Regional Transport Infrastructure

Alex Chalk Excerpts

Tuesday 5th March 2019 Westminster Hall

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to serve under your chairmanship, Ms Ryan, and to follow the hon. Member for Barnsley Central (Dan Jarvis). I thank him for securing the debate. I will touch briefly on devolution, which has proven to be the most intractable political situation in Yorkshire—much more so than Brexit—over the past five or 10 years. However, I am sure that there is a way forward, and I agree with the hon. Gentleman that it is crucial that we find it, so that we can properly exert our influence over central Government on hugely important matters, such as transport investment in our counties.

As the Chancellor admitted in his Budget speech in November 2016, no other major developed country has as large a productivity gap between its capital and its second and third cities as the UK. We are the most regionally imbalanced nation, which is a huge issue that we must deal with. London is 50% more productive than the regions of England—not only the north—and has 50% higher wages, on average, than the north. There is a direct correlation there. This is not about spending for spending’s sake; it is about the prosperity of the people we represent. There is no doubt that infrastructure spending has been disproportionately higher in the capital than in the regions, and redressing that imbalance will transform the economy right across the UK.

[Alex Chalk (Cheltenham) (Con)]

Does my hon. Friend agree that, in seeking to redress that imbalance, it is critical to present an ask, as it were, to the Department for Transport? When the Cheltenham cyber-park needed transport infrastructure, the Department provided £22 million, showing that, where there is a clear goal to improve infrastructure, it is keen to help where it can.

[Kevin Hollinrake]

I totally agree. I will come shortly to the clear ask, which has been set out for us by Transport for the North.

The Government are doing much. By 2021, infrastructure investment spending as a percentage of GDP will be at its highest for the last 30 years, while the national productivity investment fund will increase to £37 billion by 2023-24. The Government recognise that this is an issue. We must always make sure that we spend wisely and, in many cases, the minimum amount, because this is taxpayers’ money.

However, in my view there is a difference between recurrent spending—much of which is important but which we clearly have to keep under control, making sure that we run a surplus, rather than a deficit—and investment spending. A business would treat the two things differently in its accounts. Businesses have balance sheets and they also look at profit and loss. Investment spending goes on the balance sheet. We should look at investment spending in our regions in a completely different light from other types of spending, particularly in the north.

I support Transport for the North’s recent strategic plan. The hon. Member for Barnsley Central rightly referred to £3 being spent per capita in London for every £1 spent per capita in the north. However, it is not all to do with central Government spending or central allocations. Much of it is about local authority spending and private sector investment. It is important that we recognise that difference. Nevertheless, Transport for the North’s strategic transport plan sets out very clearly the £70 billion of spending needed between now and 2050, which would contribute an extra £100 billion gross value added to our economy and 850,000 jobs. That is a compelling case, as my hon. Friend the Member for Cheltenham (Alex Chalk) referred to earlier.

Yes, part of it is about Northern Powerhouse Rail, which is so important to connect Liverpool to Manchester, to Bradford, to Leeds, to Hull and to Scarborough, and to go up into the north-east as well, but when that is delivered is also key. I would like my hon. Friend the Minister to consider, if possible, in his closing remarks when Northern Powerhouse Rail will be delivered, because the key ask in the Transport for the North strategic plan is that it be delivered to coincide with High Speed 2 delivery in 2033, and that would involve bringing forward the very important Northern Powerhouse Rail plan.

I again congratulate the hon. Member for Barnsley Central on initiating the debate. I look forward to listening to further contributions.