Growth Deals — House of Commons, 2015-01-29
Topic: Macroeconomics
Gregory David Clark (Conservative, Centre-right): With permission, Mr Speaker, I would like to make a statement about growth deals. During the past four and a half years, the Government’s long-term economic plan has put the British economy on the road to prosperity. Since 2010, the deficit has been cut by half as a proportion of national income; 1.75 million more people are in work; there are 750,000 more businesses; and growth is among the strongest in the G7 For Britain to fulfil its maximum potential, every part of the country must be an engine of growth, powering the nation ahead. Every city, town and county in Britain is unique, and the people who know best what is needed to build on the particular strengths of each place are the men and women who live, work and do business there. It is in the local interest, but also in the national interest, that they should be given the power to exercise leadership This Government have negotiated a series of city deals with England’s principal cities outside London, and also with the city of Glasgow. Impelled by Lord Heseltine’s report, "No Stone Unturned", £12 billion was taken from central Government Departments and made available for devolution to business and civic leaders in every area across England. In July, I announced growth deals with each of the 39 local enterprise partnerships. They were a great success—welcomed in all parts of the country by businesses, local leaders from all parties and indeed in all parts of the House. The strength of the projects put forward, levering in at least twice the value of Government funds devolved, allowed me to invite LEPs to bring forward further proposals, building on this momentum In the autumn statement, the Chancellor made another £1 billion available for this purpose, and I am announcing today that we have agreed expanded growth deals with all 39 LEPs. The expanded deals will help to train the people that industry needs in order to fulfil the orders on its books in the future, such as through the Institute for Advanced Manufacturing at Nottingham university, which will train more than 3,000 engineers. The deals will improve road connections that allow people to get to work on sites that can provide more jobs in future, such as at Fareham and Gosport. They will provide the infrastructure that will help growing places to prosper, such as the new high-level bridge across the Manchester ship canal at Warrington. They will improve rail services: for instance, there will be a major overhaul of Gatwick airport station, track improvements on the midland main line, and better facilities for the Night Riviera sleeper service to Cornwall, which provides one of the country’s most magical train journeys The deals will regenerate parts of towns and cities that can be attractive destinations for employers, visitors and residents, such as Blackfriars and the quayside in Gloucester. They will enhance the collaboration between growing businesses and universities which has produced, for example, the incubation and innovation centre at the university of Huddersfield. They will expand successful programmes of grants to small businesses, including those in Sheffield and Liverpool. They will allow local economies—and the national economy—to benefit from cutting-edge technologies, such as those that will be provided by the national centre for healthcare photonics that will be established in Sedgefield. Once again, the £1 billion of central Government funding will be added to, by at least £2 billion of private and local funding. That will give a £3 billion boost to local economies all over Britain The cities, towns and counties of this country are on the rise. Between 2004 and 2010, two thirds of net job creation took place in London and the south-east; since 2010, those areas have continued to create jobs, but they are being created everywhere else as well. The balance has been reversed, and 60% of the rise in employment is now taking place outside London and the south-east. The expanded growth deals that I have announced today will fuel the resurgence of our local economies, and I commend them to the House.