Midlands Engine

Debate between Lilian Greenwood and Marcus Jones

Tuesday 24th January 2017 Westminster Hall

[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.

Oral Answers to Questions

Debate between Lilian Greenwood and Marcus Jones

Monday 28th November 2016 Commons Chamber

[Mr Jones]

As I said in my previous answer, we are confident that a significant number of families have benefited from the programme, but the new programme will be subject to a more robust evaluation, particularly of its cost-effectiveness.

[Lilian Greenwood (Nottingham South) (Lab)]

13. What steps his Department is taking to ensure adequate funding for adult social care.

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

I fully recognise the pressures on adult social care, which provides a vital service to millions of people across the country. That is why the Government have provided extra funding for adult social care, with up to £3.5 billion available during this Parliament.

[Lilian Greenwood]

Yesterday, the former Health Secretary, Stephen Dorrell, commented on the Chancellor’s autumn statement, saying that it was “a mistake” not to provide extra investment in the social care system, which was “inadequately funded”. Last week, directors of social services said social care was “in real jeopardy”, and the Conservative leader of Warwickshire County Council said that

“it is no exaggeration to say that our care and support system is in crisis.”

The Minister says that he is providing extra money, but when are the Government going to wake up and provide the funds needed to prevent the whole system from collapsing?

[Mr Jones]

During the spending review last year, we consulted the sector carefully. We spoke with the Local Government Association, and looked at length at what it said. It said that we should have £2.9 billion of extra funding available for adult social care across this spending period, but we have provided up to £3.5 billion.

Beer Duty Escalator

Debate between Lilian Greenwood and Marcus Jones

Tuesday 5th March 2013 Westminster Hall

[Mr Jones]

Absolutely. It is not a Conservative principle to impose taxes such as the escalator year on year without reassessing the effect of such a tax. He is right that it would be an excellent move for a Conservative-led Government to scrap the escalator and freeze beer duty this year. That is in the context of the challenge for hard-pressed UK citizens, who now pay 40% of all Europe’s beer duty despite drinking only 13% of the beer consumed in Europe.

[Lilian Greenwood (Nottingham South) (Lab)]

I congratulate the hon. Gentleman on securing this debate. Does he agree that one purpose of Government alcohol taxation policy is to drive consumer behaviour, and that reviewing and changing the beer duty escalator could encourage drinkers towards lower-strength British-made drinks such as beer, which I am sure is made in his constituency as it is in mine?

[Mr Jones]

I thank the hon. Lady for her comments. It is nice and extremely refreshing to be able to agree with comments made by an Opposition Member. She has made an extremely pertinent point. Beer is a lower-strength product, and it is far better for people, if consumed in moderation, than higher-strength drinks, which may well be more damaging to health if consumed in excessive quantities.

The increases in duty are having a disproportionate effect, in particular on our pub industry and if we compare on-sales with off-sales, especially off-sales made in supermarkets. Before the escalator was introduced, drinking in a pub was four times more expensive than drinking at home; now, after a few short years, it is eight times more expensive, which shows the disproportionate effect on the great British pub.