A new and unique funding model developed by E-Rail Limited could revolutionise future rail and tram investment, following the successful delivery of Land Value Capture contribution agreements for the proposed Northumberland Line re-opening.
The line -which Beeching closed for passengers in the 1960s –was allocated £34m to commence early works by the Department for Transport (DfT) and will see 18 miles of track upgraded and six new stations. The approval has been helped through E-Rail securing contribution agreements with landowners along the route on behalf of Northumberland County Council (NCC), which are based on the principle that improved connectivity will lead to development and increased land values.Advertisements
The line is considered essential to help stimulate economic and social improvement across the region. The social and environmental impact on this area will be substantial as currently the road network is congested, and the public transport network is sparse.
Whilst initial funding for the line will come from the public sector, the contribution from landowners – which will be a share of the uplift in land values along the route created by the new line reopening –will come back to the Council, lowering the long-term burden on the taxpayer.
The approach taken by NCC, if adopted by other local authorities and transport executives, could help to unlock business cases for projects across the country.