South East transport improvements are at risk unless Government becomes more realistic about building cost inflation, says the South East England Regional Transport Board.

Government only allows for 2.25% annual inflation in the Transport Board's annual budget but building costs rise by 5-7% a year. This undermines the South East's ability to deliver infrastructure that is vital to support growth. Any increases won in the regional budget are wiped out by much higher inflation leaving no money for new projects. Even agreed projects are facing delay because there is not enough funding. Evidence is backed by the National Audit Office and consultancy the Nichols Group.

Cllr Nick Skellett, Chairman of the Transport Board and member of the South East England Regional Assembly, said:

"The Transport Board wants to ensure that the region realises its full economic potential. But that requires timely investment to keep the region moving. Unlocking the South East's potential is not only good for the region but good for the country as a whole. The Government's unrealistic approach to construction inflation is eating away at regional investment. Even the Government's own advisors acknowledge the nature and scale of the problem. It is time Government got real about transport build costs."

Contacts

Lesley van Dijk, Assembly PR Executive - 01483 555223

Heather Bolton, Assembly Communications Director - 01483 555220

Notes to editors:

1. Transport Board's meeting paper on report by National Audit Office and Nichols Group - 66 KB
   
   
2. The South East England Regional Transport Board is a partnership board advising Government on the region's transport priorities.
   
   
3. Cllr Nick Skellett - South East England Regional Assembly member and Surrey County Council Leader chairs the Board. There are a further five members on the Board alongside representatives from SEEDA, Government Office for the South East, South East Forum for Sustainability, Highways Agency, Confederation of Passenger Transport and Network Rail.
   
   
4. The Assembly is a partnership of councils and communities in the South East region. It was established in January 1999 to give a representative voice to the region, which covers Berkshire, Buckinghamshire, East and West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire and Surrey.
   
   
5. The Assembly is made up of 112 members including elected councillors nominated by the region's local authorities and 37 representatives from other sectors of the community (including business, trades unions, education, housing, health, sports, culture, tourism, faith groups, environmental, community and voluntary organisations) as well as the New Forest National Park Authority.
   
   
6. The Assembly has six roles:
1. Regional Planning
   preparing and delivering the South East Plan
2. Regional Housing
   the Regional Housing Board decides housing investment priorities
3. Regional Transport
   the Regional Transport Board decides transport investment priorities
4. Advocacy
   pressing the South East's interests in London and Brussels
5. Accountability
   scrutinising SEEDA's plans and impact
6. Alignment
   co-ordinating regional policies and decisions.

Our vision is for a distinctive, outward-looking, accessible region of prosperous, sustainable communities, with a high quality of life and environment.

Last updated: 21 August 2007

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