Private Sector Investment: Lancashire
House of Commons · Commons Chamber · 17 Jun 2026 · 16 speeches · Official Report
Motion made, and Question proposed, That this House do now adjourn. -( Claire Hughes. )
I am grateful for the opportunity to debate Government support for private investment in Lancashire this evening. Lancashire is my home. It is also the home of some of the most powerful innovators that we have in this country. Often, they fly under the radar of both Government and private investors. In many ways, that is because they do not need us. They already have exceptional trade links and supply chains within their own sectors-decades-old business models in multi-generational companies that just work-so they crack on, quietly making money for this country and prosperity for themselves. In some ways, they do not need our help when they have figured it out for themselves for so long, but we need them. We need companies that have drive and that, with Government support and further investment in enabling infrastructure, could do 10 times what they are currently doing for our economy. As a Labour Government, we are great at helping people who are struggling and who do not have the opportunities they deserve. I am grateful for the millions this Government are investing into Lancashire through Pride in Place projects, which will absolutely improve health and wellbeing-something we have particular need for in our county, where poor health accounts for a significant portion of the productivity gap. But, as a Labour Government, I think we could be more honest with ourselves that while overcoming deprivation is a top priority, growth is a top priority too. We could also be better...
My hon. Friend makes an excellent point, particularly around growth in cities and towns, which I am particularly interested in. Over the last 10 years, we have seen growth of around 10% in our cities whereas growth has been around 5% in our towns. Does she agree that if we do not invest in our towns, particularly where they are outside of city regions, we will miss a crucial opportunity to uplift everyone?
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.
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?
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....
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?
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...
My hon. Friend is giving a passionate articulation of the frustration felt by many of us outside non-metropolitan areas. We feel that frustration greatly in Redditch, where we are south of the West Midlands combined authority border. I find that difficult to explain to my students who want extra funding in education or to those who want transport links that do not get funding because we miss out on every partnership and every strategic housing fund. If we are really going to get the economy moving and growing, that has to happen in our towns-towns like Redditch-that led the industrial revolution many years before we had even heard of metro mayors.
I completely agree with my hon. Friend. As much as the debate is about Lancashire, one thing that will underpin change for both our counties is a commitment to devolution and to towns, so that the focus is not just on our cities. We know what works. Our enterprise zones at Samlesbury and Warton have already helped to deliver a cumulative £1.2 billion in private investment. In the wider north-west, private capital already supports 873 businesses. We have world-class assets, from BAE Systems, which supports 20,000 jobs in the north-west and partners with 1,400 UK suppliers, to our nuclear renaissance, anchored by Springfields, Westinghouse and Heysham. The data is firmly on our side. Lancashire offers a cost-effectiveness ratio of 1:80 for tech talent. That means that a tech professional’s take-home pay goes significantly further in Preston or Blackburn than in London or even Manchester. We are a magnet for the next generation of start-ups, already producing 16 academic spin-outs from our universities that have raised £36 million in equity this year. I will take a moment to highlight a couple of specific initiatives that exemplify our county’s proactive approach to investment. Fhunded is a project close to my heart, as I had the privilege of working directly on its development during my time at Lancashire county council, prior to my election to this place. I want to give a huge thanks to my former colleagues at LCC, especially Dan Knowles and Rory Southworth, who have nurtured...
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...
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?
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...
It was interesting to hear the Minister name a number of towns in relation to manufacturing roles. In our towns, we have on average 9% employment in manufacturing, whereas in cities, that figure is 4%. Does the Minister agree that in towns, if we really push our manufacturing sector, we can massively increase the number of good, unionised jobs available to people in those areas?
I do agree with my hon. Friend. More than that, in the towns I have described and, in fact, in the places across the country where there is manufacturing, it is usually the most productive employment-the most productive economic activity. Of course that is good for the economy, but it is also good for jobs, because the most productive employers offer the higher wages, certainly higher than would be available if those factories were not there. My hon. Friend is quite right; aspects of industrial policy that can centre more manufacturing in towns will provide better employment and improve the standard of living of people who live in those areas. Boosting economies in those areas also needs to be linked to investment in infrastructure, which is why the northern growth strategy is important-it will ensure that the right transport and infrastructure is in place to attract that business investment. We are making upgrades to the west coast main line, equipping Lancashire combined county authority with £215 million of investment via the local transport grant to help councils deliver transport improvements, including bus lanes, cycleways and congestion-reducing measures for motorists. The Pride in Place programme, which has been mentioned, is providing £5.8 billion over 10 years to rejuvenate many places around the country, including six in Lancashire. We are targeting that investment in the places where it is most needed, breathing new life into high streets, parks and the public...
House adjourned.