North East’s road and rail funds slashed

May 30 2009 by Adrian Pearson, The Journal

THE Government was last night accused of slashing funds for North East roads and rail links as figures show the South gets nearly four times more transport cash.

As the Department for Transport defended its spending record, the region’s business leaders slammed as “shocking” the latest funding blow to the North East.

Treasury figures show that only £206 is spent per person on transport in this region compared with £783 in London.

Whitehall spending chiefs have refused to offer the region the infrastructure cash needed to improve links between the North East and the South.

And while the region normally gets 70% of the average UK transport spend, that figure has been cut to just 62% this year.

However, Scottish politicians can expect to receive cash worth 162% of the UK average.

The revelation comes just days after Gordon Brown promised the region it would not be overlooked when it came to key spending decisions.

Last night James Ramsbotham, North East Chamber of Commerce chief executive, said: “The amount of money spent on transport for our region is, quite frankly, shocking.

“We have witnessed decades of underfunding that has been a serious brake on an economy that has otherwise been performing outstandingly well until the global downturn. It is time for everyone, particularly the people who represent the North East, to say that this simply is not good enough and that the imbalance must be redressed.”

His call for a new political push for greater funding were backed by Jeff Reid, head of Northumberland Council.

He said: “This is disappointing but hardly surprising. We know our economic situation is dependent to a large extent on our transport links and these are obviously inadequate. We have similar transport problems to Scotland here but only get half the money they do.

“You have to wonder why some of our MPs, in the privileged positions some of them hold, why they have not done more to change the way we are routinely overlooked for transport cash.”

Mr Reid’s calls for cash to invest in routes such as the A1 are one of many pleas for improvements ministers will be aware of.

In Tyneside, transport planners are hoping to persuade development bosses they must invest consider creating a ring road around Newcastle. But plans to link the A19 and A1 through Tyneside will need several millions of pounds, a funding problem which threatens to delay any improvements.

The Conservatives yesterday seized on the funding problems as an example of Labour’s “failed record in the region”.

Theresa Villiers, shadow transport secretary, said: “After more than a decade in power, Labour still hasn’t delivered the transport improvements the North East desperately wants.

“Despite ever rising taxes, Labour have totally failed to deal with the region’s most notorious road bottlenecks, key rail services are hugely overcrowded and ports are being hammered with retrospective rate increases.”

And Mr Ramsbotham added: “The Government has to recognise that allocating this region over a third less in funding than the national average is unacceptable and is letting down the people who live and work here. The North East Chamber of Commerce will be taking this issue up both with MPs in the region and with the Treasury at the earliest possible opportunity.”

A Department for Transport spokesperson said; “We know that good local transport is vital, which is why the Government has invested significant sums in transport in the North East.

“In fact total public expenditure on transport in the region has increased by 30% over the last five years.

“For example, in Tyne & Wear some £200m has been spent improving public transport – the Metro has been extended to Sunderland, and improvements have been made to key interchanges at Four Lane Ends, Gateshead, Eldon Square and Park Lane.”