Economic Growth

Peter Aldous Excerpts

Tuesday 14th November 2023 Commons Chamber

[Peter Aldous (Waveney) (Con)]

It is imperative that we secure high, sustained economic growth right across the UK. Some welcome policies are already being implemented and there are some good initiatives in the King’s Speech, although we face enormous challenges. The focus of my comments will be on coastal communities and on East Anglia.

I suggest that to deliver enduring economic growth, we need to address six issues. First, there is the cost of living crisis. Covid has a long and vicious tail, the cost of living crisis is still very much with us and this winter is likely to be very tough for many people. The household support grant has been successful and must continue, and other measures such as an increase in the local housing allowance must be given full consideration. Welfare reform must provide a clear and supported pathway for those who are some distance from the workplace.

Secondly, we must build more houses, particularly for social rent. The vehicles of delivery are primarily the housing associations, many of which are currently facing significant challenges, and Homes England. The recent announcement of funding to redevelop the former Sanyo site in Lowestoft is particularly welcome.

Thirdly, in coastal Britain, in places such as Lowestoft, there are exciting new jobs emerging in the renewables sector. Last week’s announcement of funding for local skills improvement plans, including for Norfolk and Suffolk, was welcome, but we need to ensure that trainers and colleges such as East Coast College in Lowestoft receive realistic revenue funding settlements. Progress has been made in recent years, but further education still receives a raw deal.

Fourthly, investment in infrastructure right across the UK is vital—in Lowestoft, construction of the Gull Wing bridge is well advanced—and there now needs to be an emphasis on improving regional connectivity, whether road, rail or the digital highway. Around the UK, to encourage investment and to protect homes, coastal communities must be made secure from the more prevalent extreme weather conditions we are now experiencing. With an eye to the opportunities arising from offshore energy and sustainable fishing, there must be fiscal incentives to encourage investment in port infrastructure.

Fifthly, net zero must be seen as an opportunity to revitalise coastal communities all around the UK. I can understand, and I support, the rationale for the Offshore Petroleum Licensing Bill, but it must be part of a long-term strategy up to 2050 and beyond, to maximise private sector investment. Energy policy must be set in a 30-year, not a five-year, framework.

Sixthly and finally, we need to revitalise our towns, which for centuries have been hubs of economic activity all around the UK. Town deals, of which Lowestoft is a recipient, are welcome, as is the recently announced long-term plan for towns, but those initiatives can provide financial support for only a limited number of centres, and we need to put in place a growth framework for all towns that promotes their revitalisation and ensures they remain honeypots for setting up SMEs. That framework could include making it easier to set up banking hubs—at present, there is a very high bar to setting them up—and continuing the reform of business rates. We made a start in the Non-Domestic Rating Act 2023, which received Royal Assent last month, but it was only a timid move towards getting the business rates multiplier back down to between 30p and 35p in the pound. That is needed to ensure that businesses can plan with some certainty, rather than having to wait each year for the cliff edge of whether the Chancellor will extend business rates relief.

We should also consider the zero-rating of VAT for redevelopment in and around our town centres. Town centres across the UK have an awful lot of heritage that, properly realised and embraced, could help to promote them and get them back to being magnets and catalysts for economic growth.