Industrial Strategy

Jim Shannon Excerpts

Wednesday 18th April 2018 Commons Chamber

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I welcome today’s debate because the UK Government’s industrial strategy is hugely significant and could be transformational for all parts of the United Kingdom. It is fair to say that the industrial strategy has been welcomed by a huge variety of organisations, including organisations that are not common bedfellows. The CBI is positive about the strategy and the TUC calls it “an important step forward.”

There is cross-sector acknowledgement that the industrial strategy is a serious piece of work that is genuinely trying to identify and address the challenges that our economy will face in the next few years. It is the role of Government to support and develop industry and to pursue economic growth, and I am broadly in favour of the non-interventionist but highly engaged approach. With this industrial strategy, we have gone right back to basic principles, and the UK Government have identified five foundations that are essential for a successful economy. These five foundations show how in Scotland the industrial strategy will need to be implemented by both the UK and Scottish Governments. Devolved government has control over significant parts of the five foundations, including skills, transport and housing. I am pleased that the UK Government understand that point and have repeatedly acknowledged that it is vital to work with the devolved Administrations to implement the industrial strategy. I hope that the Scottish Government—I note that Scottish National party Members are currently absent from the Chamber—are able to accept this commitment at face value and work constructively with their counterparts here at Westminster.

I would like to focus my remarks on what has been identified as the fifth foundation: places. I think we all accept that, to have a productive economy, we need prosperous communities, but what does that mean in practice for the United Kingdom? The industrial strategy identifies four challenges that need to be addressed to put the UK at the forefront of industries of the future. These are understandably forward-looking, but I do think it omits a current challenge: the dominance of London in the UK’s economic output. I would like to make it clear that the success of our nation’s capital is something of which we should all be proud. London is a truly global city, an economic powerhouse and a cultural masterpiece. Its contribution to the UK goes well beyond the fact that it accounts for 22% of our GDP. We will not drive our economy forward by holding London back, but it remains the case that London dominates our economy in a way that is almost unique.

That matters because it has resulted in an imbalance in our nation’s economy. The domination of London has created a self-perpetuating cycle where new investment flocks to the city because that is where everyone else is. This has created wealth and economic growth, but it has also been centred on the one city.

[Jim Shannon (Strangford) (DUP)]

Northern Ireland has benefited from IT and digital tech industries to such an extent that our region is equal in this to London in the delivery of jobs and opportunities.

[John Lamont]

The hon. Gentleman makes the point well.

As a Scottish MP, I think London’s domination has to change, not because I think Scots look enviously at London, but because rebalancing our economy and spreading power across all parts of the United Kingdom strengthens our bond in that Union. The Conservative manifesto last year pointed out:

“For our civil service and major cultural bodies to claim to be UK institutions, they need to represent and be present across our whole United Kingdom.”

Let us push ahead with the proposal to use Brexit as a catalyst to create more civil servant jobs outside London. As we are talking about the industrial strategy, why not, for example, base the Industrial Strategy Council outside London? Let us focus on bringing the economy outside London up to speed. The city deals for Scotland, including the proposed Borderlands growth deal in my area, are part of this, but we need to do more. The industrial strategy represents an opportunity to drive forward the economy of the UK as a whole, and I hope that Scotland’s two Governments can work together with this common aim.