Government preventing transport solution

Monday, February 26, 2007

Britain’s transport problems will continue unless the government loosens its grip on vital funds, according to an inquiry by the All Party Urban Development Group (APUDG) into the transport infrastructure.

In the report Loosening the Leash, the group has said that vital redevelopment schemes are being put on hold because city councils are denied the ability to raise the necessary funding. The problem is partly due to Whitehall micro-management, excessive bureaucracy, too many funding streams, and financial rules that constrain local government’s ability to help fund their own infrastructure.

The group has called on the Lyons Inquiry and comprehensive spending review to devolve funding and financial powers to Britain’s cities and towns – because only through financial freedom from Whitehall can they deliver better transport.

The report said that:
• tax Increment financing would allow local authorities to build infrastructure ahead of new development, and
• supplementary business rates could be used to ring-fence money for transport improvements.

Clive Betts, chair of the APUDG, said:
“Britain’s cities are being held back by our centralised funding system. Government needs to empower city leaders to take more of their own decisions. [This] report recommends some new local financial powers, for cities to fund more of their own transport systems. Our message is clear: greater devolution is essential for the future success of our cities.”

John Shipley, leader of Newcastle County Council, said: “Over the past decade, huge progress has been made in our cities, but much remains to be done and many constraints need to be removed. We must be much more radical in thinking about the public-private relationship, and this report should make a contribution to that debate.”

David Sparks, chair of the Local Government Association’s transport and regeneration board, said: “Councils are changing the services people use for the better. Having the backing of this influencial group of MPs only strengthens our argument that government must loosen its grip on decision-making and allow areas outside of London to close the economic growth gap.

“Ministers cannot ignore the mounting evidence that economic devolution is the only way forward.”