Protests against HS2 in the area where the railway is planned to pass through near Lymm in Manchester on April 8, 2014. Photograph: Getty Images.
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We need to go beyond HS2 and build a Liverpool-Leeds rail link

A high-speed rail connection between Liverpool, Manchester and Leeds would be transformative for the north.

Liverpool, Manchester and Leeds are separated by a mere 65 miles. Yet board a train at one end of this corridor and it will be nearly two hours before you alight at the other end. We ought to be seriously considering building a high speed alternative.

The current Transpennine Express trains trundle across the Pennines with a meandering listlessness reminiscent of a distracted pony. They huff and puff and creak and groan. Calling them "express" trains is an outrage against the English language. Transpennine passengers enjoy glorious scenery, but appalling speeds. As Andrew Adonis has drily noted, it is "quite an achievement" that the 45 mile journey between Leeds and Manchester takes almost an hour. Although the route is set to be electrified, the work will make only a marginal difference to journey times. 

Of course, Britain is riddled with slow rail connections and plenty of trains huff and puff, but this case is different. This transport corridor links three of the six largest cities in England. Liverpool is the fastest growing city outside of London and Manchester is increasingly heralded as the UK’s second city. Surely our major cities should be better connected?

This issue is even more pressing in light of the economic importance of bringing businesses closer together - so-called "agglomeration economics". Nowadays, economic growth seems increasingly to be driven by large urban hubs where workers and businesses in close proximity compete, collaborate and copy each other much more intensively than they otherwise would do. Mixing in these ways drives innovation and productivity gains. As Evan Davies explained in his recent documentary Mind The Gap, London benefits from these "economies of distance" in a way that other parts of the country do not – and it is powering Britain’s economic recovery as a result.

Yet Davies also emphasises that the area from Liverpool through Manchester to Leeds is the prime candidate for an extended travel to work zone outside of London. With populations expanding again after decades of decline, these cities have the potential to form a robust corridor of economic activity, a northern hub.

This will depend, however, upon better transport links. As things stand, the area is hobbled by poor rail connections. Research by the LSE found that approximately 40 per cent fewer commuting journeys are made between Leeds and Manchester than would be expected given the cities’ proximity and size. Such statistics will hardly surprise regular Transpennine travellers, but they underline the extent to which poor transport connections are holding back business growth.

The government’s current plans for HS2 do nothing to address this problem of east-west connectivity. In fact, while the government has portrayed HS2 as an economic panacea for the north, the matter is far from clear. Many experts have argued that HS2 is more likely to draw more wealth into London than it is likely to spread it northwards. Unsurprising, then, that northerners show little enthusiasm for HS2 with 22 per cent strongly opposing the scheme in Yorkshire and only 10 per cent strongly in favour.

By contrast, a high-speed rail connection between Liverpool, Manchester and Leeds would be transformative for the north, drawing journey times down toward those of a standard Underground commute and thereby boosting business growth. It would cost far less than HS2 and would be more readily deliverable.

As things stand, however, we are in danger of allowing the controversy swirling around HS2 to stymie further thinking and plans for high speed rail, plans which should be judged on their own merit. Irrespective of whether the case for HS2 adds up, a connection from Liverpool to Leeds ought to at least be on the policy agenda as an option and subject to the careful cost-benefit evaluation of any major infrastructure project. When discussing high speed rail, we ought to be going beyond HS2.

David Kirkby (@kirkbydj) is a researcher at Bright Blue 

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”