West Midlands Economy

Debate between Jim Cunningham and Hugh Bayley

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.