Transport in the North

Kevin Hollinrake Excerpts

Monday 6th November 2017 Commons Chamber

[Diana Johnson]

As ever, my right hon. Friend puts his finger right on it: we need the money and the powers.

Alongside many hon. Members on both sides of the House, I sought this debate to have the opportunity to hold the Secretary of State to account for the announcements he made over the summer. It is good to see a Transport Minister on the Treasury Bench, but I am disappointed that, on this very important issue for the country, the Secretary of State is not here to listen to and respond to the debate when it is his actions over the summer and in previous months that have prompted the debate.

I want to make the case for a much bolder and more ambitious transport strategy for northern England. Despite what has been claimed, Britain is becoming more, not less, regionally divided. The inequality between our regions’ economies is the largest of any country in Europe. The productivity gap between north and south is also widening.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Does the hon. Lady accept that the regional disparity in funding, in particular on transport, has been the same for decades and that this is not a party political issue? We should be working together, cross-party, to make sure that future investment is more fairly distributed throughout the UK.

[Diana Johnson]

I do not want this issue to be party political; I want it to be cross-party. This is in the interests of Britain, so we in Parliament should work together.

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[Rishi Sunak (Richmond (Yorks)) (Con)]

The average commute into London begins 40 miles outside of the city. If we could make that the case for Manchester, we could create an urban network with a population larger than that of New York, and with a GDP the size of Sweden. That is the scale of the prize for getting northern transport right.

Tonight I would like to make three quick points: first, I want to celebrate the powerhouse that the north already is; secondly, I want to talk about the role that transport will play in shaping the north’s future; and lastly, I want to suggest a few key projects that will ensure that the future is bright.

When I hear the phrase “northern powerhouse”, I must admit that my heart sometimes sinks, because I know that too often I am about to hear a story of the past—the north as the land of the spinning jenny—or I am to be told about a far too distant future of hyperloops across the Yorkshire dales. Instead of talking about the past or the far future, let us not forget today that Britain’s 16 million northerners are already the nation’s economic engine. Last year, it was not London or the south-east that saw the highest growth; it was the north-west. Thanks to Nissan’s Sunderland car plant, Britain is, for the first time since England won the World cup, producing more cars than the French. Off Yorkshire’s east coast, Hull-made turbines are creating the world’s largest offshore wind farm. In science, the north’s 29 universities—including world-class institutions like Durham, York and Newcastle —are at the forefront of our cutting-edge research. And, in Manchester United, the north is home to the most successful sporting franchise anywhere in the world.

But in the area of transport, we are still selling the north’s potential short. The cities and towns of the north are individually strong, but collectively are not strong enough. The only way to get the north to punch beyond the collective sum of its parts is to connect those parts. That is why better transport is key to unlocking the north’s true potential.

Today, converted buses known as Pacer trains, a technology phased out more than 12 years ago by Iran’s national railway, are still in use across the north. Today, it is quicker to travel 283 miles from London to Paris than to travel less than half that distance between Hull and Liverpool. And today, too often bright, young entrepreneurial minds forged in northern schools and universities find it easier to come 200 miles to London to find a job than to look in a northern city just 40 miles away.

But it does not have to be like this. After all, the distance between Manchester and Leeds is shorter than the length of the London underground’s central line. The Government, to their credit, recognise the need for investment—and in my constituency upgrades to the A1 and A66 are welcome—but there is much more to do.

The northern powerhouse is a wonderful phrase, but the people of northern England deserve more than a slogan; they need action. How do we make the aspiration a reality? There is no doubt that there has been a substantial funding gap between London transport and northern transport under successive Governments.

[Kevin Hollinrake]

I asked this question of the hon. Member for Kingston upon Hull North (Diana Johnson), but does my hon. Friend agree with me that this lack of investment has been happening for generations, and that it is not a party political issue? We should be working cross-party to deliver the solutions we all know we need.

[Rishi Sunak]

My hon. Friend has done excellent work analysing these numbers, and I completely agree with his point that it is multigenerational. The point is that, from now on, that gap needs to start closing.

Secondly, London has Crossrail, the midlands is getting HS2, and now we in the north need the Government to back Northern Powerhouse Rail. The Government’s £300 million down-payment is certainly welcome, but we will need a lot more to show the people of the north that the Government mean business.

Thirdly, in my own area, the new Tees Valley Mayor has campaigned to upgrade Darlington station, to vastly improve its capacity and connectivity. It is an excellent proposal and the Government should get behind it.

Fourthly, from Teesside to Merseyside, and from Tyneside to the Humber, one of the north’s many strengths are its great ports. As I set out last year, after we leave the EU we should create a new generation of US-style free ports to turbocharge manufacturing, trade and employment in our great northern port cities.

Finally, we must make sure that the rural north is not left behind. Advances like autonomous vehicles will have their biggest impact in sparsely populated rural areas like mine—for example, by allowing elderly constituents to access distant health services more easily, or stimulating our local economies by allowing people to head to the pub without worrying about who will drive home.

It might seem strange to hear all this from a boy born in Southampton, but I am deeply proud to now call the north my home. So as long as I have a voice in this House, I will speak up loudly and forcefully for my home’s bright future, and for an economy that, with the right investment, can be the powerhouse not just of Britain but of the world.

--- Later in debate ---

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to speak in this important debate, and I pay tribute to the hon. Member for Kingston upon Hull North (Diana Johnson) for securing it. There is something more important than Transport for the North here, and it has been mentioned in everybody’s remarks: we are looking to get a fair deal in terms of not only spending, although that is clearly important and I am keen on it, but fair opportunities—business and job opportunities—for people across the north. We believe that transport should lead to that point.

The Brexit vote exemplified how people in the north do not feel they are getting a fair deal; they feel they are being left behind, and the figures amply illustrate that. For example, the average gross domestic product in London is £45,000 per head per annum, whereas the figure for the north-east is £18,000. Our Chancellor has said that the difference between the second city in the UK and London, our first city, is greater in economic terms than is the difference in any other country in Europe. Andy Haldane, the chief economist of the Bank of England, has also said that we are at the bottom of the league table on regional disparity; our cities do much worse than other cities, particularly those in Germany.

So the key question is: what do we do to redress that balance? Interestingly, the Institute of Economic Affairs does not think that putting more money into infrastructure is the right thing to do. It said:

“Even if it worked theoretically, timing problems create challenges, whilst cutting spending in ‘good times’ is resisted.”

The investment lag does not bring the return. I do not accept that perspective.

If we consider the industrial revolution, we can talk about Hargreaves and his spinning jenny or Watt and his steam engine. The key thing about the industrial revolution for Josiah Wedgwood was that he could not get his product around the country. He had to persuade the Government and investors to invest in roads and canals so that he could; otherwise, the industrial revolution would have petered out. Any businessperson will say that they want the Government to put the infrastructure into place, and then business will come in to fill the gap.

It is clear that it has worked for London. As Members from all parties have said, London gets a much better deal in terms of the investment per person. As the hon. Member for Bradford South (Judith Cummins) said, the key thing is getting people around the country. It used to be about goods, but now it is about people: the most important thing is to be able to move people around quickly.

[Rishi Sunak]

Does my hon. Friend agree with the point made by the hon. Member for Bradford South (Judith Cummins) that the Treasury and the Department for Transport need to consider economic development and the rebalancing of the economy as criteria for the allocation of new money, so that it does not go only to the places that are already economically vibrant?

[Kevin Hollinrake]

I absolutely agree. I have looked at the figures in detail and, as my hon. Friend said in his speech, the distribution of central Government spending is much more level before other factors are added in. In London, the money allocated by central Government per person per year is about £40 per person, but if other investment is added in—from the European Investment Bank, local authorities and private finance—that is when the disparity occurs. We have to find mechanisms to make sure that the north gets a fair deal. It is not just about central Government distributing money unfairly; other factors are at work, which is why we need to work across party lines to make sure we can deliver a solution.

As I said earlier, the way things are now is how they have been for decades—for generations—so we all need to work together. It is not just north versus south; it is principally London versus the rest of the country. We have a big constituency of MPs and businesses right across the country who have a stake in making sure that we get a fair deal, but we need to look behind the broad, headline figures, because it is simply not right that the Chancellor is allocating lots of money to London and not to the rest of the country. Other factors are at work that we need to take into account and find solutions for.

Once we have found those solutions, there are so many projects that we need to support. It is absolutely right that we should look at northern powerhouse rail or HS3. As my hon. Friend the Member for Cleethorpes (Martin Vickers) said, we need to look at extending the M11 up to the Humber bridge. We need a tunnel across the Pennines. We also need to look at the small regional roads, such as the A59 and the A1079 in my constituency, and particularly the A64, on which a journey of around 40 miles from York to Scarborough can take two hours. We need more funding for the smaller, less high-profile projects that are so critical to our local economies. If we can get the money—if the people holding the purse strings will give us the tools—we can do the job.