Budget 2015: Slow progress on transport devolution

THE North was left waiting on the plaform for a Budget announcement on fully devolved Northern transport.

Hopes had been high that the Chancellor would commit to the creation of a new strategic body to oversee integrated investment across rail, roads and ports, but while detail was thin on the ground, Mr Osborne did say: “Working across party lines, and in partnership with the councils of the north, we are this week publishing a comprehensive Transport Strategy for the North.”

The Budget statement added further details: “Transport for the North will shortly publish an interim report, committing to build on the concept of HS3 to develop a network of high quality rail connections across the north – the TransNorth vision; bring the benefits of HS2 to the north sooner than planned; and work towards a single smart and integrated ticketing system across the region.

“The government will now proceed with electrification of the Selby to Hull line, subject to an acceptable contribution from Hull Trains and a business case, to complete the full electrification of the historic trade route between Liverpool and Hull.”

Ed Cox, director of think tank IPPR North, said: “The promise of a comprehensive transport strategy for the North is welcome, but it is unfortunate that it has not been completed in time for the Budget.

“As a consequence, there is still no actual cash pledge for vitally needed investment in Northern transport. It therefore remains the case that the gap in planned infrastructure investment between and North and South is nearly £2,000 per person.”

Karen Campbell, head of tax at Grant Thornton in the North West agreed: “The Northern Powerhouse is a key measure and the transport strategy for the North is eagerly awaited. 

“It’s still small steps, not a firm pledge on the £15 billion investment required. There’s also a case that the major infrastructure projects are being considered in the wrong order.  A Crossrail of the North might have do more for businesses  than HS2. It’s also true that the issue of linking Northern cities is not so much about speed, more about high frequency, high capacity and reliability.”

Mike Perls, North West chairman of the IoD agreed, stating: “Improving infrastructure will also be key to building the Northern Powerhouse so the reference to rolling out better roads and rail connections is encouraging. That said, it’s disappointing that there wasn’t a stronger commitment to investment in this key area, including HS3 which will be essential to improve connectivity and further strengthen the Northern economy.”

Charlie Cornish, chief executive of Manchester Airports Group was more positive though, as he welcomed the “ongoing commitment” to improve the transport infrastructure in the North.

“Making it easier for passengers to get to and from airports in the North, with improved east-west connectivity and HS2, will strengthen the UK’s network of competing airports and drive economic growth right across the region.”

David Lathwood, head of property consultant JLL in the North West, added: “There’s a strong economic rationale behind boosting connectivity between Liverpool, Manchester and Leeds. The fact that we still don’t have an electrified railway on the Trans Pennine route is a major source of frustration for businesses and a potential barrier to investment.

“The Chancellor knows this and is playing to those frustrations with the promise of a new transport strategy for the North, featuring plans for a new high speed rail connection across the Pennines.

“That’s welcome news but, with any pre-election promises – especially those involving mega-projects of the scale of HS3 – there’s a risk that they can remain pipe dreams.”