Business group backs spending on key transport improvements

Spending on key road, rail and airport improvements should get priority after the General Election despite fears over the UK's creaking public finances.

A report by the British Chambers of Commerce says investment in 13 regional and national transport projects over the next five years would earn the UK economic benefits worth 85bn.

The chambers, which canvassed views from businesses across the UK, listed the works that firms believed were “essential to the future success and growth of their regional economies”.

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It said the projects – which include high-speed rail developments, road improvements across the country, London’s Crossrail train link and a third runway at Heathrow airport should be delivered within the next decade, with guaranteed funding.

Chambers director general David Frost said: “Transport infrastructure cuts must not become a politically convenient way to slash spending after an election, especially when there are huge savings to be made in far larger budgets, including health, education and welfare.

“A government focused on the UK’s future economic success must do everything it can to protect investment in priority transport projects.”

He said the works would help to boost economic growth as well as aiding the construction sector.

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“Public resources are constrained, of course we understand that, but cutting or scrapping plans for regional transport improvements means fewer jobs, and ultimately fewer businesses driving recovery,” he added.

The chambers put the total cost of building the projects at 29.8bn – 3.1bn a year over five years from the public purse combined with 14.3bn from the private sector.

The improvements include upgrading track on the East Coast Mainline, particularly in Doncaster, expanding rail capacity in central Manchester, a replacement for the Forth road bridge in Scotland and a relief road on the M4 in Wales to ease congestion between Newport and Cardiff.

David Begg, chairman of the Business Infrastructure Commission, said: “It is absolutely right to be calling for continued investment in the UK’s transport infrastructure.

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“Improving our regional transport links goes hand in hand with economic growth and job creation.”

Transport Secretary Lord Adonis welcomed the report, published today, and said: “Even in tough economic times, we must continue to invest in vital transport infrastructure which benefits jobs, business, our economy and environment.”

He added that the Government had continued to invest strongly supports major projects like rail electrification, Crossrail and a third runway at Heathrow.