Rail link priority in blueprint for region

Nov 26 2007 by William Green, The Journal

A BLUEPRINT to boost the region’s economy through improved transport links and encouraging private enterprise is today published with a warning it could take decades to cut the North-South divide.

Better North-South and inter-regional rail links are an economic and environmental priority, according to think-tank ippr north in a new report that comes amid growing calls for high-speed services to drive forward prosperity.

The think-tank says improved train services would link people to jobs while cutting short-haul flights between cities – and highlights how the North-East is currently losing out on transport spending with the region getting just £225 per head a year compared to a UK average of £279.

It rejects ruling out expansion of the road network as an “extreme step”, saying severe pinch points should be addressed through demand management or targeted road-building.

Waterways could be also used for moving freight while arrangements to run transport in the region must be improved, along with greater cash-raising powers for local authorities.

The emphasis on transport improvements was welcomed last night by business and political leaders.

Ross Smith, from the North-East Chamber of Commerce, said: “Ultimately, we need to see much greater levels of capital investment in the region’s infrastructure.”

Sharon Hodgson, Labour MP for Gateshead East and Washington West, said: “It rightly focuses on the need to improve our feeble transport links and this has to be dealt with by ministers sooner rather than later.”

The public sector should become an engine for economic growth with more emphasis placed on supporting expansion of business, the report adds.

It says the North needs targeted additional funding because there are no “quick fixes”, although a £30bn productivity gap could be substantially cut within 20 years.

The think-tank says more capital investment and relocation of high-skilled public sector jobs to the North is needed to boost the skilled labour market.

A radical overhaul of benefits is required, with a flat rate benefit for unemployed people combined with well-resourced and personalised support with the focus on over-50s and providing new skills to the jobless.

Sue Stirling, director of ippr north, said: “It is within the Government’s gift to revive Northern economies.

“The North desperately needs a coherent spatial policy so that leaders across the three Northern regions can pull together a coherent plan which addresses the North’s weak transport links. The current focus on economic performance will not lead to a magic bullet solution.

“Instead, we need to focus on the policies that will drive economic growth: employment, skills, enterprise and transport and the public sector. Some people say the public sector in the North is too big. In fact, the private sector is too small.

“The North needs a strong public and private sector if it is to tackle deep-seated problems like high levels of worklessness and child poverty,” she said, speaking ahead of the Northern Way Summit in Gateshead tomorrow.

A Department for Communities and Local Government spokesman said they were working to “boost jobs, growth and private investment” by giving local leaders a bigger role in tackling economic challenges.

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Transport projects lead way forward

KEY findings of the ippr report:

• Improved rail links to the South and across the North are a priority to link people to jobs and cut short-haul flights.

• The region gets just £225 per head compared to a UK average of £279 in terms of transport spending.

• Severe road pinch points should be tackled via demand management or targeted road-building, while waterways could be used to move freight.

• Local authorities should get greater cash-raising powers, although plans to encourage collaboration could stretch them. The public sector should drive economic growth by supporting expansion of business.

• The North needs targeted additional funding with no “quick fixes” – although a £30bn productivity gap could be substantially cut within 20 years.

• Relocation of high-skilled public sector jobs to the North will boost the employment pool.

• Ministers must draw up a unified national planning strategy covering work, transport and housing and the Northern regions develop a pan-region strategy.

• Attracting high-skilled migrants is vital to the region’s economic prosperity.