Coastal Infrastructure: Scotland

Martin McCluskey Excerpts

Tuesday 26th November 2024 Commons Chamber

[Martin McCluskey (Inverclyde and Renfrewshire West) (Lab)]

I congratulate my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) on securing this debate. As others have said, this is his second Adjournment debate in a matter of weeks, so the hon. Member for Strangford (Jim Shannon) might have some competition. I represent a coastal constituency, so I am pleased to respond on behalf of the Government.

I am sure the whole House will agree when I say that the UK is blessed with a wonderful coastline, and nowhere more so than in Scotland. As much as it might pain me as the MP for Inverclyde and Renfrewshire West to admit that there are some beautiful stretches of coastline that are not in reach of Wemyss bay, Inverkip, Greenock, Gourock or Port Glasgow, I will grudgingly admit to my hon. Friend that the Fife coastline is indeed beautiful and, as he has highlighted this evening, has the potential to contribute to the growth of our economy, particularly through our world-class ports. We have heard about his proposal for Rosyth, to which I will return later.

Ports will play a crucial role in the development and deployment of the offshore energy projects that are essential to meeting our clean energy mission, as well as facilitating the international trade that is vital to meeting our mission of turbocharging economic growth. It is therefore right that we support these communities with the infrastructure they need to thrive. That is why the UK Government have announced the creation of the national wealth fund, backed with £7.3 billion, including £5.8 billion of capital funding for five priority sectors, including port infrastructure. This will drive investment in ports across the country, delivering the change we need to achieve our mission of growing the economy.

The national wealth fund will build on the work of the UK Infrastructure Bank, which has a strong track record of investing in port infrastructure across the UK. Indeed, the national wealth fund is providing £50 million, which has been matched by the Scottish National Investment Bank, towards a £100 million joint credit facility for the Ardersier port. This project demonstrates the potential of our national wealth fund investments. The site is currently the largest brownfield port in the UK but, when complete, it will become a nationally significant infrastructure facility, spanning 450 acres. This game-changing investment will redevelop the port, developing its capacity to deploy offshore wind infrastructure at an industrial scale, driving forward our net zero ambitions. I make it clear to my hon. Friend and other Members that this project is just a start, and further details on securing national wealth fund funding will be set out in due course.

My hon. Friend set out his vision for the port of Rosyth. I would be delighted to assist him, alongside officials in the Scotland Office, in his engagement with the national wealth fund for projects in his constituency. My right hon. Friend the Chancellor has been crystal clear that if growth is the challenge, investment is the solution. That is why this Government will invest in the jobs, industries and infrastructure of the future through the national wealth fund and GB Energy.

Alongside that, our new industrial strategy, currently being developed by the UK Government in consultation with the Scottish Government, sets a credible 10-year plan to deliver the certainty and stability businesses need to invest in the high growth sectors that will drive our growth mission. The strategy will take advantage of the UK’s unique strengths and untapped potential, enabling our already world-leading sectors to adapt and grow, and seizing opportunities to lead in new and emerging areas.

Many of the priority sectors identified in the emerging strategy, such as clean energy and defence, will directly benefit and build on the strengths of our coastal communities. The strategy will take a place-based approach, driving growth in towns, cities and regions around Britain. We will work tirelessly to deliver growth through this strategy for communities across the UK.

We will also look internationally for opportunities. As my hon. Friend set out, increasing export markets for Scottish businesses are crucial for our success. That is why we are committed to promoting Brand Scotland around the world. Indeed, my right hon. Friend the Secretary of State for Scotland is currently in south-east Asia meeting businesses and Government Ministers to encourage investment here at home.

However, we cannot go it alone. As others have said, we must work closely with the Scottish Government, combining our respective powers to deliver on these ambitions, which is why we are resetting the relationship with the Scottish Government. Across a range of areas, we are working together with them to deliver for communities and strengthen our economy. We are backing the Scottish Government to deliver, with a record block grant of £47.7 billion for 2025-26, with a further £3.4 billion via the Barnett formula. That is the largest settlement in real terms since devolution began.

As a result of the decisions that this Government have taken, we have been able to confirm the UK Government’s commitment to investing nearly £1.4 billion in important local projects across Scotland over the next 10 years. I am delighted to say that that includes £26 million for the Forth freeport, subject to full business case approval. The Forth green freeport is expected to support thousands of jobs and bring in millions of pounds of investment across its sites in Edinburgh, Fife and Falkirk. Local partners estimate that it could create up to 34,500 jobs and generate £7.9 billion of private and public investment over the next decade.

My hon. Friend mentioned that he has written to the Treasury regarding possible upgrades to the port of Rosyth. I am aware that the Chancellor has recently responded to his correspondence and, as I said earlier, I would be delighted to assist him in engaging with the national wealth fund. If he would like a further discussion with the Treasury on that subject, I would be happy to facilitate a meeting with my noble friend the Financial Secretary to the Treasury for him to discuss the issue further.

As my hon. Friend said, decisions also need to be made by the Scottish Government. Engagement and support from the Scottish Government and Transport Scotland will be necessary to deliver the project he mentions. I encourage Scottish Government Ministers and officials to engage closely with my hon. Friend to discuss the proposals in more detail. I will do all I can to support him in fighting for opportunities for growth in his constituency, and I know that both the Secretary of State for Scotland and the Minister for Scotland share this desire.

May I once again pay tribute to my hon. Friend, and to Members who have intervened in the debate? I am sure they will join me in agreeing that this is a vital issue that we must get right to ensure Scottish coastal communities play their rightful role at the heart of this Government’s ambitious agenda.

Question put and agreed to.