20.02.17
HS3 success key to closing bleak north-south divide, says IPPR
Success with HS3 is key to readdressing the imbalance in investment between the north and London, influential think tank IPPR North has argued.
In the report written by researcher Grace Blakeley, it was reported that the north is experiencing a “chronic lack of investment” in its transport infrastructure compared to London, and that the greatest benefits of HS3, or Northern Powerhouse Rail, would come “when an integrated, north-wide strategy is delivered”.
Blakeley’s findings focused on the revelation that London received more than half of England’s £32.7bn transport spending, and that the capital’s new east-west rail line Crossrail will cost £4.7bn in 2016-17 alone – compared to the £6.6bn that was spent in total across every single transport project in the north this year.
It goes on to recommend that given the huge financial benefits of HS3 of around £60m a year – as well as the wider positive benefits that will result from economic growth around the project – there was a clear case for investment that could be financed through municipal bonds, which would raise capital on the pensions market for northern infrastructure projects.
“It currently takes longer to travel by train from Liverpool to Hull than from London to Paris. Building better links between the north’s cities will boost the nation’s economy by driving up northern productivity,” said Blakeley.
“The spending gap between London and the north remains huge but this is about more than money. The north needs to take back control over transport spending too, to sensibly invest in a range of northern infrastructure projects, and unlock more potential.”
She added that the private sector could help the local authorities through the credit rating process, in order to ensure they get the best deal.
IPPR North director Ed Cox also commented: “There is a long, long way to go to rebalance the UK but these figures suggest we’re seeing the green shoots of the Northern Powerhouse idea being more than mere bluster.
“We must however make more progress like this if we want to see spades in the ground any time soon. Britain is tasked with overhauling our economy after we leave the EU, and our report details how exactly we pay for this vital project – northern prosperity is national prosperity.”
The think tank has previously argued that HS3 should be prioritised over Crossrail 2 and HS2 given the Brexit vote as part of a proposed ‘North First’ strategy for transport spending – a call with which 72% of around 453 RTM readers agreed. Other organisations, such as Greengauge 21, have also called for the northern leg of HS2 to be built before the London-Birmingham phase in the past.
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