Commons Sense

House of Commons · Ministerial Statement

Regional Innovation and Growth

18 June 2026 · 8 other contributors

Opened by Chi Onwurah Lab Newcastle upon Tyne Central

EconomyScience & Technology

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Chi Onwurah raised concerns about regional innovation and growth in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Chi Onwurah, MP for Newcastle upon Tyne Central, presented a statement on behalf of the Science, Innovation and Technology Committee
  • The Labour Government pledged to spend 86 billion on R&D by 2030, aiming to leverage private investment alongside public funding
  • The report 'Flying Blind: Innovation, Growth and the Regions' highlighted regional disparities in R&D funding and productivity

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Chi Onwurah

Chi Onwurah, MP for Newcastle upon Tyne Central, presented a statement on behalf of the Science, Innovation and Technology Committee, emphasising the importance of the innovation ecosystem in driving economic growth across the UK. The Labour Government pledged to spend £86 billion on R&D by 2030, aiming to leverage private investment alongside public funding. However, the report 'Flying Blind: Innovation, Growth and the Regions' highlighted regional disparities in R&D funding and productivity. London and the south-east have GDP per capita of over £41,000, while other regions lag significantly behind at an average of just over £39,000. The report recommended establishing a national framework for cluster development and publishing annual data on innovation clusters' performance to address these inequalities. While welcoming some Government commitments, such as a £500 million fund for regional innovation clusters and the emphasis on innovation-led procurement, Onwurah criticised the lack of designated Ministers responsible for championing innovation in each region.

Other contributors (8)
  • Tom Gordon

    Question

    In Yorkshire, we receive less funding per head across the board for transport, schools and, importantly, health research. We know that Yorkshire receives a quarter of the funding per head that London receives, despite worse cancer incidence and worse cancer outcomes, which are key health aspects. Does the hon. Lady agree with me that, given that regional imbalance, tackling health inequalities means making sure that research funding is better allocated across our regions?

    Minister reply

    Onwurah thanked Gordon for his contribution to the Select Committee and agreed with him on the need to address disparities in health research funding to tackle health inequalities. She noted the importance of appropriate data and information to effectively address such issues.

  • John Slinger

    Question

    I welcome my hon. Friend’s statement, which is very interesting and important. I briefly draw her attention to the agreement between Rugby borough council and Frasers Group, which is setting up its global HQ in my constituency. Under the agreement, Frasers Group is providing £10 million for a much-needed training and innovation hub in Rugby town centre. Does she agree that encouraging businesses, such as Frasers Group and many others, to invest in towns and not just cities is vital? We need to remind our Government that cities are wonderful and attract lots of investment, but they have a lot going for them already, and we need to do more for our towns.

    Minister reply

    Onwurah agreed with Slinger's point about the importance of innovation in towns, noting that local businesses driving innovation can benefit their constituents both currently and in the future.

  • Jim Shannon DUP Strangford

    Question

    First, I thank the Chair and the Select Committee for their report. The hon. Lady has clearly identified the regional shortcomings when it comes to innovation, growth and where we are. In the discussions she would have had with the Northern Ireland Assembly, and perhaps with the Minister as well, about identifying the shortcomings of regional funding for us in Northern Ireland, what recommendations were put forward to improve that?

    Minister reply

    The hon. Member is always a champion of Northern Ireland, and I congratulate him on the examples of innovation and its contribution to economic growth that the Committee found in Northern Ireland. We did not have a specific discussion about that when the Minister for Science came before the Committee, but the hon. Member raises very good points, and I am very happy to take them up with the Minister.

  • Mary Glindon Lab North Tyneside

    Question

    I thank my constituency neighbour for her statement. Does she agree with me that devolved authorities, such as the North East combined authority, have the local knowledge to inspire, support, drive and encourage innovation and growth in places such as our very own Tyneside?

    Minister reply

    I am immensely grateful to my hon. Friend and constituency neighbour for her question, and she is absolutely right. As I highlighted in my concluding remarks, we have seen how in Greater Manchester, where the mayor has had over 10 years to make such a difference—we see this in Liverpool as well—having local leadership that values innovation and knows the local economy’s needs, skills and strengths can really drive regional growth. I know that the mayor of the North East combined authority, Kim McGuinness, is fully seized of the importance of innovation in driving great jobs and a sustainable economy in the north-east, particularly on Tyneside.

  • Johanna Baxter

    Question

    I thank my hon. Friend and the Select Committee for their report. Can she say a little more about the role of the Scottish Government in this area, and whether the Select Committee had any observations about the relationship between the Scottish Government and the UK Government in that regard? She has referred to the role of devolution in this space, so is that relationship securing the gathering and sharing of data that she might expect and that she raised in her statement, and if not, what more can be done?

    Minister reply

    We looked at innovation in the ecosystems around Edinburgh and Aberdeen, and we found fantastic examples of world leadership in scientific research and innovation in Scotland. However, we did not find the collection of regional data at a level that would have enabled us to measure effectively what works best. There were some concerns about the funding of research, particularly high-intensity research, across Scotland, but I would be willing to discuss that in more detail with my hon. Friend.

  • Leigh Ingham

    Question

    I thank my hon. Friend for her report; I found it fascinating. A statistic I cannot get out of my head is that cities around the UK have seen growth accelerate at a rate of 10.7% in the past 10 years, but it has been 5.4% in our towns—almost half. Our towns were the hubs of innovation in the industrial revolution. Does my hon. Friend agree that any Government plan must have towns at its heart to support innovation and the good jobs that come with it?

    Minister reply

    My hon. Friend is absolutely right. In the north-east, our great history of industrial innovation and growth was based around towns as well as cities, and that is what we must aspire to again. The focus on clusters and data would enable us—through the industrial strategy, which has so much to be welcomed and supported—to ensure we can drive innovation across a region and in particular look at hubs that are based around towns, as well as cities. We found that there is much good work done by universities. Having hubs in towns and around the region can drive innovation and therefore, with the right support, growth.

  • Christopher Bloore

    Question

    My hon. Friend the Member for Stafford (Leigh Ingham) has stolen my thunder by speaking about towns, for which I will never forgive her! [Laughter.] I thank my hon. Friend the Member for Newcastle upon Tyne Central and West (Dame Chi Onwurah) for her report. I am going to bang on about towns, because the report’s title perfectly describes the frustrations and the situation in Redditch. We sit at the heart of a precision and research engineering supply chain that contributes millions to the economy, yet we receive a fraction of the research and development funding from Government or from private investment. To support the excellent firms in Redditch, does she agree that we need granular regional tracking to get the metrics in place to support the clusters that exist outside towns and metro areas, so we can grow our towns and get the regional and national growth that the Government so desperately want?

    Minister reply

    One can never bang on too much about towns and innovation and growth. That is what all our constituents across our country deserve, because it is only by having growth in every town across the country that we will address the cost of living crisis and the economic conditions that we need to improve. My hon. Friend is absolutely right that we need to understand, in concert with local leaders, what innovation is happening around Redditch and what works best to ensure that Redditch and the towns in his area get the innovation support they deserve and which they can put to the best use for his constituents and all our constituents.

Shadow Comment

Tom Gordon

Tom Gordon welcomed the report's findings but highlighted disparities in health research funding between Yorkshire and London. He argued that better allocation of research funding is crucial to tackling health inequalities, a view supported by Onwurah who emphasised the need for appropriate data to address such imbalances.

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