Midlands Engine

Lilian Greenwood Excerpts

Tuesday 24th January 2017 Westminster Hall

[Chris White]

That is a salutary reminder that the midlands are made up of both the west and east, and I thank my hon. Friend for that contribution.

[Lilian Greenwood (Nottingham South) (Lab)]

Will the hon. Gentleman give way on that point?

[Chris White]

I will, although I can imagine what the hon. Lady is going to say.

[Lilian Greenwood]

I just wish to follow up on the point made by the hon. Member for Erewash (Maggie Throup). East Midlands Airport is, of course, different from Birmingham Airport in that it is the second-largest freight airport in the country, which is hugely important for serving businesses across the whole region. Will the hon. Gentleman acknowledge that point?

[Chris White]

I thank the hon. Lady for making it simple for me by asking me to acknowledge the point. I most certainly do.

As with the industrial strategy, it is important to provide measures to understand how the midlands engine initiative is succeeding. For example, to what extent do we need to boost foreign direct investment? How many apprenticeships are needed in the region? What is the required level of financial support for science and research? An office for industrial strategy could and should be created and held accountable for the progress made, including our region’s economic success.

The Green Paper sets out 10 pillars to boost the nation’s economy, from business growth and investment in infrastructure to clean energy and world-class research. The midlands engine touches on all those pillars and will benefit from the strategy. In turn, the region can play an instrumental role in our nation’s success.

[Lilian Greenwood (Nottingham South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Howarth, and I congratulate the hon. Member for Warwick and Leamington (Chris White) on securing the debate. I am sure the Minister will enjoy the opportunity to talk about the Government’s industrial strategy, but I am afraid that most attention right now is probably focused on what is happening on the other side of Parliament Square. I will return to the significance of our relationship with the European Union later.

Outside this place, many people still ask what the midlands engine is. The answer is simple: we are the midlands engine—we being the many right hon. and hon. Members who stand up for their midlands constituencies in this place, and the entrepreneurs, innovators and grafters back at home. All of us are working harder than ever, together, to build our collective identity; to develop our competitive offer; to promote the midlands to the world; and to attract people to come to us to invest, to study, to work and to live. The midlands engine is not just a brand, an organisation or a place. It is all of us working together to show that when the midlands succeeds, Britain succeeds.

The assets of the midlands engine will be familiar to everyone, not only up and down the country but throughout the world—Range Rover, Rolls-Royce, JCB, Toyota and Boots are a few of the names that have made the midlands famous. What is great about all those assets is that their industrial evolution is constant as they reinvent themselves and their products to meet the demands of our ever-changing world.

No clearer evidence for midlands resilience and ability for reinvention exists than in my constituency. The site where thousands were once employed to manufacture Raleigh bicycles is now the University of Nottingham’s innovation park, where businesses and researchers work together on everything from satellite navigation, aerospace and sustainable energy technologies, to drive-chain engineering and sustainable chemistry. The city centre site where ibuprofen was discovered by Dr Stewart Adams is now one of the UK’s largest bioscience incubators, commercialising cutting-edge research. When I came through Nottingham yesterday, I saw that the brand-new BioCity Discovery Building is almost up and finished, showing how the sector is developing and growing.

None of that is new. As the hon. Member for Warwick and Leamington said, the midlands has been an engine for growth for centuries, and will be for centuries to come. The strong midlands DNA is rooted in our industrial heritage, which is reflected in our being the advanced manufacturing heartland of the nation, responsible for almost a quarter of the UK’s total manufacturing capability.

Two and a half centuries ago, new canals connected England’s major rivers, opening up the interior for the movement of raw materials and trade of finished goods. High Speed 2 can have that same transformative impact, with the potential to unlock huge economic benefits for the midlands and for the UK as a whole. To me, HS2 is a once-in-a-lifetime opportunity for us to transform Britain’s infrastructure, linking the cities of the midlands and the north with fast, frequent and reliable services, connecting people and places, businesses and workers, markets and customers, driving up growth and productivity, and expanding the life chances of more than 11 million people in the midlands engine region. HS2 is not about the much mocked 20 minutes off the journey time to London—although who would not want to have even better connections to one of the world’s mega-cities? It is about improved capacity and incredible connectivity within the midlands region.

[Mr Mitchell]

The hon. Lady is absolutely right. HS2 is not about speed; every day 4,000 people stand on trains going into and out of Birmingham.

[Lilian Greenwood]

The right hon. Gentleman is absolutely right. Phase 1 of HS2 in particular is about vitally needed extra capacity, although for phase 2 connectivity and journey-time savings are important. Cutting the journey time between Nottingham and Birmingham from a dawdling 1 hour and 13 minutes to only 36 minutes will make a real difference to the choices available to workers, businesses and investors. We should not downplay that.

HS2 can and must act as a spur to regeneration and job creation. The West Midlands combined authority’s growth strategy aims to add £14 billion to the economy and to create and support 100,000 jobs. The Curzon investment plan is designed to regenerate that area around the planned HS2 station. In the east midlands, councils, local enterprise partnerships and the East Midlands chamber of commerce are working together to develop ambitious but deliverable proposals for maximising the economic potential of a new HS2 and classic-rail hub station at Toton, not only for that immediate area, important though that is, but for the whole region.

The benefits of HS2 for the region will be fully realised only if they come alongside other transport improvements. I recognise the danger of my sounding like a broken record, but Conservative Cabinet Ministers came to the east midlands before the most recent elections promising to deliver our region’s top transport priority—the electrification of the midland main line—only then to pause it, unpause it, delay it by four years and now give the impression of wanting to scrap it altogether. That is not good enough. The midlands deserves 21st century infrastructure, and the Government must deliver on the promises they made to our region if we are to be ready for the global challenges ahead. I am sure the Minister understands the importance of the midland main line electrification to our region, so I hope he will speak to his Department for Transport colleagues and ask them to think again.

I remain optimistic about what the midlands has to offer and its ability to seize the coming opportunities. However, I cannot fail to sound a note of caution about the UK’s future relationship with the EU and the profound risks that that poses to the midlands engine. The midlands is the manufacturing heart of the UK, so the potential loss of tariff-free access to the single market and the potential imposition of customs controls would surely have a chilling effect on those businesses I mentioned. We know that Toyota is considering how it can survive in a post-Brexit UK. Boots tells me that it is deeply concerned about our being outside the European Medicines Agency. Our world-class universities are extremely worried about their ability to maintain their position in global league tables without access to the Horizon 2020 funding, and without the ability to recruit and retain the highest-calibre students and staff from around the world.

In the coming weeks and months, therefore, I will press the Government hard to ensure that they do not put obstacles in the way of the bright future that our region is heading towards.

[Mr George Howarth (in the Chair)]

Order. While we are on the subject, it might be of benefit to those present to know that the Supreme Court has ruled that an Act of Parliament will be necessary to trigger article 50. Whether that changes anything that the hon. Lady wishes to say, I do not know.

[Lilian Greenwood]

Thank you for that update, Mr Howarth, which I am sure is welcome to everyone who wants to both participate in this debate and follow what is happening outside.

I will not just take the Government to task on their approach to Brexit negotiations—we now know that we will have the opportunity to do that through legislation—but raise concerns about cuts to school funding. Those are hitting my constituency and will make it harder for us to close the skills gap, which is important to the success of the midlands engine.

Whatever the Government throw at us, we will find a way around or over it. Midlanders always do. They are very resourceful, and necessity was ever the mother of invention. When they are done working their way over and through all the obstacles, midlanders can enjoy everything else that our region has to offer, whether that is sport; art or literature; caves, canals or castles; theatre or music; or food or drink. My city of Nottingham alone, which is a city of literature and football—although our ice hockey team needs to expand its trophy cabinet at the moment—has everything from a two-star Michelin restaurant under a flyover to a castle that is not a castle but has been the rebellious heart of the country for centuries. That is just one corner of the midlands engine. No wonder we are what makes the country go.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I begin by thanking my hon. Friend the Member for Warwick and Leamington (Chris White) for calling this important debate. He brings a wealth of knowledge to the House, not only about the midlands but about manufacturing, from his role in chairing the all-party parliamentary group on manufacturing and from his experience in industry.

I am pleased to have the opportunity to set out the Government’s vision for the midlands engine. It has been a generally positive debate about the midlands, its strengths and the potential across the region. I very much like and have a great deal of time for the hon. Member for Bootle (Peter Dowd), but I was slightly disappointed by the tone of his comments. The Government are setting out on a serious path to deliver devolution across the country, and I do not recall the type of devolution happening in the midlands ever happening in any great way, shape or form under the last Labour Government. The mark of what the current Government are achieving is that 447,000 more people are in employment across the midlands now than in 2010, when the hon. Gentleman’s party left office.

As a proud midlander myself, I am passionate about the midlands and the role that it plays in our nation’s economy. The midlands’ success is vital to the UK’s economic wellbeing and to creating an economy that works for everyone. As we have heard from hon. Members, the midlands economy is built on a globally significant advanced manufacturing base. Last year, the midlands accounted for 23% of all English goods exports, with products going to more than 100 countries. Our transport manufacturing base includes international brands such as Jaguar Land Rover, Rolls-Royce, Toyota, Bombardier and JCB. In the MIRA innovation technology park, which borders my constituency, the likes of Aston Martin, Bosch, Changan and many other world-renowned companies continue to grow and innovate.

Our science and innovation capabilities speak for themselves. Warwick, Birmingham and Nottingham are all in the world’s top 150 universities. Those plus Leicester, Loughborough and Aston are in the UK’s top 50 universities. Hon. Members mentioned a number of other universities that are delivering excellence across our area.

That said, there are still challenges. Productivity is a key issue. GVA per capita in the midlands engine area is about 20% below the England average, and there is much more to be done to promote growth across the midlands. Just yesterday, we launched a Green Paper setting out our ambitions for the UK’s modern industrial strategy. Our aim is to improve living standards and economic growth by increasing productivity and ensuring that growth is spread across the whole country. This is a consultation, and we are asking people to tell us how we can best achieve our goals. Our industrial strategy will lay the foundations for a more prosperous and more equal Britain. Our focus is on improving productivity, rewarding hard-working people with higher wages and creating more opportunities for young people. Following the consultation, we intend to publish an industrial strategy White Paper in 2017. That will set out the plan for the long term.

The midlands engine is at the heart of our country and must be central to our approach. A key part of our vision is to spread growth across the UK economy, ensuring that the economy is working for everyone. Local partners have come together and formed a midlands engine partnership, which stretches from the Welsh border on one side of the country to the North sea on the other. The partnership is led by the internationally respected businessman Sir John Peace.

There has been very good progress. Under this Government, the midlands has been growing faster than the UK average, excluding London. Our support for the midlands includes the £392 million that we allocated to local enterprise partnerships in the midlands in the third round of growth deals, announced in the autumn statement. That is in addition to the first two rounds of growth deals, through which the midlands local enterprise partnerships will receive almost £1.5 billion.

The Government will publish a midlands engine strategy shortly. We are working with Departments across Government to set out the priorities for delivering the midlands engine. We will set out our plans to improve connectivity, employment, innovation and investment, which are all very important factors in improving the prosperity of people in the midlands and very important issues that have been raised by hon. Members throughout the debate.

We have of course already published a northern powerhouse strategy. The future of our economy is too important for this to be seen as a race between the northern powerhouse and the midlands engine. We are working with each area on its specific needs to ensure that all of the UK is economically strong.

Many of the Government’s existing initiatives are spreading growth and empowering local communities in the midlands. Our devolution deal for the West Midlands combined authority devolves significant powers, such as skills provision and funding. It includes a £1 billion investment fund and a £1.8 billion enterprise zone extension. My right hon. Friend the Chancellor made a commitment in the autumn statement in November that the Government will continue to work towards a second devolution deal with the West Midlands combined authority.

Our local growth fund has supported projects across the midlands. For example, the £20 million north-south rail and Coventry station scheme will improve passenger capacity and secure an increase in train service frequency between Coventry, Bedworth and my constituency of Nuneaton. There has also been support through city deals. In the Leicester and Leicestershire city deal, the advanced technology innovation centre received £2 million to create more space for high-technology jobs and businesses. That supports one of our largest science parks, where major companies include Caterpillar and E.ON.

As hon. Members have been keen to point out, many major routes and railways go through the midlands. Improving connectivity there has real benefits for the rest of our country, as well as significant benefits for local residents and businesses. Better transport connectivity allows businesses to grow and helps people to get to work. The midlands will be a major beneficiary of HS2 with various stations, but particularly at Toton in the east midlands and at Birmingham, as has been mentioned. The Government have recently committed to funding Midlands Connect to the end of this Parliament and have signalled our intent to see it established as a sub-national transport body. That will enable local partners to develop regional transport proposals for the midlands.

[Lilian Greenwood]

The Minister talks about the importance of HS2 to the region. That is important not just because of the transport connectivity and capacity improvements it will provide, but because the east midlands is the largest rail cluster in the world, and there is the obvious potential for us to benefit from it industrially. Will he say how, within the industrial strategy, he will ensure that HS2 procurement, including the £2.7 billion for new rolling stock, is used to boost our rail industry in the midlands region?

[Mr Jones]

The hon. Lady asks a very good question. We have significant capacity in the midlands region in regard to rail infrastructure and the manufacturing base around it. I am sure she has already looked at the Green Paper released yesterday, which contains a section that relates to procurement. I urge her to contribute on the Green Paper. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy has made it clear that he is keen to hear from right hon. and hon. Members in relation to development of the Green Paper and the reality of the White Paper. I encourage all colleagues to get involved in that process.

To elaborate on the potential of HS2, there is a lot of debate about speed. I say to hon. Members that speed is important and, if we are delivering a brand-new rail line, why would we not use up-to-date technology? The biggest wins, however, are in developing additional capacity and reliability. My constituency is on the west coast main line. Because there is very little if any capacity left on that line, there are perpetual reliability challenges. The situation should improve once we secure HS2.