Member Article

Transport under-funding leaves North East vulnerable

The Government has been accused of leaving the North East economy in the slow lane after figures showed it was pumping four times more money into transport in London than in this region.

The North East Chamber of Commerce (NECC) highlighted figures released by the Treasury last week which showed that only £206 is spent per person on transport in this region compared with £783 in London.

Businesses in the region consistently place transport as the key issue in their ability to grow and yet the latest statistics demonstrate this is not a message that is reaching Whitehall.

James Ramsbotham, NECC chief executive, said: “The amount of money spent on transport for our region is, quite frankly, shocking. We have witnessed decades of under funding that have been a serious brake on an economy that has otherwise been performing outstandingly well until the global downturn.

“It is time for everyone, particularly the people who represent the North East, to say that this simply is not good enough and that the imbalance must be redressed.”

The North East has historically received the short straw when it comes to funding allocations with figures demonstrating spending hovering around 70% of the UK average. However, that figure has plummeted to just 62% this year. By comparison, spending in London is 234% of the UK average, and in Scotland it is 165%.

Mr Ramsbotham said: “The Government has to recognise that allocating this region over a third less in funding than the national average is unacceptable and is letting down the people who live and work here. NECC will be taking this issue up both with MPs in the region and with the Treasury at the earliest possible opportunity.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .