The Economy — House of Commons, 2015-06-04
Topic: Macroeconomics
Angela Christine Smith (Labour, Centre-left): May I start by congratulating you, Mr Speaker, on your re-election? I also congratulate the three Deputy Speakers, particularly my hon. Friend the Member for North East Derbyshire (Natascha Engel), who I think will be an excellent Deputy Speaker, fulfilling the potential she showed in the previous Parliament as an excellent Chair of the Backbench Business Committee I congratulate the hon. Member for Horsham (Jeremy Quin) on his eloquent maiden speech and wish him luck in his work of representing his constituents and his party in this place. I pay tribute to all the new Members who have made their maiden speeches so far. We have heard some excellent maiden speeches, delivered confidently and with real style and polish Today’s debate is broadly about fiscal issues relating to the deficit and debt, but growth, of course, has a key part to play in reducing the deficit. Indeed, our nation’s prosperity depends on robust economic growth. We in the Opposition absolutely understand the need for economic growth based on wealth creation. While the majority of Opposition colleagues were fighting hard for manufacturing in the previous Parliament, my hon. Friend the Member for Huddersfield (Mr Sheerman), joint chair of the all-party group on manufacturing, and my hon. Friend the Member for Hartlepool (Mr Wright) were also making the case for an industrial strategy to underpin and help manufacturing to grow its share of the economy. That has to be a key part of the way forward In that context, I welcome the Government’s northern powerhouse initiative. Indeed, I have long argued for the devolution of powers in England and believe that this country can be one nation only on the basis of a properly thought through devolution settlement for England. However, the real danger with the northern powerhouse project, as it currently stands, is that devolution, as promised by the legislation on the table, will become discredited unless it is accompanied by changes to the distribution of funding by central Government We all know that the north of England and large parts of provincial England lose out on local government funding. There are huge disparities in how local government is funded. The issue affects transport as well: transport funding from central Government is distributed on a really unfair and uneven basis—London enjoys transport investment way beyond anything enjoyed by the north of England. The danger affects the regions of the UK that are already disadvantaged in trailing behind London on GDP and economic growth; the disparities could become even more deeply entrenched unless there is an effective Government strategy to address the issue properly. We cannot ignore the danger. The north of England, Greater Manchester, South Yorkshire and the west riding of Yorkshire will not grow as they need to unless the Government address those disparities Finally, I want to develop a little further the argument for a more comprehensive, better thought through approach to devolution, because the other danger is that rural areas, as well as suburban areas, will feel increasingly alienated and left out by concepts such as the northern powerhouse. Every Member needs to take cognisance of that danger, and we need a non-partisan approach to dealing with it Let us take Greater Manchester and South Yorkshire as the classic example. Between those two city regions, there is the Peak District national park—what we call the "Dark Peak". Nothing is on the table at the moment to integrate that area into a devolutionary settlement, yet it has a key role to play in the economic growth of the north of England. That issue must be dealt with. Of course it is true that big cities will always be the motor of our economy, but that must not mean that we ignore the contribution that smaller towns and rural areas can make or their potential for economic growth I finish with a good example of how this can be achieved. Among the biggest contributors to the manufacturing activity of this country are food and farming. Food manufacturing is a huge player that contributes billions to our GDP. There is no better example of how activities in rural areas and the produce of the land are transformed into the food on our plates. Those two activities, properly integrated in a devolutionary settlement, can help deliver for the economic growth of this country in future.