Peer review: Kate Morris
Director - Strategic Planning & Advisory, AECOM
Transport will be fundamental to turning our individual cities and towns in the North into a connected economy, and must remain the key focus of the Northern Powerhouse. But to achieve this connectivity between cities and to the rest of the world, much greater levels of funding will likely be needed than the public sector can afford.
Indeed, the scale of the projects currently being mooted is vast. In rail alone, options under consideration include substantial sections of entirely new line between Manchester and Sheffield and Manchester and Leeds, extending the HS2 network, significant upgrades and the electrification of existing lines. The next update of the Northern Transport Strategy, due in March as RailReview goes to press, will no doubt provide greater clarity around infrastructure priorities. Nevertheless, Transport for the North’s different workstreams indicate the ambition of the plans for enhancing connectivity.
Foreign direct investment will therefore be important to help fuel the Northern Powerhouse. But this will require local, regional, planning and transport authorities to create the right conditions to attract this inward investment. Investors will only want to back their best bet of getting a return, so certainty around planning issues and length of time for project delivery will be key. Developed Western economies are becoming increasingly attractive for Chinese investors, and the US already has a long history of investing in the UK. These potential sources of foreign investment must be further tapped by authorities in the North.
But creating an attractive investment environment requires transport infrastructure to be planned alongside housing, employment, schools and hospitals. A joined-up approach, with infrastructure built in line with these other vital enablers, will help ensure people want to live and work in an area. Real estate values will then increase, making infrastructure schemes more attractive to investors as a result. Given George Osborne’s prediction that the Northern Powerhouse could generate 100,000 new jobs by 2020, making it easier for people to live close to employment opportunities is a clear advantage of improved connectivity.
With multiple different planning and transport authorities operating in the region, joined-up thinking will require greater collaboration. The truly transformational change required to create a stronger, more balanced UK economy will not be possible without integration between neighbouring towns and cities. Authorities must work together as joint enablers to remove any barriers that can slow delivery, including uncertainty around planning issues. Not adequately dealing with these types of obstacles could discourage potential investors.
Clearly Transport for the North will have a vital role to play in bringing local transport authorities together. Strong leadership that encourages integration will help create certainty and attractive conditions for inward investment. Speaking to central government and potential foreign investors with one voice will help make the case for large-scale infrastructure.
Cities in the North are competing for investment like any other potential recipient project in every country. Securing foreign direct investment will therefore hinge on the region’s ability to create an attractive offering.
