Government blasted over transport links
Nov 13 2007 by Adrian Pearson, The Journal
INADEQUATE transport links to London are costing the North-East economy billions of pounds a year in lost trade.
Figures released by a leading think-tank, Centre for Cities, show just how much a lack of Government cash for road and rail improvements is holding back the region’s economy.
The most recent figures show the North-East earns £2.6bn from sales of goods and services to London, less than anywhere else on the mainland.
The region also does the least trade from the UK mainland with the capital, buying just £3.3bn worth of goods and services from London.
In comparison the North-West earns £9.5bn from sales to the capital and takes £11.9bn in business from London. Scotland’s figures are £5.8bn in sales to London and £8.2bn in business it gives to the capital. Despite the report’s call for “vital transport improvements”, the Government has yet to make any firm commitment to solving the problem with either a high speed rail link or extend motorway capacity to the North.
The Journal reported on Saturday that the Government was considering spending part of its £20bn transport investment fund on a high speed rail link along the West coast, favouring Manchester over the North-East.
Yesterday’s Centre for Cities report called for funding for transport improvements and more economic powers to be handed over to local development chiefs. The government is also urged to give more power to regional ministers – including Newcastle East and Wallsend MP Nick Brown.
The think-tank calls on the “regional ambassadors in Whitehall” to do all they can to encourage more trade between the capital and the regions.
Newcastle Council leader John Shipley warned that the Government risked damaging the region’s growth.
He said: “We have to promote the incredible economic case for the North-East. We have a highly skilled workforce, we have a good available labour force and many graduates in the region, as well as complimentary overheads.
“The report highlights the grave danger that there will be in effect two speeds of growth in the UK for years to come, with London and the South-East growing much faster than the rest of the country, as can be seen in the billions spent on London’s cross rail project while we in the North still make the case for high speed rail links.”
Business groups echoed his concerns. Ross Smith, head of policy at the North-East Chamber of Commerce said: “The fact that most of the benefits of London’s success are felt in the South-East should cause Government to recognise it cannot plan for sustainable long-term economic growth in the UK by focusing on the capital alone.” The Tyne and Wear city-region is setting up an interim transport body, headed by North Tyneside mayor John Harrison to lobby for much needed improvements and act as a regional authority.
Mr Harrison said the region may have to look elsewhere for trade if the Government will not spend the cash.
He said: “By concentrating on making the case for improved roads and rail networks and ensuring our airports and ports continue to act as an effective trading gateway to our region, we can our increase our trade not just with London but with the rest of the UK and internationally.
“We have to look also to the emerging economic powerhouses of Manchester/ Liverpool and Edinburgh.”
