The London Effect: A Tunnel Vision Problem

As Andy Burnham embarks on his national tour, touting a balanced economy with growth in every postcode, one can’t help but wonder if he’s merely scratching the surface of England’s most pressing regional policy issue. The latest development from National Highways has exposed the country’s north-south divide once again: a £10-11 billion Lower Thames Crossing that promises to further entrench London’s gravitational pull.

The sheer scale of this undertaking is staggering, with a 16.4-meter diameter tunnelling machine set to bore through the longest road tunnel in the UK at an estimated cost of £7-8 billion. Proponents argue it will ease congestion and boost trade, but critics see only short-term gains and long-term environmental damage. As Peter Hetherington noted, this is a contentious project that’s likely to cement London’s status as England’s economic hub.

A Tale of Two Economies

London’s dominance has been a contentious issue for decades, with proponents arguing it’s necessary for driving growth and innovation. However, the evidence suggests otherwise. Regional policy experts have long warned about the risks of over-reliance on a single city-region, and this project only serves to highlight the problem. By pouring billions into a single infrastructure project, the government sends a clear message: London’s prosperity is more important than anyone else’s.

A History of Misplaced Priorities

The High Speed 2 (HS2) debacle comes to mind as an example of misplaced priorities. That project was touted as a game-changer for the North, but its true impact has been to further concentrate economic power in London and the South East. The same pattern is emerging with the Lower Thames Crossing: instead of investing in regional infrastructure that could genuinely drive growth outside of London, we’re getting more of the same old tired solutions.

Regional Policy Needs a Radical Shift

Burnham’s promise to rebalance the economy is laudable, but without a fundamental shift in approach, it’s unlikely to amount to much. The government must take a hard look at its regional policy and ask some tough questions: are we really committed to creating a more balanced economy, or are we just paying lip service to the idea? Meaningful investment in regional infrastructure is needed, not solutions that perpetuate the north-south divide.

Funding Woes and Environmental Concerns

As the Lower Thames Crossing project limbo-dances through its funding woes, it’s hard not to wonder when the wheels will finally come off. The private sector is being asked to pick up a significant tab for this behemoth of a project, but with rising costs and environmental concerns, it’s unclear whether anyone will be willing to take on the risk. If the government can’t deliver on its promises, perhaps it’s time to start asking some harder questions about the true cost of this vanity project.