IPPR North highlights transport funding gap between London and the North

Monday, 19 December, 2011
Stack of coins illustrating the funding gap

Analysis by IPPR North of the Autumn Statement announcements on transport infrastructure has once again highlighted the scale of the transport funding gap between London and the North.

The think-tank examined the data detailing the projects to be brought forward as part of the national infrastructure pipeline. Of the projects identified as benefiting a particular region, and where public funding is involved, it found that London and the South East account for 84 per cent of planned spending, compared to 6 per cent in the North.

This equates to £2,731 per head for Londoners, more than for all of the other regions combined, compared to £201 per head in Yorkshire and the Humber, £134 per head in the North West and just £5 per head in the North East.

The report concludes:

'In order for the UK economy to be firing on all cylinders, much greater attention needs to be paid to the economic potential of the regions. While there may well be short-term gains to be made in the capital, any plan that aims to build a more sustainable and balanced economy needs to spread the focus of growth and better exploit the potential of cities like Manchester, Leeds and Newcastle.'

The report echoes the findings of the latest pteg Funding Gap report in which analysis of Treasury data revealed transport spend in London is now almost triple that in the North and West Midlands.

Access 'On the wrong track: An analysis of the Autumn Statement announcements on transport infrastructure' on the IPPR North website.

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