Transport Funding: The government created it's own problems and now they're getting in the way of the real debate

Photograph: 43207 Departs Leeds by Joshua Brown (License)

The government's homemade problems on transport rumbled on this weekend, with blowback from their cancellation of funding for infrastructure in the North. This can at best be described as falling at first hurdle.

Having a debate about funding at all ignores the guarantee of huge benefits that any investment produces and obscures the real, and much deeper, debate that comes after: how that funding is structured to best serve communities.

The current distraction began when the government cancelled the full electrification of the Manchester to Leeds rail links, which had been at the heart of plans for George Osborne's so-called 'Northern Powerhouse'.

In response Andy Burnham, Mayor of Greater Manchester, gathered the political and business leaders of the North to a summit. It's purpose was to call for long overdue investment in the transport infrastructure of the North.

Only together, argued Burnham, could Northern leaders achieve greater parity of funding and overturn a situation that has London receiving eight times more in investment than the North - recently expressed in the cancellation of Northern electrification plans prior to the approval of further investment in London.

Chris Grayling, the government transport secretary, responded to the anger at the government by following the Tories' longstanding approach: shifting responsibility. Grayling and transport ministers announced that it is on the North to develop plans for the government to fund - as if Burnham's summit was what it wanted all along.

The government also took time out to complain that it wasn't invited to the Northern summit. But the summit was clearly the first step in building the solidarity necessary to construct a collective negotiating platform. Burnham himself adopted a stern stance, saying patience has run out, that London cannot continue to be developed at the expense of the North.

George Osborne, the former Chancellor and now Evening Standard editor,  couldn't help but wade in. In what was seen as an attack on his successors for not following through on his own policies, Osborne called for Theresa May to relaunch her premiership on investment in the Northern railways that could help geographically rebalance the national economy.

There are plenty of reasons for the North to be disgruntled at the government for it's failure to deliver and not least is that infrastructure spending alone is a boost to a local economy.

In the long term it is an unflinching in it's positive affect on economic growth. But in the shorter term it also creates a lot of jobs and a lot of contracts from which local businesses can benefit.

The rail links themselves reduce the time and distance between key locations. That is a boost for business, widening their customer base and giving them access to the benefits of operating at scale. It's also a boost for workers, widening opportunities while reducing the time spent on a commute.

But there is a downside - and it is this that the questions, of whether to provide funds at all, delays and distracts from. The better connections, the widening of opportunity can also encourage centralisation.

As a business pursues cheaper ways to work and greater efficiency, they have a tendency to gather in key locations, close to important suppliers, partners and customers. That raises big questions about how this will all impact the local business environment.

It cannot be taken for granted that plans for transport links will be a good in themselves. We must ask how they will serve each area. The answers we come up with must empower people, and empower them where they are.

Getting to the roots of that is tackling a microcosm of the bigger problem with globalisation, which has left behind entire communities, concentrated growing wealth and opportunity, and excluded the welfare of ordinary people from it's expansion.

Averting those outcomes means services must be tied to and benefit local people. Whether that means local cooperative or municipal rail companies, or some sort of statutory reinvestment, or some other solution, communities must profit from their local services, not be drained by them.

It is in many ways the same as for the energy sector, where action is needed to counter the impact of operating at scale and centralisation that leaves communities disinherited from the product of their own regional resources - exploited instead for private gain.

But first, we must start that debate. That means first getting passed the Conservative austere reluctance to invest in the future. Public investment is beneficial. So let's get beyond that point, and get down to how to get services working for communities, not rendering them little more than glorified or abandoned suburbs.

References

Jon Stone's 'Manchester-Leeds rail electrification is too hard and could be cancelled, Transport Secretary says: Chris Grayling said not electrifying the whole line would be 'smart''; in The Independent; 22 July 2017.

'Andy Burnham: North 'needs transport investment now''; on the BBC; 23 August 2017.

Andy Burnham's 'Why England’s north is still waiting for its powerhouse: My experience in the Treasury taught me that the test for assessing projects is biased against poorer regions. The north must not be pushed to the back of the queue any more'; in The Guardian; 22 August 2017.

Jennifer Williams' 'Transport secretary complains to mayor Andy Burnham about northern leaders summit 'snub': The government complains that it wasn't asked to attend meeting on northern investment plans'; in the Manchester Evening News; 23 August 2017.

'North should 'take control' of transport, says Grayling'; on the BBC; 23 August 2017.

George Osborne's 'A rebooted Northern Powerhouse fits Theresa May’s objectives: Connect the region’s cities together and they will attract global interest'; in the Financial Times; 21 August 2017.

'George Osborne urges 'HS3' rail for northern England'; on the BBC; 22 August 2017.

Lawrence Summers & Charles W Eliot's 'International Monetary Fund: Why public investment really is a free lunch'; in the Financial Times; 6 October 2014.