Industrial Strategy: North-East of England

Mary Glindon Excerpts

Wednesday 5th June 2019 Westminster Hall

[Mary Glindon (North Tyneside) (Lab)]

I beg to move,

That this House has considered industrial strategy in the North East of England.

It is an honour to serve under your chairmanship, Mr Betts. I am delighted to have been granted this debate on such a crucial subject for our region. There are two local enterprise partnerships in the north-east, so we have two local industrial strategies: one for seven north-east local authorities, and one for the Tees valley. My area is covered by the North East LEP, which leads on the creation of the local industrial strategy, as its footprint includes two combined authorities: the newly created North of Tyne combined authority and the North East combined authority. As the North of Tyne combined authority has a devolution deal that specifically refers to the LIS, the picture is a little more complicated than elsewhere, as the Minister will appreciate. However, both combined authorities are working together, and with businesses and partners and through the LEP board, to make sure the local industrial strategy makes sense for residents and businesses in the north-east.

I will not talk about the north-east’s fantastic industrial and inventive past, because we see that backward look too often in the region, and although it is important to recognise that we have been passionate, ambitious and innovative for hundreds of years, looking back does a disservice to the brilliant people and businesses that we have today. It does not highlight the fact that the north-east has proportionally more businesses in manufacturing—10.5% against 7.7% nationally—or the fact that in 2018, the growth in the number of businesses massively outstripped what was happening nationally; we had 14.2% growth, versus a national fall of 0.5%, and we have seen a growth in productivity since 2014. Those are positive things, but that is not to detract from the less positive things happening in the region that I think my colleagues will talk about.

Looking back would not highlight the fact that the north-east is a brilliant place to live; I am sure all of us in this room agree on that. It is way more affordable than significant parts of the country. As of March, our average house price—for a very nice house—was £123,000, whereas the national average was £227,000, so I urge people to look at relocating to our area.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

Not too many.

[Mary Glindon]

Perhaps not too many, but all are welcome.

I want to talk about what is strategically important to the north-east today, and what will make a difference to our future. For the north-east, the industrial strategy and the local industrial strategy will be about our ambition, the sectors in which we are strong, and the infrastructure that will lead to growth, and they have to be about turning strategy into action. The LIS is seen as building on the north-east strategic plan, which was agreed with businesses and communities of all shapes and sizes. It has an ambition for more and better jobs—100,000 jobs by 2024, with at least 70% being what are termed better jobs in managerial, professional and technical roles. We have already seen more than 64,000 new jobs created, of which 77% are classed as better jobs, but we need more investment and support from the Government, so that more can be achieved, and we need the right infrastructure put in place.

Yesterday, some of us went to the drop-in held by Highways England. I was pleased to go and congratulate it on the fantastic new Silverlink interchange on the A19, which has massively improved access to the Tyne tunnels. It was done on time, through collaboration between the council, businesses, and Highways England—a great feat for the region.

[Alex Cunningham (Stockton North) (Lab)]

I also visited the Highways England drop-in yesterday; my hon. Friend and I were there at the same time. I was told that the project to widen the A19 between Wynyard and Norton will go ahead in May. Will she join me in welcoming that, and an end to the terrible noise that the people of Billingham suffered as a result of the project?

[Mary Glindon]

That is fantastic news. I hope that the project is done in the same timely way as Silverlink was, and with minimum disruption.

I hope the Minister is aware that a team from the north-east has been talking to the Government about how to make real the industrial strategy’s grand challenge on ageing, by working with local businesses of all sizes and with our universities. There is an opportunity to meet that challenge in our region. There is definitely a commercial opportunity and benefits for society in working with a population that is living longer. There are benefits for expertise, too. In my constituency, Procter & Gamble’s research and development team is focusing on what its older customers will need to live happy and independent lives. We know about a lot of projects that would influence that.

Across our region, there is groundbreaking work in health and life sciences. I am sure colleagues here will expand on that. The north-east has real strengths in the offshore renewables sector, and our region is ready to take advantage right away of any changes in that environment. Shepherd Offshore, Smulders, WD Close and SMD are all top-class, world-renowned companies in my constituency making a difference across the sector, but they could do even more with the right investments; I will continue to go on about that in Parliament.

One of the main things that hinders the development of those industries to some degree—this is important to South Tyneside, Gateshead and Newcastle—is the need to find a way to secure a significant investment to re-route the National Grid power lines that cross over the Tyne. That would make such a difference in how the Tyne is viewed by companies from around the world. I have been pursuing the issue for a while locally, with National Grid and with another Department for Business, Energy and Industrial Strategy Minister, and I am pleased that all four local authorities, the port of Tyne and the North East LEP are working together to look at how the power lines can be diverted to secure further contracts and local jobs for companies up and down the Tyne. I know it is a vast sum of money—around £20 million—but where there is a will, there is a way, and that is what we are working on.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I congratulate my hon. Friend on making a powerful, important and positive speech about our region and its opportunities. She makes the case for the power of public investment and private sector partnership. Does she agree that it is not only large business that should invest in our region? So should small and medium-sized businesses, which are the lifeblood of our economy. For example, Sage, which is headquartered in my constituency, is working really hard to develop a strategy for a public-private partnership, so that through our public sector organisations, there is more support for growth, investment, productivity and exporting. However, it needs a clear industrial strategy to back that up.

[Mary Glindon]

That was an excellent intervention, which the Minister must have heard. I can only agree wholeheartedly with everything my hon. Friend said.

On digital and data, the north-east’s history of engineering excellence continues in the digital age. North Tyneside was recently judged to be a hotspot for digital growth. In my constituency, and that of my right hon. Friend the Member for Tynemouth (Sir Alan Campbell), our residents work in world-class digital businesses, such as Accenture and DXC Technology. There is also groundbreaking public service digital work in the Department for Work and Pensions and Her Majesty’s Revenue and Customs, and work in local companies such as Perfect Image and Infotel UK.

The most important strength in our region is our people. We have thousands of skilled, passionate and hard-working people who drive our economy, creating and leading businesses, large and small, and working together to serve the region. Although the devolution of the adult education budget to the North of Tyne combined authority is a start, and the national careers strategy gives some important pointers, we need to ensure that we leverage the capabilities of local people.

The industrial strategy and local industrial strategy needs must be backed up with deeds. We need sector deals, which make a real difference, and clear support and investment in skills, with joined-up thinking across Government. I ask the Minister to commit to working closely with colleagues in the Department for Transport to ensure that the east coast main line upgrade is prioritised, and that our north-east transforming cities bid gets solid backing.

In both cases, there is a compelling economic case for investment. Colleagues right up the east coast of England and Scotland know that the east coast main line is as critical as investment in HS2. On the transforming cities bid, we are all working together to continue to secure investment to upgrade the metro, to reopen the Northumberland-Newcastle line to passengers, and to ensure that people and businesses can make the right connections in Sunderland, South Tyneside and Durham.

As the north-east is the only region that exports more than it imports, we will be hit hardest by Brexit. I had not mentioned Brexit up until now, but it had to come in somewhere. For 2014 to 2020, our region received £437 million from the European structural investment funds, which will be replaced by the shared prosperity fund post Brexit. The consultation was expected last year, but we know that the Brexit timetable has changed.

The consultation has been postponed, with as yet no further date announced. Worryingly, it has been said in response to recent parliamentary questions that the final decision on the fund’s design will be taken during the spending review. However, the spending review report will be published only with the Budget in the autumn. I hope that the Minister can tell us a bit more, and assure us that the consultation will begin soon. We do not want any gaps in replacing the loss of European funding.

I will be quiet now, because colleagues wish to talk about the industrial challenges in their constituencies. Those challenges are many, and influence the current and future prosperity of our region. I hope that the Minister has listened to what I have said, and will listen carefully to everything that my colleagues ask of him, and that he will give us clarity and reassurance that the Government are prepared to commit adequate support and resources to our great region, so that it can flourish for everyone in the north-east.

--- Later in debate ---

[Mary Glindon]

I neglected to congratulate the Minister on his appointment. We are all pleased to hear that he has roots in the north-east and a personal knowledge of it, and we will call on that—he has dropped himself right in it.

I hope that the issues about British steel, which have been stressed over and again, will be carried forward because they are so important. Will the Minister take on board and pass on the message that a no-deal Brexit is no good for the north-east in any shape or form? It would be catastrophic.

Members in the debate have shown the pride of the north-east today. We want an industrial strategy that works for everyone—as the Minister said, to get prosperity in every region so nobody misses out and everyone can flourish in the north-east through a good industrial strategy. We will push the Minister as we move towards the publication of our industrial strategy. Thanks again to everyone who has participated in this debate and to you, Mr Betts.

Question put and agreed to.

Resolved,

That this House has considered industrial strategy in the North East of England.