1. What recent discussions he has had with Cabinet colleagues on the potential impact of Channel 4 privatisation on the television production industry in Scotland.
I can assure the hon. Gentleman that my Cabinet colleagues and I are committed to ensuring the further success of Channel 4. The Government are determined to support the incredible TV production industry in Scotland, and we believe that in the long run the UK production industry will benefit from a sustainable Channel 4.
Channel 4 is a key commissioner for Scottish independent production companies. It spends about £20 million a year on Scottish productions, supporting about 400 jobs in Scotland. Analysis from Ernst & Young says that privatisation could result in £1 billion being lost from the UK’s nations and regions, so for the sake of Scotland’s creative economy, will the Secretary of State make representations to the Secretary of State for Digital, Culture, Media and Sport to follow the evidence and keep Channel 4 in public hands?
I have had discussions with the Culture Secretary and the previous Culture Secretary. The Government’s position is that we are looking again at the sale of Channel 4, and we will have further details in due course. We want Channel 4 to flourish, and we want independent production companies to flourish and thrive, because we recognise that we live in a challenging and changing media landscape.
We have invested £172 million in Scotland in round 1 of the levelling-up fund, which is around 10% of the total UK funding. In March, we published a monitoring and evaluation strategy for the levelling-up fund. Further updates on the strategy will be published in due course, and results of round 2 will be announced later this year.
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The Secretary of State for Scotland (Mr Alister Jack)
ConservativeLife peer
I have held a number of discussions with the Levelling Up Secretary and his predecessors on freeports. This Government are committed to delivering two new freeports for Scotland to boost economic growth. The UK and Scottish Governments will be making an announcement shortly.
Five high-quality bids for freeports in Scotland have been received. Only two can be successful in this round. Will my right hon. Friend assure me that he will work with partners in the unsuccessful three so that they can realise their ambitions through other means?
Before I answer the question, I would like to thank my hon. Friend for his diligent and excellent work in the Scotland Office. He made a huge impact, and I absolutely thank him from the bottom of my heart.
In answering my hon. Friend’s question, the Government are committed to boosting economic growth in all areas of Scotland. We will use all the levers at our disposal to do so, and we will do that in partnership with the Scottish Government, as we are doing with freeports. Hopefully, that will also include investment zones—discussions are ongoing between officials—and I hope that those who are unsuccessful in their freeport bids can apply for investment zone status, which will help them to increase their economic activity, so the answer is yes. Funnily enough, I do not exclude the freeport winners from going for investment zone status, as that is not identical, and there are advantages in their becoming investment zones as well.
Of all the five excellent bids, I know that my right hon. Friend agrees that, given the focus on a North sea revival, the importance of the North sea transition deal to our future energy security, the dynamic and pioneering spirit of business and industry in the north-east of Scotland, and the fact that we will create 30,000 new jobs in my constituency and around the north-east of Scotland, the Aberdeen and north-east freeport bid will be one that he announces as successful.
I admire my hon. Friend’s enthusiasm for the north-east bid. He is right to be enthusiastic, as he represents that part of Scotland. It is a process, and we are following the metrics, as was done with the English freeports. It is important that we do not make a political decision, and that we make the right decision based on the bids before us. As I say, for those that are unsuccessful, hopefully investment zones will be another route. I have not shown any preference for any bid, and it is right that we do not and do it properly according to the metrics that we set out, because we cannot leave this open to judicial review, which would lead to further delay.
I am glad to hear the right hon. Member say that the Government intend to consider repurposing Scottish green freeports into investment zones. What discussions have been about environmental protection concerns and the removal of EU environmental standards?
There is a full prospectus explaining all that, which we agreed with the Scottish Government. We have put it out to bid. We have five bids, from Orkney down to the Forth and the Clyde, and they all understand the environmental impacts. A lot of it is about reclaiming brownfield land, which is part and parcel of the levelling-up agenda, and I think everyone understands what has to be done environmentally to reclaim brownfield sites.
That is wonderful to hear. In my beautiful constituency of Eastbourne, we are busy working to ensure that £20 million of Government levelling-up funding is energising and growing the visitor economy. [Hon. Members: “Scotland!”] My question is: how is the levelling-up fund doing the same in Scotland—the land of my forefathers—to ensure that all parts of the United Kingdom can capitalise on and consolidate the staycation market so much born out of the pandemic years?
My hon. Friend makes an excellent point. Levelling-up measures are all about delivering local priorities and pride in place, which go hand in hand towards creating a sustainable tourist economy. The £150 million community ownership fund is allowing us to put cultural and heritage assets back in the hands of local people across the whole United Kingdom.
What would the impact have been on levelling-up projects if the Scottish Government had followed the advice of the Scottish Conservatives to give these unfunded and catastrophic tax cuts to the wealthiest in our society? Will the Secretary of State now apologise to the Scottish Government for insisting that they follow this disastrous and reckless course of action?