Stirling and Clackmannanshire City Region Deal

Luke Graham Excerpts

Monday 18th February 2019 Commons Chamber

[Stephen Kerr (Stirling) (Con)]

I am delighted to have secured this Adjournment debate on the Stirling and Clackmannanshire city region deal. I am proud, too, that this Conservative and Unionist Government have made it possible for every single one of Scotland’s cities to have a city deal, adding up to billions of pounds of public investment unlocking many billions more in private investment. It is a Government record that all Scottish Conservatives can and should be proud of, and one that will bear fruit for Scotland’s economy and Scotland’s people well into the future. City deals drive investment in infrastructure. A city deal sends a strong signal from the Government that they have confidence in the future of the city and the region and that they are prepared to commit public funds to make that future a reality. City deals are designed with the intention of transforming the local economy and creating a landscape in which individuals, communities and businesses are enabled to explore their full potential.

The genesis of the Stirling city deal was the realisation that Stirling’s economy had several structural weaknesses that needed to be addressed. First, while Stirling is the best place in Scotland for people to set up and start a business, and the best place in Scotland for a large established business to continue its journey—

[Luke Graham (Ochil and South Perthshire) (Con)]

I thank my hon. Friend for giving way. He is of course speaking about the Stirling and Clackmannanshire city region deal, and Clackmannanshire shares the accolade of being one of the best places to start a business in Scotland.

[Stephen Kerr]

I am grateful to my hon. Friend for his well-intentioned correction.

While Stirling is also a great place for large established businesses to continue their journey, we have a real issue locally when it comes to small businesses scaling up to become successful larger businesses. The lack of scale-up businesses is due in part to a shortage of the right kind of business space and a shortage of the skills most needed by employers to grow their businesses. The situation is not helped by a shortage of housing of all types in Stirling, and the need for microbusinesses to be given the practical business support they need to help them on their commercial journey. Secondly, Stirling’s economy is held back by wealth inequality. We have some of Scotland’s wealthiest and poorest postcodes, and we need a more inclusive approach to economic development.

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[Stephen Kerr]

I have no hesitation in doing so, and I was challenged on this earlier. Do I welcome the positive actions of the Scottish Government? Of course I do, and I welcome the additional investment that the Scottish Government promised for the city deal. It is targeted, and I support the Scottish Government’s utilisation of public funds in that way.

We need the MOD land at Forthside to be released. The site needs to be decontaminated and handed over as soon as possible. How soon can that be done?

The new-build tartan centre will bring additional private sector investment almost immediately. We must start on the national tartan centre soon, and I would love to see one of my right hon. Friends on the Treasury Bench coming up to Stirling with spade in hand to turn the sod and start the construction. Why not?

[Luke Graham]

I look forward to those same Ministers coming across to Clackmannanshire to help start the international environment centre in Alloa west. Does my hon. Friend agree that the £8 million capital fund set aside by the UK Government to assist Clackmannanshire, which had less regional assistance spending to develop its business cases, is unprecedented? It is a first for any city deal in Scotland and has enabled us the time and space to develop new projects that will benefit Clackmannanshire in the short term and for many years to come.

[Stephen Kerr]

I pay tribute to my hon. Friend for his work in securing that unprecedented amount of money for an untagged project. He and I have had long discussions about the importance of the UK Government being active in the Scottish economic scene. I will come on to say something more about that, with which I hope he will agree.

We need to make sure that all parts of Stirling, whether geographic or social, can benefit from this deal. In rural Stirling, we want to see financial and other practical support for rural business hubs. Some of these are already delivering for their communities, and the businesses that will be located there will grow and diversify the local economy—that is badly needed. We need them in other areas of Stirling, especially in the eastern villages of Cowie, Plean and Fallin.

Digital connectivity was mentioned earlier by my hon. Friend the Member for Angus (Kirstene Hair) and it is important, and our bid should be to ensure there is digital connection that these villages in rural areas can benefit from. No area should be left behind. We need to build a digitally connected district beyond the city centre. Local full fibre networks are a great way to do this, and we have commercial investment happening in Stirling though CityFibre. This fantastic investment will make Stirling truly a digital city, but in rural areas, including the eastern villages, we need this investment. I call on the Government, who have responsibility for connectivity, to make direct investment in these areas and make that a reality.

We need government, especially the Scottish Government, to get serious about rural infrastructure. Whether we are talking about getting a new bridge for Callander, which would transform the economy there, or turning the A811 Stirling to Balloch road into a trunk road, the needs are there to be seen. I would like to see these projects treated as major upgrades to the national infrastructure, because of the positive economic benefit they would bring far beyond the communities where those items of infrastructure would be constructed. These benefits would be real, impactful and immediate. It is imperative that all levels of government pull together in such areas.

Today, I ask the Minister to comment on what additional support could be given. We have the commitment for funding on the projects, but what I feel is lacking is a stronger overall commitment from the UK Government to get more heavily involved in promoting and investing in the Scottish economy; I am concerned about a lasting thought of “devolve and forget” in the UK Government. I want to hear assurances from Ministers that the UK shared prosperity fund will be used for this purpose by the UK Government in Scotland.

There are very few UK Government departmental offices in Scotland, with the only significant presence of any Department being that of the Department for Business, Energy and Industrial Strategy in Aberdeen, where an office is dedicated to promoting the oil and gas industry. The Scottish economy is more varied than that, and the case for a UK Government presence in central Scotland is compelling.

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[Stephen Kerr]

Oh, there is a great deal to learn from the Glasgow city deal. Of course I acknowledge the existence of DFID in East Kilbride and the amazing work it does. As the hon. Gentleman knows, I am great supporter of the work of that Department, and I would hate to see it absorbed into the Foreign Office, for example. Whether the Treasury, BEIS, the Department for International Trade or the Home Office, these Departments serve the purposes of the wider Union, and Scotland needs to see that it is part of the United Kingdom. London must not be the be-all and end-all when it comes to sharing out UK Government functions and personnel, and the city deal in Stirling and Clackmannanshire offers us an opportunity, not only to see the Union flag flying on projects in Stirling, funded by taxpayers from the whole UK, but to see that commitment made real on the ground, with Departments of the Union there supporting, and not remote and distant.

I mentioned the work of Stirling Council earlier. I will close soon, so that the Minister can reply, but I should mention the excellent work done by the officers of Stirling Council, who have shown themselves to be skilled and able to punch well above the weight one would expect of a council of that size.

[Luke Graham]

My hon. Friend is making an excellent point about how different levels of our government work together. Having been part of two city deals, it has been clear to me that we need to use these deals as a learning point. Both the central Government in Westminster and the devolved Administration need to look at how they work with each other and to find methods that are more transparent and effective at delivering for our constituents.

[Stephen Kerr]

I agree with my hon. Friend. He and I have the scars from our learning experience with the city deal we are discussing tonight, and the learning from Glasgow and Edinburgh needs to be taken on board. There are better ways to do the things that we do. There is always room for continual improvement.

Shared Prosperity Fund: Wales

Luke Graham Excerpts

Wednesday 14th November 2018 Westminster Hall

[Ian C. Lucas]

My hon. Friend must have read my speech on the quiet, because my next question is who will administer the fund—will it be administered by the UK Government or by the devolved bodies?

[Luke Graham (Ochil and South Perthshire) (Con)]

The hon. Gentleman is making a very interesting speech, but does he not see the advantage of having the UK shared prosperity fund administered centrally, to ensure that it has the depth and breadth to fund the projects that are needed around the United Kingdom? For example, tidal power schemes may need more than the amount that would be allocated on a devolved nation basis. Secondly, does he not appreciate that as we leave the European Union, it is a good time for Members of this House to strengthen our own Union by advocating that projects be funded directly here in Westminster?

[Ian C. Lucas]

It is interesting, isn’t it? The EU rules apply EU-wide, so there is a certain logic in a UK prosperity fund having UK rules that apply across a single market within the United Kingdom. I would not want a race to the bottom as a result of rules being applied differently in different countries of the United Kingdom, so I understand the argument for applying a single set of rules so that we do not have state aid in one area being weighed against another—just as the same general EU rules have applied across the UK despite devolution.

This debate is an important one, but we have not had it yet. That was a big mistake, because we could have spent the past 18 months or two years discussing these hugely important issues. I would like that to start today, and I will be very interested to hear the contributions of colleagues.