Chamber anger at piecemeal rail investment for North East

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John McCabe, chief executive, North East England Chamber of Commerce said: “Today’s announcement gives us some recognition for our Fast Track East Coast and Northumberland rail campaign but it is still a huge missed opportunity for our region.  The benefits of this piecemeal investment will be hugely diluted by cancelling HS2 and detailed Northern Powerhouse Rail plans.  Speed is not the problem with our region’s rail network. We need more capacity and reliability of services more urgently.

“The Government’s integrated rail plan fails to deliver on the levelling up agenda and give much-need commitment to transformational projects for the North. Without the full delivery of Northern Powerhouse Rail, the eastern leg of HS2 and improved capacity on the East Coast Main Line our region’s potential will continue to be held back by out-dated rail infrastructure.

“This is especially disappointing after COP26 and the need to shift travel from road to rail to meet net zero targets. Media reports have said that there could now be more than 12,000 extra car journeys a day in the North of England due to the poor rail connections in the North causing congestion and harming air quality.

“Rail connections are key for the North East’s businesses helping to encourage more trade between northern cities, as well as giving people a wider choice of employment opportunities, encouraging people to stay and work in the region.

“The Government had previously committed to Northern Powerhouse Rail and set up bodies like Transport for the North to advise on rail connectivity. Failing to listen to them and Northern leaders on the need to invest demonstrates that there is a lag between rhetoric and action on levelling up.

“I am urgently requesting a meeting with the relevant ministers to raise our members’ concerns directly and begin discussions on how we might salvage something from any future transport policy. The Government’s entire levelling up credibility is at stake here.”

Northern Businesses Join Forces to Campaign for Rail Investment

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North East England Chamber of Commerce has joined forces with Chambers across the North to campaign for more investment in the rail network to increase capacity and help level up the country.  

In the letter to Grant Shapps, Secretary of State for Transport, signed by seven Chambers, the Minister was told investment would demonstrate that the Government truly is committed to investing in the North as part of the COVID-19 recovery process.   

James Ramsbotham, Chamber chief executive said: “The North has faced historic underinvestment in its transport network. Better connections will increase productivity and help to encourage more trade between northern cities.  It will also give people a wider choice of employment opportunities, encouraging them to live and work in the region.   

“Investment in transport connectivity across the North will incentivise further private sector investment and create opportunities for regeneration and development.”  

The Chambers, which represent hundreds of major employers across Northern England, also stressed the urgent need for Government to commit to the eastern leg of HS2 and Northern Powerhouse Rail.  Upgrades to increase capacity on the East Coast Main Line and Trans-Pennine routes were also highlighted as important.  

James Ramsbotham added: “Increasing capacity in the Northern rail network will be crucial to addressing so many challenges that we face as a nation. It will support domestic and international businesses to transport goods and help our efforts to decarbonise our economy.   

“It is essential that the eastern leg of HS2 is not scaled back, as this would increase regional disparities and do nothing to improve rail connections in the region. We need both the east and west sections completed to truly level up the North’s rail infrastructure and unleash its economic potential.   

“The economic benefits of this investment would be transformational.”  

In the letter the Chambers set out the economic case for the investment.  It states Transport for the North estimate that the full Northern Powerhouse Rail project would increase the number of people within 90 minutes of four or more Northern Cities by 3.8 million, increase Gross Value Added (GVA) by £3.4bn by 2040, with over 100,000 jobs being created in urban areas.   

The letter stresses that delivering HS2 in full will bring huge benefits both to the North and the entire nation, both on the line itself, and by increasing overall capacity across the rail network. HS2 East estimate that the Eastern leg will support the employment of 6 million people, with over 160,000 new jobs being created and a total GVA increase of over £200bn.   

Both Northern Powerhouse Rail and HS2 will also provide vital opportunities for businesses in their supply chains. Businesses within advanced manufacturing, engineering and construction sectors, areas of strength within the UK economy, will benefit especially from further rail investment.   

The letter argued that without investment, the region’s potential will continue to be held back by out-dated infrastructure. Northern areas need Government to be ambitious in its ‘build back better’ programme and commit to investing in genuinely transformational projects for the North, to truly create a fair recovery.   

James Ramsbotham said: “It is no coincidence that the major economies of the North have historically grown on the back of increased transport connectivity provided by the expansion of the canal, rail and road networks.   

To deny the North the increased rail connectivity that these critical improvements would provide, would be to hold back future growth and opportunity for the millions living and working across the North.”   

The letter was signed by:

The Hon. James Ramsbotham CBE DL, Chief Executive, North East England Chamber of Commerce  

Clive Memmott, Chief Executive, Greater Manchester Chamber of Commerce   

Miranda Barker, Chief Executive, East Lancashire Chamber of Commerce   

 Daniel Fell, Chief Executive Officer, Doncaster Chamber of Commerce   

 Paul Colman, Chief Executive, South Cheshire Chamber of Commerce   

 Alexis Krachai, Executive Director, Sheffield Chamber of Commerce   

 Mark Goldstone, Head of Business Representation & Policy, West & North Yorkshire Chamber of Commerce