Ayrshire Growth Deal

Michael Ellis Excerpts

Thursday 19th January 2017 Commons Chamber

[The Deputy Leader of the House of Commons (Michael Ellis)]

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this debate. She spoke so well for her constituency and area that I felt like I was sitting through a 20-minute commercial from the Ayrshire tourist board, if there is such a thing, for the picturesque and beautiful area she has the honour to represent. I certainly found the gastronomic delights very interesting.

I am aware that the hon. Lady raised this matter in Treasury oral questions earlier this week and has recently written to my right hon. Friend the Secretary of State for Scotland on the matter. She has clearly been working hard for her constituents in raising this matter at every possible opportunity, and I congratulate her on that. My right hon. Friend the Secretary of State for Scotland has asked me to answer this debate today.

As the hon. Lady and the House will know, the UK Government are committed to ensuring that all parts of the country have the tools to grow their local economies. As such, I am pleased that we now have the city deal that has been referred to, which is either in progress or in pre-negotiation for each and every one of Scotland’s seven cities. That is important. It was mentioned earlier, but I want to reiterate it. No other part of the United Kingdom has achieved that. Every one of Scotland’s seven cities now either has a city deal in progress or has one in pre-negotiation. That is an indication of the UK Government’s commitment to ensuring that all parts of the country have the tools to grow their local economies.

In Scotland, such deals are tripartite, meaning that the arrangements involve the UK Government, the Scottish Government and the local area in which they are active. Since 2014, the UK Government have worked well in partnership with the Scottish Government to agree three ambitious city deals, which cover the Glasgow city region, the Aberdeen city region, and Inverness and the highlands. It is worth noting that local leaders in those three areas believe that, once fully implemented, the deals will unlock significant new investment in Scotland. At the 2016 Budget, the UK Government committed to opening city deal negotiations with Edinburgh and south-east Scotland and those negotiations are now in progress. At the autumn statement, the UK Government similarly committed to opening negotiations with Stirling and Clackmannanshire and the Tay cities. Our priority now is to take forward this significant body of work, in partnership with the Scottish Government and all the relevant local authorities. Following the autumn statement, I am pleased to confirm that the Scottish Government will have more than £800 million of additional capital funding through to 2020-21 to support such proposals.

There is interest in other areas for further deals. It is of course open to the Scottish Government, given their devolved responsibility for economic development and using the significant resources available to them, to take forward projects to enable growth in places such as Ayrshire—that beautiful area—if they wish to do so. It is important to emphasise that the Scottish Government do have devolved responsibility for economic development. Significant resources are available to them—those resources have been increasing—enabling them to take forward projects, such as the one to which the hon. Lady refers, and to support growth in areas such as Ayrshire.

[Hannah Bardell (Livingston) (SNP)]

I congratulate my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) on securing this debate and on speaking so passionately. The Minister will be aware that my constituency is one of the areas that is currently under discussion. Industrial areas such as mine and Ayrshire were damaged beyond recognition under the previous Conservative Government, so it is absolutely incumbent on him and his colleagues to ensure that those wrongs are righted by deals such as the one proposed for Ayrshire.

[Michael Ellis]

I do not accept that characterisation. It is important to note that employment in North Ayrshire and Arran is up by 1,100 over the past year and by 300 overall since 2010, so things are clearly moving in the right direction.

[Patricia Gibson]

The Minister is correct to talk about the importance of city deals, but is it fair that communities that do not happen to be part of a big city are left to suffer without UK Government support? He was quite right to mention the Scottish Government, which are on board and doing all they can, but I said in my speech—I know he was listening—that UK Government support is essential here. Is Ayrshire to be punished simply because, through an accident of geography, it does not happen to be part of a city?

[Michael Ellis]

The hon. Lady clearly represents a picturesque rural area, but she will no doubt recognise that the United Kingdom Government have provided very significant support to large conurbations, to city areas, by way of the city deals, which we use as an example of the Westminster Government’s support for such areas. The proof of the pudding is in the eating, and the city deals are an example of the Government’s support. This option is open to the Scottish Government, who have devolved responsibility for economic development. There is no rationale for disregarding the fact that the Scottish Government, wishing to have that devolved responsibility, do have it and can use the very significant resources available to them.

[Alan Brown]

I had hoped that this would be a consensual debate and that we would talk about working together. We are hoping to achieve another tripartite agreement involving the UK Government, the Scottish Government and local councils, but that is not the message that we are hearing, which is a bit disappointing. Many of our Ayrshire communities have been devastated by the loss of open-cast coal mining, particularly in my constituency and in that of my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson). The UK Government did not contribute anything to the restoration of those mines, so I hope that they can work with the Scottish Government to provide money for this growth deal.

[Michael Ellis]

The United Kingdom Government are working with the Scottish Government in myriad different ways, and I could give many examples of positive developments in those areas. For our part, in addition to working to deliver the seven city deals across Scotland, we will look at this proposal in the context of wider UK Government policy, including the industrial strategy and the national productivity investment fund.

[Dr Philippa Whitford]

That leads exactly to my point. In the meeting that I secured between the four of us and the Secretary of State for Business, Energy and Industrial Strategy, the Secretary of State seemed particularly interested in the deal, as a non-city deal. We have three large towns but no city in Ayrshire, and there is therefore potential to learn from projects and ideas that could be shared elsewhere. Ayrshire is way up the left-hand end of the gross value added scale. All the cities that have deals are starting from a better position than Ayrshire. We have pockets of absolute rural and urban deprivation.

[Michael Ellis]

We want to look at all these issues, and I have said that the Ayrshire growth deal is being looked at in the context of UK Government policy, including the industrial strategy and the national productivity investment fund. The Secretary of State for Scotland went to Ayrshire just a few months ago—in June 2016, I think—and my noble Friend Lord Dunlop is due to go. The industrial strategy is due to be published shortly, after which the United Kingdom Government will want to consider carefully how it sits alongside the asks being made by the partners in Ayrshire, and by others, so that we can help to deliver the economic benefits that such proposals represent.

The hon. Member for North Ayrshire and Arran spoke eloquently about the area she has the honour to represent. We are due to publish the industrial strategy shortly, and as the United Kingdom Government we will be considering carefully how it sits alongside the asks being made by others, including in Ayrshire. Every consideration will be given to this matter so that we can help to deliver the economic benefits that such proposals represent.

Question put and agreed to.