The Northern Powerhouse: One Agenda, One Economy, One North
The Northern Powerhouse:One Agenda, One Economy, One NorthA report on the Northern Transport StrategyMarch 2015
The Northern Powerhouse:One Agenda, One Economy, One NorthA report on the Northern Transport StrategyMarch 2015
Front cover image: Alasdair Rae, Sheffield UniversityThe Department for Transport has actively considered the needs of blind and partially sighted people inaccessing this document. The text will be made available in full on the Department’s website. The text maybe freely downloaded and translated by individuals or organisations for conversion into other accessibleformats. If you have other needs in this regard please contact the Department.Department for TransportGreat Minster House33 Horseferry RoadLondon SW1P 4DRTelephone 0300 330 3000General enquiries https://forms.dft.gov.ukWebsite www.gov.uk/dftQueen’s Printer and Controller of Her Majesty’s Stationery Office, 2015, except where otherwise stated.Copyright in the typographical arrangement rests with the Crown.You may re-use this information (not including logos or third-party material) free of charge in anyformat or medium, under the terms of the Open Government Licence v3.0. To view this licence overnment-licence/version/3 or write to the InformationPolicy Team, The National Archives, Kew, London TW9 4DU, or e-mail: psi@nationalarchives.gsi.gov.uk.All photographs supplied by Transport for the North except for image on p4, Alamy Images.For permission to reproduce Transport for the North images, call 0161 244 1055.Where we have identified any third-party copyright information you will need to obtain permission from thecopyright holders concerned.To reproduce maps, contact Ordnance Survey via their website es/ or write to Customer Service Centre, Ordnance Survey, Romsey Road,Southampton SO16 4GU.To order further copies contact:DfT PublicationsTel: 0300 123 1102Web: www.dft.gov.uk/orderingpublicationsISBN 978 1 84861/1556 Printed in Great Britain
ContentsContentsJoint Foreword2Our Plan – Executive Summary4Our Vision for the North7Building a Northern Powerhouse10The Need for a New pan-Northern Approach14Our Rail Plan17Our Highways Plan22Our Freight and Logistics Plan27Our Plan for Integrated and Smart Travel32Our Plan for Airports in the North34Our Plan for Local Connectivity36Making it Happen – Transport for the North391
2The Northern Powerhouse: One Agenda, One Economy, One NorthJoint ForewordThis is the first joint publication from Government, Northern cityregions and Local Enterprise Partnerships, working together and withHighways England, Network Rail and HS2 Ltd as the Transport for theNorth Partnership Board.Our shared aim is to transform Northerngrowth, rebalance the country’s economy andestablish the North as a global powerhouse.This strategy sets out how transport is afundamental part of achieving these goals andhow we will develop the long-term investmentprogrammes needed.Manchester, Leeds, Sheffield, Newcastle andHull, as well as Cumbria, Lancashire, Cheshire,North Yorkshire and the Tees Valley. Theseplaces have seized the opportunity to promotetheir strengths and drive up productivity withgrowth strategies that align skills, local transportand economic renewal.Creating the ‘Northern Powerhouse’ ofeconomic growth, driven by a flourishing privatesector and supported by innovative localgovernment requires us to harness and unifythe people power of our city regions and thewider North. Rebalancing the national economyis a core part of Government’s economicstrategy, and an agreed priority with city leadersacross the North. City region authorities andLocal Economic Partnerships have alreadymade great strides, but we can and do need togo further.Alongside investment in skills, support forbusiness and regeneration of our city centres,a transformation in connections betweenthe great cities of the North and beyond willenable them to increase their productivity tomeet the levels currently only seen in Londonand the South East1. The Government’sclear commitment to the full HS2 ‘Y’ networkalongside record levels of other transportinvestment will transform journeys betweenLondon, the Midlands, Scotland and theNorth’s key growth areas. This will provide thefoundation from which we can build a NorthernPowerhouse that will be able to compete withthe best performing regions of Europe. Thiswill bring in investment from overseas, furtherdriving growth and completing a virtuous circle,cementing the North as a global centre forinnovation and trade.A world class transport system must better linkup the individual cities and towns in the North,to allow them to function as a single economyand be stronger than the sum of their parts.The North has many centres of excellenceincreasingly recognised on the global stage,including the city regions of Liverpool,1Regional GVA data from the Office forNational Statistics.
Joint Foreword 3Our aim is for economic growth in the North tobe at least as high as the rest of the country,to complement and act as a balance to theeconomic weight of London. This is a prioritythat has attracted the full support of Northernpolitical leaders as well as major commentators,such as the RSA Cities Growth Commissionwhich recently drew together a wealth ofacademics, business leaders and decisionmakers to explore how our city regions couldbe freed to realise their full potential.Sir David Higgins’ conclusion when taking uphis post as HS2 Ltd Chairman last year wasthat there is huge untapped potential for moretrade and commerce across the Pennines,but that would require better connections thancurrently exist2. It also formed the basis ofthe One North prospectus3, which helped toscope out a vision for a connected NorthernPowerhouse and confirmed the value ofestablishing Transport for the North.This report identifies a long term transportstrategy and how we will develop theassociated investment programme, followingthe ambitions set out by One North. Thechallenge for Transport for the North is torealise that overall ambition. This report alsoprovides an update on what has been knownas HS3 and describes how we are looking morebroadly at improvements to a Northern-wide‘TransNorth’ rail http://www.manchester.gov.uk/news/article/6940/one north region s cities unveil joint plan for improvedconnectionsTransport for the North will now develop a clearplan for the pan-Northern connections thatwill help to forge a single Northern economicarea. This report is the first step in outlining ourshared agenda for transformational connectivityacross the North to support once in ageneration economic renewal.The yardstick by which our plans must bemeasured is simple. They must help createthe single market for people, goods and ideasthat will empower the North to compete withthe rest of the world. They must drive thegrowth of the knowledge economy in whichaccess to skills, ease of travel and the abilityto create talent clusters are crucial for both theregion and the companies within it. And theymust, alongside other Northern Powerhouseinterventions, help to transform the economyof the North to become an engine for growthin the UK.Rt. Hon. Patrick McLoughlin MP,Secretary of State for TransportSir Richard Leese CBE,Chair of Transport for the North PartnershipBoard and Leader of Manchester City Council
4The Northern Powerhouse: One Agenda, One Economy, One NorthOur Plan – Executive SummaryThis transport strategy has brought together central and localgovernment, the national transport agencies and Local EnterprisePartnerships behind a single joined up vision.That vision is for a North which has a vibrantand growing economy, acts as a magnet forinward investment, and which capitalises on thestrengths of Northern cities to build a NorthernPowerhouse. We need a new approach tomaximise the economic potential of the North;allowing the North’s talent to become moremobile; allowing companies to access thewidest pool of people and skills they need togrow; and connecting businesses to each otherto make them more efficient. And crucially, itshould be at a pan-Northern level, to create asingle economy across the North.The Northern Powerhouse needs each cityregion in the North to perform to its maximum.City regions are where most of our economicactivity is centred, and where we expect themajority of future growth sectors to be based.The North’s cities are already strong, and areincreasingly being given the tools to get evenstronger through more powers and fundingdevolved from Westminster in City Deals,Devolution Deals and Growth Deals, allowingtransport powers and funding to be deliveredat the most appropriate level.However, there is an opportunity to do muchmore. Excellent connectivity across the Northwill take the city regions’ individual performanceto the next level, bringing them together to helpcreate the critical mass to compete globally.To allow this to happen, our new approach isfor the North to take a lead in prioritising andplanning transformative transport interventions,right across and beyond the North to: transformconnectivity; improve journey times; improvecapacity and resilience; and simplify theuser experience. Our strategy is about usingtransport to aid change in future patterns ofland use and economic growth, with the goal ofcreating a single economy in the North. Ratherthan forecasting the future from current trendswe aim to change that future.
Our Plan – Executive Summary 5Therefore, we will: Transform city to city rail connectivity east/west and north/south through both HS2and a new TransNorth system, radicallyreducing travel times across this intercitynetwork; Ensure there is the capacity that a resurgentNorth will need in rail commuter services; Deliver the full HS2 ‘Y’ network as soonas possible, including consideration ofaccelerating construction of Leeds-Sheffield; Enhance the performance of the North’sStrategic Road Network (SRN) throughdelivery of the committed first phase of theRoads Investment Strategy;GVA and Population Estimates by Region Further enhance the long-termperformance of the Northern SRNthrough a clear vision and strategy thatembraces transformational investmentand technology; Set out a clearly prioritised multimodalfreight strategy for the North to supporttrade and freight movement within theNorth and to national/international markets; Pursue better connections to ManchesterAirport through TransNorth, whilst cityregions consider connectivity to the North’sother major airports; and Develop integrated and smart ticketstructures to support our vision of a singleeconomy across the North.Source: ONS provisional 2013 mid-year GVA and populationestimates (in 2013 prices), figures have been rounded
6The Northern Powerhouse: One Agenda, One Economy, One NorthTimeline for the Northern Transport Strategy
Our Vision for the NorthOur Vision for the NorthWe have a vision for a North with a vibrantand growing economy that builds on theexisting strengths of Northern city regions,attracts and retains the brightest and besttalent and attracts investment from overseas.The North could be one of the world’s mostcompetitive regions, playing host to successfuland innovative global companies, offering itsleading talent to businesses and using itsstate-of-the-art transport connections toclusters of thriving businesses.which already generates around 290 billion5output per year, to secure a new scale ofactivity and rival the best trade centres inEurope. We want to see the North capitaliseon its natural assets as part of the UK. It couldbe one of the easiest places in the world todo business, attracting world companies thatcan make the most of the UK’s time zoneadvantage which allows the North’s officehours to overlap with those of countries thatcollectively generate the majority of theworld’s GDP.To achieve this, we will need a package ofmeasures that will support the NorthernPowerhouse alongside transformativetransport interventions.HM Treasury analysis shows that realising theambition to rebalance the UK economy wouldbe worth an additional 56 billion in nominalterms to the northern economy, or 44 billionin real terms equal to 1,600 per individual inthe North4. We want to harness the talent andpotential offered by an area of 15 million people,4If the northern economy grows in line with the OBR’sforecast for the average across the UK between now and2030, its GVA would be 56 billion higher in nominal termsor 44 billion in real terms, than if it grew at its historicaverage (1994-2012): ouse-chancellor-sets-out-pathway5Regional GVA and population data from the Office forNational Statistics.7
8The Northern Powerhouse: One Agenda, One Economy, One NorthThe North should be a network of modern cityregions, driven by the knowledge economyand rich in job opportunities for all. Transportwill underpin this vision – a fast, efficient andeffective transport system will operate acrossthe North providing a catalyst for growth andsupporting people and businesses to fulfiltheir potential.Faster, more frequent and more comfortabletrains will connect city centres to each otherand to the rest of the country. The strategicroad network will offer reliability for people totravel and goods to move around the regionand the rest of the country with minimalcongestion. People and goods will be wellconnected to city regions by local rail, rapidtransit and road and with enjoyable walkingand cycle-friendly streets and neighbourhoods.And the North’s ports and airports will be easilyaccessed from across the region to promoteinternational trade and travel.We can see how an efficient and effectivetransport system in the Northern Europeanurban areas of the Randstad and the RhineRuhr unite smaller cities into one economicarea and increase overall performance.International ExamplesThe Randstad region includes around halfof the Dutch population, almost 8 millionpeople, and is bounded by the four citiesof Amsterdam, Rotterdam, the Hague andUtrecht. These cities are linked by journeysof around 30 – 50 minutes, includingan extensive road network and fast andfrequent rail services. These transport linksare supported by local rail, tram and busconnections. They also include Schipholairport, one of Europe’s major airports,and Rotterdam port, which is linked by awaterway freight corridor and a dedicatedfreight railway, within the region. TheRandstad generates around half of theNetherlands’ GDP ( 210 billion in 2011).GDP per inhabitant varies across the regionbut is between 18,500 and 30,000 peryear in 2011.Source: Eurostat.The Rhine-Ruhr generates GDP of around 540 billion per year in 2011. The averageGDP per inhabitant is between 22,900and 25,300. It draws together 23 millionpeople mainly from five large cities (Köln,Düsseldorf, Duisburg, Essen and Dortmund)and 10 smaller cities, but they work as oneeconomic area.E.ON and Deutsche Post DHL amongstothers have their headquarters in the regionbut have a reach across Europe. The regionhas the most heavily used autobahn roadsin Germany and a network of fast intercity,interurban and metro style rail services.It has one major international airport atDüsseldorf, with a high speed rail link toother European cities. Duisburg is the largestinland port in Europe supporting heavyindustry and distribution parks.
Our Vision for the NorthSource: Eurostat. The Randstad region covers Utrecht, Noord-Holland, Zuid-Holland and Flevoland. The Rhine-Ruhr coversDüsseldorf and Nordrhein-Westfalen.9
10The Northern Powerhouse: One Agenda, One Economy, One NorthBuilding a Northern PowerhouseCities and their surrounding areas are home to three-quarters of ourpopulation and even more of our jobs, meaning they are important tothe long-term growth and economic success of England6.Cities’ large labour markets are good forpeople and businesses, and the proximity ofcompanies and people to each other meansbetter and more effective business connectionsand innovation spill-over. Cities and city sizematter for growth: the top 600 urban centresin the world contain just one fifth of globalpopulation but create around half of global GDP7.Northern city regions have already set out intheir Strategic Economic Plans how they willdevelop their strengths in the knowledge-basedgrowth sectors of the future: creative industriesin Liverpool; media in Manchester; legal inLeeds; advanced manufacturing in Sheffield;energy in Hull; and software development inNewcastle. The North houses seven top rankuniversities and its cities’ vibrant creative andcultural sectors make them attractive places tolive and work.Growth sectors identified in City Regions’ Strategic Economic ://www.mckinsey.com/insights/urbanization/urban worldSource: TfN
Building a Northern Powerhouse 11Fundamental to the Northern Powerhouseis each Northern city region reaching itsfull potential. That means better education,matching skills to business growth areas of thefuture; new models of business support andeconomic regeneration; and better connectingpeople to jobs. City regions and their LocalEnterprise Partnerships (LEPs) pull togetherpublic and private sectors to do this, usingStrategic Economic Plans to drive growthand development; and to ensure people canbetter access jobs and a brighter future.Growth and Devolution Deals have allocatedfunding for transport, skills and economicrenewal; and handed over powers, responsibilityand longer-term funding to help Northern citiesproperly plan their future. The private sectorhas followed suit, ploughing investment intothe North.
12The Northern Powerhouse: One Agenda, One Economy, One NorthGovernment NorthernPowerhouse investments:Private Sector investments plannedand underway: 235 millionHumberSir Henry Royce Institute foradvanced materials research,based in Manchester, withcentres in Leeds, Liverpooland Sheffield 113 millionCognitive Computing ResearchCentre in Warrington 78 millionThe Factory Manchester, a newtheatre and exhibition space 20 millionInnovation Hub for Ageing Sciencein NewcastleNew NationalCollege for OnshoreOil and Gas in Blackpool,with centres at Chester, Redcarand ClevelandDoubling the number ofnorthern cities to benefit from theGovernment’s superfast broadbandprogramme 310 million wind turbine technology from Siemens andAssociated British Ports 450 million Logistics and Marine Energy Park from Able UK 350 million bio fuel refineries from Vivergo FuelsLiverpool City Region 350 million Liverpool2 deep-sea container port from Peel Ports 920 million City Centre retail from Grosvenor GroupGreater Manchester 800 million Airport City Enterprise Zone 1 billion East Manchester housing programme fromAbu Dhabi United GroupNorth East 150 million in Newcastle’s marine and offshore sector 82 million train construction facility from HitachiLeeds City Region 150 million Victoria Gate Leeds city centre 260 million Broadway Bradford city centreSheffield City Region 400 million Peak Resort, Sheffield city centre 400 million intermodal freight interchange in Doncasterfrom Veridon.Source: HM Treasury, Transport for the North and publically available sources.
Building a Northern Powerhouse 13Good transport has a key part to play indelivering the Northern Powerhouse. It createsan engine for growth by providing: Better connections between economiccentres allowing clusters to develop evenwhere companies are located apart;supporting more trade, more interactionsbetween businesses and the generationof more products and ideas; and allowingbusinesses to specialise in their corebusiness and become more efficient; Better commuting opportunities to thecentres of economic activity, allowin
2 The Northern Powerhouse: One Agenda, One Economy, One North Joint Foreword This is the first joint publication from Government, Northern city regions and Local Enterprise Partnerships, working together and with Highways England, Network Rail and HS2 Ltd as the Transport for the North Partnership Board. Our shared aim is to transform Northern
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The People’s Powerhouse puts people at the heart of the Northern Powerhouse agenda. What started on social media discussing gender imbalance at one event, soon became a focal point for many about the need to shift the focus of Northern Powerhouse discussions on physical infrastructure and economic growth. The People’s Powerhouse tapped into
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Northern Powerhouse Network Connectivity 34 7.1.6. Integration of NPR with HS2 35 7.1.7. A Vision for Northern Powerhouse Railfreight 36 7.1.8. Minimised Dependency on HS2 38 7.1.9. A Complete Vision for Northern Powerhouse Rail 39 7.1.10. Technical Excellence for the Northern Powerhouse 39
The Powerhouse Alliance The Powerhouse Alliance includes the companies: Snøhetta Architects, Skanska, Hydro, Entra Eiendom and the NGO Zero. The Powerhouse concept was first launched in 2011. The proposal for the first Powerhouse project, a new office building in Trondheim, was presented in 2012. The Powerhouse Kjørbo is the first renovation
