Productivity and Economic Growth: East Midlands

James Naish Excerpts

Tuesday 17th March 2026 Westminster Hall

[James Naish (Rushcliffe) (Lab) [R]]

I beg to move,

That this House has considered productivity and economic growth in the East Midlands.

It is a pleasure to serve under your chairship, Dr Huq. I want to start by telling you, as someone from London, about how great the east midlands is. Home to Derbyshire, Leicestershire, most of Lincolnshire, Northamptonshire, Nottinghamshire and Rutland, we are central to the country’s logistics network, with fantastic facilities such as Magna Park in Lutterworth, Daventry international rail freight terminal and, of course, the UK’s largest freight airport at East Midlands airport. We have deep industrial roots, with space engineering expertise in Leicester, biomedical sciences clusters in Nottingham, and nuclear and rail engineering proficiency in Derby.

We have a range of excellent universities, from Loughborough and Nottingham to Lincoln and Northampton, all of which have produced fantastic start-ups. We are home to major energy projects and developers, such as STEP Fusion, the world-leading fusion energy programme, and great British businesses such as Derby’s Rolls-Royce, which was selected as the preferred bidder to partner with Great British Energy to develop small modular reactors.

In short, our region’s potential is obvious to anybody who cares to look, yet despite our having 5.1 million people, 403,000 businesses and a fabulous location in the heart of the UK, today’s debate is likely to repeat messages that I know have been said many times in this place: that the east midlands is under-recognised, under-appreciated and still does not receive its fair share of UK Government investment.

That points to a national policy failure that the Labour Government must at long last address via a long-term commitment to four things: backing our region across all Whitehall Departments; sustained levels of public investment, to correct historical injustices; further devolution, to empower local communities across our region; and a coherent set of tailored policy interventions that will turn the page on a sustained sense of managed decline for many parts of our region for over 40 years. I hope we will hear those things from the Minister today.

Having led a local authority in Nottinghamshire before coming to this place, I know that the east midlands is often forgotten. Indeed, on three key criteria we remain on the wrong side of important UK averages: our median earnings are below the UK average, our unemployment is above the UK average, and our productivity is significantly below the UK average, at just 84.8% in 2023.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing this debate; he is making a name for himself in the House for raising issues that affect his constituency, and I congratulate him on that. There are lessons here for all parts of the United Kingdom, so I thank him for raising this topic. Given that manufacturing alone supports almost one in 10 jobs in Northern Ireland, does the hon. Gentleman agree that strengthening regional productivity—whether in the east midlands, Northern Ireland or anywhere in the UK—depends on supporting advanced manufacturing, skills and supply chains across the whole of this great United Kingdom of Great Britain and Northern Ireland? Always better together—let that be our motto.

[James Naish]

The hon. Member is absolutely right: there are fantastic advanced manufacturing capabilities across the country, including in the east midlands, and the supply chain and the skills chain are key to making them thrive. I will come on to skills in the east midlands in a moment.

Ahead of the comprehensive spending review last year, the all-party parliamentary group for the east midlands launched an inquiry into regional priorities. We received 34 written submissions and held an oral evidence session here in Westminster, with contributions from local government, business, infrastructure, skills and other sectors. This work was about trying to distil, from the people who know our region the best, what the most serious barriers to boosting economic growth and productivity are, and about determining what practical steps the Government should take to address them.

[Dr Jeevun Sandher (Loughborough) (Lab)]

My hon. Friend is making a powerful speech about our region and the help it needs. Does he agree that for our region to do well, we need more devolution—including where I am in Leicestershire—as he has in his county? Is he pleased that the Government set out in the investment strategy that more money has to come to our region, which receives two and a half times less money for transport spending—or used to? Finally, does my hon. Friend agree that local leaders on the brilliant councils in my region, who are doing a great job, need even more powers to help to ensure that our region can grow, thrive and prosper?

[James Naish]

My hon. Friend is absolutely right, and I have already mentioned the need for greater devolution. Of course, in Nottinghamshire and Derbyshire we are seeing the dividends of that under Claire Ward, but I appreciate that Leicestershire still has some way to go to get the equivalent devolution. I absolutely support my hon. Friend’s call.

Before I share the recommendations of the APPG inquiry, I should say that I hope the Minister recognises that the inquiry’s very existence shows that we are serious about growth as a region. What is more, over the past 25 years we have delivered 35,000 more homes than our counterparts in the west midlands, even though the west midlands has a population that is about 20% larger. We are clearly taking our growth responsibilities seriously locally, yet despite that housing growth, transport spend per head in the region has fallen to just 54% of the UK average. That is not just slightly below, but 54% of the average—the lowest level of any UK region or nation. Rail funding per head is just over 40% of the UK average, and only around a third of the level seen in the west midlands.

The gaps have not emerged overnight: they are the product of choices over many years, under Governments of different colours, and they have had real consequences, shaping whether businesses grow, whether local labour markets function properly and whether people—my constituents—can access high-quality job opportunities. In short, inadequate investment has suppressed our region’s true potential. That is why the APPG inquiry was conducted. I place on the record my thanks to everyone who contributed to it. I believe its conclusions were fair and grounded, and we will make sure that the Minister receives a copy of the report.

The inquiry came to five primary conclusions. First, unsurprisingly, it suggested that the Government need actively to rebalance public investment, especially in transport, so that it better reflects housing and employment growth potential and delivery. I wholeheartedly welcome the Treasury’s Green Book being updated, but that in itself will not correct historical imbalances that must be addressed if we want places like the east midlands to maximise their potential. There is a genuine need for overcorrection.

Secondly, the APPG inquiry recommended that we pilot enhanced local employment hubs across the east midlands, devolving skills, careers and business support in a way that genuinely reflects local labour markets. One of the strongest themes in the evidence received by the inquiry was frustration with the fragmentation of the skills system. There are too many pots of money, too many separate agencies, too much inconsistency and too little flexibility, all of which hamper growth and productivity.

Thirdly, the inquiry recommended that we should expand women’s health hubs across the region, given the relatively poor life expectancy of women in too many parts of the east midlands. All genders and all age groups must contribute to closing the east midlands growth and productivity gaps, and targeted interventions will be required to realise that.

Fourthly, the inquiry recommended that the east midlands should play a central role in the country’s net zero transition, given its historical role powering millions of homes and businesses across the UK. Linked to that was the call made by more than 30 MPs to finally electrify the midland main line to Sheffield, which has sadly become a byword in our region for slow, uneven and stop-start infrastructure investment into a really important part of the country.

Fifthly, the inquiry suggested that the Government should reform how flood resilience funding is targeted so that it reflects social need and repeated risk, rather than underlying land values. Flooding can sometimes seem like a subject separate from growth and productivity, but in the east midlands, which has the greatest share of properties at risk of flooding from rivers or the sea of any English region, it is very much part of the same conversation. If we want growth, if we want to boost investor confidence, and if we want housing delivery and economic resilience, flood adaptation and mitigation are not optional extras. They must be seen as enablers for economic growth as well as for protecting food and energy security, which our region provides in abundance, especially in Nottinghamshire and Lincolnshire.

Together, the recommendations show that the east midlands is not looking for a silver bullet. Indeed, there is not one—although I will briefly put on the record the need for junction 24 of the M1 to be upgraded as a strategic priority for our road network.

[Michael Payne (Gedling) (Lab)]

I thank my hon. Friend for securing the debate. Does he agree that one way to redress the historical imbalance in transport spending is for a green light to be given to the fourth Trent crossing, which would link my constituency to his beautiful constituency of Rushcliffe? It would unlock economic growth and bring forward new jobs, crucially it would help with emergency planning in one of the biggest cities in the country, and it would be great for our region.

[James Naish]

On Friday, I was part of a conversation about the potential impact of the Trent sports quarter on Rushcliffe, and Nottingham Forest’s expanded City Ground proposal. The fact that we have only three crossings across the Trent came up several times, so I absolutely support my hon. Friend in that call for a fourth crossing.

Rather than a silver bullet, the east midlands needs a serious, joined-up approach to growth because infrastructure, skills, health, clean energy and climate resilience—the five points that I just raised—are not separate conversations. They all need serious consideration to determine whether our region can fulfil its potential in powering the national economy.

Let me be clear: the east midlands does not lack growth prospects. On the contrary, it is full of them—I know colleagues will make the case for their local areas. The question is whether our regional and national policy frameworks are agile enough and, more pertinently, fair enough to support those growth prospects. I do not believe they are. That is why we are here on our region’s behalf once again to call for a fairer settlement and a serious attempt to remove the structural blockers that are holding us back. We need the Government, who were overwhelmingly backed by voters across the region, to look at how poorly the east midlands is currently treated and to finally act to address that.

I hope the Minister will address a few points directly. First, does she accept that the east midlands has for too long received a persistently unfair share of transport and infrastructure investment? Secondly, does she accept that that acts as a material drag on our local economy? Thirdly, will she confirm what steps the Government are taking to ensure that investment decisions are better aligned with the scale of housing and employment growth that is already being delivered in our region? Fourthly, is she willing to take seriously, along with other Departments, the APPG’s recommendations on the need for tailored local employment hubs and women’s health hubs?

Finally, will the Minister give the House some reassurances that the east midlands will not be told once again that its time will come? Too many people in my constituency of Rushcliffe, and across our region, have heard that before, and have sadly formed the view that the east midlands is important, but not important enough—that it is valued in theory, but not in practice. I refuse to accept that, and I am sure that many colleagues present refuse to accept it as well.

The east midlands is a region of makers, exporters, innovators and workers. We are home to strategic industries, nationally significant infrastructure and major universities. We have delivered homes, created jobs, powered the country for generations and shown ambition. What we need now is for the Government to match our potential and ambition with commitment and action.

I will repeat the four things I mentioned earlier. The Government must commit, first, to back our region across all Whitehall Departments, working together; secondly, to sustained levels of public investment to address the historical inadequacies I have talked about; thirdly, to further devolving and empowering local communities across our region, giving them more powers; and fourthly, to creating a coherent set of tailored policy interventions, which will turn the page on 40 years of perceived managed decline. These four things cannot come a day too soon for the east midlands. I look forward to hearing colleagues’ contributions, followed by the Minister’s response.

[Several hon. Members rose—]

--- Later in debate ---

[James Naish]

I thank you, Dr Huq, and all Members for their contributions. It came as no surprise to me that this was effectively a debate of two halves. On the one hand, we heard about the positives. The hon. Member for Brigg and Immingham (Martin Vickers) talked about the east midlands having the largest port in the country. The hon. Member for Leicester South (Shockat Adam) reminded us of that fantastic football result in 2015-16, which is probably still the east midlands’ greatest achievement. My hon. Friend the Member for Derby South (Baggy Shanker) talked about the Government’s commitment to nuclear and engineering capability. My hon. Friend the Member for Erewash (Adam Thompson) talked about an industrial presence, and it was good to hear about jobs returning to his area.

The truth is, however, that the east midlands is building back from years of under-investment. My constituency neighbour, the right hon. Member for Melton and Syston (Edward Argar), mentioned the need for flooding investment and better local government funding. My hon. Friend the Member for North West Leicestershire (Amanda Hack) talked about the fragmentation of strategic and industrial leadership.

Many Members mentioned the lack of rail connections, which are so important for boosting our economy, and my hon. Friend the Member for Sherwood Forest (Michelle Welsh) talked about the need for reliable public transport. I know she, and all of us here, will be seeking to work closely with our relevant local authorities and strategic leadership to make sure that is delivered for our constituents. My hon. Friend the Member for Mansfield (Steve Yemm) was absolutely right to talk about the importance of leading with public sector investment—not relying on the private sector, but moving forward with the public sector. That is what I hope our Government will be doing, and I believe they are seeking to do that, but we must put our foot on the accelerator when it comes to the east midlands because we are starting a long way behind other regions of the country.

I am sure we will continue to work across the House to promote the east midlands. With that in mind, I will invite all Members to room W2 at 11 o’clock so that we can quickly reconstitute the APPG for the east midlands and continue this work over the next 12 months.

Question put and agreed to.

Resolved,

That this House has considered productivity and economic growth in the East Midlands.