National Wealth Fund: Regional Growth

The national wealth fund has had constructive meetings with all our mayors, and we have given a mandate to the national wealth fund to work with mayors on tailored offers for their communities. I am meeting Mayor Andy Burnham later today to take forward that shared objective to ensure that growth is generated everywhere and felt in all parts of our country.

As a fellow north-western MP, I am sure that you, Mr Speaker, share my pride that the banks of the River Mersey were the birthplace of the industrial revolution, and my constituency of Stockport continues to be a hub for innovation. We have many fantastic businesses in Stockport, including KNDS in the Heatons, which manufactures military bridging systems and the Boxer armoured vehicle for the British Army. Can the Minister outline how the national wealth fund will fuel economic growth in Stockport and the investment we need in our local infrastructure?

I visited Stockport with my hon. Friend and the Mayor of Greater Manchester last year to see the regeneration work happening there, linking new investment in housing with transport infrastructure. I thank my hon. Friend for his leadership. Last month, alongside the increase in defence spending to 2.5% of GDP, we also set the national wealth fund’s strategic direction, with a focus on support for the defence sector through dual-use technology, creating more good jobs in all parts of the country, including Stockport.

Economic policy should benefit all regions of Britain, including rural counties such as Lincolnshire, where we grow a disproportionate amount of the food that feeds the nation. Does the Chancellor recognise that, in an age when the two biggest economies in the world are protecting their industries—including agriculture—the time has come to reinvest in manufacturing and to consume more of what we produce here in Britain? To echo the call of the Liberal Democrats’ spokesperson, we should buy British. That means using Government procurement to back British jobs, British projects and British workers.

My right hon. Friend the Chancellor of the Duchy of Lancaster has set out new reforms for procurement rules to enable just that. We want more British businesses to win contracts. We want more small businesses in Britain to win contracts—businesses in all parts of the economy, including in food and farming. In farming, we gave a record settlement of £5 billion in the Budget last year to support this important part of our national economy.

There is currently no tram network from central Sheffield to Oughtibridge, Wharncliffe Side, Deepcar or Stocksbridge, and no operational train service to those areas. My constituents want the Sheffield tram network to be extended to Stocksbridge and to connect those rural communities with jobs, education and hospitals, as well as supporting the advanced manufacturing district and the steel plant in Stocksbridge. Will the Minister meet me and the Mayor of South Yorkshire before the spending review to discuss the next steps to establish the Stocksbridge extension to the Sheffield tram-train service?

The Chief Secretary is working closely with mayors, including Oliver Coppard, to understand their priorities for the places that they represent for the purpose of the spending review in June, and will continue that work. At the same time, as the hon. Member for Grantham and Bourne (Gareth Davies) pointed out, we are backing the airport at Doncaster, bringing more good jobs to South Yorkshire.

What discussions has the Chancellor had with the Northern Ireland Executive to ensure that the national wealth fund is used to promote economic growth in Northern Ireland? Does she not agree that the big impediment to growth is the fact that she is taxing businesses to death?

The Office for Budget Responsibility has revised growth upwards from next year, and expects the economy to be bigger at the end of the forecast period than it thought at the time of the Budget last year. We are using the national wealth fund, the British Business Bank and UK Export Finance to support businesses throughout the UK, and we were recently able to announce significant investment at Thales in Belfast to create jobs in the defence industry there for the export of goods to Ukraine.