BETRAYED BY PARTY OF little southerners

Earlier this summer Mr Grayling scrapped plans for the electrification of the Midland Mainline between Nottingham and Sheffield and suggested that the long-promised electrification of the transpennine route could be downgraded.

No wonder council and business leaders in Yorkshire have reacted angrily. No wonder too that the former Chancellor George Osborne has all but accused his old Conservative colleagues of betraying his ambitions for the Northern Powerhouse. And no wonder Mr Grayling now has so few friends in the North.

So why is he making himself so unpopular? In part, I believe, it betrays an ideological bias, and in part a disregard for the North.

Ideologically, the Conservatives are wary of public investment, seeking where possible to shrink the state. Both Mr Grayling’s Transport Department and his ministerial colleagues at the Treasury are obsessed with stopping the publicly-owned Network Rail borrowing to improve communications.

But with the Government able to borrow at historically low levels and the clear need for stimulus during a period of disappointing economic growth, now is the time to invest. Rail presents one of many infrastructure opportunities which can earn an impressive economic and social return, especially in the North where there is so much ground to make up with its transport system.

With Network Rail state owned, it is certainly novel reasoning for the Transport Secretary to argue that somehow he has little responsibility to help facilitate the investment, when it is his government blocking that very improvement.

A crucial role of government is to build vital infrastructure and stimulate growth across the country. That means that strategic responsibility for ensuring major transport projects are completed lies with the Transport Secretary.

Saying it is not up to government to improve rail services in northern England is a strange interpretation of ministerial duty. No wonder many see it as an attempt to pass the buck – and bill – to local leaders and businesses for the Government’s failure to meet its pre-election promise to upgrade regional rail links.

Which brings us to the second reason for Mr Grayling’s unpopularity – his disregard for the North.

This is just the latest in a series of betrayals. Ever since the departure from government of Mr Osborne, the Conservatives have neglected much of the country.

The Conservatives are no longer the Little Englander party. Sadly, they are starting to resemble the Little Southerner party. Mr Osborne has even suggested that Theresa May’s top advisers attempted to erase all mention of the “Northern Powerhouse”. The progress made during the Coalition to rebalance the economy towards areas outside London – a key priority for me as Business Secretary – is now being reversed.

This is particularly apparent with transport. First ministers dropped long-standing commitments to electrify rail routes in the North (and Wales and the Midlands). Now we see growing concerns over the transpennine route that is crucial to joining up the great cities of the North.

Some have sought to contrast this with government support for London’s Crossrail 2. But this is not an either/or choice. I support both. We need a national rail network across the country fit for the 21st century, including in the North, Wales and the West Country. It should be a national priority to modernise our creaking railways.

The growing criticism directed at HS2 would soften if construction started from the North and worked south. HS3, across the Pennines, is fundamental to the whole Northern Powerhouse vision.

Mr Grayling wrote in The Yorkshire Post: “If the north of England were a separate nation, it would be among the ten biggest economies of Europe.” So why won’t he give it a transport system to match?

And why won’t he realise how much bigger that economy could be with decent infrastructure?

Connecting great centres like York, Sheffield, Bradford, Hull, Liverpool, Manchester and Newcastle is crucial to rebalance the economy and address the enduring North-South divide. Creating a counterbalance to London would also benefit the South East, relieving pressure on the overheated housing market, soaring property prices and yes, crowded trains.

This should form part of a reinvigorated industrial strategy, building on work I did as Business Secretary to support manufacturing and boost exports in key sectors. Without government driving forward investment in infrastructure and providing tailored support for businesses, Britain will grow ever more divided and unequal. The Conservatives must act now to put some oomph into the Northern Powerhouse or it, like the Government itself, will start to look very much as if it is running out of puff.

Vince Cable is a former Business Secretary and is leader of the Liberal Democrats.