Cities fear Brexit impact on infrastructure funding

6th Mar 2019

Government must commit to increasing levels of investment in sustainable inter regional and urban public transport to help ensure a strong economy after Brexit, city authorities are urging.

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The Urban Transport Group has made a number of asks of Government related to Brexit in a new report. It highlights that the UK is likely to become worse off economically after leaving the EU, potentially resulting in lower tax receipts which means less money for key infrastructure investments.

Yet it is precisely these types of investments that are needed to kick start the economy, the report says.

This comes as the Government announced a new Stronger Towns Fund on Monday, which could be of benefit to local transport infrastructure schemes.

Urban Transport Group director Jonathan Bray said: “It is not in our role to take a view on Brexit one way or the other. However as transport authorities it is our role to assess what its implications might be and to let Government know what we think it should be prioritising for urban transport during any negotiations or preparations.”

The group’s report also emphasises the importance of the UK continuing to be able to access European Union transport funds. In addition the group calls for ‘absolute certainty’ over the status of current staff from other parts of the EU, and the ability to continue recruiting from the continent.

Government’s new Stronger Towns Fund is worth £1.6Bn over seven years and will be divided between eight regions, with £281M earmarked for the North West. Downing Street says the fund is designed to spread prosperity more fairly across the country and there was a hint that the money could help communities who voted to leave the EU.

“Communities across the country voted for Brexit as an expression of their desire to see change,” the Prime Minister said. “That must be a change for the better, with more opportunity and greater control”.

Details as to what the money can be spent on are scant: the Government says it wants partners across local areas to come together and “put forward ambitious proposals that can achieve long term growth for their towns”. Only then will specific investments be agreed. Communities will be encouraged to work alongside their Local Enterprise Partnerships.

A spokesman for the Local Government Association said of the new fund: “Councils must be given the tools and resources to get on with the vital task of leading their communities in creating jobs, building infrastructure and boosting growth.

“Local government in England faces an overall funding gap of £8Bn by 2025. The Spending Review will therefore be make or break for vital local services and securing the financial sustainability of councils must be the top priority.”

  • Progress with improving the delivery of transport projects is highlighted in a report from the Transport Infrastructure Efficiency Taskforce, which has just named London’s transport commissioner Mike Brown as its new chair.

During its first year the taskforce completed a review of cost planning capabilities; and committed to the roll out of automated design among its members. Focus in the year ahead will be placed on benchmarking to provide better understanding of costs and performance on projects.

The publication of the report also coincides with the launch of the Infrastructure & Projects Authority’s ‘Best Practice in Benchmarking’ document, focused on ensuring infrastructure investment decisions are informed and transparent.

(Photograph: Network Rail)

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