By Jaimie Kaffash
12 May 2010
The new coalition government must match regional transport spending with planned improvements for London, regional groups have warned.
The call came after London Mayor Boris Johnson published his transport strategy on May 10, the day before the Conservative-Liberal Democrat government was formed.
The Tory mayor’s 20-year vision includes the continuation of the multibillion-pound Crossrail project and upgrades to the tube and bus network.
He said: ‘It is essential that those who will lead the country through the next period realise the absolute necessity of maintaining investment in London, the very beating heart of the UK economy.’
But Katie Schmuecker, senior research fellow at the Institute for Public Policy and Research North, told Public Finance: ‘To rebalance the economy, we must ensure that all parts of the UK economy are performing as well as they can, not just London and the Southeast.’
She said that the private sector in areas such as the Northeast was weak and that transport improvements were essential to create the conditions for growth.
She added: ‘One of the things that has been clear throughout the election campaign is that capital spending is a prime target for cuts.
‘In the short term, that can feel like an easy win because there is no immediate impact on frontline services – but it can store up problems for the future.’
A Welsh Assembly Government spokesman told PF that the channelling of funding for transport in London, including through the Olympics budget, had denied Wales funding in the past. He called for Wales to receive its fair share.
The new government signalled that it would back Labour’s plans for a high-speed rail network across the UK.
12 May 2010
The new coalition government must match regional transport spending with planned improvements for London, regional groups have warned.
The call came after London Mayor Boris Johnson published his transport strategy on May 10, the day before the Conservative-Liberal Democrat government was formed.
The Tory mayor’s 20-year vision includes the continuation of the multibillion-pound Crossrail project and upgrades to the tube and bus network.
He said: ‘It is essential that those who will lead the country through the next period realise the absolute necessity of maintaining investment in London, the very beating heart of the UK economy.’
But Katie Schmuecker, senior research fellow at the Institute for Public Policy and Research North, told Public Finance: ‘To rebalance the economy, we must ensure that all parts of the UK economy are performing as well as they can, not just London and the Southeast.’
She said that the private sector in areas such as the Northeast was weak and that transport improvements were essential to create the conditions for growth.
She added: ‘One of the things that has been clear throughout the election campaign is that capital spending is a prime target for cuts.
‘In the short term, that can feel like an easy win because there is no immediate impact on frontline services – but it can store up problems for the future.’
A Welsh Assembly Government spokesman told PF that the channelling of funding for transport in London, including through the Olympics budget, had denied Wales funding in the past. He called for Wales to receive its fair share.
The new government signalled that it would back Labour’s plans for a high-speed rail network across the UK.
