Tay Cities Deal

Lord Wharton of Yarm Excerpts

Wednesday 13th July 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

I congratulate the hon. Member for Dundee West (Chris Law) on his contribution. When we started I was a little concerned that we were talking about Brexit and the referendum. I was asked to discuss the Government’s support for Stirling, and I thought that we might have ventured into a debate on a different matter. Although I am in a minority in the House at the moment—I was very much a supporter of the referendum—I recognise the case that colleagues who have concerns may wish to raise, and their right to hold a different view. I also commend the hon. Gentleman for the way he has approached this debate, because he provided a lot of information to the House about the deal and why he believes it is important. When the Government take decisions, it is important to look across the piece—particularly for city deals, which are relatively competitive because most areas want to secure one—and ensure that that strong case is made. I commend him for his work this evening, and previously, in that endeavour.

In 2011 the UK Government created the city deals programme that sought to agree a series of bespoke, placed-based policy and funding deals with localities. In total, 26 English city deals were agreed between 2011 and 2014. Recognising the success of those deals, the Government have expanded that programme to other parts of the United Kingdom, working with the Government in Scotland and the devolved Administration in Wales. In 2014 the Glasgow and Clyde Valley city deal was agreed. That was followed by further city deals in Wales and the Cardiff capital region, in Scotland in Aberdeen and Aberdeenshire, and in Inverness and the Highlands in 2016. At the 2016 Budget, the Chancellor announced that the Government were opening city deal negotiations with Edinburgh and Swansea Bay, and hoped that those would be concluded positively.

UK city deals are driven at local level, and it is for local authorities and their partners to take the initiative in leading and proposing bids to the Scottish and the UK Governments. Where support from hon. Members is forthcoming, that is doubly welcome and effective in making the case, as the hon. Gentleman has done this evening. The Government are committed to ensuring that all parts of our country have the tools and support to grow their local economies. As such, Ministers in the Scotland Office are keen to engage with cities or regions that have proposals to improve economic performance, which includes four city deals.

City deals in Scotland are tripartite. They involve the UK Government, the Scottish Government, and the local area from which they are usually, and should expect to be, driven—I have already referred to the deals made since 2014. Building on the significant progress already made, both Governments have made it clear that they are receptive to the idea of a Tay city deal. However, in the first instance it is for those local leaders to come together and develop an ambitious and credible city deal proposal, and subsequently to put that to the UK and Scottish Governments.

[Stewart Hosie (Dundee East) (SNP)]

The four local authorities involved have a draft bid, and all Members who represent Dundee, Perth, Perth and Kinross, and Angus are here tonight and backing this deal 100%.

[James Wharton]

That is indeed true and welcome, and the fact that that complete representation is here makes the case all the more powerfully. I want to send a positive message to those who wish to pursue this city deal. I want city deals to be delivered, and I believe they can help to grow local economies. Indeed, I have no doubt that those from the areas affected by such decisions know best how to drive economic growth and what is needed to unlock the undoubtedly significant potential, some of which the hon. Member for Dundee West has already alluded to. I want to find a way to unlock that growth, and to ensure that the UK Government play their part in doing that wherever possible.

On the deal we are here to discuss, I understand that my right hon. Friend Lord Dunlop met Dundee City Council and other potential business bid partners in Dundee on 16 May to discuss their ambitions. He also met leaders of Perth and Kinross Council, at a meeting of the Scottish Cities Alliance, in Inverness on 8 June. The Government are encouraged by the ambition and early thinking contained in the city deal overview that local leaders have shared. It is a relatively high-level proposal. There is still work to be done on it, but it is very welcome that it has come forward. It highlights opportunities around investment, innovation, inclusive growth and internationalisation. It highlights some of the things the hon. Gentleman has spoken about this evening: connectivity, the need for investment, and the opportunities that exist in that area to drive economic growth. They will benefit the UK as a whole, as well as the people living specifically in those communities.

My right hon. Friend the Secretary of State for Scotland spoke with another bid partner, Dundee University, just last week. It is clear that partners are working hard and formulating ideas, but work still needs to be done. I recognise that the hon. Gentleman is seeking clarification and a commitment from the Government that we will continue with the process. I cannot put it any more clearly than this: I would like to see it successfully concluded. I would be happy—I know my colleagues in the Scotland Office would be enthusiastic, too—to work with hon. Members and local partners to see it delivered, if we can come up with the right proposal and the detail can be provided. If the figures stack up and the proposal works, it could be very good for the area the hon. Gentleman represents. Indeed, it would be good for the wider area represented in the House this evening and good for the UK.

The track record of city deals is a successful one. Significant local growth has been generated by listening to those who know what local economies need, and by recognising that different areas need different things and will want to focus on different priorities. They need support to do that effectively. The hon. Gentleman has made a very clear case. He and I have quite a different view on the UK’s membership of the EU, but we share a common interest in driving growth and empowering people to make the best of the wonderful opportunities that exist in the diverse country we are here to represent. I am very happy to give the hon. Gentleman assurances to that effect. I am very happy to continue, for as long as I am in this position, to support the city deals programme, and to work with him and his colleagues to deliver it.

[Hannah Bardell (Livingston) (SNP)]

Just a little update for the Minister, if Mr Speaker will indulge me: the Chancellor has just resigned. Will the Minister be able to shed any light on whether city deals will even still be on the table?

[James Wharton]

I am not sure if that was a hint from the hon. Lady that I should be checking my phone and ensuring it is fully charged. I do not know what might follow.

This is a time of change and we have a new Prime Minister. There will be a new Chancellor, whoever that may be. The track record of city deals is that they have been shown to deliver growth and boost local economies. They have been welcomed across the House and across the political divide for those very reasons. I have no doubt that whoever is appointed Chancellor in due course will want to drive growth and empower communities to unlock the potential that undoubtedly exists in them. I cannot speak for whoever that might be more directly than that, but I can assure the hon. Lady that I share the broad sense of direction put before the House in the debate this evening.

We all want to see local people empowered to make the best of the communities in which they live. We all welcome agreement about how that can be done, particularly when it is cross-party. City deals have been a successful programme, one to which this Government have been firmly committed. I want to see the programme taken forward and more done with it. I am happy to join the hon. Lady, and any hon. Member, in making that case in due course, but I cannot go further than that, as I am sure she will appreciate, because my phone has not yet rung this evening.

I want to end on a positive note. The hon. Member for Dundee West has made a strong case. My right hon. and hon. Friends in the Scotland Office will be keen to follow the debate that has taken place this evening. They are following this matter very closely. I hope the city deal can be delivered for the people he and his colleagues represent. I am convinced that in the future the city deals programme will be looked back on as something that helped to drive growth right across the United Kingdom.

Question put and agreed to.