09.08.16
Brexit vote means HS3 must be prioritised over HS2 and Crossrail 2, says IPPR
Work must be “brought urgently forward” on the proposed HS3 east-west rail project, even if this means that it takes priority over HS2, a leading think tank has said in a new report making the case for faster investment in the north.
As part of a proposed North First strategy for transport spending, the Institute for Public Policy Research (IPPR) called on the new transport secretary, Chris Grayling, to close the London-north spending gap, estimated to be around £1,600 per person. Total spend on Crossrail alone will be around £4.6bn until the end of the decade, exceeding spending on all projects in the north (£4.3bn).
The statistical analysis, calculated by looking at how much will be invested per person in the north east, north west, Yorkshire & Humber and the capital between 2016-17 and 2020-21, was detailed in a letter sent to Grayling yesterday.
Tom Kibasi, director of IPPR, argued that the recent Brexit vote means the north of England must “urgently see growing prosperity” through a proper east-west crossing, which should be set higher up in the agenda above any other major transport project – including HS2 and Crossrail 2.
His colleague Ed Cox, director of IPPR North, added: “To build Theresa May’s ‘Better Britain’, we must focus on a better North. The north of England’s £300bn economy is worth more than those of Scotland, Wales and Northern Ireland combined. Focusing on this is going to be critical in creating the prosperity our country is going to need over the coming years.
“The north must also ‘Take Control’ of its own funding decisions. The evidence shows that this would help boost growth, ditching HM Treasury’s outdated and ineffective model, better suited to mitigating congestion than driving new economic growth.”
Other urgent recommendations outlined in the letter include using record-low interest rates to raise £50bn “catch-up cash” to be invested in northern rail and road priorities, as well as unlock private and foreign investment in major schemes – something May and chancellor Philip Hammond have indicated support for.
The Treasury must also overhaul its “flawed funding model, which is outdated and not suited to driving economic growth”, with new ways of assessing transport scheme benefits, and devolving 10-year budgets, ultimately paving the way for more effective long-term planning.
“Airport capacity and HS2 will take up much of your attention as you enter this new role, but taking a North First approach will be key to guaranteeing long-term, sustainable economic success for our whole nation,” the letter, signed by Cox, said.
“To this end, we would like you to join us on a trip across the north to show some of the problems with the existing infrastructure and to meet businesses and commuters whose productivity is affected by the challenges we face each day. We are happy also to facilitate meetings with transport influencers, such as candidates for metro mayors.”
In his response, Grayling said he will build on May’s promises to “govern for the whole United Kingdom” and build an economy that works for everyone.
“That is a top priority and the reason we have set-up a new Cabinet committee to deliver on this commitment, with a strong industrial strategy at its heart,” he added.
“Transport for the North are working to develop a Northern Transport Strategy and we are already making the biggest investment in transport infrastructure in generations, spending £13bn in transport across the region to improve journeys for local people, help industry grow and boost productivity.”
(Top image c. Michael Fox)
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