Whitehall ponders North East transport wish-list

Feb 28 2009 by Adrian Pearson, The Journal

GOVERNMENT spending chiefs are to consider a £540m list of regional transport priorities – alongside a warning that work must start now on back-up projects.

A list of “just in case” transport projects could see millions of pounds handed over for A1 dualling and a new Blyth to Tyneside freight train line, but only if work starts now on preparing detailed plans.

Business leaders, politicians and councils have put together a list of vital spending areas which if backed by ministers will give them a say over £6bn worth of Government cash over the next 10 years.

Covering areas such as economic development and housing, the regional funding advice is a North East wish-list which will now be considered by Whitehall civil servants.

But for transport plans the region has had to accept that in this second round of funding advice there is simply no money left in the pot for any extra projects to get the immediate go-ahead.

The large percentage of non-Government funded roads in the North East has meant a larger number of projects have to be paid for out of the region’s cash allocation, and these mainly Highways Agency schemes have massively risen in cost.

The result is an estimated £200m overspend which has left spending chiefs with little space to suggest new schemes in the second round.

Northumberland councillor Roger Styring, who sits in the board responsible for telling the Government which schemes the region wants to see backed, said it was important to be ready to go with any back up plans.

“Some of the projects already committed to could in theory not get the go-ahead, leaving funds worth in some cases up to £100m.

“Now, if the Department for Transport doesn’t help us get these business cases ready it would mean that money is lost to the region forever.

“So in a sense this is the most important thing we can do now.”

Last night Berwick Conservative prospective parliamentary candidate Anne-Marie Trevelyan said the region should make the best of a bad situation and insist the Government works with the region to prepare business cases.

“The overspend has been a big issue here but we do now see that it has in a sense focused the minds of the board and allowed us to look at this in a strategic manner. It is a step in the right direction and acknowledges the work we must now do.”