Productivity and Economic Growth: East Midlands

Jonathan Davies Excerpts

Tuesday 17th March 2026 Westminster Hall

[Jonathan Davies (Mid Derbyshire) (Lab)]

It is a pleasure to serve under your chairmanship, Dr Huq.

The east midlands has been a driver of Britain’s economic growth since at least the earliest days of the industrial revolution. Belper in my constituency was the world’s first factory town; it spun cotton for textiles at a previously unimaginable rate, and that model was exported around the world. Now, our region hosts advanced manufacturing, cutting-edge technology and world-class research. Colleagues have touched on that and, as time is short, I will not go into it any further.

However, our region faces significant challenges. Housing costs and low wages mean that many young people are stuck renting or living with their parents well beyond the time when they would have liked to move out. That is why I am very pleased to lend my support to the regeneration of the Belper mills, a significant series of historical buildings integral to the Derwent valley UNESCO world heritage site. Bringing heritage buildings like that back online—with 130 homes, in this case—and making them work for the community is essential. When such assets are also used to grow the visitor economy, as we are seeking to do in Belper, the economic returns are multiplied.

To deliver that, we must ensure that we have the craftspeople to bring the buildings back into use. The technical excellence colleges for construction that are being established, including in Derby, must ensure that there is training in heritage building techniques and planning so that we have the skills to revive these valuable assets. Doing so not only benefits the economy and the people that it serves, but helps people understand our shared national story. It brings people together in engaging with the past and celebrating beautiful architecture that truly builds pride in place at a time when society feels increasingly fractured.

A second challenge for the region is the under-investment it has suffered in its public transport. The east midlands has consistently been the least funded region, but helping people to get around, whether for work or leisure or to access public services or education, is key to economic growth. The Labour Government have made a good start on that through initiatives such as the £2 billion for public transport that they have allocated to Mayor Claire Ward. I want to see a good chunk of that money spent in rural and semi-rural communities, of which there are many in Derbyshire, where bus services are insufficient. The issue of public transport in rural and semi-rural areas is highlighted in the Labour rural research group’s latest report, “Rural Poverty in Britain”, and I strongly recommend that Ministers take the time to look at that publication.

I am also keen to see the Government bring forward plans to electrify the remaining section of the midland main line, which was first mooted in the 1970s but has been kicked into the long grass numerous times. That would reduce carbon emissions and costs over the long term while delivering improved reliability and shorter travel times. It might also enable more services to stop in Belper, Duffield and Spondon. Given that Derby is the home of the railways, it is not acceptable that no electric trains run through the city.

The east midlands is not just about Britain’s past; it is integral to its future, and when it succeeds, Britain succeeds. I hope the Minister has gathered plenty of insights to take forward with colleagues so that our region can truly achieve all that it has the potential to do.

--- Later in debate ---

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Dr Huq. I congratulate the hon. Member for Rushcliffe (James Naish) on his incredibly powerful speech and other colleagues from across the east midlands and nearby on the love they have shown for this part of the United Kingdom. We could almost say that we are under the moon of love—in fact, that reminds me that nobody has mentioned a great cultural export from Leicester: Showaddywaddy. I have fond memories of them from my childhood in the 1970s.

It is important that we reflect on where we have come from economically and the challenges that we face. The Tories crashed the economy—colleagues have covered that well—and the fact that we are having to pay so much interest on debt holds back our economy. The Liz Truss crash put some of the challenges that we face on steroids. The lack of investment over many years has affected the whole country, including the east midlands. The challenges we face in the south-west of England, as a part of the country that feels left behind, are not dissimilar from those that the east midlands faces. I represent the most deprived constituency that has a Liberal Democrat MP.

I would like to reflect on some of the positives. In my patch, we have an outstanding fishing industry, alongside the hospitality, electronics and photonics industries. That chimes with what colleagues have said about the manufacturing tour de force in the east midlands: whether it is Siemens, Rolls-Royce or Toyota, there are large companies powering the east midlands economy, and there are SMEs doing the same.

With so many Labour MPs here, I am afraid to tread on toes, but I will anyway. The national insurance hike has, sadly, had an impact on our economic growth and has led to uncertainty, speculation and delays to budgets. We desperately needed a firm hand on the tiller after the Tories, and it has not been there. I hope for the sake of the economy that we will see one soon. The Employment Rights Act 2025 is not a massive issue for companies like Toyota or Rolls-Royce, which have the capacity, but for SMEs and microbusinesses it is more of a challenge. I implore the Minister to reflect on that.

[Jonathan Davies]

The hon. Member mentions the national insurance hike. I am disappointed about that, but would he be content to see public services—education, healthcare and public transport—continue to fail people? We needed that investment to get the country back on its feet.

[Steve Darling]

Sadly, the investment that I had hoped to see in my hospital in Torbay has been kicked into the long grass. We still have hundreds of sewage leaks across the hospital, 85% of which is not fit for purpose. However, let me go back to discussing the east midlands, which is what we are really here to do.

As I was saying, SMEs will be challenged the most. I implore the Minister to consider that, as the Employment Rights Act is rolled out. Even HR reps acknowledge that this is important. Introducing it at the same time as the national insurance hike has resulted, effectively, in a double hit to the economy.