New research shows ';hidden' economic benefits of city transport investment go uncounted

Date: 28/11/2007

A report from the Centre for Cities, released today, shows that the potential returns on transport investment in British cities are going uncounted and unrecognised by transport planners. Drawing on research conducted in Leeds, the report has found that transport planners should prioritise access to the large city centres within a region, in order to reap the economic gains of bringing people and businesses closer together.

The report compares improved access to the Leeds City Centre with other transport investment options – such as upgrading the transport links around Yorkshire, or between Leeds and Manchester. It finds that a targeted approach focused on improved access to large UK city centres would deliver the most significant economic gains.

When the economic benefits of bringing people and businesses closer together were taken into account, the financial case for improving transport links to Leeds City Centre increased by around 25%. The report also identified strong ‘hidden’ gains for Leeds’ economy associated with other transport investment packages – such as 16% for improving networks between urban centres within the City Region and 12% for upgrading routes between Leeds and Manchester.

Whilst the political temptation can be for city decision makers to spread the ‘jam’ of transport funding evenly across a region, this report shows that a targeted approach focused on better access to job-rich city centres actually delivers the highest returns.

Dermot Finch, Director of the Centre for Cities, said:

"The case for investing in cities' transport is even stronger than we thought. This report has found that improving access to city centres, and linking more people to jobs, radically boosts the case for investing in transport within UK cities. Look at Crossrail – conventional estimates suggested that the scheme would bring in £13bn for the capital over the next 60 years. But taking hidden economic benefits into account, returns could be as high as £30bn to £60bn. And in Leeds, improving access to the city centre would bring 25% additional benefits.

“The Department for Transport and the Treasury should ensure that these economic considerations are included in the transport appraisal process. This will help national, regional and local planners to prioritise and make the right choices to improve city transport. Getting it right could add tens of millions to our cities’ economies.”

For more information about the report or to arrange an interview, please contact:

Rosamund Taylor r.taylor@centreforcities.org
Tel: +44 (0)20 7803 4316 / +44 (0)7876 175 426

Notes to Editors

The case for better transport investment: Agglomeration and growth in the Leeds City Region by Adam Marshall and Chris Webber is available here. This report was produced in collaboration with Lars Rognlien and John Swanson at Steer Davies Gleave, and Dr Dan Graham at Imperial College.

The independent report was financially supported by the West Yorkshire Passenger Transport Executive and the authorities of the Leeds City Region.

The Centre for Cities is an independent urban policy research unit. It is a registered charity (No 1119841) and a company limited by guarantee registered in England (No 6215397). Our main goal is to understand how and why economic growth and change takes place in Britain’s cities, and to help cities improve their economic performance.

In response to the research, John Yeomans, Interim Chair of the Leeds City Region Business Leadership Group, said:

"Improving transport infrastructure in Leeds and the wider city region is a key priority of the business community to improve economic performance and competitiveness. We have a growing economy, but one that is being held back by increasingly congested road and rail networks. The study shows that the time is right for significant new investment in our transport networks, which will be good for business and good for UK Plc.

Councillor Andrew Carter, Chair of the City Region Transport Panel, said,

"I strongly welcome this report which demonstrates the significant benefits that additional investment in transport could bring to Leeds and the wider city region economy. We need an innovative 21st Century transport network if we are to achieve our ambitions set out in the City Region Development Programme. This research will help us build the case for delivering major transport improvements over the coming years."