government have already committed £2 billion to starting the project in the first road investment strategy. Work is already under way on developing the first major improvements. The Government’s intention is that subsequent road investment strategies will fund the remaining improvements. As my hon. Friend says, this is important to driving prosperity and growth in the whole south-west.
Of course. I will happily meet my hon. Friend. I pay tribute to the work he is doing in driving forward the hopes and dreams of those involved in the Mansfield bid for the future high streets fund. Many areas across the country will not have succeeded in going through to the business case of the first round of the fund. I remind them that the fund will open again to applications very shortly—[Interruption.] That includes the hon. Member for Ashton-under-Lyne (Angela Rayner), who is complaining from a sedentary position on the Labour Front Bench. We will see what we can do.
(5 years, 5 months ago)
Commons ChamberThe Prime Minister recently appointed me as a joint Minister in this Department and in my existing role in the Ministry of Housing, Communities and Local Government. That shows the Government’s commitment to drive forward the northern powerhouse, which has always been a partnership between local government, national Government, the industrial strategy and business. In this role I will continue to hold regular meetings to discuss EU exit, and the UK shared prosperity fund will remain a priority in that.
This shows that the Minister is a very busy man with many commitments and a very full diary.
The Prime Minister told me in December 2018 that a consultation on the UK shared prosperity fund would take place by the end of that year. The silence on progress with this fund to replace the EU structural fund, worth €2.4 billion a year, is deafening and the lack of detail and communication is shameful given that these funds are designed to help all communities prosper. Will the Secretary of State tell us once and for all, when this fund will be designed and implemented? Will it match current levels or is this important fund going to be yet another casualty of Brexit?
The hon. Lady is absolutely right that this Government have set forward our ambition to deliver a UK shared prosperity fund that creates wealth, growth and jobs in all parts of our United Kingdom. We have been clear that we will respect the devolution settlement, and we have been absolutely clear that we will consult the Scottish Government and other devolved Governments before we start the consultation on that. But the hon. Lady does not have to wait until then, because there have been meetings between officials and over 500 stakeholders at 25 official events across the country, and I am sure the hon. Lady will look forward to taking part in future events.
The shared prosperity fund represents a really good opportunity to improve the way in which we support poorer communities with funding—far too much of the EU structural funding has been wasted in the past—but will the Minister take this opportunity to scotch some of the scaremongering that we have heard in recent days about how the new shared prosperity fund will lead to a net loss for places such as Wales and a net gain for the south-east? The House of Commons Library has confirmed to me that this recent study is based on unfair comparisons.
I would not question the authority, even-handedness and open-mindedness of House of Commons Library. I would direct my right hon. Friend to the debate that took place in Westminster Hall on 14 May, led by the hon. Member for Barnsley Central (Dan Jarvis), in which colleagues and the Government set out in considerable detail our ambition to drive jobs, growth and prosperity in all parts of our United Kingdom through this fund.
Research from the independent Conference of Peripheral Maritime Regions has shown that Scotland stands to lose nearly €1 billion of funding if the UK Government do not match EU funding after 2020. Given what the Minister has said about his responsibilities, will he tell us which of the 10 candidates for Prime Minister have given guarantees to replace every penny of this funding and retain Holyrood’s role in disbursing it?
It is welcome that the hon. Gentleman wants to play such an active and full part in the Conservative leadership election, but he knows, as I do, that decisions about the UK shared prosperity fund, on quantum and all other matters, will be taken during the comprehensive spending review and the consultation. I would say to him that the Scottish Government must absolutely play their part in being an advocate for the areas of Scotland that share this Government’s ambition to create jobs, wealth and growth through the UK shared prosperity fund, mirroring in many ways what is being achieved through European funds.
The public will have heard that answer, which is clearly insufficient and not good enough. The highlands and islands alone stand to lose €180 million, and the Secretary of State for Environment, Food and Rural Affairs has said that he is willing to grab control of devolved spending. Is it any wonder that the Scottish public are now looking to Scotland being an independent nation state in Europe with an equal seat at the table, rather than this shambles?
Well, Mr Speaker, if you want a strong demonstration that this country is better together, you need look no further than the highlands and islands growth deal, a partnership between the UK Government and the Scottish Government that is changing lives for people across the highlands and islands. That is a demonstration in one Government policy of why this Union should stay together.
The industrial strategy is driving the northern powerhouse across the north of England. Our Northern Powerhouse Investment Fund, which recently celebrated its second anniversary, has invested directly in northern businesses: £104 million, supporting 410 small and medium-sized enterprises.
I thank the Minister for his answer. I would also like to see Ministers throw their weight behind the Power Up The North campaign but, given that the current Prime Minister banned all mention of the northern powerhouse when she took office and that most of the candidates to succeed her are southern MPs, and one is a former Mayor of London, is there not a real risk that the northern powerhouse agenda will fall off a cliff with a new Tory Prime Minister?
I fully support the Power Up The North campaign. Modesty precludes me from saying that its proposal that the northern powerhouse Minister be a full Cabinet position should be considered by all future leaders of the Conservative party. I hope that, when the hon. Lady goes back to her constituency, she will channel “Monty Python’s Life of Brian” and say that, apart from the £7 billion devolution deal, the £38 million contribution towards a Graphene centre, a £10 million relief road, a £15 million international screen school, the £5 million Pankhurst Centre and a £243 million transport fund for people in Greater Manchester and her constituency—what has the northern powerhouse ever done for us?
Business growth in northern Lincolnshire would receive a major setback if the Scunthorpe steelworks were to close. Will the Minister give an assurance that Government support will continue until a buyer is found?
I know that the Secretary of State and my ministerial colleague, my hon. Friend the Member for Pendle (Andrew Stephenson), are working tirelessly to support the steel industry across the country and I know that they will continue to look at how they can support Grimsby steel.
In the north, European structural funds helped to create 70,000 jobs and 16,000 new businesses between 2007 and 2013. The Minister’s complacent and lackadaisical refusal to divulge any details of the shared prosperity fund raises real doubts that this will be a true replacement for those vital funds enabling significant regional decision making. So will he put the north above party infighting, help power up the north and commit to giving details of that fund before the end of the Tory leadership election?
I agree with the hon. Lady that people like me and her, who have been born and brought up in the north of England for our entire lives, can see that European structural funds have made a real difference. That is why this Government, with their UK shared prosperity fund, are absolutely committed to driving jobs and growth not least across the north of England. On the consultation on the shared prosperity fund, 500 stakeholders have been consulted so far at 25 events and that has included consultation by me with the northern metro mayors and all other mayors. I look forward to working with the new North of Tyne Mayor in Newcastle not least on this but also to discuss how he can spend £345 million—
Mr Speaker: Order.
Only a fifth of York Central development is earmarked for economic development, which will seriously curtail the opportunities for business growth, inward investment and good jobs for York. Following my discussions with the Minister and stakeholders, will he consider a new proposal for York Central?
The hon. Lady is aware that this planning decision is currently with the Secretary of State for Housing, Communities and Local Government for determination. She has had the opportunity to meet me and make representations, and I will meet my hon. Friend the Member for York Outer (Julian Sturdy) later today.
Many of my constituents who are customers of HELMS—Home Energy and Lifestyle Management Systems—have been utterly failed by ineptly regulated green energy incentive schemes. The decision to remove the feed-in tariff for solar energy microgeneration, in tandem with the proposal to apply VAT to more energy-saving materials, including solar panels, will do nothing to support the public, the industry or the environment. Will the Minister reconsider those retrograde steps, which fly in the face of our climate emergency declaration?
(7 years, 11 months ago)
Commons ChamberMy Department is working closely with the Department for Exiting the EU to understand the impacts that leaving the EU will have on businesses, consumers and other economic actors across the UK, including in east Lancashire. As the Prime Minister has said, we will work hard to get the best deal for Britain.
Although not quite as eye-catching as the motor industry, the construction products, furniture-making and chemical industries, represented by Crown Paints, J & J Ormerod and others in my constituency, employ more people. Will my hon. Friend ensure that these strategic industries to east Lancashire can trade on no less favourable terms than any other industry following Brexit?
As my hon. Friend will know, I am closely involved with the construction products sector, and the construction industry in general, through the Construction Leadership Council. It would be premature to comment on any deal to be struck, but he can take it from me that it has my closest attention, as does the future of the construction industry itself.
(7 years, 11 months ago)
General CommitteesI opened with, in my experience, uncharacteristic candour on behalf of the Government in saying that I do not think our Department demonstrated best practice in that way. It is quite hard. We are having the debate 12 months after my right hon. Friend the Member for South Northamptonshire (Andrea Leadsom) made it quite clear that we were open to that. The situation has moved very slowly from one where there was frankly nothing to debate to one where under the Slovakian presidency everything was turbo-charged and moving fast. Our first instinct—I think a natural one—was to say that with things moving so fast perhaps we did not have time, but on reflection I am extremely glad we are having the debate.
I emphasise that I and the Department are aware of the importance of proper procedure, in terms of scrutiny clearance, not least in the present context. I have been candid about putting our hands up to say I am not sure we have demonstrated best practice; but we certainly intend to do so.
What changes will the Minister seek with respect to the existing binary system for classifying carbon leakage as the negotiations proceed?
We have received many representations on that point, because it is highly emotive for a number of sectors. My hon. Friend may be aware that along with France we have argued for what is called a tiering system, based on the premise that if we are going to have free allocations in the system—and we are going to, for a period of time, as we manage the transition—those allowances should be targeted at those sectors that are clearly at most risk from carbon leakage based on their carbon intensity and what is called their trade intensity. Therefore we have simply been trying to assert the argument that free allowances should be targeted on those who need them most, rather than spreading the jam across the system. I should tell my hon. Friend that I think we are losing that argument.
Will the Minister also explain his concerns in relation to sectors that are not liable for free allocations being at risk of a windfall profit and how that will affect UK industry protection?
There has been a clear suggestion in the past of over-generous allowances and windfall profits, and various bodies have tried to measure that and the value runs into large amounts of money. The emissions trading scheme is extremely complicated, not least because of the difficulty of ensuring fairness and transparency around the allocation of free allowances. Because we want the system to work and deliver what it was set up to do—which is to set a market-based mechanism that allows and incentivises low-cost abatement of carbon—we are hawkish in terms of making sure that the system is not gamed, and that it works effectively.
At the same time—and this is part of the complication, and, to be clear, I remind the Committee that I speak as the Minister for Climate Change and Industry in the Department for Business, Energy and Industrial Strategy —we have to listen to all voices. I had a round table last week with representatives of the power sector and industries which, in many cases, were arguing against each other. It is Government’s role to find a path through the various rocks on the road. I am not entirely sure that in the past the path has led to the outcome we want, but my hon. Friend will know that we must be extremely sensitive, particularly at this time, when various sectors of the economy are feeling vulnerable and uncertain, not least because of Brexit. Therefore they need as much visibility and certainty as possible. Those are just some of the compromises that the Government must think through and negotiate on behalf of the country.
(8 years, 2 months ago)
Commons ChamberI had a productive set of discussions with representatives of the oil and gas sector in Aberdeen in the summer. The industry, which is centred in Aberdeen but involves other places in the country, is very important. We have made big changes to the fiscal regime, as the hon. Lady knows, which have been beneficial, but we will continue to have discussions about that.
The Secretary of State described himself earlier as being engaged in an historic task of writing industrial strategy, but surely if he studies history, he will know that industrial strategy is written predominantly by civil servants, and that Ministers tend to fail. What steps will he take to engage businesses in Lancashire to make sure that we have a successful strategy?
I certainly will take such steps, and I am grateful for my hon. Friend’s point. Obviously an industrial strategy for the country should not consist of instructions from Ministers or civil servants to businesses and the rest of the country. We are engaging with businesses across the country and in every sector to ensure that they have the support they need.