International Investment Summit

Debate between Judith Cummins and Yuan Yang

Thursday 17th October 2024 Commons Chamber

[Yuan Yang (Earley and Woodley) (Lab)]

I congratulate my hon. Friend the Member for Bournemouth West (Jessica Toale) on her wonderful maiden speech. I know that her international background and deep expertise in international development will add much richness to our new parliamentary Labour party, and I also believe that an international background is essential to enriching the perspectives on our side of the House.

In my previous life, before coming into this place, I spent eight years interviewing the leaders of international businesses, many of whom had long-standing commitments to investment in the UK, but who repeatedly told me and my former colleagues at the Financial Times that political instability was putting them off making future investments. That is why I very much welcome the remarks of our Minister on the international investment summit and the importance of the private sector’s partnership with our Government.

The 10-year project that we have for national renewal, along with our 10-year industrial strategy, shows our commitment to long-term economic ambition and planning. I congratulate the organisers of the summit, which brought together more than 300 industry leaders and secured more than £60 billion of investment. That is 60% more than was raised last year, and it will create nearly 38,000 jobs, one of which is bringing Elton John out of retirement. Unfortunately, private investment in the UK since the global financial crisis has been much less “Rocket Man”, and more “Tiny Dancer”.

Over the last decade and a half, Britain has experienced a much larger slowdown in the growth of capital intensity than comparative countries such as the US, France and Germany, and it is that, alongside our skills growth, which accounts for our productivity puzzle. I very much welcome the appointment of John Van Reenen, the wonderful LSE economist, to our Council of Economic Advisors. He has done important work on productivity in the UK, and he suggests that our post-financial crisis fall in productivity growth is primarily due to a large fall in capital accumulation. In other words, British workers are being held back by low levels of public and private investment, and that is what our Government need to unlock to succeed in our growth mission.

We will provide stability, but stability alone is not enough. In the 21st century we must do more to provide industry and business leaders with the leadership that they require to navigate our increasingly complex geopolitical world, in which there is fragmentation of supply chains across the world, as well as the green transition. That means an industrial strategy. I welcome the publication of our Government’s industrial strategy earlier this month, and particularly the focus on life sciences as one of the key eight sectors for investment.

My constituency of Earley and Woodley in the Thames valley is a prime location for foreign direct investment, particularly in life sciences, and I am proud that the Thames valley is the fastest growing region in the UK outside London. I congratulate the Thames valley chamber of commerce, with which I have already worked in my first 100 days, on securing over the last decade more than 1,000 instances of foreign direct investment. We can measure the excitement of business and the private sector for our Labour Government by the amount of engagement I have already had from businesses in my constituency and through Thames valley chamber of commerce.

The biopharmaceutical group Lonza, which is Swiss in origin, received a grant of £30 million over the summer to expand and relocate to my constituency in the Thames valley park, which is one of three business parks in the area alongside Thames Valley science park and Green park. I recently met Bayer, originally a German company, which employs hundreds of people at its headquarters in my constituency, and contributes to crucial health and life science research in the UK.

Advancements in life sciences have fundamentally improved not just the economy and innovation of the UK, but the length and quality of life here and around the world. That is why I welcome the Health Secretary’s mission to ensure that the NHS receives the cutting-edge treatments being pioneered by companies in my constituency and beyond. Life science investment, if done correctly, can be a significant driver of growth and productivity—our central mission. I look forward very much to meeting the Minster for Industry next week to discuss how we can give full range to life sciences companies in our constituencies, and to the clinical research taking place in the Royal Berkshire hospital, which is at the forefront of much research in medical trials. That hospital will benefit greatly from private and public investment.

Businesses do not exist in isolation, and what makes some countries prosper is the strength of their institutions. Responsible and highly productive businesses wish to retain their skilled workforces, who require countries with well-functioning public service provision, infrastructure and accessible housing. Those companies want political stability and a regulatory framework that works for business, workers, and the consumer. That is why Labour’s pitch to business does not end with the international investment summit, but continues with legislation that the Government are passing, such as the Employment Rights Bill. Providing the foundations for businesses to thrive means fixing the foundations of our economy and society, and that is what I am proud to say our Labour Government will do.

[Madam Deputy Speaker (Judith Cummins)]

I call Kanishka Narayan to make his maiden speech.