Economic Growth: South-west

Debate between Matthew Offord and Chi Onwurah

Tuesday 5th February 2019 Westminster Hall

[Chi Onwurah]

I thank my hon. Friend for emphasising the importance of Airbus to the south-west; I absolutely accept that point. The warnings of industry leaders and companies such as Airbus and Nissan need to be taken seriously by the Government, and listened to.

As the hon. Member for Tiverton and Honiton (Neil Parish) emphasised, the south-west has one of the highest skills gaps in the UK, with a third of all small and medium-sized businesses having difficulty hiring people with specialist skills. That will only worsen after Brexit, if the Government press ahead with plans to slash so-called low-skilled immigration. Businesses will be even harder pressed to find and retain labour, as we have heard.

More than that, the south-west has been a major beneficiary of EU funding, receiving the second largest share of regional development funding and social funding. The key economic hubs of Bristol and Swindon are among the largest UK recipients of Horizon 2020 research grants, from which we get more back than we put in. After the UK leaves the EU, that hole will be filled by the Government, but the existing institutions exhibit the kind of south-eastern bias that means that, for example, the south-west receives half the per capita UK Research and Innovation funding that London got in 2016-17. How will the Government ensure that funding is replaced in a way that does not exacerbate regional inequalities?

At the heart of all those challenges is the need for a strong, positive industrial strategy, capable of building and rebuilding the economy to meet the challenges of the future and of Brexit. Unfortunately, we have seen no evidence of one. Labour has the answer. [Laughter.] Hon. Members should listen. We are committed to raising spending on research and development to 3% of GDP by 2030—an additional £1.3 billion in public investment. That will get us part of the way, and will certainly benefit the region’s burgeoning tech industry, which grew 47% from 2014 to 2016.

Much of that additional spend will draw on our industrial strategy, which is about investing in areas such as nuclear power as part of our commitment to low-carbon energy, ensuring that we have the skills for Somerset’s Hinkley Point.

[Dr Offord]

Will the hon. Lady give way?

[Chi Onwurah]

I am afraid I will not; I simply do not have time.

We will improve digital infrastructure, as part of our commitment to an innovation nation. That will be complemented by the £250 billion national transformation fund, which will enable the growth of the infrastructure needed to increase productivity and investment.

Successive Tory Governments have refused to invest in transport. My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) highlighted that today is the fifth anniversary of the Dawlish railway line being washed away. Labour has only two Members of Parliament in the far south-west and seven in the region as a whole, yet we have committed to fund the Peninsula Rail Task Force’s recommendations. Why can the Minister not match our commitment?

[Dr Offord]

Will the hon. Lady give way?

[Chi Onwurah]

I am afraid I will not give way.

Regional disparities and the unique issues facing the south-west are the reason we need the £250 billion national investment bank. [Interruption.] May I just point out that we have heard much more from Government Members than Opposition Members so far?

Many Members mentioned the need for regional investment. Our network of regional development funds will ensure that regional needs are put first and that local decision makers decide what is right for their area. The future of the south-west, and of our country, depends on a real industrial strategy that lays a path for a high-wage, high-skill, high-productivity region. The Government should follow Labour’s example in crafting a visionary, vigorous and viable industrial strategy.

[Rebecca Pow]

rose—

[Dr Offord]

Will the hon. Lady give way?

[Chi Onwurah]

If the hon. Gentleman insists, I will give way briefly.

[Dr Offord]

Labour has obviously announced many spending commitments. Perhaps the hon. Lady could explain to the House where Labour will get an additional £1 billion to invest in water quality in the south-west when it has nationalised South West Water?

[Chi Onwurah]

I would love to give the hon. Gentleman a basic lesson in economics and explain that the Tory Government’s economics of austerity have failed entirely to produce the productivity and rising wages that can deliver the tax base for such investments. I hope to hear from the Minister how he will address that.