National infrastructure, local benefits
There has been much talk about boosting growth outside of London, particularly with the recent development of an industrial strategy for the whole of the UK.
Our analysis using official Department for Transport ‘value of time’ data, reveals that reducing journey times key services such as doctor’s surgeries, hospitals or supermarkets by just 60 seconds could give the regions outside of London an economic boost of £4.7 billion. This means an extra £1.6 billion per year for the Northern Powerhouse and a boost of £1.1 billion to the Midlands Engine.
Although the UK has historically lagged behind other developed countries in terms of the quality of overall infrastructure (27th in the World Economic Forum’s assessment), further devolution of powers and the increased spending on infrastructure should start to close the economic gap between the Northern Powerhouse, the Midlands Engine and London.
With the uncertainty cause by Brexit negotiations with the EU this investment can also help to reassure businesses across the country. According to the CBI, the vast majority of UK firms see rail (81%) and roads (89%) as crucial or important to their business, and many believe that investment in developing this infrastructure should be increased, giving a visible outward sign that the UK is open for business.
Read our full report to find out more.