THE Government has admitted Metro revamp cash announced as part of a package of national transport projects is not new money.
In the Chancellor’s autumn statement last month, George Osborne said the Government was investing £30bn in projects nationwide to help the economy grow.
As part of this announcement the Treasury said it was bringing forward investment in the Metro system. But, as The Journal reported at the time, this money actually replaced other local contributions, meaning no new cash was being spent.
Newcastle North MP Catherine McKinnell has pressed the issue in Parliament, and yesterday was told by transport minister Norman Baker that the money was in no way new.
In response to a written question by Ms McKinnell, Mr Baker said: “The Autumn Statement announcement related to funding brought forward to 2011-12 and reflected the good progress which Nexus is making in delivering its renewal programme.
“This is part of the Department for Transport’s existing contribution towards the asset renewal programme and is not additional.”
The rail cash, re-announced for the second time by the coalition Government, is worth £350m to Metro owners Nexus. The money, first announced under the last Labour government, is handed out over the next nine years to revamp trains, tracks and stations.
It is used alongside local council contributions worth around £4m a year. It is thought the Metro cash announced by the Government would simply rearrange the timing of these contributions.
Last night Ms McKinnell said: “It’s quite clear that the North East was just an afterthought in the Autumn Statement, and the Government has now admitted that the investment it announced to great fanfare was that already committed by the Labour Government in February 2010.
“This region does not need any more empty promises but a real commitment to investing in jobs and economic growth.”
The Metro cash was part of the Coalition’s spending review announced when the Government was formed last year. It was approved by ministers, and then included in a further annual budget by the chancellor.
In his Autumn Statement Mr Osborne listed dozens of new projects across England to benefit as the Government tried to revive the economy.
As well as the Metro cash, the only other infrastructure decision impacting directly on the North East was money towards the electrification of the TransPennine rail route between Leeds and Manchester, which will help improve journey times from Newcastle.
The Government this week announced it was investing more than £100m in two North East transport projects, the Morpeth northern bypass and a new bridge over the River Wear.
