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Birmingham Post
Birmingham Post
Business
Tom Keighley

Transport upgrades could generate £52bn productivity boost for the economy, suggests TUC plan

Investing in public transport improvements in the North East could yield huge productivity gains, a report from the TUC suggests.

The national trade union federation has pointed to productivity improvements worth £52bn to annual GDP in the next seven years if the Government is prepared to invest £9.9bn annually up to 2035. The Transport for Quality of Life plan sets out ideas including building out Northern Powerhouse Rail and connecting it to HS2; completion of both branches of HS2 and electrification of the full rail network.

TUC says its estimates - which include 140,000 new jobs in bus, tram and rail operation - are based on productivity comparisons with European centres of population that have better transport provision than the UK. As well as productivity gains brought about by reduced journey times and more routes, the upgrades would also reduce private car usage and therefore help meet 2030 net emissions targets.

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In the North East, business leaders recently wrote to the Prime Minister to call for a commitment to fund the re-opening of the Leamside rail line - a move that could lead to the development of the "Washington Loop" that would link Washington to the Metro network. The group, which includes the North East England Chamber of Commerce, says the investment would provider better links to key employment sites such as the Nissan and Hitachi plants in Sunderland and County Durham, and the Amazon warehouse in Gateshead.

Liz Blackshaw, TUC regional secretary, said: "Everyone knows that we have to cut carbon emissions – and that switching to public transport is a big part of how do it. With this report, we’ve done the work the government should have done with its empty and incompetent net zero strategy.

"Investment in public transport across the North East will help us meet net zero targets and reduce the threat of catastrophic climate change. And it creates thousands of jobs in our region, boosts the economy in every community, and improves everyone’s quality of life.

"Commuters will have faster and cheaper journeys to work. New connections will bring new businesses to places where people need economic opportunities. We will save lives with cleaner air. And we will reduce loneliness and isolation by making everyone better connected, wherever you live."

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