Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
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State of play HS2’s Eastern Leg The UK economy has one of the largest levels of Set to run from Birmingham’s Curzon Street station to The evidence in this document demonstrates that a regional inequality of any advanced nation1. Despite In this report, we outline the economic and the HS2 East Midlands Hub at Toton, to Chesterfield, number of pertinent social and economic challenges the Government’s renewed commitment to levelling social disparities between communities Sheffield and Leeds, with the potential to extend to disproportionately affect communities along the up, the fact remains that wealth, employment on the Western and Eastern Legs of HS2, Newcastle and on to Scotland, the Eastern Leg of Eastern Leg of HS2 Phase 2b, both compared to opportunities, productivity and social mobility are all demonstrating that a pervasive East – West HS2 Phase 2b will connect communities that are the Western Leg of HS2 Phase 2b, and the UK as hugely influenced by regional geography – and the divide provides the clinching case for why home to over 13 million people and six million jobs. a whole. As well as outlining the nature of these gap is widening. the Eastern Leg of HS2 Phase 2b must be inequalities, this report will explain how investment built in its entirety. In February 2020, the Government confirmed that in our new high speed network will catalyse the As we look to recover from the economic impacts while the development and delivery of Phase One In a time where we need to work together regeneration, development and social mobility of COVID-19, it is vitally important that investments (from London to Birmingham) and Phase 2a (from towards a safe and prosperous future, this needed to address these disparities. are made to lift up left-behind communities, and Birmingham to Crewe) would continue as planned, rebalance the distribution of opportunity UK-wide. report does not intend to create divisions the Government would undertake a review of Phase For the full benefits of our new high speed Without targeted action current conditions will serve between the great regions of the North 2b of the project, publishing an Integrated Rail Plan network to be realised, it must be built in its to exacerbate these inequalities further, condemning and the Midlands. We believe that both the (IRP) to consider how both its Eastern and Western entirety; both the Eastern and Western legs of a generation of young people to a life of financial Eastern and Western legs must be delivered legs can be best integrated within the wider transport Phase 2b should be delivered as soon as possible. hardship, frustration and unreached potential. in full. network. We expect this to be published before the end of 2020. North – South vs. East – West Over successive decades, social, political and Glasgow Edinburgh economic differences have been measured, HS2 Line (Phase One) analysed and consistently publicised in the media HS2 Line (Phase 2a) as demonstrating a clear North – South divide. Carstairs Productivity, economic output and government HS2 Line (Phase 2b - Eastern Leg) investment in areas such as transport are significantly HS2 Line (Phase 2b - Western Leg) W ES higher in London and the South East than T Lockerbie C HS2 Services on existing network O communities in the Midlands and the North. A ST Carlisle Newcastle Northern Powerhouse Rail MAIN LINE However, as the UK regions meet the challenges of attracting Government and private investment in the Durham Midlands Engine Rail face of unprecedented economic pressures, new Penrith Darlington perspectives and analysis is required to demonstrate EA ST the need for and value of game-changing projects with the potential to catapult communities out of C Oxenholme OA recession and truly level up the nation. ST MAINLINE Lancaster York Cllr Kay Cutts, leader of Bradford Leeds Nottinghamshire County Preston Manchester Piccadilly Hull Council, said: Wigan Warrington Manchester Airport Liverpool “Now is the time to build back better Sheffield Runcorn and build back greener, accelerating Chesterfield our economic recovery from COVID-19. Crewe The Eastern Leg of HS2 is an essential Nottingham Derby part of this solution, one that will create East Midlands Hub Stafford thousands of high-skilled jobs and spread the benefits of investment and regeneration EMA to the local communities that need it most. Leicester Birmingham Government has committed to levelling-up Curzon Street the UK economy, it must now deliver on this Birmingham Interchange promise, starting with the full construction of the Eastern Leg.” Bedford CGI of HS2 East Midlands Hub, the nearby Innovation Campus and planned development Delivery: 2035-2040 London Old Oak Common Euston UK2070: Make no little plans; acting at scale for a fairer and stronger future 1 2 3
The East - West divide The Eastern Leg of HS2 in numbers An analysis of social and economic indicators has revealed a stark disparity between the outcomes and life chances of communities living along the Eastern Leg of HS2 Phase 2b, compared to communities Productivity surrounding the Western Leg of HS2 Phase 2b. Compared to communities on the Western Leg of HS2, the Eastern Leg of HS2 and its surrounding Productivity in communities: Eastern Leg regions (East Midlands, Have lower productivity rates Yorkshire and the Receive significantly less transport Humber and North East) investment Cllr Judith Blake, leader of 22% less 11% less Are home to more social mobility productive than productive than A third below London ‘coldspots’ Leeds City Council, said: UK average Western Leg average in 2018 “There’s no arguing with the facts – the Several other factors suggest a need for transport Eastern Leg of HS2 is home to communities investment in the Eastern Leg geography, to that are blighted by low productivity, are less stimulate economic opportunity: likely to achieve social mobility and that have suffered from a chronic underinvestment in A number of towns and cities along transport. Government must remedy this Transport Investment Per Head the Eastern Leg are home to a high now, and commit to building the Eastern Leg proportion of ‘financially stretched’ of HS2 in full, as soon as possible, giving households the Midlands and the North the resources needed to spark regeneration, job creation Concentration of transport poverty and economic growth.” is significantly higher than the UK average and correlates strongly with areas of social deprivation 33% below 21% below UK average Western Leg regions (North West and West Midlands) Social Mobility 42% of England’s social Twice as many social deprivation deprivation coldspots, ‘coldspots’ than Western despite only having 23% of its Leg regions population Artist’s impression of the planned regeneration of Leeds’ South Bank, near the city centre 4 5
Western Leg regions = the Western regions of the Midlands Engine and Northern Powerhouse, Eastern Leg regions = The Eastern regions of the Midlands Engine and Northern Powerhouse, Transport Investment which run along the Western Leg of HS2 Phase 2b, which run along the Eastern Leg of HS2 Phase 2b, Overall transport spend per composed of the West Midlands and North West. comprised of the East Midlands, Yorkshire and the Humber and North East. The Eastern Leg regions have suffered from a head (2014-20193) sustained and chronic underinvestment in capital infrastructure that has occurred under successive Legend Governments over a period of decades. In the five years from 2014-2019, the Eastern Leg £2,120 Western Leg Regions regions received a transport spend per head that was Eastern Leg Regions 33% below the UK average, and 21% below that £1,800 HS2 Line North East received by the Western Leg regions. £1,418 Western Leg regions Eastern Leg regions Yorkshire and the Humber North West UK average East Midlands West Midlands North East £1,602 North West £1,909 Yorkshire and the £1,577 Humber £1,185 Productivity Productivity (GVA per head) by East Midlands region compared to the UK average £1,716 West Midlands As of 2018, the Eastern Leg £1,804 regions (Yorkshire and the East Humber, the East Midlands, £4,348 and the North East) had the London three lowest productivity levels of any region in South East £1,706 England, falling 35%, 33%, and 32% below the London South West £1,361 level in 2018.2 GVA per head in the Eastern UK £2,120 Leg regions is 11% below that of Western Leg regions, £0 £1000 £2000 £3000 £4000 £5000 and 22% below the UK average. Transport Spend per Head (£) 2 ONS, 2020, Regional labour productivity, including industry by p141 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/901406/CCS207_ 3 region, UK: 2018. CCS0620768248-001_PESA_ARA_Complete_E-Laying__002_.pdf 6 7
Social Mobility Social Mobility Coldspots in Transport Poverty Eastern vs Western Regions Households along the Eastern Leg of HS2 are 40 A household is considered to experience transport factor to economic growth. These were; public No. of LA districts identified as coldspots much more likely to experience poor social mobility; poverty where a lack of convenient, affordable transport access, private transport access and labour calculated using a variety of measures including transport access limits economic prosperity and market outcomes5. the quality of schools/educational institutions 35 quality of life. It may be that poorer public transport It is clear that transport poverty is prevalent along disadvantaged children attend, the grades they receive access hinders access to job opportunities or that and the salaried jobs they eventually secure4. 30 struggling households are socially isolated or cut off the whole length of the Eastern Leg, and is largely restricted to urban areas close to the HS2-served from amenities by the high cost of owning a car. Communities surrounding the Eastern Leg are home to 25 stations shown below. a high concentration of ‘social deprivation coldspots’; Our analysis of transport poverty examined three where local authorities were within the lowest 20 38 main indicators, which when combined are a limiting performing 20 per cent nationwide. Despite only housing 23% of England’s population, communities 15 surrounding the Eastern Leg were home to 42% of Eastern Leg Transport Poverty England’s social mobility coldspots. 10 Social mobility along the Eastern Leg is 12% below 16 UK average, while a prevalent East West divide is 5 Newcastle clearly demonstrated below: Durham 0 Darlington East West % of England’s social deprivation coldspots by region York North West (6%) Area of Transport Leeds South East (8%) Poverty North East (5%) South West (8%) Sheffield Chesterfield Yorkshire and the Humber (11%) East Midlands Hub West Midlands (18%) Birmingham Curzon Street East of England (18%) East Midlands (26%) The link between transport poverty and social deprivation is undeniable. You will see on the next page that areas of transport poverty and social deprivation hotspots are very highly correlated. Eastern Leg Regions Western Leg Regions Providing communities with better access to convenient transport is essential if we’re to 42% of England’s social mobility coldspots 24% of England’s social mobility coldspots achieve better outcomes and empower left behind communities to benefit from better job opportunities and greater financial security. 23% of England’s population 23% of England’s population HS2 East: Volterra, The case for an integrated new railway network serving the Eastern Leg (2020) 5 4 Social Mobility and Child Poverty Commission; The Social Mobility Index (2016) 8 9
Leeds City Region Derby, Leicester and Nottingham Primary Urban Areas Transport Poverty Socio-Economic Deprivation Transport Poverty Socio-Economic Deprivation Area of Transport Poverty Top 20% Most Deprived Area Area of Transport Poverty Top 20% Most Deprived Area Sheffield City Region Transport Poverty Socio-Economic Deprivation CGI of planned development close to Chesterfield railway station Area of Transport Poverty Top 20% Most Deprived Area 10 11
Financially stretched households Why do we need HS2? One of six socio-economic categories used to The Eastern Leg of HS2 will catalyse the page). This level of transformation has not been seen segment the UK population, financially-stretched regeneration, job creation and economic for a generation, and will see thousands of new homes households make up 23% of the nation’s residents growth needed to lift up communities built, new leisure destinations opened and a host of and are typically comprised of those living in low- surrounding our new high speed railway line. holistic placemaking in inner city areas. value mortgaged or owned accommodation or those It will do this by: Reducing transport poverty -> HS2 will be the renting social housing, mostly semi-detached or backbone of our public transport network for the terraced properties. Raising productivity -> Our new high speed railway next century, and will vastly improve access to public will transform connectivity between the UK’s major Financially-stretched households are: transport for communities along its route. It is the cities and produce huge journey time benefits. Less basis of complementary regional transport initiatives • more likely to rely on low-skilled employment time spent travelling and increased ease of access Northern Powerhouse Rail and Midlands Engine to new domestic markets will increase productive • less likely to have higher-level qualifications Rail that both utilise HS2 infrastructure, connect output and reduce the disruption caused by • less likely to have savings and more likely to communities to the high speed line and use the cancellations and delays. struggle with debt capacity HS2 frees up on the existing network to run Encouraging social mobility -> Not only will HS2’s additional local and intercity services. This will raise • home to a higher than average proportion of construction see the creation of thousands of productivity, encourage social mobility and reduce benefit claimants apprenticeships, it will also prompt the creation of transport poverty. Analysis of this data shows that a number of over 150,000 new jobs along the Eastern Leg, many Reducing emissions -> HS2 will create space on the towns and cities along the Eastern Leg have an of which will be highly-skilled. The ease of access to conventional network for over 2 million lorries’ worth above average proportion of financially-stretched these opportunities, along with the regeneration of of goods to be moved from Britain’s roads onto its households, including Leicester, Nottingham, deprived inner city areas will expose young people to railways each year. A move that will reduce carbon Ashfield, Mansfield, Bolsover, Chesterfield, Sheffield a host of new possibilities. emissions by 76%. and Rotherham. Catalysing regeneration -> The arrival of HS2 is It will eradicate the need for domestic air travel, prompting widespread regeneration around the providing a carbon-neutral alternative to the hundreds planned new station in the East Midlands, as well of polluting flights that run between England and in Chesterfield, Sheffield, Leeds and York (see next Scotland each week. Legend HS2 Stations HS2 Eastern Leg Wakefield - Index Score = 137 HS2 Phases 1 and 2a Financially Stretched Index Score Barnsley - Index Score = 160 40-60 Doncaster - Index Score = 138 60-80 Rotherham - Index Score = 138 80-100 100-120 Sheffield - Index Score = 126 120-140 Chesterfield - Index Score = 131 140-160 Bolsover - Index Score = 176 160-180 Mansfield - Index Score = 122 Ashfield - Index Score = 143 +150,000 Regeneration Boosting new jobs of inner city areas productivity Nottingham - Index Score = 142 Leicester - Index Score = 146 Better local Space for more Carbon-neutral transport links rail freight travel 12 13
Leeds Full of Eastern promise +40,000 jobs Given the evidence outlined in this document, Our asks of Government: +8,000 new homes York alongside the mounting economic impacts of The Eastern Leg of HS2 must be built in +£54bn to the local economy by COVID-19, it is essential that Government gives its entirety; alongside and within a similar 2050 +7,000 jobs businesses and investors along the Eastern Leg of timescale as the Western Leg. +£1.6bn GVA HS2 the certainty they need to rebuild and flourish. Supporting the development of De-scoping, descaling or delaying the Eastern Leg Investment in these communities will have huge Leeds’ South Bank, set to double would have dire economic consequences, and benefits for UK PLC; the geography is home to major the size of the city centre, creating disproportionately penalise the communities that international gateways, world-leading industries new leisure facilities, housing and such as advanced manufacturing, life sciences, need its benefits most; communities that have office space suffered from decades of underinvestment. agritech and green energy production. Harnessing Tees Valley the potential of its people, workers and businesses Delivery must be completed as soon as +16,000 jobs over the will boost economic output, lift productivity and possible next decade create opportunity for a generation of highly-skilled, It is essential that the Phase 2b Hybrid bill prosperous households. is drafted as soon as possible following the Our message to policymakers is simple; we need the publication of the Integrated Rail Plan at the end Eastern Leg of HS2 – back it, built it, benefit from it. of this year – programme delivery must not slip. Sheffield +12,000 jobs +1220 new homes The East Midlands + £970m GVA +74,000 jobs HS2 will generate swathes +£4bn GVA per year of development around The HS2 East Midlands Hub at Sheffield Midland station Toton will be home to a state- including over 180,000sqm Chesterfield of-the-art innovation campus, of commercial space, new +10,000 jobs bringing together established homes, leisure destinations businesses and start-ups to create and retail units. +4740 new homes 10,000 highly-skilled jobs. +£270m GVA per year ‘Access to Toton’ transport plan New HS2 maintenance will link over 20 cities, towns depot at Staveley and villages to the HS2 station, creating hundreds of improving local transport networks Artist’s impression of new mixed-use development next to Sheffield Midland station highly-skilled jobs. across rail, road, bus and tram. 14 15
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