Transport and city leaders from Birmingham, Leeds, London, Greater Manchester and Sheffield have come together to set out how transport funding reforms could transform the prospects of the UK economy.
London’s Transport Commissioner Sir Peter Hendy has thrown his support behind a new independent report which calls for reforms that would ensure a shift in power from Whitehall, enabling the creation of jobs across the UK and economic growth for the whole country.
Sir Peter Hendy said: “The current system of transport evaluation was developed in an era of under-investment, where governments managed the decline of cities. We are now in a very different world, where cities are the drivers of the country’s future growth.
“We need a new system that enables cities to work together to realise their full economic potential. For that we need more control over the tax revenue we raise and changes in the way in which the real financial return of transport investment is evaluated.
“If we are given the freedom to do so we will create new jobs and growth that will benefit the whole country.”
The report, which was commissioned by Transport for London and Transport for Greater Manchester, has been developed and delivered by leading economic consultants Volterra.
It states that the current approach to the evaluation and funding of transport projects is likely to lead to ‘damaging underinvestment’ unless it is tackled and that pay back in terms of economic growth and jobs would be optimised if the approach were changed.
The Mayor of London, Boris Johnson, said: “Greater financial freedoms for our cities are absolutely central to their ability to better plan and finance the infrastructure they need to flourish.
“Transport is no exception to this argument. It is a vital key to unlock the door to wider growth in our economy, helping to spur jobs, new homes and regeneration.
“Working in partnership with other major cities I have been making the case for Whitehall to give us a greater say over our own futures and in turn boost the prosperity of UK plc.”