YHCC: Time to tackle transport funding disparities
Monday, 6 Jul 2009
Article by Richard Wightman, President of Yorkshire & Humber Chambers of Commerce
As appeared in the Yorkshire Post on Monday 6th July 2009
Fifteen years of economic growth have put huge pressure on transport networks in Yorkshire and the Humber, but the funding for extra capacity has failed to keep pace with this growth.
Rising road congestion and crowded trains are symptoms of a network creaking at the seams. The latest figures show that our region gets a raw deal which means key road and rail schemes are left on the drawing board, increasing the levels of business frustration.
Yorkshire is not alone in experiencing transport problems, but the business impacts are real and will grow if the funding disparities are not addressed. Traffic volumes in Yorkshire and Humber have grown the third fastest of any region since 1998 whilst rail patronage has grown quicker than anywhere else in England. However, Yorkshire has received less funding per head of population than the England average in each of the past five years. The gap with the England average grew last year and transport investment in Yorkshire fell by 11% in 2007/8 compared to a 2% rise across England as a whole. Transport underfunding is therefore both persistent and growing.
This limits funding for everything from filling in potholes in Halifax and improving roundabouts in Ripon, as well as the big ticket items such as M62 capacity or rail line electrification. We recognise that the Government has increased total transport investment over recent years, but, it hasn’t matched the rising demands on transport networks, the money hasn’t been distributed fairly across the regions and other areas of Government spending have received much bigger increases in their budgets.
The clear implication is that transport underfunding damages our future business competitiveness. The failure to deliver Leeds Supertram, or a suitable alternative, means our biggest city suffers from unnecessary congestion. The delays to road upgrades for the A63 in Hull and A160 to Immingham hold back the development of our vital sea ports. The failure to link Robin Hood Airport to the motorway network means the region is not maximising a potentially huge economic asset.
Underfunded transport systems make journeys longer and less reliable, adding to businesses’ operating costs and making it more difficult to attract skilled people. Transport links matter to inward investors so we need investment to compete. In short, underfunding costs jobs we desperately need.
London received four times more spend per head than Yorkshire in 2007/8. Whilst work started on Crossrail last month, Sheffield was forced to scale back its plans to extend its acclaimed Supertram system.
Scotland received two and a half times more spend per head than Yorkshire. The Scottish Government abolished tolls to cross the Forth and Tay last year whilst businesses in the Humber still have to pay the highest tolls for any bridge crossing in the UK.
The North West received 25% more spend per head than Yorkshire. Rail passengers there can enjoy the benefits of the multi-billion pound upgrade to the West Coast Main Line whilst the East Coast Main Line is reaching full capacity with no substantial plans to meet future demand.
The need to address Yorkshire’s underfunding is becoming urgent and the Government must take five key steps.
Firstly, it must think bigger and set out a long term vision. Exploring the potential of high speed rail is a good start even though the initial phase of taking a line from London to Birmingham and possibly further north in future is far too timid.
Secondly, transport budgets must not fall victim to the huge deficit in the public finances. Sustained public spending on transport is a genuine investment and the total transport budget is only 3% of government expenditure so cuts would both hit economic growth and fail to make any impression on the deficit.
Thirdly, transport spending should be used to boost economic growth in places such as Yorkshire. Closing the prosperity gap between regions will be impossible while London gets four times more per head than Yorkshire.
The fourth thing that needs to happen is that the Government needs to get a grip on the spiralling cost overruns on existing transport schemes which have swallowed up much of the extra cash allocated in recent years.
Finally, the Government must keep its promises. Dropping the commitment to widen key sections of Yorkshire’s motorway network to save cash was a serious mistake and businesses now expect the schemes currently in road and rail programmes to be rapidly delivered as a minimum requirement.
The region itself must now unite and make a much stronger case for transport investment in the future. Businesses must join with MPs from all political parties, local councils and Yorkshire Forward to persuade this Government or the next that investing today in Yorkshire’s transport networks is crucial to the business success of tomorrow.
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