Budget Resolutions
It is a pleasure to speak in this debate on a Budget delivered in an extraordinarily difficult global economic climate and with limited fiscal headroom. Yet I do believe that it will be remembered as both radical and important in prioritising cheaper energy and focusing on prevention, which is a massive step. Fiscal devolution and supporting high streets and entrepreneurs are significant measures that will ultimately bring significant benefits to the residents of Rossendale and Darwen, particularly now that Lancashire has an opportunity to join the mayoral pathway. On that point, I take this opportunity to urge the leadership of Lancashire county council to listen to businesses and community leaders and finally agree to a mayor and grasp the huge opportunities that this Government have offered. More broadly, the Chancellor has balanced immediate support and the need for breathing space, with long-term reforms needed to build a global economy for the 21st century. At its heart, the Budget lays the foundations for a reindustrialisation strategy capable of bringing good jobs to places that need them most. This vision resonates powerfully in Rossendale and Darwen and across the UK. Making more things in more places means secure, well-paid jobs and a more resilient country. That is why we established the Reindustrialisation Research Group, bringing together over 90 Labour MPs to support the Prime Minister’s vision and help translate it into action. It is good to see the Budget addressing the key questions that have been raised ever since the Prime Minister first championed the idea. First and foremost is clarity on objectives. That is important, because if we judge economic success only through national GDP, we risk repeating the mistakes of the past, pursuing the easiest growth while overlooking the towns and communities that were left on the sidelines for far too long. Instead, reindustrialisation must deliver good growth everywhere, spreading jobs, hope and opportunity across the country. The Chancellor has been clear that reindustrialisation is also essential to national resilience. We must once again produce the steel, fuels, chemicals and other things that we need to be secure in a turbulent world. In understanding that, we see that reindustrialisation is far more than just a rebrand of the modern industrial strategy. Supporting high-growth economic clusters is vital, but it cannot be the whole answer. As the Red Book itself states: “Reindustrialisation means more good jobs around the country. It means more towns and cities making and innovating and having a stronger role in the national economy.” This is a UK-wide project to build the great British businesses of the future, whatever and wherever they may be, combining our proud manufacturing heritage with world-class innovation, creativity, research and development. That means tackling the constraints holding firms back, and the Budget is clear on what they are: high energy costs, limited access to finance, procurement and so on. Addressing those at a national level while drawing on the power of devolution, and supporting businesses through powerful local partnerships, provides a comprehensive approach to unleashing the potential of British manufacturers. We need to take up the challenge with urgency. We must recognise that right now we are losing good businesses, ones that could compete and win if only they were on a level playing field. So, the first step towards reindustrialisation must be to halt deindustrialisation. Among other things, that means further action on industrial energy costs. We called for an extension of the British industry competitiveness scheme to all manufacturing companies in the Budget. I realise the constraints the Chancellor was under, but we must recognise that this is unfinished business. We need to continue to look at all options for immediate measures.