I am grateful for the opportunity to make a few brief remarks and look forward to what I hope will be some warm words of welcome from the Minister, who I know shares the ambition at the heart of my speech in favour of cracking on with the building of an east Birmingham tram. At the outset, let me declare my interest as chair of the east Birmingham board, which brings together 20 wards in east Birmingham.
This area is the land that my great friend and partner in this House Jack Dromey, now departed to a better place, used to call a place rich in talent but poor in wealth. East Birmingham has been the home to five generations of my family, who have lived and worked there since the days of Matthew Boulton. In these 20 wards, we now have 300,000 people. East Birmingham is now the size of Swansea, and twice the size of York. If it were a city in and of itself, it would be almost one of the top 20 cities in our country. It is home to the youngest population in our country—about a third of east Birmingham is under the age of 25—and therefore, over the years to come, there is a demographic dividend to be had by maximising their opportunities.
But today, the challenges for east Birmingham are profound. We are the place with the highest unemployment in the country, the highest youth unemployment in the country, the highest rate of poverty in the country and the highest fuel poverty in the country. We account for something like 30% to 40% of unemployment in the West Midlands Combined Authority area. So this great space, which is rich in history and rich in talent but poor in wealth, is of profound importance to Members in all parts of the House.
That is the challenge, but there is an opportunity at hand, which I why I rise to make this speech. That opportunity comes from the simple fact that the economic geography of our country is about to be transformed, for we in east Birmingham are the land between two high-speed stations, with one new station to be built around Birmingham International and the second at Curzon Street.
Madam Deputy Speaker, you may remember that when High Speed 2 came to Cabinet in 2009, I was Chief Secretary to the Treasury and had to work with the then Transport Secretary to ensure that there was money available to build High Speed 2. What immediately struck me at that time was not necessarily the journey times between Euston station and Curzon Street but the fact the High Speed 2 railway line would connect Birmingham International with Crossrail at Old Oak Common and therefore cut the journey time between Birmingham International and Canary Wharf down to about one hour and 10 minutes. That would transform the economic geography of our country, because our cost base is about a third lower than Canary Wharf and the great heart of financial services around it.
There is a huge opportunity for a relocation of business and economic opportunity to east Birmingham. Tens of thousands of jobs will be created around Birmingham International and Curzon Street. Those new jobs could transform the wealth of east Birmingham—a great city that would be almost one of the 20 biggest in the country. But as we have such poor infrastructure, the risk is that those new jobs will be out of reach of the people in east Birmingham. The new jobs that could be created around the NEC, around Curzon Street in the centre of town and around the new hospital we all want to build at Arden Cross could be beyond reach of the residents of east Birmingham, because almost all of east Birmingham is rated either poor or very poor for connectivity.
I thank the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) for securing this debate and for his representations regarding transport services and growth opportunities in his constituency and the wider region. I pay tribute to him for the words he used—he has set out a great case for how transport can be an enabler to transform and regenerate areas that really do need it. His knowledge and expertise in this area speaks for itself, and I thank him for being an enabler of the HS2 project, for which I am very proud to be the Minister. He referred to the time when he was Chief Secretary to the Treasury and the work he did at that point. I can assure him that the Government are steadfastly committed to levelling up and empowering communities in the west midlands, and I want to talk about some of the ways that we are delivering that.
Let me begin by talking about local funding and opportunities. As the right hon. Member knows, the Government recognise the importance of transport to the people and economy of the west midlands, as demonstrated by the commitments made through the recent Trailblazer devolution deal. Our significant wider funding commitments also mark a further step in ensuring that we empower local leadership and enhance transport connectivity across the region.
Through the west midlands city region sustainable transport settlement, an unprecedented sum—more than £1 billion in capital funding—has been allocated to deliver projects and priorities which have been decided locally. For instance, West Midlands Combined Authority has earmarked £25 million of those funds to make significant improvements in bus services on the key A45 corridor in east Birmingham as part of its Sprint programme. The scheme will deliver new bus priority and journey time savings for passengers, linking people with opportunities in the city centre and Solihull and providing connections to Birmingham airport. The Department will work closely with stakeholders across the region to help ensure that schemes of this kind deliver economic growth and better transport experiences for local communities.
I am grateful to the Minister for giving way, because I sense that he is about to conclude. The clear thing that we will need to discuss when we meet is how to ensure that the levelling-up zone maximises the opportunity of the High Speed 2 growth and opportunities plan. Between us, we must make sure that there is joined-up government.
I thank the right hon. Member for making that point. He is absolutely right. To continue to make the case for HS2—I will certainly do so, and I am grateful that he is doing likewise—we have to show that it really can maximise growth. We are very happy to take all ideas from Members of this House, and indeed from wider stakeholders, for how that can occur. Matters that are in the domain of other Departments will need to be decided on by those Departments, but I am certainly happy to feed ideas through and see what can be done.
I thank the right hon. Member for his continued engagement with HS2 and for raising the other matters that he has listed in relation to regenerating his constituency and the city that I know he loves. Significant funding has been and continues to be invested in delivering transformative local transport projects. My Department will continue to work with regional stakeholders to make the most of this once-in-a-generation opportunity and identify ways to improve transport links, drive economic growth and improve access to jobs, education, healthcare and leisure. I look forward to working with the right hon. Member, and with his colleagues nearby, on these shared priorities.
Question put and agreed to.
9:37 pm
House adjourned.
We have very poor rates of car ownership. Over the last decade, 216,000 people have fallen more than one hour’s journey time by bus from the city centre. So poor is the connectivity in east Birmingham that it is damaging the productivity of Birmingham and, as the Centre for Cities has revealed, it is thereby damaging the productivity of our country. By some technical definitions, Birmingham is not a city during peak-hour traffic because the journey times into the city centre are so slow.
Change is essential. That change is the creation of a rapid transit system called a tram, which should go through east Birmingham and connect up the new high-speed stations at Curzon Street and Birmingham International. We are not very quick at building trams in this country. In fact, at one point the tram that was being built down Broad Street in Birmingham went so slowly that I compared its pace to the journey time of a garden snail. The truth is that a garden snail would have crossed that distance three times faster than we built the tram.
It was back in 2015 that the Greater Birmingham and Solihull Local Enterprise Partnership endorsed the new route and noted that it would unlock an economic value added of £2.2 billion a year—the equivalent of 26,000 new jobs. However, since that report in 2015, almost nothing has happened. The outline business case concluded in 2017 that there was a good value for money case for building the tramline. In fact, the business cost ratio was something like 2:1. But we have done nothing with it—there has been almost no progress since that outline business case was done. In fact, because we left it on the table, we now have to update all the strategies because the numbers are out of date. Some money was made available late last year to do new studies to update the strategy that we did seven years ago, but all that was proposed were a few bus priority measures and some money to have a look at whether very light rail could be a possibility by 2026-27. We could have an outline business case for that 10 years on from the original economic study by the GBSLEP.
The first east Birmingham tramline was proposed in 1988. Since then, Manchester has gone on to build eight lines, with 99 stops and 64 miles of tramline. I want one sixth of that—a 15-mile line to go through the area of our country with the highest unemployment anywhere, to make sure that we are not an oasis of inequality amidst the great new wealth and jobs that will be created when High Speed 2 opens, I hope, in 2033.
I have only three big asks of the Minister this evening. First, I would be grateful if he would give me a statement of principle and policy for his Department that, like me and Mayor Andy Street, it believes that there should be a rapid transit system through east Birmingham connecting up the two brand-new high-speed stations that are soon to open. If the Minister wants to check the cross-party agreement, he need look no further than page 62 of Mayor Andy Street’s manifesto. It said that he plans to begin the construction of the north Solihull to Digbeth line through Chelmsley Wood and east Birmingham by 2024, so there is not long to get on with it.
Secondly, I hope the Minister will feel able to agree to meet me, as the chair of the east Birmingham board, and other east Birmingham MPs to discuss how we can put in place the pitch to the Treasury to unlock sufficient funds to agree and commence the Transport and Works Act 1992 order necessary to provide the powers to get on with building this tramline. City region sustainable transport settlement funding was made available to the region recently, but the truth is that it is insufficient to put through the requisite orders to begin work on the east Birmingham tram.
The final piece of the puzzle, however, and the way I hope the Minister can support me tonight, is by undertaking to lean in and support Birmingham and the West Midlands Combined Authority’s bid for an ambitious levelling-up zone proposal agreed with Government. Thanks to the work of the east Birmingham board over the last 10 years, we developed detailed proposals for a levelling-up zone. I am proud to say that that became the centrepiece of the WMCA’s deeper devolution deal announced in March, and that at its very core is a proposal for business rate retention. This is a tax increment finance model that I introduced in the Budget of March 2010 with east Birmingham in mind. I am glad to see that there is agreement from this Government that that is exactly the kind of financing model that would work well in the combined authority area. There is cross-party support for it, and through the partnership of Mayor Andy Street, Birmingham City Council and, I have to say, Solihull Council, that has allowed us to get the deal agreed with the Government. We must now make sure that there is maximum ambition in the deal that eventually gets settled. I ask the Minister to work with us to ensure that we are able to maximise business rate retention, because that would allow us in the combined authority to contribute hundreds of millions of pounds to ensuring that the tramline is built.
It was a privilege for me to go with my hon. Friend the Member for Birmingham, Erdington (Mrs Hamilton) to visit Water Orton on Friday to see the new tunnel beginning to be built underneath the great Bromford estate and on its way to the new Washwood Heath marshalling yard, which will be in my constituency. HS2 is an expensive engineering project, but it will transform the economic geography of our country. We have it within our grasp to ensure that the new wealth created by HS2 at the heart of our country, at the heart of Britain, transforms the livelihoods of the youngest population in Britain, who today live in a community that is scarred by the worst poverty in our country. We have not yet made the progress we need to make to get the east Birmingham tramline built, but the prize is obvious: it is the simplest way we can maximise the value of HS2 to one of the poorest parts of the country. I look forward to working with the Minister to turn that great dream into a reality.
I am aware that the right hon. Member, and others, have called for an extension of the west midlands metro through east Birmingham to Solihull and Birmingham airport. As he will know, the metro route is already being extended eastwards as far as Digbeth, with backing of more than £131 million through the Government’s local growth fund programme. This scheme will serve the new Curzon Street station, helping to connect more of the region to the growth opportunities unlocked by HS2. I recognise the importance of the metro to the region, and I also recognise that light rail can be an attractive and environmentally friendly way of connecting people with jobs, education, healthcare and, indeed, each other in our largest towns and cities. While the Government are rightly investing in local transport networks across the country, local transport authorities retain responsibility for their delivery. The right hon. Member will appreciate that decisions on these proposals are devolved to the Mayor of the West Midlands, although I note his call for the Government to do the work that Governments can do to enable such proposals to reach their full potential.
It is crucial that local representatives, who know the challenges in their areas, are responsible for assessing the options available and ultimately deciding on the best way forward. I therefore encourage the right hon. Member—as well as pressing me, as he rightly does—to consult the Mayor about the proposals that he supports. He will know that Andy Street is a champion for transport throughout the west midlands, and frequently pushes me for more investment: he clearly shares the ambition to which the right hon. Member referred at the start of the debate. In his spring Budget statement, the Chancellor announced a second round of the city region sustainable transport settlements, providing areas across England with a further £8.8 billion over five years from 2027 to allow them to continue to develop transformational local transport improvements. That funding may represent an opportunity to develop the east Birmingham to Solihull metro proposals further, should the Mayor choose to do so.
Of course, I could not talk about transport in Birmingham without going into a little more detail about the opportunities for HS2. This new railway will change the economic geography of the whole country, bringing our biggest cities and economic regions closer together with reliable, low-carbon, high-capacity travel, and I take the right hon. Member’s point about its linking Birmingham not just with London—west London, that is, through Old Oak Common—but, via the new Elizabeth line, with Canary Wharf. It will provide enormous opportunities for businesses that are currently in London to extend their reach to Birmingham, and that is very much part of our ambition.
The Government are developing an HS2 local growth action plan which will outline the way in which we will continue to work with host station places to support their local growth ambitions. As the right hon. Member mentioned, around Curzon Street, in central Birmingham, HS2 will support thousands of new jobs—19,600, according to the latest estimate—and 2,200 additional homes. At the interchange station in Solihull, HS2 Ltd is working with local stakeholders on a brand-new, mixed-use development that will capitalise on its well-connected location. At Washwood Heath, HS2’s national control centre and maintenance depot, hundreds of new jobs in the railway sector will be created in east Birmingham. HS2 Ltd is committed to supporting further employment opportunities in the development area south of the depot through the release of land following its construction.
Mention has been made of surplus land at Washwood Heath and the question of when it will be released; I know that the right hon. Member has led the charge on that issue. I am advised that the design and extent of the environmental mitigation in the development area is still ongoing, but HS2 Ltd anticipates that the plan for the area will be submitted to Birmingham City Council for schedule 17 planning consent later this year.
I will conclude by addressing the right hon. Member’s three points. First, he spoke about a statement of principle and policy; I will write to him and provide as much detail as I can, which I hope will answer that call. Secondly, he asked whether I would meet him and other east Birmingham MPs so that ideas could be pitched; I should be delighted to meet them and will seek to do so at the earliest opportunity. Thirdly, he asked about support for Birmingham’s levelling-up bid and about matters relating to devolved taxation. He will know that it is not for Ministers in a spending Department to speak about such matters; in fact, in his previous role he would probably have been the first to give them a good ticking off for it. However, I will discuss the matter with the Department for Levelling Up, Housing and Communities and the Treasury, and perhaps when I meet him I can provide him with any information that they give me.