Rebalancing Regional Economies

Luke Myer Excerpts

Wednesday 14th May 2025 Westminster Hall

[Andy MacNae]

I entirely agree with my hon. Friend. Indeed, the requirement for bespoke interventions is the thrust of the latter parts of my speech.

Whether places such as Bacup feel the benefit of Government interventions is a test for whether we are delivering growth for all. The last Government failed spectacularly in this challenge and, if we are to avoid the same fate, we must do things differently.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

It is now nearly 13 years since the Institute for Public Policy Research North published its landmark report, “Northern Prosperity is National Prosperity”, which set out in black and white the evidence that investing in the regions—all regions across the UK—is one of the best ways to achieve growth nationally. Does my hon. Friend agree that it is long past time that we devolved power and funding in order to create jobs in all our communities across the UK?

[Andy MacNae]

I thank my hon. Friend for that intervention—I remember that brilliant report very well, and that process of devolution is a crucial element of getting this right.

What are the underlying issues and what can we do about them? It is perfectly understandable that, in looking for growth, we go first to places where it can be achieved most easily at scale and at the lowest cost. That is an instinct backed-up by long-established practices. We see it manifest in announcements around the Oxford-Cambridge corridor, the lower Thames crossing, Heathrow and Old Trafford.

--- Later in debate ---

[Alex Norris]

I recognise that Cornwall is different. That point is obviously established in multinational architecture as well. There is no doubt that there are differences in Cornwall. I know that my hon. Friend and his Cornish colleagues are making that case very strongly to my hon. Friend the Minister for Local Government and English Devolution, and I am hearing that case as well. We know that that will continue. We need to have a programme that fits, and my hon. Friend will understand our need for coherence, too, but I appreciate the spirit in which he makes his point. I know there are differences in Cornwall, and those conversations will continue.

[Luke Myer]

Do the Government accept the subsidiarity principle wherein powers should not just sit at the mayoral level, but should be as close to the community as possible? That would empower our local authorities and communities themselves, rather than just creating structures that sit above communities and are distant from them.

[Alex Norris]

My hon. Friend, with characteristic vigour, takes me to the next part of my argument. I do not see the finished devolution product being a shift of power from Whitehall and Westminster to a regional or sub-regional body that is far away from communities and the local authority. I think that transfer is an unalloyed good, but I do not think it is the whole job.

That is why I was so pleased that my hon. Friend the Member for Rossendale and Darwen was the one who opened the debate. Our plan for neighbourhoods is a step in that direction—we are saying that we want money and power to be held at a neighbourhood level, to shape place. We think that is the second part of devolution. The first part probably gets the most public attention—creating new mayors and new structures creates a lot of interest. For me, the magic is in that next stage, which is where communities really take control for themselves—and of their future.

That is not just rhetoric from me; we have put our money where our mouths are. The £1.5 billion we have committed to the plan for neighbourhoods will deliver up to £20 million of funding and support for 75 areas over the next decade. It is hopefully a starting point. In April I had the pleasure of visiting two of the areas, Darwen and Rawtenstall, which are in my hon. Friend’s constituency. I was struck by the energy—my hon. Friend always has that characteristic energy, of course, but his former colleagues in local government had it too, as well as the neighbourhood board and all the folks who had come to play their role in that process. I was struck by how ambitious they were for their communities, and the plans they had. As I go around the UK talking to people, mentioning local growth and the plan for neighbourhoods, it is striking how they want to use the money to catalyse further investments in their communities.