MPs say rail funding is still biased against the North of England

Transport investment will always favour London'' unless the way schemes are assessed is changed, MPs have warned.

The current method of judging projects by how much they would cut journey times favours areas with a stronger economy, according to a report by the Commons' Transport Select Committee.

This encourages further economic activity and congestion, and is working against'' the Government's intention to rebalance the economy, the cross-party committee found.

Greater importance should be placed on the impact on regeneration when assessing potential schemes, the MPs concluded.

The report stated: The current appraisal methods, which heavily weight journey time saved, will always favour London.''

The committee welcomed the Government's recognition of the issue, but expressed doubts that its rebalancing toolkit'' guidance will be sufficient to make a significant difference.

Transport Secretary Chris Grayling sparked anger in July last year by supporting a new #30 billion Crossrail 2 scheme in London and the South East days after a series of rail electrification projects in Wales, the Midlands and the North were axed or downgraded.

Think tank IPPR North claimed earlier this year that planned transport investment in London is two-and-a-half times higher per person than in the North.

The capital will receive £4,155 per person compared with just £1,600 in the North West, North East and Yorkshire and the Humber regions combined, according to the analysis.

The Government described the figures as misleading'' andhighly unrepresentative'', adding that Transport for London projects should not be included as they receive no central funding.

Lilian Greenwood, chairwoman of the committee, said: The Treasury's own data shows that spending per head in London in 2016/17 was more than 10 times that of the East Midlands.

Regional economies will never be able to catch up with London while such inequalities exist.

While we accept that annual snapshots of comparative regional investment can be problematic, and that investment in one area can lead to benefits in another, some regions have faced decades of under-investment in their parts of the rail network.

They deserve to have a clear sense of what the Government is doing to help them attract transport investment and grow economically. The Northern Powerhouse and Midlands Engine will struggle to live up to their names without tangible change.''

Shadow transport secretary Andy McDonald said: All regions of the UK are being held back by this Government because of a failure to invest in transport funding outside of London.

This is another major issue caused by the shambolic management of the railways by the Department for Transport (DfT).''

The DfT said it did not agree with the committee's assertion that the appraisal system is biased towards London''.

A spokeswoman for the department said: As this report makes clear, this Government is investing significant extra resources as the railway undergoes its biggest modernisation since Victorian times - making sure people are better connected and their journeys are quicker, more convenient and more comfortable.

A better, quicker, more efficient transport network increases productivity and makes it easier to do business as we continue to rebalance the UK economy.

The next few years will actually see higher Government spending in the North, compared to the South, and by 2020 all Northern and TransPennine trains will be new or refurbished, with an extra 500 carriages providing space for 40,000 extra passengers and 2,000 extra services each week.

A third of all enhancement spending over the next five-year investment period - #3 billion - will be used to upgrade the route between Leeds, Manchester and York.

We will also see the roll out of the new Intercity Express trains serving the East, North East and South West.'