14.11.15
Lord Adonis: Businesses should help pay for HS3 because they will benefit
New major infrastructure projects like Crossrail 2 and HS3 should look at “wider sources of funding”, including private sector investment, rather than simply receiving money from the Treasury, according to Lord Adonis.
The chair of the newly formed Infrastructure Commission told delegates at the TransCityRail North event that being “proactive rather than reactive” when it comes to major planning infrastructure investment is important.
He added that part of the reason why Crossrail is going ahead is because of the “fairly substantial contributions” from the private sector and businesses through the supplementary business rate.
“In the case of London, large businesses pay the supplementary business rate which goes specifically to fund Crossrail,” said Lord Adonis, the former Labour transport secretary. “That is raising about £4bn of the £15bn costs.” He specifically cited the investment made by Canary Wharf Group, Heathrow Airport and the City of London Corporation, as well as London’s council tax payers.
He added that if these major projects are going to generate the growth anticipated then it is “much, much better to get the investment upfront and find ways of recouping it from those who are going to benefit”.
The principle that direct corporate and other ventures should make a contribution is going to be an important one, he added.