Shadow chancellor John McDonnell vows to end London bias in transport investment and close the North-South funding gap
Labour will seek to end the "bias" in transport investment and close the gap in spending between the north and south of England, saying too much public funding has been focused on the capital.
Shadow chancellor John McDonnell, speaking in Liverpool today, will say the north of England only receives about half as much investment per head as the capital and London and the south east has reaped disproportionate rewards from the likes of Crossrail.
While expenditure for Crossrail is £14.5bn according to Labour, planned capital expenditure for Yorkshire and Humber is £3.6bn and £2.23bn for the North East.
He will suggest a proposal resembling the Barnett formula for the North so handouts are safeguarded like those to Scotland, Wales and Northern Ireland. A future Labour government would have to audit regional spending against economic need and report to Parliament when "the investment imbalances are excessive".
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"The next Labour government will put in place the mechanisms needed to close that gap in funding," McDonnell will say. "We will make sure that no government can ever again bias its own investment plans so heavily against the majority of the country."
"We have to put an end to the Whitehall view that what's good for Canada is good for the country as a whole," he will say. "It's time for the rest of the country to get a look in."
The Conservatives have pledged to develop a Northern Powerhouse as laid out by former chancellor George Osborne, and say they are spending £13bn alone on transport in the north.
Part of the plan involves devolving various responsibilities over transport and planning to cities and regions including Merseyside and Greater Manchester.
A recent report from Transport for the North, though says the government's efforts to rebalance the economy need to be bolstered by modernising links to the north of England's airports.
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The body created to coordinate transport investment in the area, found that while the north had capacity for another 60m air passengers, it was being hindered by road and rail links that weren't up to date.
John Cridland, former CBI boss and chair of Transport for the North, said: "These inadequate ground transport links, coupled with not enough direct services to key international destinations, mean that passengers from the north often have to travel from southern gateways."