Growth and Infrastructure Bill

Lord Wharton of Yarm Excerpts

Monday 5th November 2012 Commons Chamber

[John Stevenson (Carlisle) (Con)]

I would like to make a small contribution to this important debate about what are serious issues, with the potential to benefit our economy. Even with the recent positive growth figures, it is clearly acknowledged that everything needs to be done to ensure that our economy continues to grow and expand. In itself, the Bill is no panacea for our economic difficulties; indeed, no legislation is or can ever be. Nevertheless, it is a welcome addition to the efforts to help our economy to recover, not just in the short term but, just as importantly, in the longer term. Of course we all want to see growth now, but it is critical that we have the ingredients in place to ensure that our economy has the wherewithal to expand, not just in the coming months, but in the future. Quite simply, we need modern infrastructure to achieve future growth. The Bill makes a small contribution towards that.

I wish to concentrate on two issues. In the short term, the more immediate need is to ensure that the economy continues to grow over the next few months, particularly as we have some momentum from last quarter’s growth figures. There are clear immediate benefits from continuing with the Government’s aim of simplifying the planning process. It is critical that planning applications are encouraged and, where they have merit, passed as quickly as possible. I fully accept that this is not the whole solution, but it is certainly one of them. We need to ensure that the process is efficient and that bureaucracy and red tape do not get in the way. Indeed, where councils are failing to provide such a service, it is absolutely right that the Secretary of State has the power to intervene. Arguably, where councils are failing, they are effectively letting down their communities. It is incumbent on the Government to step in and sort it out.

It is also right that, where appropriate, section 106 agreements are revisited. We live in a different economic environment now. If altering a section 106 agreement helps to bring forward a development or make it stack up financially, that is exactly what we should be doing. Indeed, even if only a handful of section 106 agreements are revisited and improvements are made to them, that will clearly be beneficial.

Another immediate issue is the postponement of the business rates revaluation. I would normally have concerns about such postponements, but I believe that, in the present climate, it is far more sensible to create as much certainty as we possibly can for businesses. They need to plan for the future, and their most common criticism of the Government involves a lack of certainty. Even more relevant in these difficult times is the fact that we must do everything possible to ensure that businesses have certainty, and if they know that their rates will stay broadly the same for the next five years, they can concentrate on their core business and plan accordingly.

As I have said, the long-term growth potential of the economy is equally important. To achieve this, we need to have infrastructure such as roads and railways in place that will allow expansion in the years to come. Clearly, we need to bring forward or encourage capital projects and serious infrastructure investment by the private business sector as well as by the state sector. One of the key areas for growth is broadband.

I have always been a great fan of the Victorians, and I am particularly in awe of the huge number of infrastructure projects that our Victorian ancestors completed. We forget that they effectively transformed this country in a remarkably short time. Their communications revolution involved the railways, which connected our great cities. For example, they connected my city of Carlisle with London, Manchester and Glasgow. That brought great benefits to businesses and consumers, and we are still reaping the benefits of that revolution today.

Broadband, from a business point of view, is the modern equivalent. Superfast broadband is absolutely vital for businesses and consumers. It will allow businesses to compete, develop and grow. In addition, it has the potential to help rebalance the country. Proper broadband infrastructure will create business opportunities in such places as Carlisle, which would then be able to compete on a more equal footing with businesses in places such as London and Manchester. Anything that will help to roll out broadband should therefore be welcomed and supported.

As I have said, changes to the planning process will have an immediate effect as well as long-term benefits for our economy. Critically, simplifying our planning process will give developers confidence that applications will be heard expeditiously. Planning applications—particularly the large ones—can be hugely expensive. It is therefore vital that we encourage businesses to plan for the future and to have confidence in the system.

[James Wharton (Stockton South) (Con)]

I am listening carefully to the powerful case that my hon. Friend is making. He has not yet mentioned the role of local authorities in planning. Does he agree that, whatever changes are made, it is important that local authorities and the communities that they represent should continue to have a role right at the centre of our planning system?

[John Stevenson]

I completely agree with my hon. Friend.

I was about to make the point that it is crucial that central Government do not lose sight of the importance of local authorities. We often talk about national issues, national solutions and national policies, but many of the solutions lie in our local communities where local solutions for local issues can be just as effective. It is therefore vital that central and local government do everything possible to encourage the upgrading, improvement and development of our nation’s infrastructure. That will go a long way towards boosting growth in the short term and the longer term. Our Victorian ancestors were hugely successful at that, and I see no reason why we cannot do likewise today. I fully support the Bill.