London 'to get almost three times more transport investment per person than North'

By agency reporter
January 27, 2018

New analysis by IPPR North has found that London will receive £4,155 of transport investment per person, compared to £1,600 in the North. This is a gap of £2,555 per person.

It means that planned transport investment in London is almost 2.6 times higher per person than in the North. Yorkshire and the Humber and the North East are the English regions set to receive the least planned transport spending.

The new independent analysis comes after government published its own regional breakdown before Christmas and wrote to MPs claiming it had reversed the historical trend.

IPPR North has commended the government for sharing new data and producing its own 'official analysis' of the national infrastructure pipeline but it claims many will find government figures misleading as less than half of planned spending is included.

Crucially, the government analysis excludes all spending which takes place after 2020/21 despite the infrastructure pipeline being a long-term planning tool.

Nearly £12 billion Transport for London spending is also excluded following a deal between the Transport secretary, Chris Grayling, and London Mayor, Sadiq Khan, allowing London to keep its own business rates to spend on transport. The deal means that London will no longer contribute to transport spending in the rest of the country and stands to benefit by £240 million next year and more in the years after.

Senior Research Fellow at IPPR North, Luke Raikes, said, “Despite the Transport Secretary’s recent statements, London is still set to receive almost three times more transport investment per person than the North. This is indefensible.

“The North has been underfunded in comparison to London for decades, and our figures demonstrate that ministers have failed to redress this imbalance. This failure will continue to hold back the North and the country until the government acts. 

“The government has improved their analysis of these figures but they have then excluded almost half of the spending for which they are responsible. A disproportionate amount of that excluded money is for London.

“Instead of disputing the figures the government needs to invest in the big, transformative projects being developed in the North such as Northern Powerhouse Rail.

“The government is making Transport for the North a statutory body but it must give it similar powers to Transport for London so that it can encourage business investment and borrow for its own infrastructure instead of going cap in hand to central government.”

Future Transport Investment in the North: A briefing on the government’s new regional analysis of the National Infrastructure and Construction Pipeline is available here

* IPPR North https://www.ippr.org/north

[Ekk/6]

Although the views expressed in this article do not necessarily represent the views of Ekklesia, the article may reflect Ekklesia's values. If you use Ekklesia's news briefings please consider making a donation to sponsor Ekklesia's work here.