Revealed: North set to receive £2,389 less per person than London on transport

• New analysis of the government’s planned transport spending shows that, unless investment in the Northern Powerhouse goes ahead, London is set to receive almost 3 times more per person than the North; and 7 times more per person than in Yorkshire and the Humber or the North East
• While the capital will receive £3,636 per person, the North will receive just £1,247 per person and within the North, Yorkshire and the Humber will see just £511; the North East £519; and the North West £2,062 per person
• Meanwhile, analysis of past transport spending shows that if the North had seen the same per person investment as London over the last decade, it would have received £66 billion more

IPPR North has today published a new independent analysis of regional transport spending in England. It sets out the true extent of underfunding in Northern transport infrastructure both in the past, and under government’s current plans for the future.

Today’s report shows a comprehensive picture of planned spending included in the most recent edition of the National Infrastructure and Construction Pipeline – a list of the government’s planned infrastructure projects between now and 2033.

Examining the government’s own figures, the leading think-tank found that planned transport spending on the capital is set to be £3,636 per person, compared to £1,247 on the North. Yorkshire and the Humber will receive the least of all of England’s regions at just £511 per person, followed closely by the North East at £519 per person; the North West will receive £2,062 per person. This does not include Northern Powerhouse Rail or recent overspend on Crossrail, which were not included in the pipeline.

In contrast, the government’s own analysis of the same pipeline includes just £40.2 billion of the £117.6 billion total transport investment it contains*, meaning the government exclude two thirds of planned transport spending from their own calculations. A disproportionate amount of the government’s excluded spending is in London– their analysis only includes 14.2 per cent of planned spending in the capital.

Today’s report also analyses a separate set of government figures that show past spending. IPPR North found that the transport spending gap between the capital and the North grew over the last decade. Spending increased by 2.5 times more per person on London than on the North. In fact, if the North had received the same transport spending per person as London over the last decade, it would have received £66 billion more than it did.

Report author Luke Raikes today called on the new Prime Minister to “turn years of Northern Powerhouse rhetoric into reality” by taking urgent action to invest in the North and devolve powers to Northern leaders and Transport for the North. IPPR North has also recommended that Phase 2 of HS2 must begin in the North so that Northern Powerhouse Rail can be accelerated using its infrastructure.

Luke Raikes, Senior Research Fellow at IPPR North said:

“These figures show that the prime minister must urgently follow through on his promises to invest in northern transport infrastructure and devolve power to the North’s leaders.

“The Northern Powerhouse agenda could benefit people across the whole country. Northern transport infrastructure is a national priority.

“The upcoming spending review offers a real opportunity for the government to turn years of Northern Powerhouse rhetoric into reality, and to finally deliver on promises made to the North.”

ENDS

Contact: Rosie Corrigan, Media and Campaigns Manager for IPPR North, on 0161 694 9683, 07585772633 or r.corrigan@ippr.org.

Notes:

*This excludes projects which are funded by the private sector only

This analysis does not account for the recent news that Crossrail and HS2 may overspend. It also doesn’t include Northern Powerhouse Rail because, despite recent promises, this isn’t yet in the infrastructure pipeline.

Table 1: IPPR North analysis of planned central and local public/private transport infrastructure spending per capita 2018/19 onwards (real terms 2017/18 prices)

Source: IPPR North analysis of Infrastructure and Projects Authority [IPA] and HM Treasury (2018) ‘National Infrastructure and Construction Pipeline 2018’, data. https://www.gov.uk/government/publications/national-infrastructure-and-construction-pipeline-2018

Table 2: IPPR North analysis of historic total public spending on transport per capita – including revenue and capital, and from central and local government (private spending not included)

Source: IPPR North analysis of Office for National Statistics [ONS] (2019) ‘Country and regional public sector finances supplementary tables’, data.

IPPR North is the leading think-tank for the north of England, developing bold ideas for a stronger economy and prosperous places and people.