Rebalancing Regional Economies

Perran Moon Excerpts

Wednesday 14th May 2025 Westminster Hall

[Andy MacNae]

I thank my hon. Friend for that intervention. That is largely the point: we must rebalance our economies by bridging the productivity gap between our cities, including our northern cities, and the rest of the country. At the same time, though, we must make sure that that growth in cities such as Manchester, which in many ways is doing great, is felt in Lancashire and other places at the same time.

[Perran Moon (Camborne and Redruth) (Lab)]

I thank my hon. Friend for securing this important debate. My point is similar to that of the hon. Member for Tiverton and Minehead (Rachel Gilmour). We often discuss the rebalancing of regional economies in terms of urban versus rural or north versus south, but does my hon. Friend agree that we must consider more nuanced geographical and socioeconomic factors, including those of communities in remote coastal areas such as Cornwall, whose characteristics differ substantially from inland rural communities on issues such as non-resident population, the cost of beach safety, the ability to attract construction workers and, of course, a massive challenge with housing costs?

[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.

--- Later in debate ---

[Alex Norris]

I agree that child poverty is particularly cruel. It is cruel because of the hardship that those children grow up in, but it is also cruel because their potential is snuffed out before they have even had a chance, and we should want everybody to have a chance to play their role in their community. That speaks to the very important point that even within communities that are thriving, there are still some of those neighbourhoods. This is a conversation about towns, but it is also a conversation about neighbourhoods. The very poorest neighbourhoods exist in all parts of the country, and we should have a real neighbourhoods focus for how we tackle that.

As I said, I think that these things interlock. I make no apology for believing that there is an importance in ensuring that our cities thrive. If our largest 11 underperforming cities got to the national average, that would be worth £20.5 billion; to the Exchequer, it would be £63 billion of additional output. That is a huge prize. I am thinking about Belfast and the incredible success story that is going on there in banking and finance, in the creative industries and in tech generally. These are incredible opportunities, which have the potential to change that community and change lives.

However, it is right that colleagues here, such as the hon. Member for Strangford (Jim Shannon), should ask, “But what does that mean for Newtownards? What does that mean for Coleraine? What does that mean for Ballymena?” Those conversations are very much in the spirit that my hon. Friend the Member for Rossendale and Darwen led us off in. We will as a Government—this has been part of the debate already today—look to back those projects that have a potentially transformative impact. Whether that involves the Oxford, Milton Keynes and Cambridge corridor or unlocking the growth potential of our cities, we are going to do those things. We think that that should be at the core of our industrial strategy. I am talking about backing places with potential for growth, and growth with a degree of speed as well. There is the clustering that is going on. I am thinking about Liverpool and Manchester and some of the technology clustering. We are going to back those things. We think that is the right thing to do. But I want to give colleagues a real assurance that our approach has a lot more than that, too. As I have said, it is about power and it is about resources.

With regard to the power piece, I am very proud of our devolution agenda. As a Government, we have built on what the previous Government did. They did good things in establishing the mayoralties that they did. We want that to go wider and deeper, which I will talk about in a second. In recent months, I have been working very closely with our mayors on the development of local growth plans, so that—again, in the spirit of what my hon. Friend the Member for Rossendale and Darwen says—rather than Ministers sitting in Whitehall with a map and working out where they think there might be some potential, we are saying to the leaders of those communities, “Get together with your community. Tell us where your economic future is. Tell us what the hurdles are to realising that economic future. Tell us what resources you need to deliver that economic future. We will agree those plans with you and we will back you. We will give you the power to do that. You can use tools, such as investment zones or freeports, but we want you to say what it takes.”

I am very pleased to say that as we get to the spending review this year, we will see those plans come out. Whether we are talking about the Liverpool city region, the east midlands—my area—the Greater Manchester combined authority, the west midlands or elsewhere, people will see emerging very exciting plans that will be about a new vision, a new understanding of where this country’s potential and opportunities are, because suddenly they will be popping up all over the country. I am really excited about that, but we need more people to be part of the settlement.

The devolution steps taken by previous Governments were good ones, but it could go much further, so we have made a commitment to a deeper devolution settlement—more powers across housing, planning, transport, energy, skills, employment support and more, so that locally those tools are there to shape place and to shape the economic future. I am delighted to say that Lancashire is soon to be part of this. We want more people to be in on that settlement because we think it delivers for their communities, so it is great that the Lancashire combined county authority is up and running. Of course, there are six areas in the devolution priority programme. That means that when those priorities are delivered and over the line, in addition to the devolution we have already, the proportion of England covered by devolution will rise to 77%, or just over 44 million people, by next May.

[Perran Moon]

Will the Minister give way?

[Alex Norris]

I will shortly. That will cover the entirety of the north, which may well be the point that my hon. Friend wants to make.

[Perran Moon]

I wholeheartedly agree with the principle of devolving powers out of this place and into regions, but does the Minister agree that in certain parts of the country, namely Cornwall, it will be very difficult for the model that is designed within the English devolution Bill to apply? Does he agree that we need flexibility and a nuanced approach to those areas that are desperate for devolution but will not and cannot sign up to the model that is currently Government strategy?

[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.