North of England: Infrastructure Spending Debate

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Department: HM Treasury

North of England: Infrastructure Spending

Jonathan Gullis Excerpts
Wednesday 25th November 2020

(3 years, 5 months ago)

Westminster Hall
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Jonathan Gullis Portrait Jonathan Gullis (Stoke-on-Trent North) (Con)
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I feel a bit of an intruder, because Stoke-on-Trent might geographically be placed in the west midlands, at the very tip of the midlands engine, but we very much see ourselves as the gatekeepers to the northern powerhouse. For too long, Stoke-on-Trent has been forgotten, stuck between Manchester and Birmingham, where money is being poured in, left, right and centre. Stoke-on-Trent is the 12th-largest city in the United Kingdom, but is sadly in the bottom 20% for social mobility and for level 3 and 4 qualification take-up. The average house price is £114,000. It is a city with plenty of brownfield sites, but, sadly, buildings are rotting away, because the negative land value means that, to developers, it is not worth investing.

When it comes to infrastructure, I concur with many of the comments made today. People are wary of “shiny” and “new” in our area, because they have seen vanity projects being built time and again which have resulted in no real, drastic change in their personal circumstances. Therefore, I am not asking the Minister from the Treasury to just build lots of shiny stuff; what I am asking for is a real focus on how we spend that money.

I build on the superb comments from my hon. Friends the Members for Bury South (Christian Wakeford), for Bury North (James Daly), and for North West Durham (Mr Holden), who talked about education. I have too many schools in Stoke-on-Trent North, Kidsgrove and Talke that are simply not hitting the mark. They are producing results that ensure that children stay trapped in a cycle of low-skilled, low-wage jobs. Education means free school investment. It also means ensuring that adult education—the lifetime skills guarantee—is applied in areas such as Stoke-on-Trent, and ensuring the local college has the funding to deliver. People may not be aware of this, but 12% of my workforce have no formal qualifications—8% higher than the national average.

It also means homes—not just affordable homes, because as I said earlier, Stoke-on-Trent has those. What we need are the four and five-bed executive homes that can attract commuters to Manchester and Birmingham to the area, to help bring regeneration and wealth. However, that also means giving us money, as the Government did at the Royal Doulton site, where we knocked down the empty factory and managed to build over 200 brand new homes, each of which will have gigabit installed directly—pure gigabit, not the stuff that BT and others claim that they are inserting into the network grid.

We need to ensure improved transport. That means finally giving Stoke the transforming cities fund money that it truly deserves. It means ensuring the Stoke to Leek line that connects North Staffordshire is delivered, and ensuring that Superbus, which has been paused due to covid, is reopened, so we can have better and affordable bus routes, and a big push on the hydrogen bus idea in Stoke. The towns fund is an example of how this Government have been superb in ensuring that areas have a chance to level up, and to take ownership of what they want to see. Kidsgrove’s bid is in with the Ministry of Housing, Communities and Local Government, and I am hoping we get our full £25 million ask.

The town of Tunstall was previously stuck in the city of Stoke-on-Trent, which meant it was excluded from the last round of the scheme. Stoke is a collection of six towns. Tunstall should not have to miss out. Burslem has the greatest number of closed high street shops in the UK; it is the perfect place for the Government to lead a pilot on how to repurpose and regenerate a high street with town housing, flats, office space and a mixture of small retail and restaurants—and, hopefully, some pubs, when we exit this lockdown. I hope the Government will add my shopping list to the long list of personal requests that I am sure the Minister has been making, and that they will ensure levelling up is a real opportunity for everyone we serve.

James Gray Portrait James Gray (in the Chair)
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Before I call the next speaker, I congratulate colleagues on their self-restraint: we got 14 in Back-Bench speeches in the time available to us, which demonstrates that self-restraint works better than formal time limits.

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Abena Oppong-Asare Portrait Abena Oppong-Asare (Erith and Thamesmead) (Lab)
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Thank you for the opportunity to speak in this debate, Mr Gray. The hon. Member for Southport (Damien Moore) has secured a timely debate. He mentioned the Government’s 10-point plan and nuclear investment opportunities to unleash potential. That was echoed by the hon. Member for Wakefield (Imran Ahmad Khan).

We know that the Chancellor is expected to set out infrastructure spending commitments in his comprehensive spending review today. Given that the north of England has been disproportionately impacted by covid-19 in health and economics, according to the report by the Northern Health Science Alliance, any investment in that region is timely and welcome. We are concerned about the disproportionate economic consequences of covid-19, which make the Chancellor’s announcements on infrastructure spending so important today. Therefore, as shadow Exchequer Secretary to the Treasury, I must ensure that the Government’s actions are closely scrutinised. The north needs real investment, not just empty promises and half-finished projects.

The hon. Member for Southport mentioned that there was a lack of Labour Members at this debate. A similar debate was held on 11 November, led by my hon. Friend the Member for Barnsley Central (Dan Jarvis), on support for the economy in the north of England. A number of my colleagues have been vocal on this issue but are unable to attend this debate due to covid-19.

To be the bearer of bad news, the Conservative Government have failed to deliver their promise to deliver infrastructure investment. The right hon. Member for Tatton (Esther McVey) said that she had asked for local investment for local transport, where people were waiting two hours for a train and it was hard to find a bus route. She also mentioned digital infrastructure. My hon. Friend the Member for Weaver Vale (Mike Amesbury) talked about closing the economic divide, dealing with economic inequality and powering up the north, as well as the unfinished business of devolution.

The right hon. Member for Elmet and Rothwell (Alec Shelbrooke) talked about short, medium and long-term projects, which must be transformational. The hon. Member for Leigh (James Grundy) talked about congestion and air quality—I know that he was also at the last debate. He spoke about connecting his constituency to Greater Manchester. I agree with him that the time for talking needs to stop.

Six years on from the announcement of Northern Powerhouse Rail, that line has still not been approved, let alone started. Transport for the North’s website states that the project will be the region’s single biggest transport investment since the industrial revolution. Far from something to brag about, that is a damning reflection of the Government’s commitment to investing in the north.

Jonathan Gullis Portrait Jonathan Gullis
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Will the hon. Lady give way?

Abena Oppong-Asare Portrait Abena Oppong-Asare
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I am afraid that I will not, as time is short. I ask the Minister to tell me when the northern regional economy will be taken more seriously. When will the Government deliver investment in projects in line with other regions of the UK?

When it comes to delivering projects, the Prime Minister’s portfolio is one of failure. The failed London garden bridge project cost the taxpayer £53 million. The Olympic orbit tower, which was forecast to make a profit of £1.2 million in its business plan, has produced a debt of £13 million, which grows by £700,000 every year. We have seen a theme of failed projects played out in the regions of the UK. In the west midlands, people are still waiting for the Midland Metropolitan University Hospital, which will eventually open four years too late and cost taxpayers £700 million. The Royal Liverpool Hospital is more than five years late and projected costs are now expected to reach £1.063 billion after the collapse of outsourcing giant Carillion, and the taxpayer is still on the hook for £739 million of the overall figure.

I sincerely hope that, for people living in the north of England, the Government’s pledge to level up is successful, but I believe it would be much more fruitful to focus on ongoing projects, a point that has been made by other hon. Members in this debate. That would enable the Government to draw on the great research and infrastructure that is already available in the north and to consult with people living in the region on what they need to see from the Government, rather than announcing a new shopping list of proposals that are unlikely to come to fruition and that will not benefit those who are most in need.