Transport for the North calls for devolution of £15bn of transport spending

A THINK tank has challenged Chancellor George Osborne to devolve £15bn of transport spending and decision-making on HS3 to the North in the forthcoming Budget.

IPPR says in a report that a new strategic body, Transport for the North, be set up to run the transport network, set policy and prioritise investment. It would be run by local authorities in Yorkshire, Humber, the North West and North East.

Called Transport for the North, the document argues implementing such a bold policy would transform the Northern economy and also benefit the environment.

The report is being launched in Manchester this morning at an event attended by Simon Kirby, chief executive of HS2, and other senior transport officials.

IPPR argues that after decades of underinvestment and Whitehall control, Transport for the North (TfN) would be responsible for and would integrate rail, road, sea and air transport, and decide priorities for infrastructure investment, franchising and ticketing.

To begin the process, the report urges the Chancellor to invest in the £15bn ‘One North’ infrastructure priorities brought forward by Northern cities last year – often referred to as ‘HS3’.

Its long term blueprint recommends:

:: The appointment of a Transport Commissioner for the North, who would be a figurehead for developing northern transport;

:: Move towards a contactless, cross-boundary ticketing system – using mobile phones and contactless payments for journeys across different modes of transport;

:: manage rail franchises, rolling stock and stations – to do away with outdated Pacer trains, and make overcrowded services and platforms a thing of the past.

The research concludes TfN gives the North chance to national growth and prosperity, by boosting jobs, productivity and wages.

Ed Cox, director of IPPR North, said: “Northern transport infrastructure is dated, poorly integrated and lacking the large-scale investment it needs, but Transport for the North could be at the vanguard of a coherent economic plan that will fire up the Northern powerhouse.

“Devolving transport powers and budget to the North will help transform the region’s growth prospects and rebalance the economy. What we now need to see is the warm words on Northern growth translated into firm commitments to make this vision for a modern transport network a reality. An initial investment is needed, but this is about the North shaping its destiny through devolution of powers. The Budget is an opportune moment to spell out the extent of the party’s ambitions for Northern prosperity.”

Ian Morrison, PwC’s Yorkshire and North East regional leader, said: “This report provides a solid blueprint for devolved decision making for transport policy in the region. If the North is to stand a chance of taking on the world, as the chancellor has suggested, then its cities need to be linked more closely.

“That it takes three and a quarter hours by train to travel about 130 miles between the two ports of Liverpool and Hull, is clearly not good enough. The North has long been calling for better connectivity between cities outside London.

“Tackling the region’s transport system will enable it to fulfil its economic potential, benefitting our own communities as well as contributing to the country as a whole. We now need to build on the momentum of the Northern Powerhouse debate and push on timescales, which this report addresses.”