In the summer 2015 Budget, my right hon. Friend the Chancellor reaffirmed the Government’s commitment to the development of a northern powerhouse, a key part of our plan to deliver sustainable economic growth throughout the country. The new clause and amendments, on sub-national transport bodies, or STBs, will strengthen the development of the northern powerhouse and, potentially, the midlands engine and other areas of our country too. In this House and in the other place, we are transforming northern growth and rebalancing our country’s economy. That is not to the detriment of London; it will complement its economic might and build stronger links between cities, so that hardworking people and businesses can access markets and make the most of their skills and dynamism wherever they are.
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One of our first challenges is to improve transport links between the great cities of the north. The Government have been very clear: we need better travel connections in the north. To give the House an example of the gulf in journey times, when travelling to London from Leeds by train it takes about two and a quarter hours to travel 170 miles at an average speed of 76 miles an hour. However, if one travels from Leeds to Liverpool on the train, it can also take just around two hours, but it is only 70 miles, at an average speed of 35 miles an hour. That is clearly too slow. These and other examples like it throughout the country are evidence of the brake on productivity and prosperity that transport can unwittingly provide.
By comparison, good connections between major urban areas can provide the catalyst for growth. We only have to look at examples like the Randstad or the Rhine-Ruhr regions to see the benefits. The Randstad region, bounded by Amsterdam, Rotterdam, The Hague and Utrecht, is linked by fast and frequent rail services, with journeys of about 30 to 50 minutes and an extensive road network. This transport network helps that area alone generate about half of the Netherlands’ GDP. Similarly, the Rhine-Ruhr region in Germany, covering five large cities and 10 smaller ones, has a network of fast inter-city, inter-urban and metro-style rail services, and a well-used system of autobahns.
Currently, in our country, decision making on strategic transport schemes is centralised at the national level. The journey to greater devolution has started, however. Individually, cities across the country are already strong and are being given the tools, through more powers and funding from Westminster in city deals, allowing areas the type of local determination they deserve. I believe there is support on both sides of the House for further devolution and a desire to see all parts of the UK benefit from greater devolution of power. The Bill will deliver devolution of powers and resources so our cities, towns and counties can become their own economic powerhouses. Through devolution, Government investment and economic growth is being tailored directly to the individual challenges and opportunities that particular places and communities face.
Let us not forget, however, that much has been achieved already. As we are all aware, improving our ageing infrastructure is of fundamental importance. In recognition of that, we are already spending £13 billion on transport
in the north of England in this Parliament. In the past five years, the Government have invested heavily in rail and road networks, committed to the northern hub and electrification programmes and are tripling road spending by 2020, improving the capacity and conditions of our motorways and major A roads. It can be seen, too, in the major benefits to come from the new trans-Pennine and northern passenger rail franchises. Building on these, and through our continuing work to develop northern powerhouse rail and roads, we will bring people and businesses closer together and strengthen connections.