London’s National Economic Contribution

Alex Norris Excerpts

Thursday 10th July 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

It is a pleasure to serve with you in the Chair for the first time, Mr Western. I congratulate my hon. Friend the Member for Kensington and Bayswater (Joe Powell) on securing this important debate. He set out a compelling case for important things that he wants to see with regards to housing, attracting the best talent and transport. I will seek to mirror those points, make a couple of points of my own and cover other points that hon. Members have raised.

This debate is timely for a couple of reasons. I will not wave a prop—not knowing your tolerance for such things in the Chair, Mr Western, I dare not test your mettle—but I speak 90 minutes after my hon. Friend the Minister for Local Government and English Devolution introduced the English Devolution and Community Empowerment Bill in the Chamber. That Bill will make the Greater London Authority an established mayoral strategic authority, which will mean the Mayor of London will benefit from a right to request powers to add to the devolution framework, or to pilot them in London where he thinks they will help him to deliver growth. It is also timely because multiple colleagues have sought to tempt me on the fairer funding formula, and I will cover those in my remarks as well. That consultation is under way; I think colleagues have probably contributed to it in what they have said today, and there will be opportunities to do so until 15 August.

I am sure it is no surprise to hon. Members to hear me say that economic growth is the No. 1 mission of this Government. For that to be successful, we must have a successful London. It is the world’s greatest capital city—no Nottingham, perhaps, but a peerless global city. I was resisting going to Huddersfield, for the benefit of the Parliamentary Private Secretary, my hon. Friend the Member for Huddersfield (Harpreet Uppal); but I think I have laboured that one enough.

London’s success is Britain’s success, exactly as colleagues have said, and we, as the Government, are committed to playing our role in that. I was really pleased to be with the Mayor of London and with London councils as he set out his long-term vision for local growth in the recent London growth plan, and we will play our role in that success. I know Mayor Sadiq Khan does not need garlands from me, but he is an outstanding example of how values-led, progressive leadership, sustained over time, can really drive change. I will talk about some of that economic success, but I think it speaks to his work.

As hon. Friends and the Opposition spokesman, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), have said, London’s success powers the country’s prosperity. It represents nearly a quarter of UK GDP and 8.6 million jobs. I think too of its cultural power and all those things colleagues have talked about, the tourists during the day and what they will be doing tonight in the night-time economy.

Mr West, you may forgive me if my mind wanders about three and a half miles north of here to Lord’s today, as England bat against India; again, that is an example of how—every weekend, it seems—huge global events take place in this city. We have world-leading educational institutions; multiple colleagues have mentioned Imperial College. We have thriving creative clusters such as the East Bank, and pioneering innovation districts such as the knowledge quarter, as my hon. Friend the Member for Uxbridge and South Ruislip (Danny Beales) said. All of those are good—good for London, good for Londoners, and good for all of us in the country.

It was impossible not to be struck by what my hon. Friend the Member for Uxbridge and South Ruislip said about all that is going on in Hillingdon, alongside his constituency neighbour, the hon. Member for Ruislip, Northwood and Pinner. In one borough alone, there is an extraordinary contribution to Britain’s story—not just to its economy as a whole, but to its contribution across the world as well.

Making the most of that talent, those assets and those opportunities means that the Government and London’s leaders, including the Mayor, must work together to realise the city’s full potential. I want to talk a little, in the spirit of my hon. Friend the Member for Kensington and Bayswater’s speech, about how we can contribute in areas such as housing, talent and transport, and to touch on regeneration as well.

Starting with housing, it is no secret, as the Opposition spokesperson mentioned, that we are committed to historic levels of house building, both to tackle homelessness and rough sleeping, as colleagues have said, and as a fundamental for unlocking economic growth. The hon. Member for Richmond Park (Sarah Olney) talked about housing affordability. It is hard not to be struck by research from the GLA that indicates a 1% increase in housing affordability in London could yield a £7.3 billion boost in economic output over a decade. There is a clear return there, a point my hon. Friend the Member for Kensington and Bayswater also made.

We are working in partnership with the Mayor of London to unlock and maximise London’s contribution to the 1.5 million homes target, including through the establishment of a City Hall developer investment fund. We are also keen to support strategic site development through the new homes accelerator, working with local authorities and other stakeholders to overcome regulatory obstacles and provide on-the-ground support for high-potential sites such as Beam Park, High Road West and Billet Road. In addition, the Euston Housing Delivery Group is committed to transforming the Euston area into a vibrant and inclusive neighbourhood, in collaboration with Camden council, and delivering thousands of new homes, including a range of affordable housing options. 

That of course links to something that I was very proud of: the Secretary of State for Housing, Communities and Local Government, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), announced at the spending review a new £39 billion social and affordable homes programme. That will run from 2026 to 2036, and we will allocate up to 30% of its funding—nearly £12 billion—to the GLA for delivery in the capital. The hon. Member for Ruislip, Northwood and Pinner made important points about social housing; I hope that addresses those to some degree.

There are important points still around housing. My hon. Friend the Member for Ealing Southall (Deirdre Costigan) made an important point about the Building Safety Regulator—one than has been raised with me by the GLA, the Mayor’s office and beyond on multiple occasions. I want to be clear that this Government believe that safe buildings are a moral imperative. No one knows that better than the constituents of the hon. Member for Kensington and Bayswater. It is a moral imperative that people have housing. I think every day of the 6,000 children in bed and breakfast accommodation across the country. There are 180,000 in temporary accommodation, and that is before hidden homelessness. We have a moral duty to them to ensure that houses get built.

We have worked closely with the BSR to help it resolve some of its operational challenges. We have put more resources in and, as my hon. Friend the Member for Kensington and Bayswater said, injected fresh leadership through the excellent Andy Roe, who is widely accepted to be brilliant in the safety space and as an operational leader. I look forward to the impact that will make. My hon. Friend mentioned the London remediation board, which I co-chair with the excellent deputy mayor for housing, Tom Copley. That is crucial to ensure that people are living in safe homes and that those who are out of their homes, in many cases for a long time, are able to be in those homes. That board has my full commitment.

My hon. Friend the Member for Kensington and Bayswater mentioned access to Government schemes for remediation. I am delighted that, through the spending review, we have been able to equalise access for social housing. That is a two-for-one benefit: it will get buildings fixed faster and more social homes built. I look forward to that kicking in and seeing its impact.

My hon. Friend the Member for Kensington and Bayswater mentioned talent. We have to be aware that, in a global economy, the race to attract the strongest talent is fierce—that might speak to your beloved Arsenal’s struggle to find a centre forward, Mr Western. That global race is hotly contested. It is about getting the tools right and, as my hon. Friend knows well from his outstanding work on economic crime before he came to this place, about making sure that the routes are effective and deliver what we want, which is getting talented people through.

We offer a number of different routes: the innovator founder route for entrepreneurs; the global talent route for leaders and future leaders in key fields; the high potential individual route for those at an early stage who have high potential; the Government-authorised exchange scheme for short periods of work experience; and, for overseas businesses, assigning workers through the global business mobility route. My hon. Friend the Member for Kensington and Bayswater made further suggestions—I will make sure that he gets a response from the Minister for Migration and Citizenship.

On transport, as multiple colleagues have mentioned, we cannot unlock the housing we want to deliver without proper infrastructure. We do not want to build homes that people cannot get to and from. That is why we recently announced the almost £2.2 billion multi-year capital funding settlement for TfL, which covers the spending review period. That is the largest multi-year settlement for London for over a decade and gives TfL the funding certainty to improve and enhance the quality of the capital’s transport infrastructure. That investment is crucial to delivering economic growth.

We recognise that, as the hon. Member for Strangford (Jim Shannon) and my hon. Friends the Members for Brent East (Dawn Butler) and for Uxbridge and South Ruislip said, funding for London helps to grow the economy across the country and supports UK industry in the supply chain. Two thirds of TfL’s UK supply chain is money spent outside London, so there is benefit for everyone.

[Natasha Irons]

I want to highlight the local impact of that £2.2 billion, which means that my community in Croydon will finally get new trams. Croydon is not the only place in London that has trams, but we have the oldest trams in the country, and the sustainable, multi-year funding settlement means that my outer London borough will get the transport it needs for the people in my community to access the opportunities of central London. Does my hon. Friend agree that a Labour Government and a Labour Mayor working together with long-term funding and a grown-up conversation leads to prosperity for everybody?

[Alex Norris]

As my hon. Friend says, the evidence is there. With the spending review, we talk about billions of pounds here and hundreds of millions of pounds there, but I always think that these things have to be real in people’s lives, and that will be very real in the lives of the people in her community. The impact of the shared vision is so important. As I said, we will feel that across the country through the supply chain. TfL has procured Piccadilly line trains from Yorkshire, supporting up to 700 skilled jobs: 250 in construction and 1,700 in the onward supply chain. What an outstanding bit of investment that is.

Hon. Members made multiple different points on other transport infrastructure, and indeed offered the Treasury and the Department for Transport a future list for more to do. The Government are providing £25 billion for the delivery of HS2 phase 1, including the Euston terminus, which will improve connectivity to the south-east. Emulating the success of King’s Cross, that will help to transform Euston into a destination where people live and work, not just a gateway for travel, although it is an outstanding one.

My hon. Friend the Member for Kensington and Bayswater mentioned DLR Thamesmead, as did other colleagues. We are committed to working with TfL to explore opportunities for delivery in that space. I want to link it just briefly to the industrial strategy, because that was a very important national document showing where our country’s economic future lies. All the things in the industrial strategy—even the most national, even the most global, even the most profound, whether it be an employer, a sector or a cluster—are all local somewhere. Of course, I would say that as the Minister for Local Growth.

London has a really important part to play in that. As the Minister responsible, I am pleased that the industrial strategy zones action plan has set out enhanced support for the Thames freeport, focusing on clean energy, added-value manufacturing and advanced logistics. The freeport has unrivalled global connectivity to more than 130 ports in 65 countries. The Thames freeport includes the ports at Tilbury, London Gateway as well as Ford’s Dagenham plant, and will create 21,000 jobs, building on London’s deep maritime history. When we put national flags in the sand, we of course make sure that London is a core part of that.

I would like to turn to the subject of Hammersmith bridge. I did not have anywhere else I could fit it into my speech, Mr Western; from a port to a bridge, it is not so far away. I want to assure the hon. Member for Richmond Park that central Government are committed to working closely with TfL and with the London borough of Hammersmith and Fulham on that restoration project. There is that sign of good faith: central Government have committed £17 million so far to it, including £4.7 million for repair of the bridge hangers. I will make sure that Ministers have heard the hon. Lady’s plea for greater progress and certainty in the future. Her points were well made.

Similarly, I will turn to the fair funding formula, which has been a consistent feature of the debate. Hon. Members have made their points and made them strongly. I want to say very clearly that we are in the middle of a consultation, which runs to 15 August. I know that Members’ local authorities will be making contributions. I have no doubt that London Councils will and that the Local Government Association will. Members also can and should contribute to it themselves. Their points have been made very well and I will make sure that the Minister for Local Government hears them.

I may be slightly less forthcoming, I am afraid, for the Liberal Democrat spokesperson, the hon. Member for Sutton and Cheam (Luke Taylor), on tax policy ahead of the Budget, because he invites me to cause some serious trouble. I am afraid, even though my instinct in life normally is for a degree of jeopardy, that is a degree of jeopardy too far for me.

I want to turn to the issue of regeneration and speak to the point that my hon. Friend the Member for Brent East made about global competition with New York and Paris. We should always be seeking to win those competitions, and that is part of our important work as a Government, with the Mayor of London, on the regeneration of Oxford Street. Oxford Street is one of those great beacon locations in the world. It has 120 million visitors a year, and I suspect all Members present have visited at some point. In 2022, it contributed an estimated £25 billion to the economy, but there are challenges. There are things that all high streets are facing, such as competition from online shopping, but there are also things that are peculiar to Oxford Street, such as congestion. That is why the Mayor of London and the Deputy Prime Minister have announced proposals to regenerate and pedestrianise Oxford Street to ensure its continued success, and that includes the establishment of a mayoral development corporation. We know that that is a good way of co-ordinating delivery, and I have no doubt that that will help us in the global competition to attract more visitors and more investment, to create more jobs and to drive more growth.

I hope that I have been able to give colleagues that clear commitment from the Government that we understand that London’s success is Britain’s success, as well as give that clear sense that it is no one’s interest, whether that is those in Nottingham or anywhere else in the country, to try to pull London down in the hope that that might in some way be successful for the rest of us. That has never been my version of politics or life. I have never thought that my neighbour’s success is my detriment. In fact, I think the evidence shows exactly the opposite. We need a thriving London, and having a thriving London is part of having a thriving country. We can do both things at the same time: have a capital that remains and continues to be the greatest global capital and have growth across all our nations and regions. Those are twin prizes that are common across all parties and all of Parliament, and we can achieve both of them.