Study finds transport benefits for economy undervalued
The study by leading think tank, the ‘Centre for Cities’, looked at the positive impact transport investment had on the economy of Leeds, but centre director Dermot Finch said the findings were just as relevant for cities across the UK.
“Our research shows that the government has underestimated the economic impact of investing in transport – especially in our bigger cities. Our findings could apply as much to Glasgow and Edinburgh as to Leeds or Manchester or London. Improving access to big centres like Edinburgh and Glasgow could add many millions to Scotland's economy."
Rather than just focusing on the simple benefits of reduced journey times and costs, ‘The case for better transport investment: agglomeration and growth in the Leeds City’, used a sophisticated research model to look at how transport improvements increased business activity. It looked specifically at the impact better transport links had on improving access to skilled staff, suppliers, business and social networks, all of which combine to create a better environment for new and growing businesses.
The study will further boost the case for investment in projects such as the M74 completion, Edinburgh’s trams and Glasgow’s Fastlink project.
The research was welcomed by Laura Gordon, Glasgow-Edinburgh collaboration director.
“We have finite resources to pursue the Government’s overarching goal of sustainable economic growth. Being able to identify the full economic benefit of competing project proposals is essential. Glasgow and Edinburgh’s recent success has benefits far beyond their boundaries – this research shows how they can do even better for Scotland,” she said.
Councillor Jenny Dawe, the leader of The City of Edinburgh Council said:
"Improving connectivity between Edinburgh and Glasgow would promote further business growth across the central belt. We need to shrink the distance between the cities to create a labour market, education and science base of a scale to enable us to rival the world's best.
“We achieve much more when we work together and nearly every successful example of city collaboration involves improved transport connectivity. Transport Scotland must therefore concentrate on delivering projects which deliver the greatest economic return for the nation, including improving the speed and reliability of Edinburgh - Glasgow connections; enhancing Waverley and Haymarket stations, two of Scotland's principal gateways; directly linking our key businesses by having mainline Edinburgh - Glasgow trains stopping at Edinburgh Park; and by fully integrating our trains, buses and forthcoming tram."
Councillor Steven Purcell, leader of Glasgow City Council, said:
“Glasgow provides as many jobs for residents of surrounding areas as for its own people. They need to be able to get to work and do their jobs efficiently. The continued regeneration of Scotland’s largest city depends on appropriate investment in transport infrastructure. If investments such as the M74 completion were important before, this new research suggests that they’re absolutely vital”.
'The case for better transport investment: agglomeration and growth in the Leeds City Region' by Adam Marshall and Chris Webber is available from the Centre for Cities website. It was produced in collaboration with experts from transport consultancy Steer Davies Gleave and Imperial College London.
The Centre’s report compared improved access to Leeds city centre with other transport investment options – such as upgrading the transport links around the city region, or between Leeds and Manchester. It found that a targeted approach focused on improved access to the city centre would deliver the most significant economic gains. When the economic benefits of bringing people and businesses closer together (in terms of travel time and ease) were taken into account, the financial case for improving transport links to Leeds city centre increased by around 25 per cent.
The Centre for Cities is an independent, non-partisan urban policy research unit. It is an independent urban policy research unit and is a registered charity. The Centre has been influential in policy developments for cities in England, including new ways for cities to raise finance for major investments and in new forms of city governance.
Transport schemes in Scotland are assessed using the Scottish Transport Appraisal Guidance (STAG). This considers economic benefits alongside four other criteria: safety; transport integration; social inclusion and environmental considerations. STAG is being revised to better-account for wider economic benefits but will not offer the level of detail and ability to discern between specific schemes as the Centre for Cities’ work
Transport Scotland, the Government’s Executive agency responsible for strategic transport investments is currently conducting the Strategic Transport Projects Review (STPR), which seeks to identify investment priorities for the post-2012 period.
The Glasgow - Edinburgh collaboration initiative was launched in 2006 and aims to achieve a step change in Scotland’s economic competitiveness through the two cities working together on areas of common interest – connectivity; key sectors; and international profile.
Glasgow - Edinburgh key facts
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Glasgow and Edinburgh account for almost one-third of Scotland’s jobs and GDP – but a significantly higher share of growth on these measures in the past 10 years.
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The cities provide jobs for around 250,000 residents of surrounding areas.
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Glasgow and Edinburgh provide the majority of private sector jobs for new graduates in Scotland; account for half of all income from overseas tourists and around two-thirds of the jobs in Scotland’s world-class financial services sector.
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The rail journey from Glasgow - Edinburgh takes longer now than in the 1970s.
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The M8 regularly features on UK-wide lists of congestion blackspots.
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The M74 completion has been in planning since the 1960s. Funding remains uncommitted.
Competing collaborations
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The Oresund rail and road bridge is the inspiration and focus for a wider programme of economic development in the regions around Copenhagen (Denmark) and Malmo (Sweden). The physical development of the bridge has supported, by the creation of a ‘virtual’ Oresund university (a consortium of 12 higher education institutions), the elevation of the united Copenhagen - Malmo region to the third location for inward investment in Europe, after London and Paris.
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Leeds, Manchester and Sheffield launched an economic collaboration in January 2008, based on the premise that improved transport connections among the cities can boost their economic competitiveness and provide a rival to London’s dominance.
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Other city collaborations that are based around major transport investments include Seattle - Vancouver, Milan - Turin - Genoa, the Dutch Randstad (literally, “ring city”) and CENTROPE (a multinational economic region in Central Europe).