Levelling Up: East of England

Stephen Metcalfe Excerpts

Tuesday 18th January 2022 Westminster Hall

[Peter Aldous]

I thank my hon. Friend for that intervention. He is right: if more housing is to be provided, the infrastructure to go with it needs to be provided. I will comment on that. I will also address the fact that the east of England is at the moment a net contributor to the Treasury, and if we do not invest in the east, there is a risk that we will destroy the goose that lays that golden egg.

At first glance, the east of England appears relatively prosperous, even though wages in many areas lag behind the national average. In 2019, the east of England accounted for 9% of the UK’s GDP, although it had a GDP per head below that of the UK as a whole. There are significant pockets of hidden deprivation, particularly in coastal communities, such as the Waveney constituency that I represent, and in rural areas. Those are often concealed, as they lie close to more affluent places.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

My hon. Friend is making a powerful point, and I fully accept that coastal communities and some rural areas suffer from deprivation. However, new towns also have some of the most deprived wards in the east of England, particularly in and around Basildon. Levelling up is about levelling up opportunity, but it is also about levelling up those people’s own environments and communities, so that they stay there rather than feel that they have to escape their local communities.

[Peter Aldous]

I thank my hon. Friend for that intervention. Of course, he is right: one of the challenges we face is that, if we do not invest in those communities, there will be a brain drain from the region. It is for that reason that we need to invest in those regions. In that way, we will level up, and get rid of that migration from the region.

As I have said, the east of England is one of three net contributing regions to UK plc, and it should be emphasised that investment and support in our region will not only deliver levelling up but add to national prosperity. Much of the hidden deprivation is focused in coastal areas such as Lowestoft, where traditional industries such as fishing and manufacturing have declined over the past 40 years, although there is hope that fishing can play an important role in economic recovery through the Renaissance of the East Anglian Fisheries initiative. Kirkley, in Lowestoft, is the 26th most deprived ward in the country, and 10 of Lowestoft’s neighbourhoods fall within the 10% most deprived wards nationally. A 2019 study found that more than 12,000 people in Lowestoft and the rural area immediately to its north are affected by income deprivation. Some 20% of households in Lowestoft live on absolutely or relatively low incomes, and 21% of adults in the town have health issues that affect their activity, diminishing their participation in society, limiting their job opportunities and contributing to wellbeing issues. Finally, although 68% of adults in the town are economically active, 15.7% are in receipt of universal credit. That reflects the low-skilled and temporary nature of employment opportunities currently available.

It is also important to highlight one particular opportunity and one particular challenge in the east of England. The opportunity is presented by the UK’s net zero target, with East Anglia right at the forefront of the Government’s plans. Half of the UK’s offshore wind fleet will be anchored off our coast. There is the proposed Sizewell C nuclear power station, and there is the potential to retrofit the gas infrastructure, both in the southern North sea and on land via the Bacton gas terminal. Some 30% of the UK’s low-carbon electricity will in due course come through Suffolk alone. There is potential to completely transform the economy of the whole of coastal East Anglia, where many deep pockets of deprivation are found. To make the most of the opportunity from which the whole of the UK will benefit, the Government need to provide the necessary seedcorn funding. If that is done, we are not just talking about levelling up; we can provide a global exemplar as to how decarbonisation can be delivered to benefit local people and local communities.

A particular challenge that the region’s councils face is adult social care, because the east of England has a relatively elderly population. Following the comprehensive spending review and the provisional local government funding settlement, there is a real worry that one year of funding certainty is not enough. Councils need at least three years of certainty so that they can plan effectively and deliver services efficiently. There is a need for increased long-term funding for councils to close the funding gap that, by the end of 2022-23 for the east of England councils, will be in the order of £240 million. There is concern that the adult social care funding that has been provided is not enough and might not even cover the planned capital on care costs and changes to means testing. Councils face significant financial pressures owing to the rising costs of care, workforce pressures and national insurance uplifts.

I have highlighted the challenges that Lowestoft faces, but I should point out that the Government have responded positively and are currently making a significant investment in the town. Construction of the Gull Wing bridge and the Lowestoft flood defence scheme are well under way, and Lowestoft has secured a towns deal. Work on the projects is due to start later this year.

--- Later in debate ---

[Peter Aldous]

I thank the hon. Member for his intervention—he is right. As far as road investment is concerned, we have to make up for work that should have been done a long time ago. Rail network improvements are vital to the future, as he has mentioned. I have mentioned two junctions at Haughley and Ely; I could be greedy, we need Trowse in his constituency and Bow to improve the access to London as well. Those need to be addressed.

I will now briefly address the digital connectivity which is so vital to the future.

[Stephen Metcalfe]

Before my hon. Friend moves on to the very important issue of digital connectivity, may I highlight the fact that in the south of Essex there are some proposals to consider a tram network? There is one very important road that he missed out of his list—the A127. It is not part of the national infrastructure, but it provides a vital route out of London down to Southend, through some of the busiest areas and areas that have the greatest opportunity to deliver the levelling-up agenda. I will just put those points on his radar.

[Peter Aldous]

I am grateful to my hon. Friend for doing so, and I apologise if my speech is somewhat focused on the east of East Anglia. He is quite right to highlight the challenges and opportunities in the south of the region.

Finally, I will say that full-fibre connectivity for all households and businesses is vital if East Anglia is to reach its full economic potential. There are projects to deliver that connectivity in many towns across the region, including Cityfibre’s £15 million investment in the network across Lowestoft. However, there is a concern that digital deserts may emerge in some rural areas, so it is vital that the Government’s Project Gigabit programme is ramped up and is fully comprehensive.

For East Anglia to realise its full economic potential and provide local people with the opportunity to work in the exciting new emerging industries, a skills revolution is needed. The Skills and Post-16 Education Bill provides the framework to deliver that revolution, but there is a concern that the region may again be bypassed.

Sizewell C is an enormous project, which can bring great benefits to Suffolk, Waveney and further afield. It is estimated that during the 12-year construction period, £2 billion will be put into the Suffolk economy. During that period there will be three apprenticeship cycles and 1,500 apprenticeships. There is an opportunity to leave an enduring legacy of knowledge and skills, which in the long term—once Sizewell C is completely constructed and becomes operational—can make Suffolk and Waveney a compelling location in which to set up and grow a business.

Sizewell C is exactly the sort of project that requires a gear change in training, which an institute of technology would help to deliver. However, the proposal from the University of Suffolk, East Coast College, the College of West Anglia and Norwich University of the Arts has not been successful in the institute of technology competition, in which the second wave of successful bids has just been announced. In the first two waves, 21 institutes of technology have been created, which provide comprehensive coverage across the country; and yes, there is one at South Essex College at Chelmsford, but there is a vacuum in the east. I will follow this matter up with the Minister for Higher and Further Education, my right hon. Friend the Member for Chippenham (Michelle Donelan), to find out why the bid for our area was rejected, but there is alarm that the necessary investment is not being made locally to ensure that the region fully benefits from the exciting opportunities that are emerging.

I have spoken for far too long; I must allow others their say. Generally, I am excited about the future economic prospects for East Anglia, as they provide the opportunity to reverse 40 years of economic decline in coastal communities such as Waveney. However, I have concerns that these issues are not fully taken into account in the emerging levelling-up strategy. In the east of England, it is crucial that the Government recognise the challenges faced in many coastal, rural and urban communities, and that they upgrade connectivity and invest in skills. If we do not do these things, we will not eliminate those deep pockets of deprivation, there will be a negative spin-off across the UK and the region’s ability to continue to be a net contributor to UK plc will be in peril. I hope that the Minister can allay these concerns in his summing-up.

--- Later in debate ---

[Tom Hunt (Ipswich) (Con)]

It is a pleasure to serve under your chairship, Ms McVey. I thank my hon. Friend the Member for Waveney (Peter Aldous) for bringing forward this vital debate. We are very lucky in the east of England to have the oldest town in the country, which of course is Ipswich, but we also have the second oldest town, which is Colchester, so I think we are quite lucky.

We have significant pockets of deprivation in the region, which has been referred to and that includes in Ipswich, but it is that mix of deprivation and potential that means East Anglia should be right at the forefront of a levelling-up agenda. I must say it is in among the most deprived parts of the town that I have the honour of representing that I have met the best people, and some of the most honest people with the best values and the strongest communities, but they do need investment in education, tackling crime and everything else.

[Stephen Metcalfe]

My hon. Friend talks about pockets of deprivation. While individual projects can help levelling up, it is actually about lifting the whole area—the whole pocket—up by improving housing and education, which will keep people there and enable the whole area to improve.

[Tom Hunt]

I completely agree with my hon. Friend, which is why I think we need to balance the educational provision of technical skills and apprenticeships as well as academic education.

As for some good things that are happening on levelling-up in the east of England, particularly in relation to Ipswich, we have benefited from a £25 million town deal and 11 exciting projects, many of which relate to skills, which we know is at the heart of levelling up. Also, the freeport in Felixstowe, if done in the right way, could bring forward about 10,000 new jobs, so my constituents stand to benefit almost more than anybody else.

My hon. Friend the Member for Waveney has already mentioned the fact that we were unsuccessful in the institute of technology bid, which is very disappointing. It is also worth mentioning that we were not successful in becoming a pilot for the local skills improvement plan. That was slightly disappointing because we know there is probably nothing more important than skills for levelling up.

What do we need to tackle the levelling-up issue? First, we need to look at how we fund our core public services. Of course, things like the levelling-up fund and the town deal are important, but it is simply not right that when it comes to education, particularly special educational needs provision, and police funding, Suffolk gets an incredibly raw deal, and that has been the case for decades. The east of England does badly from a lot of those funding formulas, but I argue that Suffolk does particularly badly. I was pleased to support a recent letter to the Secretary of State for Education on special educational needs provision.

The Government need to go further and extend the good things they have already done in terms of the towns deal and freeports. I think they need to get fully behind the Felixstowe and Harwich freeport, which the Government are doing and should continue to do, but they need to look at how we fund our core public services. That means bringing forward things, such as the review of the police funding formula as soon as possible, and in terms of the levelling-up fund, being imaginative about the way in which it can be spent. I would be excited about the prospect of a grassroots sports club fund, because we know that clubs and grassroots sports are incredibly important for levelling up.

In terms of infrastructure, I echo the comments made by other hon. Members about Ely North junction. It has been promised for a very long time, but it keeps being delayed, and it is amazing how many things are linked to it. There is also Haughley junction, and the “Ipswich in 60” service is vital. Small things, such as the hourly Peterborough to Ipswich train, would also make a big difference to many of my constituents in getting about the region.

I simply say this: I have never thought the Government see levelling up as purely about the north and the midlands. That has never been my view, and there is a lot of evidence that that is not the case, but that is not to say that I do not think the Government could go further. If I was going to say one thing, it would be about the way in which we fund our core public services, because for too long Suffolk has got a raw deal.