East Midlands: Local Authorities and Economic Growth

Michael Payne Excerpts

Monday 7th April 2025 Commons Chamber

[Michael Payne (Gedling) (Lab)]

Thank you for the opportunity to speak in this evening’s debate, Madam Deputy Speaker. I thank my hon. Friend the Minister for being here to respond to the debate. As my constituency neighbour, I know he is as passionate about Nottingham, Nottinghamshire and the east midlands as I am. I refer hon. Members to my entry in the Register of Members’ Financial Interests regarding my unpaid membership of two local authorities.

Ahead of important local elections across the east midlands, I am grateful to have this opportunity to lay out the importance of councils to our economy. Growth is this Government’s No. 1 priority. It will pay for our local services, our social security, from state pensions to universal credit, and our national defence. The Government are right to focus on growth. Under the last Government, we suffered a lost decade. Growth, income and opportunity were flat, and the east midlands suffered as a result. The gap between where we should have been on growth and where we are represents billions of pounds that could have been spent on essential public services.

The east midlands has been at the forefront of that decline, as a result of Conservative mismanagement. Our economy in the east midlands used to be strong, but deindustrialisation, a lack of investment and regional disparities in public spending have left us lagging behind other parts of the United Kingdom. The midlands was the industrial heartland of this nation. We have so much potential. We are the region that is most connected to the entire UK, with a distinctive mix of engineering, manufacturing, construction and sciences, but we now struggle to find the jobs, transport and opportunity that we had before. A lot of that comes from lack of investment, including a lack of investment in our local councils.

The east midlands receives the lowest level of spending per person across the United Kingdom. We receive the lowest level of capital spending and total spending. The facts speak for themselves: over the past 14 years, the east midlands was levelled down by the Conservative party. That inequity leaves our local government, our public services and our infrastructure investment billions of pounds short.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Member for securing this debate and he is right to highlight the issues, but the growth commission set up by the mayor is key to investment and the east midlands must make the most of the freeport it enjoys, which the Chancellor announced just a few weeks ago. That gives hope and vision for the future, and it is important to underline those possibilities. With great respect to the Conservatives, they promised us a freeport in Northern Ireland but they failed to deliver it. Does the hon. Gentleman agree that it would be great if the current Government would designate a freeport for Northern Ireland? That is essential. As is shown in the east midlands, Government support is an essential component for economic growth that sows into the wealth of the whole of this great United Kingdom of Great Britain and Northern Ireland.

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[Michael Payne]

The hon. Gentleman is right to pay testament to the Chancellor and the Labour Mayor of the East Midlands, Claire Ward, for unlocking nearly £1 billion in growth and investment from the freeport at East Midlands airport. He knows Northern Ireland politics far better than I do, but I think my hon. Friend on the Treasury Bench will have been listening closely to his powerful argument on behalf of his constituents. I wish him well with his campaign.

Under the previous Conservative Government, we heard a lot of talk about levelling up, but certain local areas were favoured over others, while the rest of us wondered when it would be our turn at the table. I welcome this Labour Government’s change to that approach: less selective, no longer pitting area against area, and with a genuine desire to grow every part of the United Kingdom. Our Labour mayor, Claire Ward, has started working with the Government to find areas to grow the local economy. In the past year, she secured £200 million of transport investment that will grow our economy by allowing people to get about our region more easily; she secured £160 million for the east midlands investment zone, to attract new investment and create jobs; and she secured the brownfield housing fund, which will build 1,400 new homes. However, she is held back by the previous Government’s piecemeal approach to devolution.

[Adam Thompson (Erewash) (Lab)]

I thank my hon. Friend for securing this important debate. I was recently in discussion with the managing director of a local small and medium-sized enterprise based on Merlin Way in Ilkeston in my constituency. He expressed great frustration at the barriers to growth that his firm experiences with planning, high building costs and uncertainty. Does my hon. Friend agree that devolution via empowered regional mayors represents the solution to those problems and a route to prosperity through growth?

[Michael Payne]

My hon. Friend is a good friend and a powerful advocate for his constituents. He is right that devolution in the east midlands needs to go further and faster, because areas such as Greater Manchester and the west midlands are much further ahead on their journey. Giving the East Midlands mayoral authority trailblazer status would see a turbocharged approach to skills, investment and growth in our area. Giving Mayor Claire Ward an integrated funding settlement across local growth, place, transport, skills, housing and more to work with local authorities such as mine in Gedling would really get our economy moving. That approach has been proven elsewhere.

We should not need to wait any longer in the east midlands for power over our own future, but mayors and combined authorities are only one part of local government across the east midlands. Borough, county and unitary councils often do the overlooked, often-ignored hard yards that provide growth in our communities. The Government recognise that to grow the economy, they must work hand in hand with business, but they also have to work hand in hand with local government. Public services are essential for social and economic security. Vital services such as education, housing, healthcare and transport contribute to the economic productivity of the region, and local authorities provide the best investment in local areas.

The Local Government Association found that councils in the east midlands contribute directly to 20% of local GDP through projects that promote business growth, job creation and regional investment. Local authorities are key enablers for the Government’s promises around transport, housing, skills and growth. The Government are rightly reforming the planning system to allow council planners to do their job, but every single one of the 1.5 million houses built under this Government will have been approved by a council planner. Local authority workers will be instrumental in the roll-out of free breakfast clubs across schools. We have seen the impact on growth and economic confidence if simple things such as our bin collections go wrong.

Our local government workers keep our communities and this country ticking. They are all heroes. My plea to the Government is simple: do not ignore local government, local government finances or local government staff, and continue to invest in those areas.

[Andrew Rosindell (Romford) (Con)]

I commend the hon. Member for what he is saying. The east midlands are a vital region of our country, but I caution him slightly about wanting a regional mayor to take power upwards. In Greater London, our experience is that power in local authorities is actually better. We want local money spent on local people’s priorities. With a regional mayor, the hon. Gentleman may find that the money is not spent on the priorities he hopes for, but that it goes up to one bureaucracy and the priorities of local people are often ignored. That is our experience in the London borough of Havering.

[Michael Payne]

I thank the hon. Member for sharing his view with me, but I must say that it is not a view we share in the east midlands. We have a partnership approach with our Labour Mayor of the East Midlands, Claire Ward, working with brilliant local Labour councils. I would have a slight degree of sympathy for him if he had not been coming here for the last 14 years and voting for cuts to local councils in the east midlands, taking 60p out of every £1 of their budgets.

Ultimately, where we have good, soundly managed local authorities, with boundaries that local people understand and prefer, such as in my borough of Gedling, do we really want local authority staff to be focused on a multi-year reorganisation process, or do we want them to be getting on with the job and growing their local economies? The Government have rightly pointed out that certainty is essential to economic growth, so may I be so bold as to suggest that certainty in local government—whether it is a planner knowing that they have a job in the future or a local authority knowing that it will exist in two years’ time—is also essential? My constituents have told me loud and clear that they do not want to see a change to their local council. It is important to me that my constituents’ voices are heard and listened to in this Chamber, including in this debate. I share their pride in having a well-run local council in Gedling borough council, with low council tax, low levels of debt and decent, delivered public services, and I will argue for that to the hilt.

It would be remiss of me to speak in this debate without highlighting some local examples of how things can go terribly wrong, and how they affect my constituents. Conservative-controlled Nottinghamshire county council might be the worst council in the country for road repairs. Over 25% of Nottinghamshire’s minor roads required repairs last year, yet Nottinghamshire county council only got around to repairing 2.3% of them. Out of every 10 potholes, Conservatives in Nottinghamshire managed to fix less than one. If we need drivers for any future moon landing, the residents of Nottinghamshire may well volunteer to be first; with the number of craters that we have to dodge on our local roads just to get about our daily lives, everyone in Nottinghamshire is an expert in dodging potholes. Navigating the pothole-ridden roads of Nottinghamshire has gone beyond a joke. It is a daily misery for the people of Gedling, who I serve, but it also impacts our economy.

[Catherine Atkinson (Derby North) (Lab)]

I congratulate my hon. Friend on securing this debate and on his powerful comments about the potholes in Nottinghamshire, but according to the RAC, the worst area for potholes is Conservative-run Derbyshire. Does he agree that it is about time that we got councils that will work with the Government to ensure we have the roads that people need—roads that are not full of potholes?

[Michael Payne]

I thank my hon. Friend for making that powerful argument on behalf of her Derby North constituents. Having a Conservative-run county council is something we have in common, and in less than a month’s time, the residents of our respective constituencies will have a chance to turn the page on that failure and elect Labour councils that will turn a corner.

Potholes on roads impact our economy, because if a trader’s vehicle hits a pothole and needs to be in the repair shop for a week, that is a week in which that trader is not doing business. Their business suffers, their family suffer, and our national economy suffers too. One of my constituents, a new mother, was crossing the road with her newborn daughter in a pram when that pram snagged on a pothole, causing the mother to trip over, and her newborn baby almost ended up in the middle of a busy road. She wrote to me that people slammed on their brakes and jumped out of their cars to check whether her baby had been badly hurt. The mother and the baby had to spend the afternoon at the hospital that day, when they should have been shopping and meeting friends on the local high street. Even without the use of a car, potholes are hurting growth and, at times, physically hurting our constituents. If a parent hits a pothole in their own vehicle and suffers hundreds of pounds of damage, that is money that is not being spent in our local shops or on our local high streets.

Despite record investment by this Labour Government in fixing potholes—£1.6 billion—the Conservatives on Nottinghamshire county council cannot get a grip, and not just on potholes. The county council is also failing to issue education, health and care plans on time, with nearly 1,000 requests for an EHC plan issued late between January and October. Compared with the previous year, 6% fewer annual reviews of EHC plans were conducted. The impact of Conservative-led Nottinghamshire county council failing to deliver on special educational needs and disabilities services, and in many ways going backwards, is that some children are not getting the education they need. That is forcing some parents in my constituency and across the east midlands to stay at home to school their children, rather than going to work. That hurts their livelihoods, it hurts their opportunity to contribute to the economy, and as a result it hurts growth, too.

In contrast, Labour-run Gedling borough council is investing in our high streets by maintaining its popular two hours’ free parking policy across all high street car parks. Labour-run Gedling created the beautiful 365-acre Gedling country park, a boost to the local economy. Gedling Labour saved and refurbished the cherished Bonington theatre, and is investing in CCTV across communities to keep people safe.

The Arnold market place is an example of how to do regeneration well, led by Gedling Labour. I was proud to be part of it on Gedling borough council, and it is things like that that will boost our economy. Beyond the high street, Gedling borough council has shown that investing in our parks and green spaces, our theatres and our leisure centres and keeping our cultural centres open invites local people into the area, which supports local businesses and growth. That is why I am so proud of the hard work being done by our Labour candidates in Gedling: Sarah O’Connor and Henry Wheeler in Arnold North, John Clarke and Liz Clunie in Arnold South, Jim Creamer and Errol Henry in Carlton West, Cate Carmichael in Carlton East and Dean Wilson in Calverton.

The contrast could not be clearer. Under the Nottinghamshire Conservatives, we can have yet more failure and poorly managed services, strangling our local economy and failing to fix our broken roads. Under Gedling Labour, we can have pride restored to our communities by hard-working councillors, growing the economy, bringing back community policing, supporting our high streets and fixing the potholes. That is the choice on offer next month at the local elections, and that is the choice that residents in Gedling can make.