North misses out on £9bn cash pot

Nov 6 2007 by Adrian Pearson, The Journal

THE North-East has been denied access to the Government’s multi-billion-pound transport improvement pot.

Spending chiefs at the Department for Transport (DfT) have decided the North-East should not receive a share of the Productivity Transport Innovation Fund (TIF), a £9bn scheme set up to provide cash for improvements which will benefit the nation’s economy.

The money could have been spent on much-needed road or rail improvements in the region, but after a consultation with regional development agency One North-East, the Government decided the North-East would not be getting any of the infrastructure cash.

Transport planners at Newcastle Council’s people in motion project – which is looking at ways to reduce congestion – said the region lost out in the first round of funding as the Government had “prioritised schemes in accordance with how they contribute to national productivity”.

And while there will be a chance to bid for more funding within a few years, the Government is widely expected to use most of the TIF cash to fund the London Crossrail scheme, which will see a new train line built across the capital. Tyne Bridge MP David Clelland, who is a member of the Commons Select Committee on Transport, said: “There is a definite concern amongst North-East MPs that we may miss out on more transport funds, not just because of Crossrail, which will take a lot of money, but other London projects including the Olympics.

“We will want to examine Government spending and see just why cash is diverted away from the North-East and what effect this will have on us as a region.”

Across England, five rail projects were picked after Government planners turned down improvements to the East Coast Mainline and its connections to Teesport.

In addition, the DfT has not shortlisted any improvements to the North-East’s road network.

Yesterday, Conservative shadow transport secretary Theresa Villiers said Newcastle was being placed in an unfair position. “The Government wants to see unpopular schemes introduced but not take responsibility for them. They are basically denying some funds and telling councils the only way they can have money for traffic problems is by applying for Congestion TIF funding and preparing to make difficult decisions such as introducing congestion charging and road pricing.

“By not providing other improvement funds for the region, they make these decisions the only options.”

Tom Warburton, One NorthEast head of environment and infrastructure, said the region would benefit from rail improvements in the long run.

He said: “One of the key recommendations to Government was that it should invest in the rail network across the North and beyond, not only benefiting our region’s ports but also providing productivity and environmental benefits. It is very encouraging that work is now well advanced towards being able to submit a business case for the necessary investments across the Northern rail network.”

A spokesman for the DfT said the North-East schemes were thought to need more work before the Government could invest in them.