The North of England has faced a significant transport funding disparity over the past decade, with research revealing a staggering £140 billion gap compared to London. This systemic inequality has hindered regional development and exacerbated economic divisions across the UK. Recent analysis from the Institute for Public Policy Research (IPPR) and IPPR North has shed light on what experts are calling a “decade of deceit” in transport investment.
Transport funding inequality: the £140bn northern gap
Treasury figures analyzed by leading policy institutes reveal the North of England missed out on approximately £140 billion in transport funding over the last decade. This substantial gap emerged from consistent underfunding when compared to investments made in London and southern regions. Had the North received equivalent per-person spending to London between 2012 and 2023, the additional funds could have transformed the region’s infrastructure landscape.
The scale of this disparity is perhaps best illustrated through practical examples. With £140 billion, the North could have constructed the equivalent of seven Elizabeth lines – major infrastructure projects that would have revolutionized connectivity across northern cities and towns. Instead, many northern communities continue to rely on Victorian-era infrastructure systems that no longer meet modern demands.
Per-person spending statistics paint a clear picture of this regional inequality:
| Region | Annual Transport Spending Per Person | Percentage of London’s Funding |
|---|---|---|
| London | £1,183 | 100% |
| North-West | £540 | 45.6% |
| Yorkshire and Humber | £441 | 37.3% |
| North-East | £430 | 36.3% |
| East Midlands | £355 | 30.0% |
Marcus Johns, senior research fellow at IPPR North, emphasized that these figures represent “concrete proof that promises made to the north over the last decade were hollow.” The continued reliance on infrastructure built during Queen Victoria’s reign, 124 years after her death, highlights the critical need for significant investment in the region.
Impacts of chronic underinvestment on northern communities
The consequences of this funding gap extend far beyond statistics, affecting daily life for millions of northern residents. Inadequate transport infrastructure has created barriers to economic growth, limited job opportunities, and restricted social mobility across the region. In areas where severe weather events increasingly impact northern communities, the need for resilient, modern infrastructure becomes even more pressing.
The systemic underinvestment has contributed to:
- Reduced economic productivity due to longer commute times and limited connectivity
- Fewer inward investment opportunities as businesses choose better-connected locations
- Decreased social mobility with limited access to education and employment centers
- Growing regional inequality that reinforces the north-south economic divide
- Environmental concerns as outdated transport systems lack efficiency
Johns clarifies that highlighting these disparities isn’t about “London-bashing” – Londoners absolutely deserve investment. However, the scale of the imbalance – £1,182 per person for London versus £486 for northerners – reveals a fundamental unfairness in resource allocation that requires urgent addressing.
Government response and future investment plans
Recent government announcements suggest a potential shift in approach to transport funding. Last week saw the unveiling of what officials described as “the biggest-ever investment in city local transport” after decades of underfunding. Chancellor Rachel Reeves has pledged £15 billion in the upcoming spending review to improve trams, trains, and buses outside the capital.
This commitment follows the rewriting of Treasury investment rules, allowing increased spending on regions demonstrating greatest need. Political analysts view this policy shift partly as a response to the rising popularity of Reform UK, particularly in areas outside major cities where infrastructure gaps are most pronounced.
However, IPPR North argues these steps, while positive, require further development. The think tank has partnered with Lord Jim O’Neill, former Treasury minister and Northern Powerhouse Partnership chair, to advocate for Great Northern Rail – an ambitious plan to build and significantly improve rail networks across northern England.
O’Neill emphasized that addressing this challenge requires long-term thinking: “Good governance requires the guts to take a long-term approach, not just quick fixes.” He added that while the Chancellor’s focus on the UK’s productivity and investment weaknesses is appropriate, successful implementation will require more than just commitments – a transparent framework for delivery must be established.
Bridging the investment chasm
For northern communities to achieve their economic potential, closing the transport investment gap must become a sustained priority. Experts suggest several approaches that could help rebalance infrastructure spending:
- Implementing regional spending guarantees that ensure per-capita transport investment reaches fair levels
- Developing transparent metrics to measure progress toward infrastructure equality
- Creating devolved decision-making frameworks that give northern leaders greater control over transport priorities
- Establishing cross-party consensus on the importance of regional investment to ensure policy continuity
The government’s recent £15 billion pledge represents an important step, but addressing a £140 billion historical gap will require sustained commitment across multiple spending cycles. As northern leaders have consistently argued, this isn’t simply about regional fairness – investing in northern infrastructure offers substantial returns for the entire UK economy through increased productivity, improved workforce mobility, and more balanced economic growth.
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