Key transport projects would deliver £85 billion benefit to UK economy
Sunday, 21 Feb 2010
Prioritising thirteen crucial transport projects over the life of the next Parliament - twelve regional and one national - would bring the UK economic benefits worth a massive £85 billion, according to research by the British Chambers of Commerce (BCC).
Yorkshire & Humber Chamber nominated the East Coast Main Line as a key priority for investment in the next few years.
Businesses from across the UK revealed the transport projects that they believe are essential to the future success and growth of their regional economies. The projects include:
- London - Crossrail: Cost: £15.9bn l Benefit: £36bn l BCR (Benefit to Cost Ratio): c.3.1
- South East - M20 Operation Stack: Cost: £48m l Benefit: £75m l BCR: 1.7
- South West - A303/A358 Improvement Scheme: Cost: £184m l Benefit: £1.1bn l BCR: 6
- East of England - A14 Ellington to Fen Ditton Scheme: Cost: £765m l Benefit: £2bn l BCR: 2.6
- East Mids - A453 widening (M1 Junction 24 to A52 Nottingham): Cost: £98m l Benefit: £320m l BCR: 3.3
- West Mids - Birmingham Motorway Box: Cost: £149m l Benefit: £399m l BCR: 2.7
- Wales - M4 Relief Road: Cost: £478m l Benefit: £2.1bn l BCR: 4.5
- Yorkshire and the Humber - East Coast Mainline: Cost: £606m l Benefit: £1.7bn l BCR: 2.9
- North West - Manchester Hub: Cost: £937m l Benefit: £3.7bn l BCR: 4
- North East - A19 junction upgrades: Cost: £171m l Benefit: £707m l BCR: 4.6
- Scotland - Forth Replacement Bridge: Cost: £1.4bn l Benefit: £6bn l BCR: 4.3
- Northern Ireland - M1/Westlink: Cost: £46m l Benefit: £201m l BCR: 4.4
- National - 3rd Runway at Heathrow: Cost: £9bn l Benefit: £30.7bn l BCR: 3.4
Despite pressure on the public finances, and the need for spending cuts to bring down the UK’s huge budget deficit, the BCC argues that this powerful package of road, rail and airport improvements – chosen by Britain’s businesses - must be delivered over the next decade, with both the funding and political will to construct them guaranteed.
These projects are critical alongside high-speed rail, which cannot be the only transport improvement “green-lighted” by all the major political parties over the next five years.
Commenting, David Frost, Director General of the British Chambers of Commerce, said:
“Transport infrastructure cuts must not become a politically convenient way to slash spending after an election, especially when there are huge savings to be made in far larger budgets, including health, education and welfare.
“A government focused on the UK's future economic success must do everything it can to protect investment in priority transport projects. These infrastructure improvements will not only unlock much-needed economic growth, but will also help the hard-pressed UK construction sector and local businesses in the supply chain.
“Public resources are constrained, of course we understand that, but cutting or scrapping plans for regional transport improvements means fewer jobs, and ultimately fewer businesses driving recovery.”
David Begg, Chairman of the Business Infrastructure Commission, added:
"It is absolutely right to be calling for continued investment in the UK's transport infrastructure. Improving our regional transport links goes hand in hand with economic growth and job creation."
The total cost of building these projects is £29.8 billion - with private sector costs of £14.3bn and public sector costs of £3.1bn per year over a five year period. This compares to an average annual transport spend of around £10bn.
Nick Pontone, YHCC Director of Policy, commented:
"Investment in the East Coast Main Line is vital to the future economic success of Yorkshire & Humber. Every pound spent on these schemes would be returned many times over with new investment and jobs. This is the real investment we need to create long term economic growth."
Download Key transport projects would deliver £85 billion benefit to UK economy file