Autumn Statement: Call to spread investment more evenly to boost declining towns

Dewsbury: can transport planning secure its future? © Copyright philld and licensed for reuse under the Creative Commons Licence.

Dewsbury: can transport planning secure its future? © Copyright philld and licensed for reuse under the Creative Commons Licence.

Combined authorities need to invest in transport to boost their peripheries, whilst the Government must also spread investment more evenly, given the declining performance of most English towns, especially in the North, a think-tank claims.

A growing gap in socio-economic performance between urban centres and three out of five English towns requires plans that "set out a clear vision for the economic future of all parts and economic sectors of a region," Demos said. "If the eventual fate of the likes of Dewsbury, Rochdale and Dudley is to be commuter towns, then that needs to be planned for."

These plans should be accompanied by a more equitable share of transport investment going to the regions, it argues, in response to output per head becoming ever lower the further away from London that you are - 30% lower in the Midlands, and 60% lower in Wales and Northern Ireland. Overall infrastructure spending must also increase, to the 3.5% of GDP recommended by the OECD, it argues - compared to 1.8% today.

The recommendations come in a report urging an economic "re-set" in the Chancellor's Autumn Statement on the 23rd November. The call to increase investment in line with the OECD recommendation would require an extra £38bn to close the gap by 2020/21. Another think-tank identified the scope to invest an extra £31bn this Parliament.