Policy Print Article

Transport and the Economy - PACTS Written Evidence

Organisation: Transport Select Committee

Closing Date: September 23, 2010

Consultation

A good transport system is a pre-condition of the long-term economic growth required to drive the UK’s economic recovery. At a time of major public expenditure cut-backs, it is vital that every pound is invested to greatest effect. 
The Government has made it clear that reducing the fiscal deficit is its top priority and that public expenditure will be reduced in all areas except health and overseas aid. The Secretary of State for Transport has stated that, within the context of lower levels of expenditure, he will prioritise those transport investment schemes which support economic growth.


The relationship between transport and the UK’s long-term economic growth was investigated at length by Sir Rod Eddington in 2006.[1]  

The priorities for investment were identified as reducing congestion in urban areas, on key inter-urban corridors and at key international gateways (major ports and airports). The Transport Select Committee will inquire into whether conditions have materially changed since Sir Rod’s report and what the priorities should now be, in order to deliver growth, both nationally and regionally.

URL: http://www.parliament.uk/busin..-and-economy/

Response

Economic conditions in the UK have altered significantly sinceSir Rod Eddington published the EddingtonTransport Study in December 2006. However, Sir Rod’s focus was based on thechanging dynamic of the British economy as a result of increasingspecialisation in services and high-value manufacturing, and his advice togovernment therefore continues to hold relevance. Central to recommendationsmade in the study is that in order to achieve the greatest value in transportspending, focus should not be placed on adding to the system but rather onmaximising the efficacy of the assets already available. It is therefore vitalthat government makes decisions to enhance the productivity of the mostinefficient elements of the network. An important obstacle to economic growth,when considering the British transport system, is congestion which costs theeconomy in the region of £22 billion per year, at least a quarter of which isassociated with road accidents. Ensuring that congestion is relieved should bea central priority to government; the argument to improve road safety is therefore not simply ethically, socially and emotionallydriven but also an economically sound policy area that will deliver real costsavings. 

Document: PACTS - TSC - Transport and th..conomy v7.doc