The extension of the Northern Line - how will the Monopoly board cope?

South London gets its tube stations.

 

North Londoners often joke that if south London is so great, why aren't there more Tube stations there? A proposed new extension of the Northern Line aims to redress the balance somewhat, with a new branch extending from Kennington to new stations at Nine Elms and Battersea.

As well as literally branching out into new territory, the £1bn project is also drawing attention for the unique financial scheme that will pay for it if it goes ahead. In a first for an infrastructure project in England, an innovative funding package has been agreed under which the Greater London Authority will borrow the cost of development from the Public Works Loan Board. The government will guarantee the repayment to minimise borrowing costs.

The loan will be repaid by revenue raised from local regeneration projects that will benefit from the new transport links. The two sources will be contributions by local developers collected by the Lambeth and Wandsworth local authorities; and the growth in business rates revue from a new Enterprise Zone planned for Nine Elms, which will stay in operation for at least 25 years.

Enterprise Zones usually offer incoming businesses a discount on their rates bills to stimulate growth and investment. Under this proposal, it would be used purely as a mechanism to fund the Northern Line extension.

Final details of the financing package now need to be agreed by Wandsworth Council, Lambeth Council and Transport for London (TfL), working with the Mayor of London's Office, for inclusion in an application that TfL plans to submit under the Transport and Works Act by the end of April 2013.

Leader of Wandsworth Council, Ravi Govindia, said: "This project could represent a major breakthrough in the way we pay for vital infrastructure projects in this country. We plan to use an enterprise zone as a funding tool for a major transport upgrade, which in turn, will create new growth, new jobs and even greater tax receipts in the future.

"Over the long term the scheme would pay for itself while delivering a major economic and inward investment stimulus for London. It would give Battersea its first underground station and help bring an underused part of the Thames riverside back to life.

Although businesses attracted to the area will not benefit from the usual rates discount, the local economy stands to receive a boost from the creation of as many as 25,000 new jobs and the building of 16,000 new homes across the Nine Elms on the South Bank regeneration area.

The proposals have received a healthy thumbs-up from local residents, with around three quarters of people responding to a third public consultation on the new Tube link with positive or neutral comments.

Michèle Dix, managing director of Planning for TfL, said: "This third public consultation very much confirms that there is very strong support for this transport link. These two new Tube stations at Battersea and Nine Elms will create access to the London Underground for thousands of people, as well as cutting journey times from this part of London to the West End and the City to around 15 minutes."

TfL also says it would reduce pressure on Vauxhall station, offer relief to the existing Northern Line south of Kennington and provide wider access to leisure and employment opportunities for local people.

Having lobbied in his own inimitable style for the Northern Line extension, the Mayor of London Boris Johnson has welcomed the progress made to date on the funding scheme.

"I am delighted that after months of intensive discussions and hard work we have got the go ahead from government on financing an extension to the Northern Line, which is hugely significant as Nine Elms is one of the areas with the greatest prospect for new development in the whole of the capital," he said.

"It will be an incredible confidence boost for developers preparing to invest there and it will also be a considerable boost for local people who will benefit from the new Tube link."

As officials from the Mayor's Office and TfL finalise arrangements for financing of the extension with the government, a consultation is also underway for the extension itself, which must be carried out before the Transport and Works Act Order is submitted.

If planning approval is obtained from the government and a funding package is in place, construction on the Northern Line extension could begin in 2015, with the two new stations opening as early as 2020.

The go-ahead on a financing plan is the latest in a series of milestones the wider regeneration programme has achieved in the last year. Significantly, a new buyer has been confirmed for the iconic Battersea Power Station site where 3,400 new homes, a new office quarter, a retail centre, new hotels and an entertainment district will be built.

Once that is finalised, it only remains for the designers of the Tube map and the Monopoly board to squeeze in the new look Northern Line.

This article first appeared here

Tube goes south. Photograph: Getty Images

Berenice Baker is Defence Editor at Strategic Defence Intelligence.

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Brexit is an opportunity to rethink our economic model

Our industrial strategy must lift communities out of low-wage stagnation, writes the chair of the Prime Minister's policy board. 

With the long term fallout of the great crash of 2008 becoming clearer the issue of "inclusive growth" has never been more urgent.

Eight years after the Great Crash, it is becoming clear that the long term impacts of the crisis profoundly challenges the model of economy - and politics - we have become used to. Asset inflation and technological revolutions are entrenching untold wealth for a small global elite.

This sits alongside falling relative disposable incomes for the many, and increasing difference in the disposable income of different generations. Meanwhile, a cohort of "just-about-managing" citizens are working harder than ever simply to get by, despite falling rates of savings. All of this – along with a persistent structural deficit in pensions, welfare and health budgets - combines to create an urgent need for new economic thinking about a model of growth and 21st century economic citizenship that works better for all people and places in our country.

The main political parties have set out to tackle these challenges and develop policy programmes for them. Theresa May has set out a bold new Conservative agenda of reforms to help those of our fellow citizens who are working hard but struggling to get by: to build an economy that works for everyone, and for the people and places left behind.

But this challenge is also generational, and will need thinkers from all parties - and none - to talk and think together about fresh approaches. This is why this cross-party initiative on inclusive growth is a welcome contribution to the policy debate.

The Prime Minister leads a government committed not just to deliver Brexit, but also to the fresh thinking and fresh solutions to the scale of the domestic challenges we face, which clearly contributed to the scale of the Leave vote last June. As she has said, it's clear that as well as rejecting the EU, voters were rejecting a model of growth that wasn’t working for them.

The UK’s vote to leave the European Union was one of the most dramatic and significant political events in decades – for this country and potentially for Europe. It changes everything: our economic model, our long term economic prospects, the assumptions and mechanisms through which we run most of our government and the diplomatic and economic status of the UK internationally.

Delivering a successful Brexit – one which strengthens our global security, our united kingdom, our economy and popular trust in parliamentary democracy, and a model of political economy that works to these ends, will dominate this political generation.

This is a challenge. But it is also an unprecedented opportunity to reform our model of political economy to tackle the causes of deepening domestic political disillusionment and put our country on the path to long-term recovery. 

Brexit provides us with a unique chance to address two of the most important public policy challenges facing our country.

First, the need to enable and enhance the conditions for creating and developing greater enterprise and innovation across our economy, in order to increase competitiveness and productivity. Second, the need to tackle the growing alienation of so many people and places from the opportunities of globalisation, which has in turn entrenched attitudes towards welfarism. I believe these two challenges are fundamentally linked. 

Without social mobility, and the removal of the barriers holding back national and regional participation enterprise, we will never be able to tackle the structural challenges of productivity, public service modernisation, competitiveness and innovation. 

It's becoming clearer to more and more people that a 21st century "innovation economy" both requires and drives an "opportunity society". You can't have an enterprising economy with low rates of social mobility. And the entrepreneurial spirit of economic aspiration is the fuel that powers the engine of social mobility.

For too long, we have run an economic model based on generating growing tax revenues from an ever smaller global elite, in order to pay for the welfare costs of a workforce increasingly dependent on handouts.

Whitehall has tended to treat social policy quite separately from economic policy. This siloed thinking – the Treasury and the Department for Business, Energy and Industrial Strategy for "growth" and the Department for Work and Pensions, Department of Health and Department for Education for "public services" - compounds a lack of the kind of integrated policymaking needed to tackle the socio-economic causes of low productivity. The challenges holding back the people and places we need to help do not fall neatly into Whitehall silos. 

Since 1997, successive governments have pursued a model of growth based on a booming service sector, high levels of low-cost migrant labour and housing and asset inflation. At the same time, policymakers tried to put in place framework to support long term industrial renaissance and rebalancing. The EU referendum demonstrated that this model of growth was not working for enough people. 

Our industrial strategy must be as much about lifting communities out of low-skill and low-wage stagnation as it is about driving pockets of new activity. We need Cambridge to continue to grow, but we also need to ensure that communities from Cromer to Carlisle and Caithness, which do not enjoy the benefits of being a global technology cluster, can participate too. That means new measures to spread opportunities more widely. 

The Great Crash and its aftermath - including Brexit - represents a chance for a new generation to think these problems through and tackle them. We all have a part to play. Six years ago, I set up the 2020 Conservatives Group in Parliament, as a forum for a new generation of progressive Conservative MPs, regardless of increasingly old-fashioned labels of "left" or "right", or where they stood on the Europe debate. This is a forum to discuss new ways to tackle the current problems facing our country, beyond the conventional silos of Whitehall. Drawing on previous career experiences outside of Parliament, the group also looks ahead strategically at the potential longer-term social and economic challenges that may confront us in the future.

I believe that technology, and a new zeitgeist for public sector (as well as private sector) enterprise hold the key to resolving the barriers that are currently holding back the development of new opportunities. With new approaches, better infrastructure and skills connecting opportunities with the people and places left behind, better incentives for our great innovators, and new models of mutualised public/private partnerships and ventures, we can build an economy that genuinely works for everyone.

The government has already set about making this happen. Through the industrial strategy, the £23bn package of investment in new infrastructure and innovation announced by the Chancellor, Philip Hammond, we can now be much bolder in developing a 21st century knowledge economy infrastructure that will be the foundation for economic success. 

The success of inclusive growth rests on a number of core foundations - that our economy grows, that social inequality is redressed; that people are given the skills they need to pursue a career in the new economy and that we better spread the opportunities of the global economy hitherto enjoyed by a segment of our workforce to the many. 

This can only be achieved if we recognise the way in which enterprise and opportunity are interdependent. Together, politicians from all parties have a chance to set out a new path for a Global Britain: making our country the world capital of innovation and opportunity. Not trickle-down economics, but "innovation economics" where the private and public sector commit to a programme of supporting each other for mutual benefit.

An economy that works for everyone is an economy in which the country unites around the twin pillars of opportunity and security, which are open to all. A country in which "shared values" are as important as "shareholder value". And in which both are better shared by all. A country once again with that precious alignment of economic and social purpose which is the hallmark of all great civilisations. It's a great prize.

This is an edited version of George Freeman's article for All-Party Parliamentary Group on Inclusive Growth's new "State of the Debate" report, available to download here.The APPG on Inclusive Growth's "State of the Debate" event with the OECD, World Economic Forum, RSA and IPPR is on Tuesday 21st February at 6.30pm at Parliament. See www.inclusivegrowth.co.uk for full details. 

George Freeman is the MP for Mid-Norfolk and the chair of the Prime Minister's Policy Board.