LAYING the GROUNDWORK How to Deliver Infrastructure fi T for the Modern Age
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LAYING THE GROUNDWORK How to deliver infrastructure fi t for the modern age LEVELLING UP THE RAILWAYS GRANT SHAPPS A TEST OF RESOLVE JOHN ARMITT FORTIFY THE HEALTH SERVICE ANITA CHARLESWORTH MAY 2020 | KINDLY SUPPORTED BY BT, RICS AND SELLAFIELD Infrastructure_online.indd 1 20/03/2020 17:12 Infrastructure_online.indd 2 20/03/2020 17:12 MAY 2020 | PROSPECT LAYING THE GROUNDWORK 1 CONTENTS A WELCOME 2 VICTORIAN AMBITION The government’s new rail strategy NEW SETTLEMENT? GRANT SHAPPS 3 REBUILDING THE HEALTH SERVICE A long-term NHS investment plan ver since the changing of the the Treasury documentation emphasise ANITA CHARLESWORTH guard at No 10 last July, there how—as Keynesians have long protested has been an audible change in in vain—the low level of interest rates 5 WHAT ROLE FOR THE STATE? the mood music about public provides a historic opportunity to borrow Give the private sector tools to deliver investment. That is why Prospect to spend on things that will provide an green projects Ebegan plotting this supplement on Brit- enduring economic return. Intellectually, PAUL WALLACE ain’s infrastructure. What we couldn’t the big question is that pressed by the have planned, however, is the impeccable new IPPR chief Carys Roberts and her 7 GOING GIGABIT timing, because after the Budget in March, senior economist Carsten Jung: whether New digital networks will revolutionise we are no longer talking about new mood the government will also embrace a shift the wider economy music, but a radical shift in the tempo. in fiscal focus from a narrow preoccupation MATT WARMAN While emergency relief linked to the with public debt towards a broader coronavirus pandemic stole the headlines, evaluation of public net worth. There is 8 “I’LL TRUST THE GOVERNMENT of more enduring significance was the a way to go yet, but the shift announced WHEN WE SEE THE WORK way that Chancellor Rishi Sunak—only in the so-called green book rules, which STARTING” weeks into post—committed to a level of govern the way the costs and benefits of Rachel Reeves on how to fix gaps in public investment which, as his red book potential investments are appraised, could boasted, would be “triple the average over be the start of such a rethink. Britain’s hardware the last 40 years,” with a cumulative total Whether or not this big intellectual shift INTERVIEW BY PROSPECT STAFF of £640bn in capital investment. is followed through on, it’s clear that in the immediate term the new, more relaxed 10 THE HUAWEI CONUNDRUM attitude to the purse strings is already with How to manage the risk? “A NEW, MORE RELAXED us. There could no better time to hear from ISABEL HILTON ATTITUDE TO THE PURSE the panel of players and experts we have STRINGS IS ALREADY assembled here—including Secretary of 11 A TEST OF GOVERNMENT RESOLVE State Grant Shapps on transport; Sheffield Will the government’s strategy match WITH US” metro-mayor Dan Jarvis on the cities; and its high ambitions? Opposition politicians, including Rachel national infrastructure chief John Armitt on JOHN ARMITT Reeves (p8), reasonably caution that long-term strategy. We’ve also got minister promises have been broken too many times Matt Warman on digital infrastructure; 14 MY FIVE TRANSPORT PRIORITIES in the past and they want to see spades in doyenne of healthcare policy, Anita From the local to the international the ground before being convinced. But— Charlesworth, on our hospitals; and China DAN JARVIS in principle at least—the commitment now expert Isabel Hilton on the role of Huawei. is for, again quoting from the red book, For all the immediate challenges 15 RETHINK THE FISCAL FRAMEWORK a major rebuilding of “roads, railways, coronavirus poses to the economy— Focus on public net worth—not debt communications, schools, hospitals and and more importantly the country—it is CARYS ROBERTS AND CARSTEN JUNG power networks” nationwide. refreshing as well as stimulating to be For those of us who have spent years introducing a symposium that is not about 17 THE FOUNDATIONS OF NET ZERO listening to grim lectures by austerity hairshirts and retrenchments, but instead Drive the energy transition chancellors, it was extraordinary to see about ideas for rebuilding Britain. NICK BUTLER This report forms part of Prospect’s work on infrastructure. For more information please email: [email protected] Follow Prospect twitter.com/prospect_uk www.facebook.com/Prospect.Mag © IAIN MASTERTON/ ALAMY STOCKPHOTO Infrastructure_online.indd 1 20/03/2020 17:12 2 LAYING THE GROUNDWORK PROSPECT | MAY 2020 VICTORIAN AMBITION The government’s new rail strategy explained GRANT SHAPPS SECRETARY OF STATE FOR TRANSPORT AND CONSERVATIVE MP FOR WELWYN HATFIELD he start of this decade has brought with it a But we know reopening lines and committing to new level of investment in our railways not seen networks can take years. Passengers are keen to know since the Victorian era. Back then, transforming what is being done right now. our infrastructure was just as complex and If I’ve learned anything in this job so far, it’s that controversial as it is now, but the foresight and passenger confidence in the network isn’t just determined Tambition of our predecessors opened this country to what by new stations and railways, but by people’s lived was then unimaginable prosperity. experience. And often our railways are a victim of their It is vital that we continue to invest in our railways own success, where we sometimes only really notice train with a renewed sense of ambition. Communities and services when they’re suddenly not there. businesses right across this country depend on these We’ve been clear that we’re not driven by ideology in connections, and if we are to meet our target of net- delivering improvements for passengers. When things are zero emissions by 2050, a green, clean rail network is wrong, we take action. That’s why we did not hesitate to essential. take over running the northern rail franchise, following That’s why the government is focused on levelling up years of abysmal performance for passengers. this country and providing a railway network that works There won’t be a quick fix for this complex network, for all, investing a record £48bn to improve performance but we’re focused on making the changes that truly and punctuality. If we do not expand, upgrade and improve journeys, including deep-cleaning all the trains, modernise our railways, we will deprive people of trialing technology to identify crowding pinch-points, opportunity and prosperity. and continuing to extend platforms across the northern Let’s look at expansion. Our commitment to HS2 will network to allow for longer trains with more seats. see a huge increase in capacity on our network, with hundreds of thousands of extra seats and faster journey “WE SOMETIMES ONLY REALLY times too. Northern Powerhouse Rail will build on this, upgrading the north’s rail network and better connecting NOTICE TRAIN SERVICES WHEN key towns and cities, from Liverpool to Hull. THEY’RE SUDDENLY NOT THERE” These projects must be delivered in a co-ordinated and pragmatic way that maximises benefits to passengers. And when it comes to upgrading our Victorian Our Integrated Rail Plan for the north and the midlands infrastructure, we must recognise that stations across will identify, by the end of the year, the best way to deliver the network were never designed to meet the needs of these and other major rail schemes such as the Midlands passengers in the ways we would expect now. That’s why Rail Hub, as quickly and as cost effectively as possible. in the past year we’ve announced that more than 200 But our ambitions aren’t just about these major new stations will benefit from our Access for All programme, schemes. Reopening lines closed during the Beeching including 93 that will have step-free access. I’m delighted cuts of the 1960s will reconnect communities that feel that the budget confirmed a further £50m to benefit even isolated and abandoned. more stations, ensuring our network works for everyone. We’ve seen how important those connections are in These are steps in the right direction, but I am aware places such as Ilkeston in Derbyshire. For 40 years, it was they’re not enough to solve all the problems we face. the largest town in England to have an active passenger For that reason, I am committed to bringing forward line passing through it, but no train station. With the vital sector-wide reforms following the upcoming reopening of Ilkeston Junction Station in 2017, a lifeline Williams Rail Review—the first root-and-branch review has been restored. Success stories like this underline of the rail industry in a generation. These reforms will put why we are accelerating the development of proposals passengers first, end the complicated franchising model to reopen the Fleetwood Line in Lancashire and the and simplify fares to create a more effective system. Ashington-Blyth link in the northeast, giving people and 2020 must be a year of action on our rail network. places the connections they need. We need long-term, transformational reform of a broken We’re also focused on improving our international rail system, built on getting the basics right. Simply put, links as Britain leaves the European Union. Earlier this people want trains that run on time. year, I was thrilled to announce Eurostar’s direct service This government is listening to passengers and from Amsterdam to London was due to be opened in communities across the country, who need that stronger April, followed by a new service from Rotterdam in May, spine of transport links to reconnect them and increase and we are supporting plans to establish a new London- access to jobs, education and opportunity.