Productivity and Economic Growth: East Midlands

Jeevun Sandher Excerpts

Tuesday 17th March 2026 Westminster Hall

[James Naish]

The hon. Member is absolutely right: there are fantastic advanced manufacturing capabilities across the country, including in the east midlands, and the supply chain and the skills chain are key to making them thrive. I will come on to skills in the east midlands in a moment.

Ahead of the comprehensive spending review last year, the all-party parliamentary group for the east midlands launched an inquiry into regional priorities. We received 34 written submissions and held an oral evidence session here in Westminster, with contributions from local government, business, infrastructure, skills and other sectors. This work was about trying to distil, from the people who know our region the best, what the most serious barriers to boosting economic growth and productivity are, and about determining what practical steps the Government should take to address them.

[Dr Jeevun Sandher (Loughborough) (Lab)]

My hon. Friend is making a powerful speech about our region and the help it needs. Does he agree that for our region to do well, we need more devolution—including where I am in Leicestershire—as he has in his county? Is he pleased that the Government set out in the investment strategy that more money has to come to our region, which receives two and a half times less money for transport spending—or used to? Finally, does my hon. Friend agree that local leaders on the brilliant councils in my region, who are doing a great job, need even more powers to help to ensure that our region can grow, thrive and prosper?

[James Naish]

My hon. Friend is absolutely right, and I have already mentioned the need for greater devolution. Of course, in Nottinghamshire and Derbyshire we are seeing the dividends of that under Claire Ward, but I appreciate that Leicestershire still has some way to go to get the equivalent devolution. I absolutely support my hon. Friend’s call.

Before I share the recommendations of the APPG inquiry, I should say that I hope the Minister recognises that the inquiry’s very existence shows that we are serious about growth as a region. What is more, over the past 25 years we have delivered 35,000 more homes than our counterparts in the west midlands, even though the west midlands has a population that is about 20% larger. We are clearly taking our growth responsibilities seriously locally, yet despite that housing growth, transport spend per head in the region has fallen to just 54% of the UK average. That is not just slightly below, but 54% of the average—the lowest level of any UK region or nation. Rail funding per head is just over 40% of the UK average, and only around a third of the level seen in the west midlands.

The gaps have not emerged overnight: they are the product of choices over many years, under Governments of different colours, and they have had real consequences, shaping whether businesses grow, whether local labour markets function properly and whether people—my constituents—can access high-quality job opportunities. In short, inadequate investment has suppressed our region’s true potential. That is why the APPG inquiry was conducted. I place on the record my thanks to everyone who contributed to it. I believe its conclusions were fair and grounded, and we will make sure that the Minister receives a copy of the report.

The inquiry came to five primary conclusions. First, unsurprisingly, it suggested that the Government need actively to rebalance public investment, especially in transport, so that it better reflects housing and employment growth potential and delivery. I wholeheartedly welcome the Treasury’s Green Book being updated, but that in itself will not correct historical imbalances that must be addressed if we want places like the east midlands to maximise their potential. There is a genuine need for overcorrection.

Secondly, the APPG inquiry recommended that we pilot enhanced local employment hubs across the east midlands, devolving skills, careers and business support in a way that genuinely reflects local labour markets. One of the strongest themes in the evidence received by the inquiry was frustration with the fragmentation of the skills system. There are too many pots of money, too many separate agencies, too much inconsistency and too little flexibility, all of which hamper growth and productivity.

Thirdly, the inquiry recommended that we should expand women’s health hubs across the region, given the relatively poor life expectancy of women in too many parts of the east midlands. All genders and all age groups must contribute to closing the east midlands growth and productivity gaps, and targeted interventions will be required to realise that.

Fourthly, the inquiry recommended that the east midlands should play a central role in the country’s net zero transition, given its historical role powering millions of homes and businesses across the UK. Linked to that was the call made by more than 30 MPs to finally electrify the midland main line to Sheffield, which has sadly become a byword in our region for slow, uneven and stop-start infrastructure investment into a really important part of the country.

Fifthly, the inquiry suggested that the Government should reform how flood resilience funding is targeted so that it reflects social need and repeated risk, rather than underlying land values. Flooding can sometimes seem like a subject separate from growth and productivity, but in the east midlands, which has the greatest share of properties at risk of flooding from rivers or the sea of any English region, it is very much part of the same conversation. If we want growth, if we want to boost investor confidence, and if we want housing delivery and economic resilience, flood adaptation and mitigation are not optional extras. They must be seen as enablers for economic growth as well as for protecting food and energy security, which our region provides in abundance, especially in Nottinghamshire and Lincolnshire.

Together, the recommendations show that the east midlands is not looking for a silver bullet. Indeed, there is not one—although I will briefly put on the record the need for junction 24 of the M1 to be upgraded as a strategic priority for our road network.