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Key transport projects would deliver 85 billion pounds benefit to the UK economy

22/02/2010 11:15:46 Hits:94

Transport projects would deliver £85 billion benefit to UK economy

Prioritising thirteen crucial transport projects over the life of the next Parliament - twelve regional and one national - would bring the UK economic benefits worth a massive £85 billion, according to research by the British Chambers of Commerce (BCC).

Businesses from across the UK revealed the transport projects that they believe are essential to the future success and growth of their regional economies. The projects include:

London - Crossrail:Cost: £15.9bn l Benefit: £36bn l BCR (Benefit to Cost Ratio): c.3.1

South East - M20 Operation Stack:Cost: £48m l Benefit: £75m l BCR: 1.7

South West - A303/A358 Improvement Scheme:Cost: £184m l Benefit: £1.1bn l BCR: 6

East of England - A14 Ellington to Fen Ditton Scheme:Cost: £765m l Benefit: £2bn l BCR: 2.6

East Mids - A453 widening (M1 Junction 24 to A52 Nottingham):Cost: £98m l Benefit: £320m l BCR: 3.3

West Mids - Birmingham Motorway Box:Cost: £149m l Benefit: £399m l BCR: 2.7

Wales - M4 Relief Road: Cost: £478m l Benefit: £2.1bn l BCR: 4.5

Yorkshire and the Humber - East Coast Mainline: Cost: £606m l Benefit: £1.7bn l BCR: 2.9

North West - Manchester Hub: Cost: £937m l Benefit: £3.7bn l BCR: 4

North East - A19 junction upgrades:Cost: £171m l Benefit: £707m l BCR: 4.6

Scotland - ForthReplacementBridge: Cost: £1.4bn l Benefit: £6bn l BCR: 4.3

Northern Ireland - M1/Westlink:Cost: £46m l Benefit: £201m l BCR: 4.4

National - 3rd Runway at Heathrow:Cost: £9bn l Benefit: £30.7bn l BCR: 3.4

Despite pressure on the public finances, and the need for spending cuts to bring down the UK’s huge budget deficit, the BCC argues that this powerful package of road, rail and airport improvements – chosen by Britain’s businesses - must be delivered over the next decade, with both the funding and political will to construct them guaranteed.

These projects are critical alongside high-speed rail, which cannot be the only transport improvement “green-lighted” by all the major political parties over the next five years.

Commenting, David Frost, Director General of the British Chambers of Commerce, said:

“Transport infrastructure cuts must not become a politically convenient way to slash spending after an election, especially when there are huge savings to be made in far larger budgets, including health, education and welfare.

“A government focused on the UK's future economic success must do everything it can to protect investment in priority transport projects. These infrastructure improvements will not only unlock much needed economic growth, but will also help the hard-pressed UK construction sector and local businesses in the supply chain.

“Public resources are constrained, of course we understand that, but cutting or scrapping plans for regional transport improvements means fewer jobs, and ultimately fewer businesses driving recovery.”

David Begg, Chairman of the Business Infrastructure Commission, added:

"It is absolutely right to be calling for continued investment in the UK's transport infrastructure. Improving our regional transport links goes hand in hand with economic growth and job creation."

The total cost of building these projects is £29.8 billion - with private sector costs of £14.3bn and public sector costs of £3.1bn per year over a five year period. This compares to an average annual transport spend of around £10bn.

For further information please contact the BCC press office on 020 7654 5813 or 07825 746812.

1. A map highlighting the locations of the thirteen priorities is attached, along with a supporting document which outlines why these specific transport projects were selected.

2. A BCR of 2 means that the 60 year benefits are double the cost and is recognised by the Treasury as representing "High Value for Money".

3. According to the BCC’s 2008 transport survey, congestion costs UK businesses £23 billion per year.

4.Department for Transportduty press officer can be contacted on: 0207 944 4292

5. More information on the Business Infrastructure Commission can be found here - http://www.britishchambers.org.uk/zones/policy/business-infrastructure-commission.html

6. More on the BCC infrastructure campaign -

http://www.britishchambers.org.uk/zones/policy/infrastructure-campaign/infrastructure-campaign_1.html

British Chambers of Commerce: 150 years of helping business 1860-2010

BCC Annual Conference, 18th March 2010: www.bcc-preparingforchange.co.uk

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people.

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