Transport and the Economy

In this report the Transport Committee calls on the Government to publish a White Paper on its transport strategy, explaining in particular how spending on transport will deliver economic growth and development. Such a strategy must set objectives for all transport spending and explain the criteria Ministers will use to decide between different claims on limited financial resources. The report welcomes the commitment to undertake transport investment that will deliver sustainable growth and enterprise, including 'green' industries, balanced across all sectors and in a manner that will reduce regional disparities. Ministers must however ensure that this vision for transport investment is backed up by a pro-active and fully integrated economic development strategy. This is so far absent. The current Government has swept away the regional tier of planning and many institutions that played a key role in the development of strategic priorities for transport spending in support of economic development. This has created a vacuum that has left regions without the institutions and arrangements they need to plan and prioritise sub-national transport schemes and other significant transport infrastructure. The Coalition also needs a much stronger strategy for developing the UK's major ports and airports. The Government must also do more to correct regional disparities in transport investment. The Department for Transport's 'New Approach to Appraisal' process, which plays such a major role in deciding which transport schemes get Government funding, Is highly controversial. Small schemes, including sustainable transport projects, may be cut disproportionately under new transport funding arrangements.