Driving home the transport message

May 16 2006 By Zoe Hughes, The Journal

Transport Secretary Douglas Alexander was told to put the North-East at the top of his agenda after it was revealed investment in the region had dramatically fallen behind the rest of the country.

As business leaders and politicians across the North campaign for a better deal on transport, official statistics have shown that in the North-East spending on road and rail infrastructure has increased by just 25% over the past six years - almost four times less than the national average and nine times less than in London.

According to the Treasury's annual report on public spending, the Government invests just £201 per person on transport in the region compared to £631 in the capital. However, taken over the last six years the figures are even more shocking with the increase in funding rising by just 25% in the North-East against an average of 93% for England and 171% for London.

Even Yorkshire and the Humber saw transport investment rise by 68% since 2000/01 - even though the region suffers the lowest spending level per head at £197.

The figures prompted business leaders and MPs to warn ministers to give transport a higher priority - and for funding to be increased substantially in the Government's forthcoming three-year spending review.

There are fears Chancellor Gordon Brown will use the 2007 Comprehensive Spending Review to focus public spending on health and education - cutting back in other `non-vital' areas such as transport. Andrew Sugden, policy director of the North-East Chamber of Commerce, warned: "We need to see these figures reversed. They are shocking. We know the region is getting a raw deal in terms of transport and these underline how bad that deal is."

The Public Expenditure Statistical Analyses outlines spending on all public services in each region of the UK between 2000/01 and the last financial year, 2005/06.

On health and education spending, the report revealed the North-East was outperforming all of its rivals in England, excluding London. However, the Government has failed to close the gap with Scotland over the Barnett Formula, the calculation used by ministers in assessing Scottish funding needs.

Despite devolution, the report revealed residents north of the border received £576 more per person than those in the North-East last year, even though on health and education there was almost no difference in expenditure. In 2000/01 the "Barnett Formula" difference was £434 per person.

Overall, the North-East is awarded £7,689 for each person, compared to Scotland's £8,265. However, on education and training, the gap has closed completely with Scotland receiving £1,258 per person in 2005/06 - just £1 more than in the North-East.

On health, the story was again repeated, with Scottish residents receiving £1,676 per head in 2005/06 compared to the North-East's £1,638 - a difference of just £38.

Houghton and Washington West MP Fraser Kemp welcomed the "real advances" on boosting the region's health and education spending. However, he warned ministers not to forget the importance of transport, telling Mr Alexander: "This will have to be examined very closely in the next spending review."

He was joined by Tynemouth's Alan Campbell, who said MPs would keep pressing ministers to close the gap.

"These figures do demonstrate, though, that the Government is delivering real change for the region. We will continue to make representations to the Government about transport but it's very good news on health and education.

Page 2: Figures continue controversy over spending share