Mind the gap – north/south divide on transport spending revealed

NEWLY published figures analysing the national infrastructure pipeline reveal the  continuing significant spending gap between the North and the capital.

The figures released by think tank The Institute of Public Policy Research (IPPR) show that the government spends 6.5 times more per head on transport infrastructure in the capital than it does across the whole of the North.

That’s £1,869 spent on transport per capita in London, equating to £17bn, versus just £277 per capita or £4.2bn across the North.

Ed Cox, director of IPPR, said in an open letter to transport secretary Chris Grayling that a “North First” policy was needed.

He said prioritising  the HS3 rail line between northern cities would address the imbalance in spending and that it should take priority over the controversial HS2 high-speed link from London to the Midlands.

The proposed HS3 line, approved in March’s budget, has a projected travel time of just 30 minutes between Leeds and Manchester, with potential extensions to Liverpool and Hull.

IPPR North has calculated that if the output gap between the North and the national average is halved then the economy would be £34bn better off.

“This means more jobs, better wages and reducing dependency on the state,” Cox said.

He added: “While the previous Chancellor’s approach to the Northern Powerhouse had some shortcomings, the priority given to transport infrastructure was key and the developments made through Transport for the North represent significant progress.”

He called on Grayling to commit to £50bn new capital investment in both road and rail priorities in the North at the Autumn Statement.

“This is the only way to unlock the vital  private and foreign investment that such schemes will ultimately need,” he said.

Cox added: “Airport capacity and HS2 will take up much of your attention as you enter this new role, but taking a North First approach will be key to guaranteeing long-term, sustainable economic success for our whole nation.”

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