Transport Under-Funding Leaves North East Economy in the Slow Lane
Date: 29-05-2009
The Government was today accused of leaving the North East economy in the slow lane after figures showed it was pumping four times more money into transport in London than in this region.
The North East Chamber of Commerce (NECC), highlighted figures released by the Treasury today which showed that only £206 is spent per person on transport in this region compared with £783 in London.
Businesses in the region consistently place transport as the key issue in their ability to grow and yet the latest statistics demonstrate this is not a message that is reaching Whitehall.
James Ramsbotham, NECC chief executive, said:
“The amount of money spent on transport for our region is, quite frankly, shocking. We have witnessed decades of underfunding that has been a serious brake on an economy that has otherwise been performing outstandingly well until the global downturn.
“It is time for everyone, particularly the people who represent the North East, to say that this simply is not good enough and that the imbalance must be redressed.”
The North East has historically received the short straw when it comes to funding allocations with figures demonstrating spending hovering around 70% of the UK average. However, that figure has plummeted to just 62% this year. By comparison, spending in London is 234% of the UK average, and in Scotland it is 165%.
Mr Ramsbotham added:
“The Government has to recognise that allocating this region over a third less in funding than the national average is unacceptable and is letting down the people who live and work here. NECC will be taking this issue up both with MPs in the region and with the Treasury at the earliest possible opportunity.”
Overall public spending (including transport) in the North East stands marginally above the UK average (106%) with a large proportion of funding focused on employment policies.
Mr Ramsbotham said:
“However, with businesses consistently reporting to the Government that transport improvements will enable company growth and job creation this demonstrates that they are getting it wrong. They are trying to address the symptoms, not the cause of the problem.”
Mr Ramsbotham welcomed the fact that £300m was lined up to reinvigorate the Metro, however, he added that this would address local transport issues and not bring much needed improvement to strategic links to markets in the UK and overseas.