Why the North & Midlands probably aren't the winners from today's transport cash
Alasdair Reisner
Chief Executive @ Civil Engineering Contractors Association | Driving Industry Growth
It is fair to say that I wasn't a massive fan of the Government's Network North transport policy document when it was rushed out during the party conference season last year.
The cobbled-together wish list was little more than a transparent fig leaf trying to cover up the shambolic reversal of the long-standing commitment to deliver HS2 to the North. We still have no answer from the Department for Transport as to how they plan to deal with the bottleneck on rail capacity on the west coast that will get increasingly severe over the coming years. A shrug of the shoulders and hope for the best won't cut it.
But I was not entirely critical. Ultimately, the spreading of spending on a range of smaller projects across the country offers the potential to stimulate local growth for communities that might otherwise be left looking on enviously at high speed economic booms elsewhere.
But Network North was very light on detail on how this would happen. Almost as if it hadn't really been thought through at the point of publication.
Today the Government seems to want to show that it does have a plan - honest. The launch of the Local Transport Fund indicates how part of the money purportedly 'released' by the cuts to HS2 will be spent elsewhere.
The 'winners' of this money will be local authorities in the North and Midlands that are not part of so-called 'City Regions' - typically rural counties and smaller towns and cities.
£4.7 billion has been provided over seven years, which the Government says is "at least nine times" what the councils currently receive via the Integrated Transport Block (ITB). This sounds pretty good, even if you have to account for inflation over the period. I also suspect a deeper dig might find that the ITB funds are not the only ones that are making way for this new cash.
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But for local authorities starved of transport cash, this money could be transformative. That bypass or park & ride that has been sitting on the shelf for years might now actually be deliverable.
But there is a catch. And it comes precisely because the councils have been under-resourced. Stripped of funds, the capacity, capability and knowledge of most councils to deliver major schemes is limited.
As such, there is a risk that this money gets wasted on projects that fail to meet business case approval. There will be no end of consultants and procurement bodies that will only be too happy to help the councils spend their newfound money, but will they be able to get spades in the ground before the political winds change and funds get redirected elsewhere again?
The evidence isn't good. Just Look at the Levelling Up Fund, where the Government said it would spend £900 million last year. Actual spend? According to the DfT's own accounts it provided grants of just £81 million, while a further £250 million went via Department for Levelling Up, Housing and Communities. So just 37 per cent of the money on the table actually went out the door, and less than 10 per cent seems to have gone to transport jobs.
Today the Government says "The Local Transport Fund will deliver a new era of transport connectivity". I hope it does. My fear is that all that it will deliver is well-lined pockets for those that know how to sweep in and snaffle much needed cash, with local communities left with little to show.
Business Consultant
1 年Back in the days of UDCs, RDAs and EU Objective 1 funding, the cities and metro councils of the north benefitted far more than the boroughs and districts. Whatever promises are fulfilled this time, it is vital that the coal, cotton and steel belt towns and rural market towns aren't left behind again - but not at the expense of splitting funding up into such small packages that any overall economic benefits are marginal.
Business Consultant
1 年As ever, there is a need to distinguish between political exoediency and economic need. Back of a fag packet decisions and salami-sliced funding to appease selected politicians are the obstacles to producing the connectivity needed to transform economies across the north.
Director at managing2succeed Director at Give Construction a Try CIC Chair of the Corporation at Leeds College of Building West Yorkshire Apprenticeship Awards Mentor of the Year 2024
1 年Ultimately, this was a huge non-commitment Alasdair - a faux promise to rural Conservative Party voters for funding in April 2025, the first year of a new government, and will probably be overturned in the first spending review as the money doesn't really exist anyway. Hope you're well.
Making Ground Engineering Possible at BAM Ritchies, The future is ours to Make.
1 年Another great article Alasdair Reisner. Really easy for this government to say anything, with only a few more months left in power. But your point about this money going into the pockets of those who dont deliver the promises or put shovels in the ground has to be one of the biggest issues. Contractors waiting to deliver these projects against unrealistic budgets set by those not accountable for their input, continues to lead to project delay and cancellation but only after a good lump of money has been spent, in delivering what??