I voted against HS2 and lost heavily. Parliament has decided it wants this project, and the government is now pressing ahead. It needs, however, to be aware of the need to control costs vigorously and to think again about how to raise revenue from the… read more
One of the most fraught parts of the debates about new housing and the need to find sites to cater for the expanding population is the issue of planning gain. Greenfields or derelict land come quite cheaply. Land with planning permission to build is v… read more
There is in the UK debate a general assumption that all capital investment is good. It is true that the UK could boost its productivity – and therefore its incomes – by investing in more machine power, internet processing power and the like. The more people have better tools to do their jobs, the more they can produce and deliver to customers. This is the main reason people automatically assume investment is a good idea.
Not all capital spending achieves this aim. Public investment in particular may not achieve this to the extent planned in the way intended. Indeed some desirable public investment is not in anyway about raising productivity. It is about keeping up with the big growth in population we are experiencing.
Capital spending is treated differently from day to day or revenue spending because it is meant to create an asset of value which will be available for use for many years to come. If the state builds a new school, there will be many years of use. The costs of the building can be spread out over many years of teaching by borrowing the money and repaying it gradually. Making such an investment, however, usually increases future costs, as it is usually built to accommodate growth in population and pupil numbers. It is not necessarily going to raise productivity or cut overall costs. Similarly, building a replacement school may be desirable or necessary to provide a better modern environment for staff and pupils. Again it may not reduce annual costs.
In the public trading sector where people pay for use of the service provided there is meant to be a proper analysis of the productivity and revenue consequences of the investment. Unfortunately the public sector often gets its sums wrong. Look at the case of the railways. Commuters often pay the cost of their travel but other railway users are in the main heavily subsidised to go by train. Major investment programmes often fail to raise productivity much, and sometimes fail to capture the extra use and fare revenue they estimated. HS1 has never reached the optimistic forecasts for use, and HS2 looks as if it too will fall well short of the bullish estimates of how many people will use it once built.
read moreI received this letter from the Department for Transport:
I am writing to inform you about new rail investment that we are supporting to improve journeys for passengers and support the economy in the Reading area.
Passenger numbers have more than doubled since privatisation of the railways 20 years ago and our country’s railways need to adapt to cope with this and future demands. This includes investing in new stations, new services and upgrades across the country.
As you may be aware, we announced £20m for a second round of the New Stations Fund in 2016, following the success of the first £20m round, which has already delivered passenger benefits in South Wales, the East Midlands, the South West and South East through new stations. We have funded this competition to improve journeys for passengers, and create new leisure, training, employment and business opportunities, by supporting the delivery of new and fully accessible stations.
Reading Borough Council applied to the New Stations Fund to deliver the new Reading Green Park station. Following the evaluation of all of the applications we received, I am delighted to inform you that we will be supporting this new station. This means that the new Reading Green Park station will be benefiting passengers and opening up access to new rail journeys in the South East from March 2020 at the latest.
Our priority is to deliver improved journeys for rail passengers across the country, and we look forward to this station providing real benefits to the Reading area.
Yours sincerely
Paul Maynard MP
read moreI received this letter from the Department for Transport:
I am writing to inform you about new rail investment that we are supporting to improve journeys for passengers and support the economy in the Reading area.
Passenger numbers have more than doubled since privatisation of the railways 20 years ago and our country’s railways need to adapt to cope with this and future demands. This includes investing in new stations, new services and upgrades across the country.
As you may be aware, we announced £20m for a second round of the New Stations Fund in 2016, following the success of the first £20m round, which has already delivered passenger benefits in South Wales, the East Midlands, the South West and South East through new stations. We have funded this competition to improve journeys for passengers, and create new leisure, training, employment and business opportunities, by supporting the delivery of new and fully accessible stations.
Reading Borough Council applied to the New Stations Fund to deliver the new Reading Green Park station. Following the evaluation of all of the applications we received, I am delighted to inform you that we will be supporting this new station. This means that the new Reading Green Park station will be benefiting passengers and opening up access to new rail journeys in the South East from March 2020 at the latest.
Our priority is to deliver improved journeys for rail passengers across the country, and we look forward to this station providing real benefits to the Reading area.
Yours sincerely
Paul Maynard MP
read more