It is a pleasure to serve under your chairmanship, Mr Owen, on this important subject. I congratulate Paul Blomfield on prompting discussion on a key aspect of Government policy.

The UK regions are at the heart of the Government’s economic strategy. The Government are mindful to ensure that investment should not get sucked into hyper-concentrated areas, such as the golden triangle, at the expense of the excellence that can be found in many other parts of the country. That is a matter to which I have been paying close attention in my first few weeks in my role.

We believe that science and research has a central role in the regions and the Government want the national economic recovery, which has been under way for a number of years, to continue to benefit all parts of our country. Investment in research based in the regions is an absolutely key part to that. The extra gear our economy needs is to be found in R and D capabilities in the universities in our regions as well as in the golden triangle.

UK science is an international success story and a major driver of growth and attractor of inward investment, as hon. Members have mentioned. It is not always recognised that it can make a huge contribution to local and regional economies and to rebalancing the economy, a goal to which the Government are strongly committed.

By way of illustration, I will take a quick regional tour of the investments we have made in recent months, starting from Land’s End and going all the way up to John O’Groats, many of which will contribute to our goal of rebalancing the economy. In the south-west, synthetic biology has been assisted by a £14 million investment in a centre for synthetic biology in Bristol. I will detour via London, which, as Members have already mentioned, has well-known strengths and new investments in institutions such as the Francis Crick Institute and the Alan Turing Institute. Just north of London, we have recently invested £12 million in a centre for agricultural informatics and sustainability metrics near Harpenden and work will start there this summer on modelling more efficient food systems.

Further east, we have just invested £44 million in Babraham and £26 million in Norwich in research into agri-tech. In the west midlands, not far from the constituency of Liam Byrne, we have an example of what will help our ambition to make the midlands an engine of growth. As part of the Government’s £270 million investment in new quantum technologies, Birmingham University has just secured £35 million towards developing an internationally leading centre of excellence and a quantum technology hub. That is in addition to plans for a new national college for high-speed rail, which the right hon. Gentleman described as a

“once in a generation opportunity to transform our local economy.”

The manifesto we published before the general election had a strong commitment to building the northern powerhouse. That is becoming a reality and our investments in centres such as the Hartree Centre and the square kilometre array, the largest scientific experiment in the world, will support that objective. I could add to that list our various investments in graphene such as those at the National Graphene Institute and the Graphene Engineering Innovation Centre.

The hon. Member for Sheffield Central will be impatient for me to cross the Pennines. He will know that, in the Sheffield city region, £10 million has just been invested in a new facility for aerospace and other sectors at the Advanced Manufacturing Research Centre. In York, we have invested £27 million in a quantum communications hub as part of our national programme.

As we head further north to Scotland, we continue to support Scotland’s fine scientific tradition. Just last year, the Chancellor announced a £16 million contribution to a new stratified medicine imaging centre of excellence in Glasgow, which will unite world-leading clinical academic expertise in stroke, cardiovascular disease and brain imaging to aid our understanding and treatment of a range of human diseases. Other examples in Scotland include Edinburgh University’s national computing centre, which has benefited from funding for ARCHER, the UK’s top supercomputer, which is now being used by 1,000 academics and people in industry.

I turn to issues raised by Members, and by the right hon. Member for Birmingham, Hodge Hill in particular. I thank him for his generous welcome; it is a pleasure to be in this relationship to him. I have always enjoyed talking with him and I hope that we can have a productive and cordial relationship in the months ahead.

There is strong cross-party agreement about the role that investment in science and research can play in solving our productivity challenge and the right hon. Gentleman knows that the Government are truly committed to that. Our manifesto is evidence of that: investment in science and research runs through it like words through a stick of rock and it is a personal passion of the Chancellor. Science and research therefore is front and centre of our solution to the productivity puzzle and such investment in our regions will be one of the key ways in which we will try to plug the productivity gap that holds us back.

The right hon. Gentleman mentioned the 3% target, which has been an ongoing question in public policy debate for some time. As he will know, previous Governments attempted to introduce R and D-related targets without success. An isolated target does not lead to behavioural change in and of itself; it needs to be complemented by additional policy measures. It is not clear that 3% is the optimal target and there is no evidence that it would lead to an optimal level of investment for the UK. Evidence suggests that the UK under-invests compared with other major research economies and that there would be economic benefits from increased investment, but the aim of achieving 3% GDP spend on R and D is set out at EU level and is not a UK target. The investments we make as a country are recognised as being particularly fruitful. We are recognised as being an excellent place in which to innovate and get very high returns on scientific R and D investment.