Budget Resolutions
Like many of my colleagues, I am delighted with the new Prime Minister’s clear ambition to reindustrialise Britain, which can drive economic prosperity in areas that really need it. My constituency is an example of somewhere that can drive and reap the benefits from this reindustrialisation. In Pendle and Clitheroe we do not trade financial derivatives; we make aeroplanes, furniture, chemicals and cement, and we produce food. Not only does manufacturing make up over a quarter of the jobs, but they are often the best jobs, too. However, the truth is that, as I speak, Britain is still deindustrialising. We are as vulnerable to global supply shocks as any major economy without the sovereign capability in key sectors to look after our basic needs. I am glad to see the Chancellor deliver immediate relief for households, but in the long run we must not just treat the symptoms of this failed economic model—with fiscal transfers patching up the gaps—but overhaul it entirely. The British economy remains too reliant on the City, foreign money and importing increasingly expensive essentials. True economic security can only come from the British economy being productive enough to convert world-leading innovation and research into valuable industrial output. I was pleased to see some of the announcements at the Budget last week reflect this challenge, with measures including: serious public investment into productive British industries via the National Wealth Fund and the British Business Bank; an acknowledgement of the need for cheaper power and protections offered to energy-intensive manufacturers; support for vocational apprenticeships, which is essential for skills development in manufacturing and aligned sectors; and a long-term partnership with Rolls-Royce, whose Barnoldswick site in my constituency provides well-paid jobs for hundreds of my constituents—a reminder that Britain could still be home to world-leading industrial champions in highly competitive sectors. But there is a lot more to be done. We must be clear about what we mean when we talk about reindustrialisation. The clue is in the name—it is about industry. Reindustrialisation must mean increasing physical production of goods needed at home and abroad. I hope that we will see more detail on how we will achieve this in the forthcoming 10-year plan. As a short-term measure, I would like to see an expansion of the British industrial competitiveness scheme to a much wider range of manufacturing firms in Britain. We cannot expect our productive sectors to thrive and grow with energy costs as high as they currently are. Over the long term, we must improve our energy sovereignty by making it cheaper to build nuclear power stations urgently and reducing our reliance on gas imports by using our own North sea supply.<span id="629" class="column-number" data-column-number="629"></span> I would also urge the Government to include in the 10-year plan an ambitious plan for rebuilding our defence industrial base, alongside a continued commitment to British procurement. Building our domestic capacity for defence and other critical sectors can be supported beyond procurement through investment in equity stakes, taking control of essential inputs, as the Government did with British Steel, and accelerating planning decisions for key sectors. So many of our challenges stem from a lack of quality work in productive industries. That is not talked about enough.