East Midlands Economy

Luke Hall Excerpts

Tuesday 7th September 2021 Westminster Hall

[The Minister for Regional Growth and Local Government (Luke Hall)]

Thank you, Sir David. It is a pleasure to serve under your chairmanship, and indeed to be back in Westminster Hall. I congratulate my hon. Friend the Member for Mansfield (Ben Bradley) on securing this important debate, and thank all right hon. and hon. Members for their contributions. The thing that has been shared universally is a passion for securing the best possible future for the region, and securing investment and the maximum support possible for everybody’s constituents. That goal is absolutely shared by the Government.

I also congratulate my hon. Friend the Member for Mansfield on all the progress that he has made in his role as the leader of Nottinghamshire County Council. We all recognise that such strong local leadership is essential for securing our economic recovery and for levelling up. I join the shadow Minister, the hon. Member for Manchester, Withington (Jeff Smith), in thanking all local authorities in the east midlands for the hard work and leadership that they have provided in leading the way through the recovery.

We are committed to unlocking economic prosperity across all regions of the country. We want to address long-standing geographical inequalities, deliver economic opportunity and improve lives right across the country. As the Prime Minister announced in May, our landmark levelling up White Paper will be published later this year, and will set up bold new substantive policies that will improve opportunities, support businesses and boost livelihoods across the country, including in the east midlands. Indeed, an east midlands MP, my hon. Friend the Member for Harborough (Neil O’Brien), has been appointed the Prime Minister’s adviser on levelling up. Only last week, our officials were in the east midlands to hear first-hand some of the opportunities available in the region, and some of the challenges faced.

The levelling up White Paper will be a natural continuation of our commitment to support local places. We are already backing that up with our ambitious investment programme, including the £4.8 billion levelling-up fund that was announced at the last spending review. That will be available to all parts of the country and will help improve everyday life. It will include regenerating town centres and high streets, improving connectivity—we heard about that this morning—and investing in cultural and heritage aspects. Those are exactly the kind of projects that my hon. Friend the Member for Mansfield said are so urgently needed in the region.

[Lilian Greenwood]

I was listening carefully to what the Minister said about levelling up. He has heard how the east midlands receives lower than average Government investment in a whole range of areas, including transport. Is it his Government’s intention to address that shortfall? When he talks about the levelling-up fund being available to the whole country, does he not envisage priority being given to an area such as the east midlands, which historically has missed out, to level us up? Is that his intention?

[Luke Hall]

We have been clear about the areas of the country that are in the highest categories of need. The levelling-up fund is based on the fund’s priority themes of economic recovery, transport connectivity and regeneration. We have recognised that need in three districts in Nottinghamshire: Bassetlaw, Mansfield and Newark and Sherwood, as well as the city of Nottingham, which has been identified as a category 1 priority. In Derbyshire, Derby and the districts of Chesterfield, Derbyshire Dales, Erewash and High Peak have been identified as category 1, as has the city of Leicester. Those bids are being assessed and an announcement will be made later this year.

[Nadia Whittome]

Will the Minister publish the metric by which those calculations are made? I do not understand why the Chancellor’s constituency, which is among the top five most prosperous in the country, has been considered a priority for levelling up, but not constituencies such as ours, where the Minister has heard that over a third of children live in poverty.

[Luke Hall]

I just outlined the numerous places in the east midlands that are in category 1. Significant information about the indexation is published on the Government’s website. I urge the hon. Lady to look at that.

There is an important role here for the Members of Parliament. We recognise that formally in the levelling-up fund and we encourage the hon. Lady to make a case through that. We recognise the significant number of category 1 places in the east midlands. We have heard significant pleas for extra investment in the east midlands. A number of Members have talked about making sure we deliver that on the ground. We have made significant investments in the region in recent years, including committing £212 million for nine town deals: two in north-east Derbyshire, one for Loughborough and one for Stapleford. We are investing £49 million in five high streets in the east midlands, over £370 million in the local growth fund and £64.5 million in getting building funding. That will help to drive local growth and economic recovery in the region. Some of those are already bearing fruit at a local level. The £2.6 million local growth funding we awarded for the Vision University Centre Mansfield is helping West Nottinghamshire College to address the skills gaps in the area. The £3.7 million of local growth funding has supported the opening of the Museum of Making in Derby in May 2021, as part of the redevelopment of the historic silk mill. There is £9.5 million of local growth funding supporting the opening of a technology institute—a new build that provides facilities for skills development, to meet the needs of the automotive industry in Leicestershire. The east midlands has received over £3 billion in covid recovery grants, including small business and retail, hospitality and leisure grants, local restriction grants, support payments and restart grants.

We think partnership working will be key to levelling up. On the proposed East Midlands Development Corporation, we are already engaged in some excellent joint working with local partners. My hon. Friend the Member for Mansfield highlighted the key intervention in the four opportunities that he spoke about. We are currently considering the draft business case with propositions at Ratcliffe-on-Soar, East Midlands airport and Toton. I commend the councils involved, including Nottinghamshire County Council, for maintaining that momentum by setting up a company as an interim vehicle in establishing a locally led urban development corporation. That really shows the intent and local leadership. As set out in the Queen’s Speech, we intend to reform the development corporation legislative framework through the Planning Bill to ensure local areas have access to the appropriate delivery vehicles to support growth and regeneration.

This partnership approach will be crucial in developing plans for another significant opportunity in the east midlands. I was of course pleased to see that the east midlands freeport was selected early this year as one of eight new prospective freeports, subject to business case approval. Of course, East Midlands airport—the largest dedicated cargo operation in the country—is based in the prospective freeport. It will be a key economic asset in the east midlands. The right hon. Member for Derby South (Margaret Beckett) said that will happen only if the Government share the enthusiasm to deliver those projects—we absolutely do.

I particularly want to put on the record my thanks to my hon. Friend the Member for Rushcliffe (Ruth Edwards) for all her work in driving the project forward, and my hon. Friend the Member for Bassetlaw (Brendan Clarke-Smith) for his support. We recognise the scale of the opportunity that the project presents for the east midlands. The region’s connectivity to other freeports and the combination of airport and rail port create a distinctive offer for the region. We are keen to see all partners working together to deliver this for the east midlands and build a strong outline business case, due for submission very shortly. We will continue to work with colleagues across the east midlands to develop robust plans to capitalise on the local growth agenda that can be delivered here.

We heard a lot about HS2. We absolutely recognise the good work done by local partners, including Sir John Peace, Midlands Engine and Midlands Connect to identify the potential impact of HS2 on Toton and the wider east midlands. The IRP will be published soon and will outline exactly how major rail projects, including future HS2 phases, will work together to deliver the reliable train services that passengers in the midlands need and deserve.

I certainly heard the passion and the unanimous voice from hon. Members about providing certainty on the project. Of course, we will take that back to colleagues at DFT and ensure that their voice is heard. I particularly want to thank my hon. Friend the Member for Broxtowe (Darren Henry) and the hon. Member for Chesterfield (Mr Perkins) for making the point clearly that certainty is required. Given the long-term significance of decisions within the IRP, it is of course right that we carefully consider those priorities and take on board evidence from a wide range of stakeholders before making the final decisions.

My hon. Friend the Member for Loughborough (Jane Hunt) talked about the importance of delivering fairer council funding. She is aware that we had to postpone the review of relative needs and resources due to the pressures on councils getting involved in that conversation during covid. We think that was the right path, but we made some changes this year, including extending the rural services delivery grant and providing £240 million of equalisation. I look forward to working with her as we continue to have a conversation about how to ensure councils are funded fairly. Of course, there was a 4.5% rise in core spending power for the east midlands this year, which she welcomed and supported at the time.

On devolution, I thank my hon. Friend the Member for Mansfield for his contribution, and I listened carefully to the arguments that he made. I am very grateful for the comments from the hon. Member for Nottingham East (Nadia Whittome) and for her support for securing a devolution deal. I recognise that it is a complicated picture across the region, but we certainly look forward to having the discussion.

There is so much more that could be said. I thank hon. Members for their contributions to the debate. I will certainly reflect on the points that have been made. I will take back to colleagues at the DFT and my Department the points about providing certainty, and we look forward to continuing to work with colleagues as we invest in this hugely important region and this important part of our agenda.