Rachel Reeves: Jobs and growth need support as the deficit is cut back

While the Budget deficit must be reduced as we emerge from the worst global recession in 70 years, the Government has choices about how to cut – and how quickly to do so. Most of all, the Government must be mindful that with the recovery so fragile, too much retrenchment risks pushing us back into recession or resulting in unemployment increasing further.

Instead of thinking of just how to cut, the Government should also put its mind to how it can help the economy to grow.

One thing that is critical for the economic future of Yorkshire is infrastructure – particularly transport. We all know from our everyday lives the limitations of roads and railways in our region. And anyone who runs a business knows that transport infrastructure is critical for long-term success.

But, before I say what the Government has got wrong, let me do something unusual for an Opposition MP and welcome a Government announcement.

On October 4, we were told that High Speed Rail, first announced by Andrew Adonis in the last Parliament, is to come to Leeds via the East Midlands and Sheffield using the "Y" shaped route that will split in Birmingham, going to Leeds and Manchester.

This will benefit the Yorkshire economy by more than 62bn and reduce journey times by an hour – so we will be able to get from Leeds to London in just one hour and 20 minutes once the High Speed network is up and running.

Given that the cost is estimated at 13bn, the ratio of benefits to costs is nearly six to one. A good value investment that will yield very real advantages to Yorkshire and help to achieve a vital rebalancing of the economy.

While high speed rail to Leeds now appears safe, other local projects, including the trolley-bus scheme, the new entrance to Leeds railway station, Sunday and evening bus services and the new Kirkstall railway station hang in the balance.

Yorkshire has consistently missed out on transport investment compared with other areas of the UK. Spending on transport in Yorkshire was 248 per person in 2008-09, compared with 334 nationally, and 641 in London.

While Crossrail in London is under construction, projects in Yorkshire are stalled or put back, although I support the Chancellor's decision to press ahead with improvements at Leeds Station.

If cuts have to come, Yorkshire's historic under-investment should be taken into consideration.

Yes, HSR2 will bring benefits over the long term, but there are more immediate transport projects that will benefit Leeds and Yorkshire. At a very local level in Leeds, the Kirkstall Forge railway station is a critical transport project which will help to regenerate a former engineering works.

Kirkstall Forge started in the 13th century and now promises new jobs and homes fit for the 21st century. Indeed, the proposed Kirkstall Forge development promises 2,400 new jobs, 1,100 new homes, 300,000 square feet of new office space and 100,000 square feet of new commercial and retail space. Transforming a brown-field site and bringing investment to an area with traditionally high-levels of worklessness. The developers have agreed to fund 40 per cent of the cost of the railway station, but government support is needed to make it a reality.

Local campaigners have organised a petition signed by hundreds of local residents and the new station – which would be the first in Leeds for more than 20 years – is backed by MPs and councillors from all parties.

Yet, although a decision is imminent, no Minister has visited the site and no Minister attended a recent briefing session in Parliament. A follow-up to the briefing to request a meeting also elicited no response. This is not the way to go about making decisions if you are really serious about taking the right ones.

The Government must develop a strategy that takes an intelligent approach to investment. Ahead of the Comprehensive Spending Review, I urge Ministers not just to write-off anyone who questions their policies as "deficit-deniers".

I urge them to realise that yes, we must reduce the deficit, but not without any consideration for the economic future of our country.

We need an economic policy that supports rather than chokes off the vital support needed to achieve an economy that is both regionally strong and diverse, and that is a leader on the global stage as well.

That is most certainly within our reach, but only if the Government has a programme that supports jobs and growth.

Rachel Reeves is the Labour MP for Leeds West. She's a shadow work and pensions minister.