British Steel

Simon Clarke Excerpts

Wednesday 24th July 2019 Commons Chamber

[Greg Clark]

I am grateful to the hon. Lady for asking the question that has given us the chance to talk about these issues. She has been dedicated and devoted to her constituents, as have other Members—starting the week with me in Doncaster with the colleagues I described to ensure that we can work together and join together to ensure that there are no gaps between any of the interested parties. That has had an appreciable effect, as has been noted by many prospective buyers. Certainly, many customers and suppliers have also observed the resolution and the unanimity of resolution behind this.

Many of the hon. Lady’s questions were addressed to whoever might be the Secretary of State under the new Prime Minister, so it would be presumptuous of me to answer on his or her behalf, but she has placed a clear set of requirements on the record and I endorse everything she said. Not only would the consequences of the loss of historical assets—hugely important in all the communities she mentions—be unconscionable; there would also be the loss of a substantial opportunity.

The hon. Lady, like me, believes that there is a strong strategic future for the British steel industry. As I said in my previous answer, the world is going to need steel. Through investing in infrastructure, this country has opportunities to make greater use of UK steel. We export much in the way of our scrap steel to other countries. That could be made better use of, both environmentally and in terms of industrial opportunities. If we invest—as we intend to and are doing through the industrial strategy—in the technologies that will make steelmaking cleaner, more efficient and suitable for new uses, there is every reason to think that the UK steel industry, including British Steel, can be a beacon showing the rest of the world how a modern manufacturing industry can flourish.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

May I associate myself with the priorities outlined by my constituency neighbour, the hon. Member for Redcar (Anna Turley)? This is an opportunity to say a big thank you on behalf of the people of Teesside for all the dedication that the Secretary of State—a son of Teesside—has shown to our steel industry. It has not gone unnoticed locally how much he has gone over and above what might be called the ordinary line of duty to secure a positive outcome to this sale, so I pass on a sincere and lasting thank you.

It would be helpful to get on record what the Secretary of State has been doing to leave no stone unturned in these negotiations. In particular, will he talk about the in-principle willingness potentially to invest alongside a future purchaser?

[Greg Clark]

I am grateful for my hon. Friend’s generous words. He has been assiduous not just in being a member of the support group, but by working in Skinningrove with the customers of British Steel to convey the assurances that are necessary. Buyers will have questions about this extensive and complex set of assets, so it is important—and will continue to be important, especially during the weeks ahead in August—that everyone is available and active in providing the answers to those questions.

Through the industrial strategy, the Government have established programmes to support improvement in energy efficiency, which is very important; to decarbonise industrial clusters, of which steelmaking is a prime example; and to invest in research and development. Through the industrial strategy, we have the biggest increase in R&D in the history of this country. I am making these points to prospective purchasers so that they can see that the environment is a positive one.

It would be wrong for me to comment on the individual bids, as that is legally and strictly a matter for the official receiver, but I have made myself available in this country and overseas to answer questions. I think that I have had more than 25 meetings with bidders, and it has been encouraging—to use the words of the official receiver—that serious bids have been made, but the work must continue to land them and to secure the future.

UK Steel Industry

Simon Clarke Excerpts

Tuesday 9th July 2019 Westminster Hall

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I will endeavour to stick to that limit; thankfully, I echo many of the comments made by the hon. Member for Scunthorpe (Nic Dakin). I congratulate him on securing this important debate; the cross-party unity in this room is mirrored in the weekly meetings we have had in Doncaster since the crisis first began. It is important that we maintain that, and show united confidence in the future of the industry and the passion that we all have to retain those skills in our local economies. Huge praise is due to both the Minister and the Secretary of State, who understand the significance, on a social and economic level, of making sure that our communities continue to have a strong future.

I represent Skinningrove, known locally as the iron valley, where steel has been produced since 1874. The heritage runs deep, but this is very much about the future rather than the past. The huge capabilities of the British Steel special profiles division, producing bulb flats, forklift profiles, cutting-edge profiles for bulldozers and track shoes, are all capabilities that we must not lose from our economy. The fact that it is co-located with Caterpillar on the same site is a huge tribute to Anglo-American co-operation, which goes far beyond the intemperate comments of the President in recent years—this is the positive face of a union that has delivered huge benefits to our area.

The conduct of Greybull is well known, and I do not propose to elaborate on it today. It is a source of immense frustration that it has let the workforce down and that the company has been allowed to reach this sad situation. We all know that it needs to be replaced by a long-term, viable investor who is committed to the lasting success that the workforce deserve, who can deliver a profitable and successful industry. I emphasise that everybody—Government, management and the unions—stand united in pursuit of a positive outcome to the talks. Only thus can we secure a sale.

Looking beyond that, as we heard from the hon. Gentleman, we need to do more on issues such as energy costs. The average electricity price for UK steel producers this year is £65 per MWh. That compares with £43 in Germany and £31 in France. We need to take steps to allow our industry to compete on a level playing field. If the Government commit to do that, the industry has said that it will reinvest the estimated £55 million a year that it would save back into production facilities.

We need to look at boosting research and development. I place on record my profound admiration for the work of the excellent Material Processing Institute, which the hon. Member for Redcar (Anna Turley) knows all about. It submitted a bid, alongside Innovate UK, to unlock funding for issues such as the steel industry transition, the digitisation of the sector and the circular economy in rare metals. We should look to pursue all those things. I hope the Minister will touch on some of those issues in his remarks, because they confer lasting benefits to British steel.

Finally, we need to promote and celebrate our steel industry, as we touched on in Doncaster yesterday. The steel charter is immensely valuable, and it is crucial that we increase the percentage of British steel in Government contracts from its current 43%. The private sector needs to play its role, too, to make sure that it explores all available opportunities. If those longer-term opportunities can be seized, there is nothing standing in the way of British steel having a long, secure and prosperous future. We all want to see that, and I hope over the coming weeks the Government will do everything they can to make sure we deliver that.

Climate Change

Simon Clarke Excerpts

Monday 24th June 2019 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I give a warm welcome to today’s legislation and to the Minister, who has taken this brief by the scruff of the neck since he was appointed, for which we are all grateful.

This is a moment to give sincere thanks to the Government and the Committee on Climate Change for acting and allowing us to act in the way we are set to, because the IPCC report, which the Minister referred to, is really devastating. If we do not manage to limit the rise in global temperatures to 1.5°C, we will find that sea levels keep rising to an unsustainable degree and that the impact on biodiversity is completely unsustainable. The difference between a 1.5°C and 2°C rise is clearly illustrated in that report. At 1.5°C, we will lose 6% of insects, 8% of plants and 4% of vertebrates. That is devastating enough by any measure. At 2°C, the IPCC forecasts that we would lose 18% of insects, 16% of plants and 8% of vertebrates.

Limiting global warming to 1.5°C compared with 2°C has other consequences, most notably for us as a species. Keeping it to 1.5°C may reduce the proportion of the world’s population who are exposed to climate-induced water stress by 50%. The impact on an increasingly volatile and dangerous world can scarcely be overstated. We need to do this—the science is clear—and we need to rebut the notion that the shadow Minister, the hon. Member for Southampton, Test (Dr Whitehead), referred to. I agree with him that we need to fight back against the idea that the costs exceed the benefits, because doing the right thing for the environment is not at odds with doing the right thing for our economy. The UK’s performance since the 1992 Rio summit—we have decarbonised the most of any G7 nation at the same time as growing our economy the most—only goes to prove that.

The committee’s report was crystal clear that we can deliver net zero at no additional cost relative to the 2008 commitment to an 80% reduction in CO₂ by 2050, owing to the pace of technological change. That needs to be factored into all our calculations when it comes to the achievability and costs of the commitment. Anyone who has listened to Lord Adair Turner talking about this, as he has done so well, and seen the work of the Energy Transitions Commission can be well assured that we are on track to deliver this in a cost-effective fashion.

This goes to the point that the coalition Government’s energy policy, under David Cameron, was a huge success. The contracts for difference mechanism, which enabled huge reductions in the cost of offshore wind in particular, goes to show that we can achieve massive economic and technological change if we incentivise markets to deliver the outcomes that we all need. Anyone who looks at the proportion of the UK’s energy generated by renewables—it stood at just over 6% in 2010 and is now 33%—will see that we can deliver far-reaching change in a very short period.

[Luke Graham (Ochil and South Perthshire) (Con)]

My hon. Friend is making a very important point about the good that Government can do and the change that they can bring about. Does he agree that to reach this ambitious target, we will need every level of government, including local government, the devolved Administrations and central Government, to work together to make sure that we can deliver this ambitious target for 2050?

[Mr Clarke]

I absolutely agree. No one can regard this as somebody else’s challenge, and that goes for the private sector as well as the public sector. Everyone will have to realign their expectations in the light of this commitment because it is genuinely groundbreaking. It is easy to underestimate the significance of what we are gathered to legislate for. This is a world-leading initiative by a developed nation. It is a profound statement of our commitment to a cleaner and greener world.

[Alex Chalk (Cheltenham) (Con)]

Will my hon. Friend give way?

[Mr Clarke]

I will, but I promise not to take more than my allotted time.

[Alex Chalk]

My hon. Friend has campaigned so vigorously on this issue. He is right to say that this is world-leading legislation and that the UK is taking the lead, but does he agree that China, whose carbon emissions are something like 25 times that of the UK, really needs to play its part?

[Mr Clarke]

I do. That is not a counsel of despair. In many ways, we are setting a powerful example that other countries will be inspired to follow. By legislating for net zero, we start to create some of the economic opportunities that other countries will, in turn, be keen to seize. We can set a powerful moral and economic example for other countries to follow. I am very grateful to my hon. Friend for his kind words. He, too, has fought long and hard to make this happen, and I thank him for that.

On the economic opportunity, I will briefly bang the drum for carbon capture and storage. The CCC is absolutely clear in its report that we need to deliver CCS—[Interruption.] Contrary to what the hon. Member for Dundee West (Chris Law) said from a sedentary position, the Government are now taking CCS as an integral part of their green industrial strategy. We need to make sure that we get a number of clusters rolled out as quickly as possible, and one of those should be Teesside. I praise the work of the Teesside Collective, which is a pioneering group of industrial companies, all of whom want to see this happen, not least because there are certain industries such as steel, cement, plastics and fertilisers that emit CO₂ as an inextricable part of their production techniques. Even if we fully decarbonised our energy mix, those sectors would still need CCS to avoid contributing to our carbon emissions.

Finally, this is a wonderful example of how the UK can take a moral lead in the world after Brexit, and I praise how we are fighting to deliver the COP 26, alongside Italy, as part of our efforts. If we secure that, I hope we will make the drive for net zero an integral part of our prospectus for the conference.

British Steel

Simon Clarke Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Mr Speaker]

Order. We need to speed up a little bit.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I thank my right hon. Friend for his statement, which will be hugely reassuring to my constituents who work at Skinningrove steelworks, most of whom live close by. It is vital that we prevent the closure of that plant, just as it is vital that we prevent closures at Scunthorpe and Lackenby and all the other sites that are affected. With that in mind, I welcome that the Government have provided the indemnity to the official receiver to try to keep British Steel operational while a buyer is sought. Beyond that, may I emphasise the case for public ownership or, indeed, a public-private partnership to serve as a bridge to new ownership? The priority is to save jobs. Everything else—all matters of ideology—must come second.

[Greg Clark]

My hon. Friend is absolutely right. We need to do everything we can. The situation is not entirely in the hands of the Government, because the official receiver is obviously responsible for the operations, and the trade unions and local communities want also to participate. This morning, the director general of UK Steel was asked whether he thought that the Government have done everything they can, and he said that he thought that we have. There is a recognition, which I am sure my hon. Friend will find in the sector, that we are serious about doing everything we can within our legal limits to help to give stability and a good future to this industry.

British Steel

Simon Clarke Excerpts

Tuesday 21st May 2019 Commons Chamber

[Andrew Stephenson]

In this role, I want to do everything that I can to support the UK steel sector. We were the first country in Europe to take account of socioeconomic factors in public sector procurement. We have provided more than £291 million in compensation for high energy costs in the UK. We have provided and published a pipeline of upcoming national infrastructure projects, and last year I signed the UK steel charter. We are doing a lot as a Government, although there is more that we can do. I stand ready to help the sector in any way I can.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I welcome the Minister’s answers today and appreciate that there are limitations on what he can say at this time. I thank him and his team at the Department for all the work I know they are doing to deliver a sustainable future for British Steel. I urge him to impress on Greybull Capital its moral and legal responsibility to the hundreds of men and women, in my constituency and elsewhere, to deliver a sustainable future for the industry.

[Andrew Stephenson]

My hon. Friend is a champion of steelworkers in his constituency. We will, of course, update the House when we have more information on any specific discussions with any steel company. That is all I can say.

Oral Answers to Questions

Simon Clarke Excerpts

Tuesday 30th April 2019 Commons Chamber

[Chris Skidmore]

I think we will be having a thorough debate on this issue of climate change emergency in the Opposition day debate tomorrow. When it comes to my personal role as the Minister with responsibility for science, innovation and research, I entirely agree that we need to be making more investment in climate change technology in order to reach our target of 2.4% of GDP on research and development. We have already announced our missions in relation to clean growth. I absolutely believe we should be listening to the experts—that includes the scientists—and learning from climate science, wherever that may be, to make sure we can reduce our emissions.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Since the Rio summit in 1992, the UK has actually decarbonised more than any other G7 economy, while growing our economy the most at the same time. However, we need to do more, which is why I am looking forward to the Committee on Climate Change report on Thursday. If it does indeed recommend a net zero target, will the Minister commit to ensuring that that is something the Government will very seriously consider bringing into law at the first opportunity?

[Chris Skidmore]

My hon. Friend is absolutely right to highlight the achievements that have been made in recent years, but it is important that we redouble our efforts. The Committee on Climate Change report, which will be published on Thursday, was commissioned by the Government, and the Government will be taking actions on the back of its recommendations. It is important that we look to continue our actions, but it is also important that we do so with our international partners. We have the UN summit taking place in September and future COPs, including the one we would like to host in 2020.

Exiting the European Union (Structural and Investment Funds)

Simon Clarke Excerpts

Tuesday 19th February 2019 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

It is a pleasure to speak in this afternoon’s debate and I warmly welcome the statutory instrument, which, as we heard from the Minister, preserves the effect of structural funds through to the end of the 2014 to 2020 period, whether we have a deal or no deal, in true Noel Edmonds style.

I very much hope that there will be a deal, and I underscore again my commitment to the Brady amendment, on which we voted on 29 January, and the Malthouse compromise, which is attached to that. However, if the EU is not disposed to be reasonable, then as a matter of law we will leave the EU with no deal. It is important and right that we ensure that at that point our law continues to operate and that important funding streams continue to be devoted to addressing the aims for which they have been set up. The EU structural funds are, of course, a very important source of funding.

I have always slightly objected to the concept of EU largesse that is implicit in the concept of structural funds. As the UK is, of course, a net contributor to the European Union, that is in effect our money being washed through the EU institutions back into our country. As we know, in a number of European nations the EU structural funds have been the subject of very considerable abuse over the years, which was one of the drivers of frustration with the EU in the first place.

In our country, where the money is generally well spent, there is nothing to fear. Moreover, once we have left the European Union we will be able to ensure that the money goes to our priorities. Of course, that is why the shared prosperity fund is so important. It is something the Prime Minister spoke about a week before the 2017 general election, in Guisborough in my constituency. She outlined her clear commitment to ensuring that the amount of money devolved through EU regional development funding will be matched by the UK once we have left. We warmly welcome that, because the north-east has been a net beneficiary of that funding, and my goodness, there is a lot that we could be doing with it.

We know that the shared prosperity fund will be used to drive the local industrial strategies that the Government quite rightly want to establish. I think that is working very well, and I am glad that it has not emerged as a continuation of the ’70s policy of picking winners. Instead, it is about empowering local devolution to make a real difference in supporting industry.

In the Tees Valley we have a really exciting proposition under our Mayor, Ben Houchen, who has a clear plan for projects such as the South Tees development corporation on the former Redcar steelworks site. Making sure that we have serious, sustained and long-term funding in place for such projects is essential if we are to continue to close the gap between London and the regions. That is something that all of us in this House support, and I am confident that, thanks not least to this SI, we will continue to be able to achieve it. Whether on transport, jobs or education and skills, there is a tremendous amount of work that can be done.

I do not think that there is anything to fear from leaving the framework of the EU and its structural funding. Instead, I think that this is a classic example of how taking back control can work for the benefit of the UK, and indeed of those parts of the UK that voted most heavily to leave in the 2016 referendum. It is worth noting that Teesside voted by two thirds to leave, and in some cases more, so there is real confidence among its population that we should indeed take control of this funding.

I am optimistic. I am grateful to the Government for putting in place a clear plan to ensure that there is no discontinuity on exit day, however we end up leaving. I am grateful to the Minister, because I know that he and I take a somewhat different view on some aspects of the debate, but he has none the less approached this work with great professionalism. He continues to deliver good, sensible legislation to ensure that, in all circumstances, our country should have nothing to fear.

[Brendan O'Hara (Argyll and Bute) (SNP)]

Like the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), we will not oppose this SI this afternoon, but we do share many of the deep concerns, particularly in relation to what exactly the UK shared prosperity fund will be and what it will mean. Of course, this SI would not be necessary if the Government would simply take the threat of a no-deal Brexit off the table. They could, if they so choose, remove that threat today, but instead they have decided—very cynically, in my opinion—that it is too politically useful to have as a tool in order to bludgeon MPs into supporting a deal that we have already rejected as the clock runs down towards 29 March. However, if the Government insist on preparing for the possibility of a catastrophic no-deal scenario, then yes, this SI does allow for the transfer of regulations in order to ensure the continued roll-out of the European agricultural fund for rural development and the European maritime and fisheries fund. The SI will continue to allow payments until their closure after the end of the current 2014-20 programming period.

It is worth pointing out the huge importance of those funds to communities right across Scotland, particularly in remote and peripheral areas such as my Argyll and Bute constituency. The EU structural funds in Scotland are worth up to €941 million across the EU budget period, for use in economic development. Over £500 million a year comes to Scotland from the common agricultural policy in the form of direct payments to farm businesses and rural development funding. The UK Government have provided short-term guarantees to replace most CAP funding until 2022 following Brexit, but no firm commitments have been given about replacing the CAP in the long term.

[Mr Simon Clarke]

It is important to note that the Agriculture Bill provides for ensuring that environmental incentives are aligned with good practice in agricultural management. I think that hon. Members of all parties want that. It will be a welcome change from the way in which the CAP simply rewarded the largest farmers.

[Brendan O'Hara]

The hon. Gentleman makes the important point that we are discussing the SI before Report stage of the Agriculture Bill. I will come back to that. I do not necessarily defend the way in which the CAP is administered—the way in which every pound is allocated—but it is important to recognise the amount of money and support that the CAP gives UK agriculture, particularly those less favoured area support scheme parts of my west of Scotland constituency.

Nissan in Sunderland

Simon Clarke Excerpts

Monday 4th February 2019 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I agree completely with what the Secretary of State has said about the need to provide certainty as soon as possible, but I take issue with those who want to turn this all into an issue of Brexit. The House should be clear that there has been a 14% reduction in the sale of Nissan products into Europe over the past year, which explains a lot of the context of this decision. Will my right hon. Friend clarify that no jobs are being lost as a result of this decision and, crucially, that production of the Juke, the Leaf and the Qashqai is entirely unaffected?

[Greg Clark]

My hon. Friend is absolutely right, but it is also right to reflect that for more than two and a half years now the industry, and Nissan in particular, has been worried about the consequences of Brexit. That is why many Members, both Government and Opposition, as well as the trade unions, made such a determined effort to ensure that we got the investment that was so vital. That investment is there, it continues, it has been made, and it has saved the plant in Sunderland and ensured that the more than 40,000 jobs—people’s livelihoods—that depend on it are there and secure. I want to see more investment in future, which is why I want the House to agree a way forward with the rest of the European Union.

Former Steelworks Site in Redcar

Simon Clarke Excerpts

Wednesday 14th November 2018 Westminster Hall

[Anna Turley]

I thank the right hon. Gentleman for that intervention, but that just demonstrates the urgency of the need to sort the site out and get it ready. We just cannot compete with other sites if we still do not own the site and it needs huge investment to get it ready. That is why this debate is so urgent.

Brilliant companies are investing in our area. I have mentioned Sirius’s $4.2 billion project. At full production, that will have the ability to increase the size of the Tees valley economy by 18%, and some 800 people are already working on the site. However, to reach its full potential, that project, like others I have mentioned, will require a Treasury guarantee to match commercially raised funds.

I sincerely hope that the Government back up our local ambitions with the finance necessary to support that project and others, and that they avoid their natural inclination to be risk averse when it comes to backing such major projects. I urge them to believe in us in the Tees valley and in the companies that want to invest in great projects there. I am raising a warning flag. The Government must pull their weight and put the required money behind those bids, or we will continue to lose out to devolved or other nations.

The biggest barrier to realising our ambitions is the ownership of the charge on the former SSI land, which remains with the Thai banks. That is holding back progress. Negotiations with those banks are ongoing following the signature of a memorandum of understanding between the banks and the development corporation in May. That was due to expire at the end of October, but I understand it has been extended until early next year, although no press release was issued to acknowledge that. The local team is working hard, supported by funding from the local councils, to conclude a deal for the SSI land and for land owned by others, such as Tata. It is hindered in those efforts by premature announcements of multi-million pound investments that are some way off. Such announcements put at risk the chance of securing an affordable, locally negotiated deal, and risk raising local expectations. Of course, we have compulsory purchase as a backstop should those efforts fail. That process has started—landowners know they will receive nothing for the land should a deal fail.

As a first step, we need the Government to do everything in their power to support ongoing negotiations and ensure that they result in a successful agreement at the earliest opportunity. If that involves providing funding to seal the deal, that option must be on the table. Failure to gain ownership of the land and assets is holding everything back, and Ministers need to go beyond ad hoc funding commitments to provide confidence that long-term support will be forthcoming.

That brings me to funding. Before the Budget, the development corporation had just £5 million to progress regeneration work, which is not enough to get the land ready. Given the complexity of the industrial assets involved and the huge amount of work that needs to be done to clean up the site, that will cost an awful lot of money—£5 million will not stretch far. Although the management funding of £118 million in last year’s Budget was welcome, it was just keep-safe money that the Government had a legal duty to provide to protect the public from industrial hazards. It was the absolute minimum required to keep the site safe and protect the lives of those who work there and of the local community. It was also aimed at reducing the Government’s management costs.

In this year’s Budget, three years on, the Government announced that the site is to become a special economic zone. It is not yet clear what that actually means. At this stage, the extra powers the area will be granted for being such a zone are limited to being able to retain 100% of business rates growth. There is little difference between such a zone and existing enterprise zones, of which we already have plenty around the Tees valley, and that power is already granted to local authorities. Business rates retention will increase to 75% in 2020-21 and to 100% for the pilot schemes that are already under way in 20 local authority areas.

I was concerned that that change would mean taking money that would otherwise have been received by Redcar and Cleveland Borough Council, placing the cost on local people and public services. However, answers to written questions I tabled following the Budget reassure me that that will not be the case. All business rates growth over and above the current baseline will be retained locally and shared between the development corporation and the borough council according to a formula that is still to be agreed.

Although it makes sense that the private sector should help to fund the ongoing development of the site, I am concerned that progress will be extremely slow if that is the main source of funding for regeneration. That mechanism will begin to pay off only when new industries are established, and as we do not yet own the land, that is some time away. We would like reassurance from Ministers that that will not be the limit of central Government’s contribution to the clean-up of the site, not including their long-term legal responsibility to keep the site safe.

I recognise that the Budget also included £14 million to support short-term measures to help unlock two projects on the most shovel-ready land, which is currently owned by Tata. That is obviously welcome, but in the grand scheme of things it is a very limited measure when compared with the many millions that will be needed not only to prepare land but to provide crucial infrastructure.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

It is really important that we clarify that that £14 million is instrumental to ensuring that those two sites are available for two metals projects that will create 1,500 jobs. Although in isolation those projects represent small parts of sites, they are viable and ready to roll, and they will create real jobs in a very short period of time.

[Anna Turley]

Absolutely. It is great to see those projects, but three years on we are still waiting for one job to be created. I cannot wait for those jobs to be developed. I welcome the £14 million in the Budget—that is positive—but we want more, and we want the pace to be quicker. That £14 million is not sufficient to undo the damage to the local economy, which lost 3,000 jobs, with the average salary declining by £10,000. The impact of that is not sustainable. We need jobs as quickly as possible. I welcome that start, but we must accelerate.

The £14 million also depends on a successful business case being presented to the Government and on businesses being prepared to invest. I have warned about lost projects for exactly that reason: there is no guarantee that interest will turn into real investment if there is not confidence in the site.

One of our biggest warnings when the steelworks closed was that the longer-term cost of managing and regenerating the site would far exceed the limited funding needed to mothball the blast furnace and keep the coke ovens alive. Given that the Government decided not to do that, despite their offering to step in to save Port Talbot a few months later, the onus remains on them to pick up the tab for the consequences. There can be no backing out. I wrote at the time to the Secretary of State:

“Any attempt by the Government to divest itself of this responsibility, without a proper jointly developed strategy, would be challenged.”

That is therefore what people would expect me to do should I begin to have concerns. I also remind everyone that, after his appointment as Government investment tsar for the Tees valley, Michael Heseltine said:

“The money to clean up the site will be what it costs. No-one knows what the condition of the site is and although there have been estimates, they are estimates based on guess work. So it is much better to make it clear, central government will pay the clean-up costs and underwrite them whatever the bill comes to.”

As we head to the comprehensive spending review in the spring, my constituents and I are looking to the Government to provide the guarantees we need that sufficient funding will be made available to help realise our ambitions. The site is and will remain a high-risk proposition for new investors until the Government confirm that they will provide the financial backing they promised in 2015. That would mean the STDC being able to purchase the land, start real investment in infrastructure, as set out in the masterplan, and ensure that new investors can invest with confidence. Without that, I fear the development corporation will follow the lead of INEOS and turn elsewhere. I really hope it does not come to that. That is why I was so determined to make the case for funding at the time of the Budget and why I secured this debate. We need a guarantee that when we have the land, the Government will stand fully behind us for the long haul.

I want to mention additional powers. Beyond central Government funding, there are other areas where the development corporation needs to be granted sufficient resources to maximise its potential. It needs to be able to offer financial incentives to potential investors so it is on the same level as other areas in the UK. Those may include enhanced capital allowances, which would help businesses on the site to invest in new technology and machinery—especially low-carbon, green infrastructure, on which we are keen to take a lead in the Tees valley. Powers to enhance the development corporation’s ability to raise cash for infrastructure, such as tax increment financing, would also be helpful. This would be a logical extension of the business rates retention scheme that has already been announced. I would like to know that Ministers are looking to expand the powers available through the special economic zone, which would offer further reassurance to investors as well.

Investing in infrastructure will also be an extremely important factor. Remediating the land, where necessary, is the first step. However, turning that land into a modern industrial site, with the roads, rail and services needed to function well and attract new investment, is crucial.

One especially important area is power, as affordable energy is vital if the site is to remain attractive to potential investors. As my Tees Valley colleagues and I have told the Department for Business, Energy and Industrial Strategy, the cap on the amount of electricity that can be supplied without paying supply levies on the private wire network operated by Sembcorp could be a deterrent to new industries.

Our local master plan sets out a vision for mixed energy sources focused on renewables, and includes the potential for either a gas or biomass-fuelled power plant. This will require significant investment, and in the medium term we have an established business here that is ready to invest its own resources in the development of a power plant, which could provide the affordable power needed for new industries looking at the site.

In conclusion, this issue is of overwhelming importance to my constituents. Barely a weekend goes by without people asking me what is happening on the site and when they will begin to see jobs. I know that locally everyone is working their socks off, and I pay tribute to all on the development corporation board, many of whom give up their time voluntarily.

However, I am afraid that I cannot bite my tongue as press releases lauding success continue to fly past when there is not yet a single new job on the site, and when we appear no nearer to a breakthrough on the ownership issue, or to seeing a firmer commitment from the Government on funding the overall clear-up. Although I understand the importance of commercial sensitivities and will always abide by them, it is important for the community and the country that there is some accountability about where we are and what is behind the delay.

I sincerely hope that this speech can prompt a constructive debate that is free from party politicking. No one here is talking Teesside down; we all want the best for the area, and we all know the brilliance and the potential of our constituents and our communities. This effort is a sincere and earnest one to do what I have pledged to do about something that is the responsibility of us all: to fight tooth and nail to secure the jobs and investment for this site and the wider Tees Valley, and to ensure the Government keep their promises and do right by the people we represent.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

It is a pleasure to see you in your place, Mrs Moon.

I congratulate the hon. Member for Redcar (Anna Turley) on securing today’s debate. It is on a very important issue—one that goes to the heart of what is happening on Teesside at the moment—and I join her in celebrating the achievements of so many local businesses, large and small, which we get to see week in, week out. They are brilliant and inspirational. I never cease to be amazed at the sheer range, scope and skill of the industrial base of the Tees Valley. It is remarkable; indeed, it is a national asset of the first order.

The hon. Lady’s constituency and mine lie at the heart of the project to deliver growth, jobs and prosperity in Redcar and Cleveland, which centres on the former steelworks site. There is no downplaying the social and economic magnitude of the closure of the steelworks in 2015. Everyone on Teesside felt the consequences, and everyone on Teesside was devastated for the workforce and their families. The closure was not their fault; the truth is that the headwinds confronting steelmaking at Redcar were strong and kept blowing in.

The mothballing of the site was announced in 2009, and after SSI reopened it in 2011 it made a loss in every subsequent year of operation. Amid the desolation that followed liquidation in October 2015, the Government made a promise, which I am proud to say is being honoured. That promise was that a new beginning would be made on this iconic site, underpinned by huge Government support to secure and remediate the land, and anchored in private sector-led growth and investment.

A vast amount of taxpayers’ money has been pledged, with £137 million awarded to the site in the 17 months that I have been a Member of this House. A further £74 million for transport improvements across the Tees Valley has been pledged, which the hon. Member for Middlesbrough (Andy McDonald) will know well, as he is the shadow Secretary of State for Business, Energy and Industrial Strategy.

This funding is being directed through true local devolution, in the form of the Tees Valley mayoralty. The Tees Valley Mayor has a set of powers that are the most extensive of any devolved region of England outside London, backed by the personal commitment of the Secretary of State for Business, Energy and Industrial Strategy, who grew up in South Bank, and supported by the Prime Minister, who came up in person in August 2017 to launch the South Tees Development Corporation, which covers the steelworks site. Over the past year, the Secretary of State and the Prime Minister have been joined by a whole series of ministerial colleagues, all of whom came away from the area with renewed understanding of, and enthusiasm for, the scale of the opportunity represented by the largest brownfield regeneration project in Europe.

The development corporation’s master plan is to create 20,000 skilled jobs on the site over the next 25 years. We are just into the second year of that plan. Surveys of the 2,200 acres of developable land are now 90% complete and 1,500 exploratory holes have been drilled and analysed—the land proving much cleaner than had originally been anticipated.

The first new staff are currently being recruited for MGT’s £650 million biomass plant, which is located at the development corporation. It is the world’s largest biomass plant and is nearing completion; it is now looking for around 50 local workers. Likewise, a £250 million energy from waste plant, run by PMAC Energy, has been announced on the Redcar bulk terminal land, 50% of which is owned by SSI in receivership.

I completely agree with the hon. Member for Redcar that clean energy must lie at the heart of our local economy in future, and it would be remiss not to say a word to the Minister about carbon capture, utilisation and storage. We are entering a pivotal month for CCUS and I really hope that when the Government make their announcement they will back the idea of two dedicated clusters to develop roll-out of the technology; if they do so, I think all of us here today would join together in making the case—already so ably made by the hon. Member for Stockton North (Alex Cunningham), who chairs the all-party parliamentary group on carbon capture and storage—that one of those clusters should be located in the Tees Valley. That would be a fantastic opportunity for both our local economy and the UK’s green credentials, and indeed it would be the only realistic way of delivering on our Paris climate commitments.

I return to the issue of the steelworks site. The combined authority in the area has now received more than 100 serious inquiries about investment on the site, with a first-phase pipeline worth upwards of £10 billion. That is being complemented by other enormous economic ventures. I am delighted to see my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill) present in Westminster Hall today. The £3.2 billion Woodsmith polyhalite mine, just outside Whitby, is a transformative economic venture; it will add roughly a sixth to the entire value of the Tees Valley economy, and the mineral that it produces will be shipped underneath East Cleveland and taken through to Teesport for distribution across the world. It is incredibly exciting. I visited the site in the summer; it is truly extraordinary and what is being achieved there will be of national significance.

We also have the prospect of a freeport; I was delighted that the hon. Member for Hartlepool (Mike Hill) mentioned that prospect. However, we need to be very clear that it will simply not be possible for us to achieve the type of freeport to which we are right to aspire, if we do not leave the European Union, if we do not leave the customs union and if we do not break free to some degree from the EU state aid rules, which would make it very hard to deliver the freedoms that we want and need to see.

At the heart of all this work, all of which I hope comes off, is Ben Houchen. The leadership that Ben has shown has been transformational. As a colleague, I can testify that he works to the point of exhaustion and displays unceasing commitment to engaging with businesses, foreign investors and the Government, to stand up for Teesside.

[Dr Paul Williams (Stockton South) (Lab)]

The hon. Gentleman has acknowledged the role that Ben Houchen has played. Will he also acknowledge that the Tees Valley Combined Authority is actually made up of the five leaders of the local authorities and the directly elected Mayor, and that together they are contributing to this plan and this development?

[Mr Simon Clarke]

I absolutely will. It is hugely important that this work draws together the six figures who make up the board. Ben provides exemplary leadership in his role as the first directly elected Mayor of the area, but he would be the first to say that it would be impossible to achieve anything without buy-in from Hartlepool, Darlington, Stockton, Redcar and Cleveland, and Middlesbrough. It is a team effort. The project transcends party politics. It must; otherwise it will fail.

The hon. Gentleman interrupted my thread about Ben’s role. Let me pick it up by saying that Ben led the Tees Valley’s first trade mission to the far east earlier this year. He led a delegation of local representatives in discussions with the three Thai banks that hold an interest in the former SSI land on the development corporation site. An agreement in principle was reached, which expires in February 2019, to transfer that land and its assets to the local public sector. In parallel, compulsory purchase proceedings have begun, to ensure that the land is back under local control as soon as possible. Separately, there is good reason to believe that a good deal to release the half of the site that is owned by Tata can be achieved in short order.

[Alex Cunningham]

I just wonder about the potential for agreement. Surely the Government should be working for an agreement with the Thai banks, rather than taking the compulsory purchase route which, by the time the lawyers get involved, could take years.

[Mr Clarke]

The Government have put themselves four-square behind the initiative to release that land. When Ben went to Thailand to meet the banks, the full support of the British embassy was thrown behind him. I know that Ben is genuinely appreciative of the massive efforts made by the Foreign and Commonwealth Office, as well as the Department for Business, Energy and Industrial Strategy, to make certain that we communicate to the Thai Government—as well as to the banks—that this issue is of material interest to Her Majesty’s Government, and that there is an international diplomatic aspect to the need to release the land as quickly as possible.

None of this work is easy. The hon. Member for Stockton North is right that some of it will take years; there is no point in sugar-coating that. None of this lends itself to quick fixes, but critical progress is being made. We are much further forward from the ashes of October 2015 than we were in 2017 or 2016, and as a result, Ben’s work has been widely welcomed in our community. In September, he was voted “most inspiring person” by Tees Valley business leaders, and my constituents recognise that he is doing his utmost.

There is an upsurge of quiet positivity on Teesside, backed by analysis from the Bank of England showing that the number of unemployed people in the north-east is down by 18,000 on a year ago, and that our region accounted for almost a quarter of the entire reduction in UK unemployment over the past 12 months. The devolution of skills strategy to the north-east, and the £24 million that has been announced for our local schools through Opportunity North East—which aims to make the transition from primary to secondary education better and more effective, working in the interests of local young people—will add to that positivity, and I stand behind those announcements. As a proud Teessider, I recognise that the South Tees Development Corporation site is a once-in-a-lifetime opportunity for our area, and I am determined that we should seize it.

Here we come to the crux of the matter. I am a realist about elective politics. At present, a gulf exists between the Conservative and Labour parties about our values, our economic strategy and our role in the world; but we have a responsibility to work together, as the hon. Member for Redcar said. It is, of course, the right and the responsibility of the Opposition to hold the Government to account in a spirit of constructive criticism, but we must avoid crossing the line into casting gloom or negativity over our area’s prospects. That is a fine judgment call, but I have the sense that whatever the Government offer is not enough, and nothing Ben achieves is right. That is not because Opposition Members have a better alternative; it is, I fear, because Ben and the Government are Conservatives. We have to push back against that. If the choice is between anger and hope, I am clear that anger will not triumph over the hope of new beginnings and a fresh start for our area. We must not dampen the public’s enthusiasm, and we must not spook investors about the economic prospects of our area.

Following the Budget, we heard a powerful intervention from Steve Gibson—the man who has been a beacon of hope for Teessiders since the 1980s—calling for an end to the downplaying of what has been achieved.

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[Mike Hill]

As the hon. Gentleman knows, I am an enthusiast for the Teesside area in my own right. Could he please bury what is rapidly becoming an urban myth, that the Mayor’s Office—Ben Houchen’s office—is separately funded by Government to the tune of £1 million?

[Mr Clarke]

The entire development corporation project and the Mayor’s office are funded publicly, in a manner that is completely open to public scrutiny. As with all devolved administrations across the country, the Mayor’s Office is there to champion the interests of the local area. It requires a certain amount of staffing to do that, but I think that the leadership that is being shown from that office is absolutely integral to our hopes as an area of standing up on the stage alongside big cities such as Newcastle and Leeds, which have traditionally had a much louder voice than areas such as the Tees valley. With the disparate cluster of local authorities, we have not been able to speak with one voice. What has been achieved through devolution has astonished me. I was a sceptic about the devolution model; I thought it might just add another tier of intermediate, ineffective and bureaucratic government. It has done the opposite: it has leveraged an extraordinary amount of localised control and, more than that, has created a platform for Teesside to speak out nationally and internationally. That is a wonderful thing.

[Dr Paul Williams]

I thank the hon. Gentleman for giving way so generously. Does he acknowledge that it was the five Labour leaders of the local authorities who took that bold step in order to achieve the devolution deal, at a time when others were very sceptical about it, and that it is Labour that is making a really good contribution to the future of the Teesside economy?

[Mr Clarke]

I welcome the fact that Labour bought into this achievement. It took real vision; the Tees Valley has shown much greater foresight on this issue than Newcastle and Sunderland, which have proven much more sceptical and have accordingly lost time in the move towards devolution. Of course, it would be very remiss not to pay tribute to the hon. Gentleman’s predecessor as Member for Stockton South, James Wharton, who was the relevant Minister at the time. It was his deal that the local authorities signed up to, and it was only thanks to him that powers of such breadth have been devolved and are there to be enjoyed by the people of our area.

[Alex Cunningham (Stockton North) (Lab)]

I congratulate my hon. Friend the Member for Redcar (Anna Turley) on securing the debate and for talking up our area—the positive things that are happening in our communities—but also for laying out the greater challenges that it faces. We are here to discuss the former steelworks site, where many of my constituents spent their working life before SSI walked out on our community and the Government failed to act to save steelmaking on Teesside. Local people still ask, “Why can Governments bail out banks for billions of pounds, and bail out other industries, including the steel industry in other parts of the country, but when it came to intervening to save that site in Teesside, they just walked away?”

Today’s debate is as relevant to my constituents as it was three years ago, when many of them lost their jobs virtually overnight. It is relevant because the latest statistics, published yesterday, show an increase in unemployment in my constituency. Many of my constituents look to the Government to act, but it appears that the Government have just been putting on an act. A procession of Ministers has visited Teesside to talk the area up, but talk is all we have had. When those Ministers came to the area and made their various announcements, they did not invite Redcar’s local Member of Parliament to join them. We all want to work together, yet we constantly find ourselves excluded. There have been dozens of press releases from the Mayor of the Tees Valley promising investment, but little if any has been delivered to date.

When MPs speak up to ask questions about what is happening and to demand answers, they are accused of talking the area down, putting investment in jeopardy and somehow working against those who are trying to solve the problems that we all face. I am sick and tired of that. None of us went into politics to talk our area down; we went into politics to work with whoever can deliver for our people. If that were not the case—as my hon. Friend the Member for Stockton South (Dr Williams), my near neighbour, has already said—why on earth would our local authorities, which have worked so well together for donkey’s years, press for a devolution deal with a Government they know to have stripped tens of millions of pounds from our local council services? It was because they wanted to achieve something. They wanted the crumbs that were coming from the Government’s table, because they would make that little bit of difference on Teesside.

It is, however, a fact that there has been a real lack of progress in bringing jobs and investment to the site and, for that matter, to other parts of the Tees Valley. Yes, there are legal issues to be resolved and land ownership to be sorted out, but it has been three years since the last steel was produced and not a single long-term job has been created on the site.

My real worry is not just that the Government are failing to deliver for the site, but that the local authorities, in the form of the combined authority and the metro Mayor, will never see the promise of the heavy money to develop the site fulfilled, because that is billions of pounds. Yes, there have been plenty of announcements and repeat announcements, but we need the Government to take real action, resolving the legal problems. We hear that progress is being made and that things are being done behind closed doors. We do not know the detail, but I know that it is not creating jobs.

More than ever, in the face of the uncertainty that Brexit brings, Teesside industry needs assurance and confidence in the UK. The hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) talked about the fact that I chair the all-party parliamentary group on carbon capture and storage, and the importance of a project on that. I also chair the APPG on energy intensive industries. Those in industry on Teesside are beyond nervous about Brexit and what it means for them.

As a result of the proposed changes to the emissions trading scheme and escalating energy costs, we are facing a perfect storm that could land our big industries carbon tax bills running into millions, and cost hundreds more jobs on Teesside and thousands more across the country. We need an environment that can attract investors to the region, but daily news releases promising much but delivering nothing will not do that.

That includes a future for our Durham Tees Valley airport—a future that is more in doubt each day. That airport, and connectivity with London and the rest of the country, is crucial in attracting investors to the Redcar site and to elsewhere on Teesside. The Mayor promised to buy the airport, but we know that there is no more credibility to that plan than to his plan to achieve protected food status for the parmo, which doctors describe as a heart attack on a plate.

[Mr Clarke]

On the point about the parmo, I do not believe in the nanny state telling us what we should and should not eat. I love the parmo, and I will be the first to stand up for it. Everything in moderation.

On the airport, a non-disclosure agreement has been signed with Peel, the operators. I really do not think it is helpful or right to prejudice the status of those talks by dismissing the plan as something that will not happen. Precisely that attitude, frankly, led to Ben winning the mayoralty in the first place.

[Alex Cunningham]

I am sure that the hon. Gentleman is blessed, like me, with a slim figure and a fast metabolism, and will be able to cope with the odd parmo. We have a duty to be held accountable and to hold others accountable for what they have said they will do, and we have to press on whether or not negotiations are going on elsewhere. The plans to develop the airport are shrouded in secrecy. The parties involved are bound by confidentiality agreements, and those of us who are asking questions on behalf of the people we represent are getting very limited answers.

We know some things though. We know that the £5 million grant to create an access road to the south side of the airport to allow further development has been allowed to lapse. Why? In reply to a letter from me, the chairman of Peel Group, which owns 90% of the airport, said that his company has invested £40 million in the loss-making airport in recent years. He does not confirm that the airport will close in 2021 when the current agreements run out, but I fear that that is exactly what is on the cards if the Mayor fails to sort this out.

The final sentence of Robert Hough’s letter does tell a story. He apologies for not being able to be more helpful, and adds:

“We hope that we will receive support from the Combined Authority to take the airport forward in the most sensible and appropriate way, but the ball is not in our court.”

That means that the ball is in the Mayor’s court—the man who blocked a grant to the airport to attract more holiday flights just last year. I have every respect for the Minister, having worked opposite him when he was pensions Minister, and I am sure he will confirm that the Government are not going to bail the Mayor out and use public money to buy the airport. Who is going to buy an airport that continues to lose millions? I certainly do not want Tees Valley council tax payers to pick up that bill. It is time the secrecy was ended and we started to get answers on how the Mayor is going to buy the airport.

Secrecy, however, is the order of the day for this Government. A Public Accounts Committee report published yesterday said that “excessive secrecy” was standing in the way of, among others, the chemical industry preparing for Brexit. There appear to be plenty of secrets around the SSI site too. Budgets have come and gone, with millions of pounds allocated to the South Tees Development Corporation, but we know that most of that was just to cover the ongoing costs of keeping the site safe. Some of the delegated powers, such as devolution of the further education budget, have been delivered, fulfilling part of the agreement made with the combined authority long before we even had a Mayor. I now appeal to the Minister to provide the kind of clarity that we all need, but particularly the clarity needed by the combined authority to make the real decisions that deliver investment and jobs.

Sadly, the upshot of failing to do that could be industry looking elsewhere—we have heard some illustrations of that this morning—rather than waiting for a suitable site that does not appear to be coming to fruition. We have been told that more than 100 investors have declared an interest in the site, but some of that interest is already waning over false promises and a clear lack vision. We do not need another news release. We need the Government to take real, decisive action now.

--- Later in debate ---

[Mr Goodwill]

Boulby has been losing staff over the past few years and its production is being scaled down. It is already approaching the end of the muriate of potash seam—the potassium chloride seam—and is now in the lower seam of polyhalite, which is what the Woodsmith mine will produce. All mines have a natural life.

[Mr Simon Clarke]

There is no question but that Boulby has gone through a profound and difficult transition over the past year, with approximately 90 compulsory redundancies, but the owners would certainly want me to emphasise that they are still looking at a long-term future at Boulby. There may well be a transfer of staff between the two mines, but as far as I am aware, Boulby is not under any threat of closure or loss.

[Mr Goodwill]

My hon. Friend is absolutely right, but the scale of operation at Boulby has reduced because of the switch from potassium chloride, which requires a lot of processing on the site. Polyhalite is a material that can be used straight away without any additional processing, so it qualifies as an organic fertiliser and many producers of organic food can capitalise on it. Indeed, one of the great things about Boulby’s mining polyhalite is that we can now start to develop markets for it around the world as it becomes available. Otherwise, we would not have had a new fertiliser product that is available for field trials, developing countries and big agricultural economies around the world, and that can be sourced from my constituency and exported to the world through that great facility, the deep-water port on the Tees.

Budget Resolutions

Simon Clarke Excerpts

Wednesday 31st October 2018 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Does my right hon. Friend agree that carbon capture, utilisation and storage has enormous potential? I had a meeting with the Carbon Capture and Storage Association this morning, in which it emphasised clearly that a development pathway in 2019 would have enormous benefits for our ability to deliver a net zero target by mid-century.

[Greg Clark]

I agree with my hon. Friend. That is a good example of how a strategy to integrate different strands of policy and work can be of great benefit to many of the industries on Teesside that he represents so well. We will have more to say about that.

Building on the success of the Faraday challenge, which aims to make Britain a place for the design and manufacture of new battery technologies, the Stephenson challenge referred to in the Budget will support innovation in electric motors. We are emphasising the “D” side of R&D: development as well as research. The “Made Smarter” review, which was championed and led by Juergen Maier, the chief executive of Siemens in this country, is spreading the take-up of new manufacturing technologies to businesses small and large. A national quantum computing centre will scale up quantum systems into workable machines. An industrial energy transformation fund will help many energy-intensive businesses to reduce their energy costs as they transition to a low carbon future, at the same time as making them more competitive.

New fellowships in artificial intelligence will attract the world’s best research talent to our shores, building on our success with institutions such as the Turing Institute. On infrastructure, the Budget ensures that the digital revolution will extend to all parts of the country, through new funding for new ways of deploying full fibre broadband in rural locations.

--- Later in debate ---

[Chi Onwurah]

My hon. Friend is absolutely right. The services that make such a difference to our constituents’ daily lives face increased cuts, which is why our constituents know that austerity is not ending under this Government.

[Mr Simon Clarke]

Do the hon. Lady’s constituents want to pay billions more in tax or to have the nation weighed down by billions or even trillions more in borrowing?

[Chi Onwurah]

Our manifesto commitments show that 95% of the people of this country would not suffer any tax increase under a Labour Government. The Conservatives have managed to double our debt, while preaching austerity—doubling the debt because the economy did not grow significantly under the austerity ideology.

The Secretary of State may point to the increased spend on the NHS as an example of austerity ending, but the Health Foundation has branded it as simply not enough. Paul Johnson of the Institute for Fiscal Studies said yesterday that if we look at total spending—[Interruption.] The Secretary of State seems to suggest that health spending is not relevant to the economy, but it is the wellbeing of all our constituents that enables us to deliver an economy that works for everyone. Paul Johnson of the IFS said:

“If you look at total spending beyond the NHS it’s not really going anywhere… If you look at total spending as a fraction of national income, it’s not really going anywhere... This is not a dramatic change in the sense of undoing much of the cuts we’ve had over the last eight years.”

The Chancellor has squandered an opportunity to repair the damage done to our public services and our economy by his predecessor’s pursuit of a failed economic ideology. That ideology has created many of the problems holding back our economy today, from chronically low productivity and business investment to eye-watering levels of inequality in terms of both income and geography.

--- Later in debate ---

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Thank you for calling me to speak, Madam Deputy Speaker. I had been misled into thinking that my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) would be next, but I am delighted to be called.

I welcome the Budget and in particular the fact that over 70,000 more people are in work in the north-east than when Labour left office—the equivalent of every man and woman in my constituency. This Budget ensures that there will be more.

The £14 million of direct investment in the South Tees Development Corporation brings the total pledged to the site over the last year to £137 million. Tees Valley Mayor Ben Houchen will now be able to deliver two major new metals projects, which will create 1,500 high-quality jobs. Despite the worst efforts of the Labour party, people recognise that something special is stirring in my region and that new hope is being kindled on the banks of the Tees.

There is social justice, too. The hon. Member for Darlington (Jenny Chapman) mentioned mental health in her speech and I agree with her completely that it is a major crisis for many young people. I would add that £2 billion was committed to mental health in the Budget. That is an important investment, which it is important to note.

On universal credit, a fortnight ago, I visited my local jobcentre in Loftus. The team there were passionately committed to supporting people into work. The billions committed by the Chancellor means that Torsten Bell of the Resolution Foundation was able to state unequivocally that

“the Government’s flagship welfare reform is now more generous than the benefit system that it is replacing.”

On Hallowe’en, let us put an end to the scaremongering that we keep hearing about that vital programme. As a nation, let us embrace the principle that everyone will now be better off in work than on welfare.

We also need to look to the future in other ways. Boldness and bravery must be our watchwords. On housing, the fundamental problem is Government-induced restriction on supply. Delivering demand-side policies without addressing the artificial constraints on the availability of land will serve only to increase taxes and inflate housing costs still further. Last month, in my paper for Freer, I called for us to lift the restrictions on development within half a mile of stations in the green belt.

[Norman Lamb (North Norfolk) (LD)]

The hon. Gentleman mentioned the Resolution Foundation. Does he also recognise that it identified that better-off households, the top 10%, will be £410 a year better off, whereas the poorest households will only gain £30 a year? Does he support that?

[Mr Clarke]

I support tax cuts for hard-working people throughout our country. They had to put up with the highest burden of taxation in this country for generations.

To go back to housing—I am conscious of time—the small release of land that I am proposing would create enough land supply for at least 1.5 million new homes, while leaving 98% of all existing green belt land entirely untouched. Indeed, the remaining area of the green belt would still be over 115% larger than it was in 1979. There is growing cross-party consensus on this topic. I pay tribute to the campaigning work by the hon. Member for Mitcham and Morden (Siobhain McDonagh). We should also be looking at innovative proposals such as those from London YIMBY, which set out how we could empower individual streets to set their own design codes and build upwards rather than outwards.

We also need to look to Brexit. We must stop looking at our leaving a dysfunctional and anti-democratic EU as a problem to be mitigated, rather than as an opportunity to be seized. Trying to cling desperately to the skirts of the customs union is frankly unworthy of the world’s fifth-biggest economy. The announcement that there will be a special economic area in the Tees valley is genuinely welcome news. I hope that it will become the first free port in the UK after Brexit, and, indeed, the first of many. But if that free zone is to be a success, it will need meaningful powers. I refer Ministers to the speech I gave in Westminster Hall in the debate I secured with the right hon. Member for Birkenhead (Frank Field). As we sit here today, we do not know the precise nature of our future trading relationship with Europe. I can say with confidence, however, that half measures and a lack of national self-belief must be rejected utterly as we forge our new path in the world.