Private Sector Investment: Lancashire

Paul Foster Excerpts

Wednesday 17th June 2026 Commons Chamber

[Maya Ellis]

I absolutely agree. As I will come on to, it is about ensuring that we make the most of all areas of our country. Some of those areas already have growth, and we need to ensure that we are expanding the growth that is already there.

Without a proper holistic look at how the Government can support businesses in Lancashire, not only will businesses struggle, but our UK economy will struggle more when we miss out on the huge potential for growth.

I could stand here all night waxing lyrical about how wonderful Lancashire is—our hills, our grand town halls, our coastline, our grit—but I know none of those things speak the language of the Treasury, Government and growth, so I will focus on the numbers and the examples of how the Government have a growth opportunity in Lancashire that they need to not miss.

Lancashire is a £40 billion GVA powerhouse. That makes us the 5th largest economy in the north. As the Minister knows, the current growth narrative for the north is often dominated by our major metropolitan neighbours. While we celebrate their success, any true growth narrative for the north must take non-metropolitan areas into account. At this point, let me be clear: “non-metropolitan” does not mean rural. There is a serious risk of people in Westminster making that mistake.

[Mr Paul Foster (South Ribble) (Lab)]

My hon. Friend is a passionate advocate for the Ribble Valley in Lancashire. Does she agree that Lancashire has missed out on millions of pounds of investment because the likes of Manchester and Liverpool have been prioritised and because we have not had a fully functioning combined authority?

[Maya Ellis]

I completely agree with my hon. Friend. As I will come on to, the people and places in counties such as Lancashire deserve that kind of funding. Even if the politicians who have been making the decisions have maybe delayed those opportunities to get devolution, we should not penalise the people there for that.

Lancashire is a prime example of a polycentric economy. We have coastal and rural environments, but also urban environments from city centres to market towns, with many of the same issues and opportunities as our metropolitan neighbours. We are a county of 1.57 million people and over 55,000 businesses, contributing a massive portion of the north’s economic output. We face the same challenges—some of the highest levels of deprivation and worklessness in our urban pockets—yet we also have areas that rank in the top five of northern local authorities for productivity. We are not just waiting for growth; we have an economic base that matches any of our neighbours, where strengths in defence, energy and advanced engineering add unique productive potential to the north as a whole.

The private sector in Lancashire is ready to lead. We have a dynamic project pipeline with the potential to attract over £20 billion in additional investment over the next decade. However, we are currently fighting with one hand tied behind our back. The macroeconomic data tells a sobering story: since 1998, Lancashire has experienced the lowest growth in investment spending of any UK region. Despite our high-value production base, we rank in the bottom quarter for average Innovate UK grant size, for example. These grants are increasingly concentrated in areas with strong knowledge-intensive business services, rather than production-oriented economies such as Lancashire’s.

We must be honest about what Lancashire is missing out on because we lack mayoral arrangements, as my hon. Friend the Member for South Ribble (Mr Foster) highlighted. Currently, we are excluded from 30-year investment funds estimated to be worth £30 million per year for our county. We are also missing out on the collective £200 million per year available to new mayoral areas and the city region sustainable transport settlements that our neighbours in Greater Manchester and Liverpool enjoy.

[Mr Foster]

On transport and infrastructure, we are all aware in Lancashire that if we could have investment in a second bridge across the River Ribble linking the M55 and opening up Blackpool airport, and linking it with the M6 and the M65, we could have huge opportunity, but the Government, the Green Book and the Treasury do not seem to want to recognise or support that. Does my hon. Friend agree?

[Maya Ellis]

I completely agree. As many of my constituents regularly tell me, the congestion we get when the M6 fails or has a closure is a nightmare when it falls on to the A-roads around the constituency, so a second bridge around Preston to create a ring road is critical.

Staying with the subject of transport, my hon. Friends the Members for West Lancashire (Ashley Dalton) and for Pendle and Clitheroe (Jonathan Hinder) are having to fight relentlessly for better connectivity in their constituencies, which is where devolution could really help us. The Government may say that Lancashire did not come to the table when the offer was first there for devolution, but that is not the fault of Lancashire’s places and people, so it does not seem fair that they should suffer. Lancashire leaders are at the table now, so let us crack on.

The disparities are reflected in our venture capital and equity investment volumes, which trail significantly behind Greater Manchester. In the first quarter of 2024, Greater Manchester reached approximately £104 million in investment, while Lancashire secured just £7 million. That innovation gap is not due to a lack of ingenuity; it is a lack of investment that acts as a direct drag on our wider commercial performance.

When I speak to private investors—both those investing in small companies and those investing in big infrastructure —they often sheepishly tell me they know they should probably be doing more in Lancashire, but that they are creatures of habit. I am making it one of my missions to coax more of them up to Lancashire to see what is on offer, but I ask the Minister not to let this Government fall into the same bad habit of sticking to what we know, even though there is clearly such growth potential in Lancashire.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

I am incredibly grateful for the opportunity to close this debate on behalf of the Government. I thank my hon. Friend the Member for Ribble Valley (Maya Ellis) for securing this debate on investment in Lancashire’s economy; there can be no doubt about her commitment to and passion for Lancashire. I also thank my hon. Friends the Members for South Ribble (Mr Foster), for Stafford (Leigh Ingham) and for Redditch (Chris Bloore), who contributed so well to the debate. As my hon. Friend the Member for Ribble Valley said in her concluding remarks, she is a red rose, and I think that applies to all those who call the red rose county home.

I want to address as many of the specific issues raised as possible, but I will talk about some of the positive investments in Lancashire that the Government are supporting and that have been enabled by Government policy. I am sure that by this stage, everyone in the House will know that I grew up in the north-east of England, on the other side of the Pennines—I hope that will not be held against me in this debate. We share something very much in common with Lancashire: our recent history, at a time of deindustrialisation in both our regions, which undermined the culture of the proud people of the north.

I saw the effects of successive Governments who stepped back and allowed the slow and supposedly inexorable outsourcing of our industrial base to cheaper overseas markets. My hon. Friend talked about sectors such as advanced manufacturing and defence, and I know she will agree that that decline destroyed the landmarks, identity and culture of many industrial heartlands. What we have seen is that, as important as thriving services are, they work best when they are on top of a powerful industrial base of good, local jobs in manufacturing, engineering and key industries spread across the country.

[Mr Foster]

Leyland Trucks is now the only heavy goods vehicle manufacturer in the United Kingdom, and it is based in my constituency. Is it Government policy that we should be buying British? Does the Minister agree that the Government should support any orders for trucks through Leyland DAF?

[Chris McDonald]

I thank my hon. Friend for raising Leyland Trucks. He will be aware of some of the procurement advice changes this Government have made, because we are keen to support British industry particularly in areas relating to national security. Thanks to Government support, Leyland Trucks has invested in its assembly lines and is now capable of producing 30 electric trucks per shift for sale both here in the UK and on international markets. It is also building a fully integrated zero-emission battery electric road sweeper. That is funded in part by our DRIVE35 programme, which represents the biggest investment in our car industry since the second world war. Leyland Trucks is vital to our automative sector and the Government’s industrial strategy.

I could highlight some other great investments in Lancashire, including in aerospace, which we heard about from my hon. Friend the Member for Ribble Valley in opening the debate. There are 6,000 jobs being supported at BAE Warton and Samlesbury, thanks to the Typhoon deal that the Government secured with Turkey last year and our wider Typhoon programme. Production and final assembly of each Turkish Typhoon fighter jet will take place at either Warton or Samlesbury as part of that deal. My hon. Friend the Minister for Trade is in Turkey as we speak, securing more trade opportunities for British industry.

In energy, Lancashire is also playing a critical role in making the UK a clean energy superpower, thanks in no small part to the strength of the nuclear sector in the county. Lancashire is already home to world-leading expertise located at the Springfields and Heysham power stations and we are building on these strengths. This Government are investing in nuclear power, working with the private sector with partners such as LS Electric, to progress an energy storage project at Widow hill. This is helping to balance the grid and keep energy supply stable as more renewable power comes online. I know that there is appetite to do even more in Lancashire, especially with the RedCAT low carbon technology commercialisation accelerator. It has been raised with me by Members previously and I know it is doing good work in bringing cutting-edge low carbon products to market. I am meeting members of the East Lancashire chamber of commerce and my hon. Friend the Member for Hyndburn (Sarah Smith) soon to discuss this initiative further.

Defence has of course been mentioned strongly, and we are all eagerly anticipating the publication of the defence investment plan, but in addition to the BAE sites I have mentioned, my hon. Friend the Member for Ribble Valley will be aware that Lancashire is part of the north-west cyber cluster. She mentioned that specifically in her requests for further information and I undertake to write back to her in relation to the six or seven points she raised in detail at the start of the debate.

The Ministry of Defence has made Blackpool and the Fylde College one of just five new defence technical colleges to bring employers across the defence sector together with young people from the area to ensure they can secure roles in engineering, in nuclear and in cyber-security. I know my hon. Friend shares my enthusiasm for creating opportunities for young people in defence, in energy and of course in advanced manufacturing.

In addition to this support, the Department is working with the Office for Investment and local partners to deliver the “Lancashire Growth Plan”, which I would certainly recommend Members from the area become familiar with and carry around Parliament and push under the noses of Ministers, because, as we have heard, growth does not just happen in cities, and not all the places that are classed as not urban are also not rural. That is a strong feature not only of Lancashire but many places in the north-east, including the place that I call home.

These are industrial areas centred around towns and it is good to see a strong pipeline of private sector investment coming forward across Lancashire. We have GVS Filter Technology’s recent £14 million low carbon manufacturing headquarters in Lancaster; a £100-million Eden Project in Morecambe, where Vinci has been appointed as the main contractor; and the Department for Business and Trade has thrown its support behind the recent investment announced by Budweiser, the official sponsor of the FIFA world cup 2026. I do not know whether I am allowed to point that out, but there we are. I believe my hon. Friend joined my ministerial colleague, the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), who is responsible for employment rights and consumer protection, in celebrating Budweiser’s £7.8 million investment.

There is another investment that I must mention. Mr Speaker is not here and is of course not able to speak on behalf of his own constituency, but Chorley is also benefiting from TVS Supply Chain Solutions, part of India’s TVS Group and a major UK employer. The group is planning to invest hundreds of millions of pounds in the UK, creating thousands more jobs, including in Chorley. I am aware that senior leaders met my right hon. and learned Friend the Prime Minister during his recent India visit, which will help us secure nearly 7,000 new jobs from Indian investment in the UK.