THE regional economy will have “one hand tied behind its back” unless ministers provide a fair deal over transport funding, a business group has warned.
The North East Chamber of Commerce (NECC) spoke out after new figures showed a massive transport funding gap between London and the regions.
Spending on transport in London now stands at £774 per head compared with £255 per head for the North East.
And the gap has widened since the previous year’s figures with spend in London up from £721 per head.
Ross Smith, NECC head of policy and research, said: “If the Government is genuinely committed to rebalancing the economy then there must be at least parity in infrastructure investment across the country.
“These latest Treasury figures do not come as a huge surprise – the North East continuously misses out on vital investment. The region’s businesses can stand on their own two feet, our outstanding export performance is a demonstration of that.
“But if we are to fulfil our economic potential we must have the same opportunity as the South East to be globally competitive.”
Dave Anderson, Labour MP for Blaydon, said the transport spending figures were hugely depressing and reflected cuts in public transport, forcing people to catch taxis to work.
“That needs to be addressed. It is completely out of order. It will put people out of work. It is madness,” he said.
Geoff Inskip, chairman of the passenger transport executive group (pteg), which represents regional transport groups including Tyne and Wear’s Nexus, said London needed high quality public transport as he praised the “transformation” of the capital’s network in recent years.
But he added: “However, if we are going to rebalance the economy then we need the right balance on transport spending.
“Our major regional cities are economic powerhouses and a greater level of transport investment is needed in cities like Leeds, Newcastle, Manchester, Sheffield, Liverpool and Birmingham if we are to tackle imbalances in the national economy and by doing so ensure that the whole country can fulfil its economic potential.”
Transport Minister Norman Baker said: “It’s not surprising that more money is spent in the capital. It has always been that way and it is the same with capital cities around the world.
“I reject the idea that the North East is under funded. We are providing £1.5bn for local major schemes outside London for the four years from 2011-12.
“What is important is that local people are consulted and access to vital services and jobs is retained as far as possible.
“It is part of the localism agenda that local people will now be able to hold their local authority to account if they disagree with decisions they have made.”
