East Midlands: Local Authorities and Economic Growth

Motion made, and Question proposed, That this House do now adjourn.—(Vicky Foxcroft.)

21:39:00

Thank you for the opportunity to speak in this evening’s debate, Madam Deputy Speaker. I thank my hon. Friend the Minister for being here to respond to the debate. As my constituency neighbour, I know he is as passionate about Nottingham, Nottinghamshire and the east midlands as I am. I refer hon. Members to my entry in the Register of Members’ Financial Interests regarding my unpaid membership of two local authorities. Ahead of important local elections across the east midlands, I am grateful to have this opportunity to lay out the importance of councils to our economy. Growth is this Government’s No. 1 priority. It will pay for our local services, our social security, from state pensions to universal credit, and our national defence. The Government are right to focus on growth. Under the last Government, we suffered a lost decade. Growth, income and opportunity were flat, and the east midlands suffered as a result. The gap between where we should have been on growth and where we are represents billions of pounds that could have been spent on essential public services. The east midlands has been at the forefront of that decline, as a result of Conservative mismanagement. Our economy in the east midlands used to be strong, but deindustrialisation, a lack of investment and regional disparities in public spending have left us lagging behind other parts of the United Kingdom. The midlands was the industrial heartland of this nation. We have so much potential. We are the region that is most connected to the entire UK, with a distinctive mix of engineering, manufacturing, construction and sciences, but we now struggle to find the jobs, transport and opportunity that we had before. A lot of that comes from lack of investment, including a lack of investment in our local councils. The east midlands receives the lowest level of spending per person across the United Kingdom. We receive the lowest level of capital spending and total spending. The facts speak for themselves: over the past 14 years, the east midlands was levelled down by the Conservative party. That inequity leaves our local government, our public services and our infrastructure investment billions of pounds short.

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

The hon. Gentleman is right to pay testament to the Chancellor and the Labour Mayor of the East Midlands, Claire Ward, for unlocking nearly £1 billion in growth and investment from the freeport at East Midlands airport. He knows Northern Ireland politics far better than I do, but I think my hon. Friend on the Treasury Bench will have been listening closely to his powerful argument on behalf of his constituents. I wish him well with his campaign. Under the previous Conservative Government, we heard a lot of talk about levelling up, but certain local areas were favoured over others, while the rest of us wondered when it would be our turn at the table. I welcome this Labour Government’s change to that approach: less selective, no longer pitting area against area, and with a genuine desire to grow every part of the United Kingdom. Our Labour mayor, Claire Ward, has started working with the Government to find areas to grow the local economy. In the past year, she secured £200 million of transport investment that will grow our economy by allowing people to get about our region more easily; she secured £160 million for the east midlands investment zone, to attract new investment and create jobs; and she secured the brownfield housing fund, which will build 1,400 new homes. However, she is held back by the previous Government’s piecemeal approach to devolution.

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

My hon. Friend is a good friend and a powerful advocate for his constituents. He is right that devolution in the east midlands needs to go further and faster, because areas such as Greater Manchester and the west midlands are much further ahead on their journey. Giving the East Midlands mayoral authority trailblazer status would see a turbocharged approach to skills, investment and growth in our area. Giving Mayor Claire Ward an integrated funding settlement across local growth, place, transport, skills, housing and more to work with local authorities such as mine in Gedling would really get our economy moving. That approach has been proven elsewhere. We should not need to wait any longer in the east midlands for power over our own future, but mayors and combined authorities are only one part of local government across the east midlands. Borough, county and unitary councils often do the overlooked, often-ignored hard yards that provide growth in our communities. The Government recognise that to grow the economy, they must work hand in hand with business, but they also have to work hand in hand with local government. Public services are essential for social and economic security. Vital services such as education, housing, healthcare and transport contribute to the economic productivity of the region, and local authorities provide the best investment in local areas. The Local Government Association found that councils in the east midlands contribute directly to 20% of local GDP through projects that promote business growth, job creation and regional investment. Local authorities are key enablers for the Government’s promises around transport, housing, skills and growth. The Government are rightly reforming the planning system to allow council planners to do their job, but every single one of the 1.5 million houses built under this Government will have been approved by a council planner. Local authority workers will be instrumental in the roll-out of free breakfast clubs across schools. We have seen the impact on growth and economic confidence if simple things such as our bin collections go wrong. Our local government workers keep our communities and this country ticking. They are all heroes. My plea to the Government is simple: do not ignore local government, local government finances or local government staff, and continue to invest in those areas.

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

I thank the hon. Member for sharing his view with me, but I must say that it is not a view we share in the east midlands. We have a partnership approach with our Labour Mayor of the East Midlands, Claire Ward, working with brilliant local Labour councils. I would have a slight degree of sympathy for him if he had not been coming here for the last 14 years and voting for cuts to local councils in the east midlands, taking 60p out of every £1 of their budgets. Ultimately, where we have good, soundly managed local authorities, with boundaries that local people understand and prefer, such as in my borough of Gedling, do we really want local authority staff to be focused on a multi-year reorganisation process, or do we want them to be getting on with the job and growing their local economies? The Government have rightly pointed out that certainty is essential to economic growth, so may I be so bold as to suggest that certainty in local government—whether it is a planner knowing that they have a job in the future or a local authority knowing that it will exist in two years’ time—is also essential? My constituents have told me loud and clear that they do not want to see a change to their local council. It is important to me that my constituents’ voices are heard and listened to in this Chamber, including in this debate. I share their pride in having a well-run local council in Gedling borough council, with low council tax, low levels of debt and decent, delivered public services, and I will argue for that to the hilt. It would be remiss of me to speak in this debate without highlighting some local examples of how things can go terribly wrong, and how they affect my constituents. Conservative-controlled Nottinghamshire county council might be the worst council in the country for road repairs. Over 25% of Nottinghamshire’s minor roads required repairs last year, yet Nottinghamshire county council only got around to repairing 2.3% of them. Out of every 10 potholes, Conservatives in Nottinghamshire managed to fix less than one. If we need drivers for any future moon landing, the residents of Nottinghamshire may well volunteer to be first; with the number of craters that we have to dodge on our local roads just to get about our daily lives, everyone in Nottinghamshire is an expert in dodging potholes. Navigating the pothole-ridden roads of Nottinghamshire has gone beyond a joke. It is a daily misery for the people of Gedling, who I serve, but it also impacts our economy.

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

I thank my hon. Friend for making that powerful argument on behalf of her Derby North constituents. Having a Conservative-run county council is something we have in common, and in less than a month’s time, the residents of our respective constituencies will have a chance to turn the page on that failure and elect Labour councils that will turn a corner. Potholes on roads impact our economy, because if a trader’s vehicle hits a pothole and needs to be in the repair shop for a week, that is a week in which that trader is not doing business. Their business suffers, their family suffer, and our national economy suffers too. One of my constituents, a new mother, was crossing the road with her newborn daughter in a pram when that pram snagged on a pothole, causing the mother to trip over, and her newborn baby almost ended up in the middle of a busy road. She wrote to me that people slammed on their brakes and jumped out of their cars to check whether her baby had been badly hurt. The mother and the baby had to spend the afternoon at the hospital that day, when they should have been shopping and meeting friends on the local high street. Even without the use of a car, potholes are hurting growth and, at times, physically hurting our constituents. If a parent hits a pothole in their own vehicle and suffers hundreds of pounds of damage, that is money that is not being spent in our local shops or on our local high streets. Despite record investment by this Labour Government in fixing potholes—£1.6 billion—the Conservatives on Nottinghamshire county council cannot get a grip, and not just on potholes. The county council is also failing to issue education, health and care plans on time, with nearly 1,000 requests for an EHC plan issued late between January and October. Compared with the previous year, 6% fewer annual reviews of EHC plans were conducted. The impact of Conservative-led Nottinghamshire county council failing to deliver on special educational needs and disabilities services, and in many ways going backwards, is that some children are not getting the education they need. That is forcing some parents in my constituency and across the east midlands to stay at home to school their children, rather than going to work. That hurts their livelihoods, it hurts their opportunity to contribute to the economy, and as a result it hurts growth, too. In contrast, Labour-run Gedling borough council is investing in our high streets by maintaining its popular two hours’ free parking policy across all high street car parks. Labour-run Gedling created the beautiful 365-acre Gedling country park, a boost to the local economy. Gedling Labour saved and refurbished the cherished Bonington theatre, and is investing in CCTV across communities to keep people safe. The Arnold market place is an example of how to do regeneration well, led by Gedling Labour. I was proud to be part of it on Gedling borough council, and it is things like that that will boost our economy. Beyond the high street, Gedling borough council has shown that investing in our parks and green spaces, our theatres and our leisure centres and keeping our cultural centres open invites local people into the area, which supports local businesses and growth. That is why I am so proud of the hard work being done by our Labour candidates in Gedling: Sarah O’Connor and Henry Wheeler in Arnold North, John Clarke and Liz Clunie in Arnold South, Jim Creamer and Errol Henry in Carlton West, Cate Carmichael in Carlton East and Dean Wilson in Calverton. The contrast could not be clearer. Under the Nottinghamshire Conservatives, we can have yet more failure and poorly managed services, strangling our local economy and failing to fix our broken roads. Under Gedling Labour, we can have pride restored to our communities by hard-working councillors, growing the economy, bringing back community policing, supporting our high streets and fixing the potholes. That is the choice on offer next month at the local elections, and that is the choice that residents in Gedling can make.

21:56:00

I thank my hon. Friend the Member for Gedling (Michael Payne) for securing this debate. I can assure him that potholes are as bad in Conservative-run Derbyshire as they are in Nottinghamshire. Our area has been shut out of the conversation around economic growth for too long. I am excited to see the change with a Labour East Midlands Mayor and a Labour Government, who recently confirmed £15 million for Bolsover district council. That will see eight projects delivered to boost business and tourism across Pinxton, Shirebrook and Bolsover. However, one area desperately needs investment so that we can unlock our economic potential: transport. Some 80% of residents in Bolsover live in transport-related social exclusion. That compares with 18% of residents across England. It is the second-highest figure in the whole country. From South Normanton to Barlborough, transport issues affect growth and have a huge impact on everyday life. People in Clowne are desperate for a bus to Chesterfield royal hospital. Just last week, Morton was cut off completely from public transport after its bus was first cancelled and then reinstated, but with Morton taken off the route. How can people get to work if there is no bus service to take them? How do parents get their little ones to childcare? Why would a business invest in areas where people cannot get to their employer? Who is to blame? Derbyshire county council must take responsibility. The Conservative-run council has a bus service improvement plan, but buses continue to fail residents across Bolsover. Bus services are reduced, villages are cut off and buses are either late or do not turn up at all. Rural communities rely on buses for growth, for work and for leisure. Conservative Derbyshire county council are letting us down. Bolsover deserves better and I urge anyone who agrees to make that known at the ballot box on 1 May.

Before I call anybody else, may I just gently remind Members that they need to have asked permission to speak from the Member in charge, the Minister and me? I know that some Members have contacted the Speaker’s Office, but may I ask those who have not contacted the Member in charge and the Minister to remain seated?

21:59:00

I am grateful to my hon. Friend the Member for Gedling (Michael Payne) for securing the debate, and for raising both the economic challenges and the opportunities faced by our communities in the east midlands. He and I have been friends for a long time and have talked about these issues a great deal, as members of our council in our day and, perhaps, over a pint in town from time to time, so it is a personal thrill for me to be able to talk about them here, on the occasion of what I believe is his first Adjournment debate. I agreed with much of what he said, and I shall now say a little about the potential and some of the investment that the Government are making to change the trends that he described. The midlands has the largest regional economy outside London, and there is plenty for us to support—

22:00:00

Motion made, and Question proposed, That this House do now adjourn.—(Vicky Foxcroft.)

Our colleagues will have heard a lot from us about the primacy of growth. It is the Government’s firmest belief that economic growth should reach all communities and drive a real rise in living standards throughout the country, particularly in areas that have been left behind following years of declining investment. I agreed with my hon. Friend’s analysis of the lack of investment in the east midlands in recent years, but I also agreed with his analysis of our potential: our resources and our heritage, particularly our industrial heritage, as well as the benefits that our location brings. We know that there is a lot to do and a lot to back in our part of the world. Let me now talk about some of the actions that we are taking as a Government. I was delighted and proud when last month, as a cornerstone of our plan for change, we announced our new plan for neighbourhoods, a £1.5 billion programme to ignite renewal and fight deprivation, revitalising local communities. The east midlands is at the heart of that programme, with 10 areas selected to receive a long-term investment of up to £20 million of funding and 20 years of support to help them to reach their full potential. Recipients include Boston, Skegness and Spalding in Lincolnshire, Chesterfield in Derbyshire and, in Nottinghamshire, Worksop, Newark-on-Trent, Mansfield, Ashfield, Clifton and indeed Carlton, in my hon. Friend’s constituency. They will all be worthy beneficiaries of this fund to rebuild, restore and rejuvenate neglected infrastructure and fractured communities. We also believe that driving growth that is sustainable, innovative and green is an anchoring part of our mission to be a clean energy superpower. We in the east midlands, with our heritage in the energy realm, are poised, and brilliantly placed, to lead the green-energy revolution. In January we announced a record £410 million investment to develop cutting-edge clean energy, which will include the creation of a world-leading STEP—spherical tokamak for energy production—prototype fusion energy plant in Nottinghamshire. That investment puts the UK at the forefront of fusion delivery and firmly on the path to net zero, and recognises the east midlands region as a pioneer of the clean energy of the future. As for housing, in October we allocated nearly £17 million of the £68 million brownfield land release funding to the east midlands. A dozen schemes in Derby, Derbyshire, Nottingham and Nottinghamshire have been identified for grants to support the construction of nearly 1,500 homes in the region. These housing developments will revitalise underused sites in our cities and communities, and work is already beginning in some locations. One housing announcement is particularly close to my heart: I am proud to say from this Dispatch Box, as a Nottingham MP and a Minister, that following the announcement on 31 March, we are delivering a significant milestone boost to the regeneration of Nottingham city centre through the acquisition by Homes England of the Broad Marsh site. That feels good. Many people in Nottingham will say that it is overdue by years if not decades, and I would not fight that contention, but it is a huge step forward for the city. The project will create 1,000 homes and up to 20,000 square metres of retail, office and community space, and will generate about 2,000 full-time jobs, complementing the establishment of the Nottingham college city hub next door, the opening of the central library, the bus station, the new car parks, and the completion of the Green Heart public realm. As I have said, this has taken too long, but it will be a wonderful development for our community. My hon. Friend mentioned the importance of local leadership, and I commend the leadership of Councillors Neghat Khan and Ethan Radford in driving this development forward. My hon. Friend also mentioned the important work of the East Midlands combined county authority, and I entirely agree with him about that. As a new Government, we have made a commitment: we fundamentally believe in a new settlement in this country, and at the heart of that is the transfer of money and power from this place, and from Whitehall, to town halls. At the forefront will be our devolved Administrations and combined authorities. The anchor investment fund of £9.5 million will support key projects to break down barriers to opportunity and significantly boost economic growth in our region. The funding will be allocated to projects that invest in homes, jobs, manufacturing, clean energy and greener spaces in order to create thriving local places. A number of specific projects are set to benefit, including the south Derbyshire growth zone. We have provided a £1.5 million investment for a new junction on the A50 trunk road, which will unlock plans to build 4,500 homes and nearly 3.5 million square feet of commercial floor space. The Trent clean energy supercluster in Bassetlaw will receive £3 million to advance the transformation of three former coal-fired power stations along the Trent into a world-leading clean energy and innovation centre—again, leaning into our past and helping us build our future. Derby will receive £3.75 million to transform priority areas in the city, creating a vibrant, sustainable and accessible urban quarter.

Derby city council is working with partners and beginning to deliver transformative regeneration. Vaillant Live, a new 3,500-capacity performance venue, has just opened. A refurbished market hall is about to open, a new university business school is nearly finished, and the Government are delivering £20 million to our two theatres. Does the Minister agree that regenerating our city centres is key to unlocking economic growth across the region, and can he outline how this Government are supporting council leaders to generate growth in their local areas?

My hon. Friend adds a very thoughtful and well-judged counterweight to my love letter to Nottingham city centre on behalf of Derby city centre. Perhaps she knew it was just too far beyond me to overcome our traditional rivalry, but she did so better than I could have done. Derby has some very exciting days ahead because of the investments, and because of the creativity of local leaders and the local community in enhancing that space. On the final part of her question, it is important that we get them the tools and resources to do so. I will talk a little about local government finance in a second, but we want to make sure that councils have the power—whether through high street rental auctions or similar—to shape their community.

The Minister talks about the dichotomy between Nottingham and Derby. As the Member of Parliament for Erewash, which sits at the halfway mark between the two, I felt obliged to come in at this point. I have seen at first hand the massive improvements that the Labour administration has made at Erewash borough council in the two short years since it took control, from encouraging solar farms and helping community events to liberalising the grants programmes for businesses and introducing £2 million of new investments to Erewash. Will the Minister join me in congratulating the fantastic Erewash Labour group and Erewash borough council more broadly?

I do not think we could litigate in the remaining 22 minutes whether Long Eaton is in Nottingham or Derby. My hon. Friend is perhaps better qualified than me to say so—but when I go to see him, I see a lot of Forest shirts. He is right to highlight the work of his council. It has not had very long in power, but it has taken a very progressive and ambitious approach to shaping place, and I am always proud to work with James and colleagues. I will mention a couple more investments. Infinity Park in Derby will receive £1.5 million for a research and development facility within EMCCA’s investment zone to support the advanced manufacturing and nuclear sectors. North East Derbyshire will receive £1 million to create southern access to the Avenue site, improving access for vehicles and pedestrians and enabling future development. These developments show the vital role of devolution in unlocking the potential of regeneration across regions by putting investment back into the hands of local people. EMCCA has not even had its first year, but the impact has been monumental, which gives us the perfect opportunity to recognise and reflect on the outstanding leadership of Mayor Claire Ward. She has had less than a year in post, but she has made a great impact in all the areas I have talked about. Projects are being developed on brownfield sites because of her leadership, and the reality is that decisions made in the east midlands should be taken by the people of the east midlands. That is why we will continue to back Claire. The hon. Member for Strangford (Jim Shannon) mentioned freeports, and that is just another sign of our wanting to get the powers and resources to EMCCA so that Claire can show that leadership and we can all collectively drive forward the region. My hon. Friend the Member for Gedling made very important points about integrated settlements. He will not be surprised to hear that Mayor Claire makes exactly the same points to me and other Ministers on a daily basis, and the points are well made. Turning to the important contribution from my hon. Friend the Member for Bolsover (Natalie Fleet), I think the insight about transport is best played through our combined authority. Again, it is incumbent on us at this Dispatch Box to deliver the right powers and resources to do so. There is of course the age-old problem—I say that, but it is actually quite a new one—of an east midlands mayoralty that does not quite cover all of the east midlands. I am delighted that the region is on the cusp of its second devolution success, with the upcoming election in less than a month of a Mayor for the Greater Lincolnshire combined county authority. That will bring £750 million of investment over 30 years, with an initial £20 million of capital funding to drive place-based economic regeneration. That is a great step forward and part of—something we are making good on in the English devolution White Paper—our commitment to a significant shift of power and resource from this place to local communities.

When we talk about devolution, we cannot forget Leicestershire, which is in a devolution desert. My constituency of North West Leicestershire borders both Nottinghamshire and Derbyshire. We have an international airport, but, significantly, we have no passenger rail. Does the Minister agree that actual and effective public transport is key to unlocking growth across the whole east midlands?

I very much do agree. It should be a point of great pride—and, again, it is one of our huge assets—that we have the biggest pure freight airport in the country. Frankly, our geographical location means that all journeys involving the transport of goods tend to come through our region at some point, but with the airport they do so very directly. My hon. Friend raises, as my hon. Friend the Member for Gedling did, the fact that one of our challenges in the east midlands is linking up our opportunities by having the right access and the right public transport. I think that is absolutely crucial, and it must be the next dimension of our efforts. Having had exactly the same conversation with Andy Reed—formerly of this parish—who is chair of the business board in Leicester and Leicestershire, I want to reassure my hon. Friend the Member for North West Leicestershire (Amanda Hack) of our commitment to making sure that, although there are devolution gaps at the moment, people in Leicestershire can also secure a bright and more sustainable future for their communities. We will work with them in whatever way we can. My hon. Friend the Member for Gedling was exactly right in saying that we cannot forget the importance of our local councils. I am very proud to be a former member of my council. Having seen how hard it has been for local authorities in recent years, I am also very proud that, at the recent Budget, we started the journey of rebuilding local finances. I think we will start to see much better services as a result—and we have to—and people will feel that change. Before I close, I want to cover my hon. Friend’s point, which he said with a degree of boldness, about local government reorganisation. Having made the case strongly for the devolution of power, as I think I did, my hon. Friends will know that my belief is that decisions are better taken locally than in this place, and we will certainly shift power in that regard. I think we must have a degree of responsibility in that where we add tiers of government, we rationalise other tiers. I am thinking of parts of my constituency that have five tiers of government: they have an elected mayor; they have me and this place; they have a county council; they have a borough council; and they have a town council. I do not think it is unreasonable that we should want to bring forward that reorganisation, but my hon. Friend made very significant points about the importance of getting the voices of local communities into the room, and the moment for that is now. In the next few months to November, when we expect proposals to be submitted, we have an opportunity to have those conversations. We are at the proposals stage, and we are going to make sure that communities have the right insight to make the right judgments about their future, and we will facilitate and be part of those conversations. To conclude, the thing that frustrates me about my city and our region is that we have had four really difficult decades—there is no doubt about that—and we see that in the physical and societal scars all across the area and in the memories we have lived with. For too long, we have talked about—or even worse, been talked about—in the deficit: what is wrong with us; what we do not have. I am really pleased with the spirit of this debate. The spirit of debate about our region over the past year, and certainly in the new Parliament, is one that talks about the opportunities in the east midlands, which are huge and abundant. We as a Government will back them, but most importantly it will be local leaders, the elected mayor, council leaders, local Members of Parliament and the local community who shape, deliver and drive that. I think that is the right way around and I cannot wait to see what we, collectively, can achieve. Question put and agreed to.

22:14:00