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Productivity and Economic Growth: East Midlands
17 March 2026
Lead MP
James Naish
Rushcliffe
Lab
Responding Minister
Miatta Fahnbulleh
Tags
EconomyEmploymentBenefits & Welfare
Word Count: 13124
Other Contributors: 20
At a Glance
James Naish raised concerns about productivity and economic growth: east midlands in Westminster Hall. A government minister responded.
Key Requests to Government:
The hon. Member calls on the Government to back the East Midlands across all Whitehall Departments; provide sustained levels of public investment to address historical inadequacies; further devolve powers to local communities; and implement tailored policy interventions to boost economic growth and productivity.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The hon. Member is concerned that despite the East Midlands being home to a significant population, numerous businesses, and crucial infrastructure, it remains under-recognised and under-appreciated by the UK Government. He points out that median earnings are below the national average, unemployment is higher than the national average, and productivity is significantly lower at 84.8% in 2023. The hon. Member also highlights issues such as inadequate transport spend per head, low rail funding, and persistent barriers to growth identified by an APPG inquiry.
Adam Thompson
Lab
Erewash
The former Stanton ironworks closed down in 2007, but new developments such as Fassa Bortolo's factory are bringing jobs back. However, the local road network struggles with traffic and infrastructure upgrades are needed, including a proposed junction 25a on the M1.
Amanda Hack
Lab
North West Leicestershire
The east midlands lacks a unified regional voice due to the absence of a local mayoral authority. There is considerable concern over the freeport plan in North West Leicestershire, and transport spending per head is 54% of the UK average, leading to unreliable bus provision and lack of passenger rail services. Investment in health is key to increasing economic productivity as one in 10 people in Leicestershire are on an NHS waiting list, and they need to be well enough to work.
Baggy Shanker
Lab Co-op
Derby South
He praised Derby's advanced manufacturing sector and its role in powering the UK's national security through companies like Rolls-Royce. He also welcomed the Railways Bill but noted that despite economic growth, many residents still struggle with poverty.
Derby North
Stressed the importance of investment in skills and infrastructure, citing Derby's rich industrial history and current significance in engineering and manufacturing. Highlighted the East Midlands' under-investment in transport infrastructure and the need for £10 billion additional funding to bridge regional disparities.
Edward Argar
Con
Melton and Syston
Argued that the East Midlands has all the ingredients for success, including good transport links and skilled workforce. Cited Leicestershire's lowest per-head funding in the country as an issue. Raised concerns about barriers to growth for small businesses due to issues with public transport and business rates.
James Wild
Con
North West Norfolk
The east midlands has potential but faces challenges due to underperforming growth, high business rates, and higher national insurance charges. Productivity issues are linked to low investment, red tape, and excessive costs. The region's manufacturing sector is crucial but productivity levels remain below the UK average.
Jeevun Sandher
Lab
Loughborough
Jeevun Sandher supports more devolution for the region, particularly in Leicestershire, and notes that his region receives two and a half times less money for transport spending than other areas. He calls for local leaders to have even more powers to help ensure regional growth.
Jim Shannon
DUP
Strangford
Jim Shannon commends the hon. Gentleman for securing this debate and highlights the importance of strengthening regional productivity through advanced manufacturing, skills development, and supply chain support across all parts of the UK.
Jo White
Lab
Bassetlaw
The announcement of a construction partner for the STEP Fusion plant at West Burton is welcome as it will create thousands of jobs across the region, contributing to economic growth and productivity.
John Whitby
Lab
Derbyshire Dales
Whitby emphasised Derbyshire's role in construction and manufacturing, welcoming £2 billion transport funding for the East Midlands. He advocated for direct train lines from Derby to Manchester and supported Peak Cluster's decarbonisation project, urging clear routes for carbon capture projects beyond track 1 and 2 clusters. Additionally, he addressed road safety issues in Ashbourne due to high traffic volumes and called for a relief road.
Jonathan Davies
Lab
Mid Derbyshire
He highlighted the economic and historical significance of the east midlands, focusing on challenges such as housing costs, low wages, and under-investment in public transport. He supported the regeneration of Belper mills to revitalise heritage buildings and advocated for training in construction techniques to revive valuable assets. Davies also called for electrification of the midland main line and improved bus services in rural communities. Investment in public services such as education, healthcare, and transport is crucial for economic productivity, even if it means a national insurance hike. We need these investments to ensure people are healthy enough to work.
Leigh Ingham
Lab
Stafford
I am concerned about the structural failure of transport in both the east and west midlands, with the region receiving only 54% of the UK's average transport spend per head. The lack of rail lines connecting cities within these regions is holding back development and economic growth.
Amber Valley
The Member discussed the heritage of Amber Valley and its importance for the visitor economy. She mentioned that Denby Pottery, a significant local employer, has filed for administration, putting 500 jobs at risk due to economic challenges.
Martin Vickers
Con
Brigg and Immingham
He questioned the current administrative divisions, suggesting that his area of Leicestershire should be considered part of the East Midlands for government purposes due to its economic ties with the region. He highlighted local infrastructure such as the A46 road, Humber freeports, and Immingham port as vital components of the economy.
Michael Payne
Lab
Gedling
Michael Payne supports the idea of building the fourth Trent crossing, which would connect his constituency with Rushcliffe and unlock economic growth while improving emergency planning in one of the biggest cities in the country. Payne asked Steve Darling whether he regretted the reduction in local authority spending in the east midlands by 22.6% between 2010-11 and 2019-20.
Michelle Welsh
Lab
Sherwood Forest
The Member is concerned about the neglect of rural communities in Sherwood Forest, particularly regarding public transport. She highlighted that there are over 4,000 children living in poverty and many areas remain deprived due to past industrial losses.
Samantha Niblett
Lab
South Derbyshire
The east midlands has a rich history in manufacturing, with Toyota Motor Manufacturing UK supporting over 3,000 jobs. The area is also poised to benefit from the east midlands freeport and initiatives like the green skills academy at Burton and South Derbyshire College. However, infrastructure needs investment to support population growth and business development.
Shockat Adam
Ind
Leicester South
The east midlands lacks investment and strategic planning, leading to declining industries such as Leicester City's football team. There are 11,000 jobs in garment manufacturing but growing skills shortages in the digital and manufacturing sectors. The region receives less transport funding than the west midlands, with only half of Birmingham's spending per head.
Steve Darling
Lib Dem
Torbay
He highlighted the economic challenges faced by the south-west of England, similar to those in the east midlands. He pointed out that the national insurance hike and the Employment Rights Act 2025 have negatively impacted small and medium-sized enterprises (SMEs). Darling also discussed the need for green energy initiatives and addressed youth unemployment rates at 16.1%, questioning how opportunities could be improved for working-class youngsters.
Steve Yemm
Lab
Mansfield
The east midlands has a productivity rate of around 85% of the UK average, and transport spending per head is only around 54% of the national average. Investment in skills and infrastructure, including better equipment and new technologies, is crucial for raising living standards. Yemm pointed out that productivity in the east midlands was at 92% of the national average in 2010, but dropped to 85% by 2019-20 under the previous Conservative government.
Government Response
Miatta Fahnbulleh
Government Response
I thank my hon. Friend the Member for Rushcliffe (James Naish) for securing the debate and Members for their contributions. Economic growth is a top priority, with productivity being key to raising living standards and funding improvements in public services after under-investment by previous governments. The Government are determined to empower local leaders through devolution, which has shown positive results where implemented. However, challenges remain, as evidenced by the productivity gap between UK cities and their OECD counterparts. To address this, the Government are investing record amounts across all key sectors, including a £2 billion investment in transport for the east midlands and £180 million in local growth funding next year. The minister also highlighted the importance of skills development to match investment with workforce strategies and employment support. Additionally, consultations on a visitor levy and Pride in Place initiatives targeting deprived communities were mentioned. Multi-year funding commitments are being made to ensure long-term investments in regions over the next decade. Finally, the minister emphasized the Government's commitment to supporting SMEs through an SME strategy addressing late payments, procurement issues, and providing necessary support.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.