Budget round-up: the Northern Powerhouse, the Help to Buy ISA and Scottish city devolution

Man he looks awkward. Image: Getty.

Here's our round-up of the UK budget announcements that will affect the running of UK cities, and the lives of those that live in them. 

Buy more bloody houses 

We know how you all love housing. Sadly, the biggest of today's housing announcements didn't focus on how we could, say, build more of it: instead, chancellor George Osborne focused on increasing demand, through a new Help to Buy ISA with a 25 per cent top-up.

This means that for every £200 saved (the monthly maximum), the government would give you £50, so you could buy a house that much faster. Which would, in turn, drive up house prices. Terrific. 

He also confirmed the introduction of 20 housing zones across the country. These are basically packages of brownfield land where planning restrictions are removed to encourage housebuilding. 

Everyone loves the North

We're beginning to suspect politicians like talking about the Northern Powerhouse just because it sounds cool. But to give him credit, Osborne announced investment in the north's chemical industries and health projects, plus gave the green light to HS3 (a high-speed rail link between Manchester and Leeds). 

Greater Manchester's devolution deal also looks set to allow the city to keep 100 per cent of the growth in local business rates; a similar deal was announced for Cambridge. 

In his opening "look at how great I am" spiel, Osborne also announced that the north has grown faster economically than the south over the past year, and claimed "We are seeing a truly national recovery". 

Plans for London's planners

Osborne generously called London the "global capital of the world" before announcing new powers for the Mayor on skills and planning and new funding for the London Land Commission, so it can build more houses (that's more like it). 

Devo Glasgow 

Osborne confirmed that the Glasgow City Deal will be implemented: he added that this could "open the door" for similar deals in Aberdeen and Inverness. 

Something about the internet of things

As we've noted before, broadband speeds across the UK are incredibly variable (if you live in Sheffield, for example, you probably can't read this), and an increasing number of industries rely on fast internet speeds. To tackle this, Osborne announced broadband vouchers for businesses across more cities, and funding for Wi-Fi in public libraries.

In his speech, Osborne claimed this would be an investment in the "Internet of Things", though it wasn't clear what this meant beyond a chance for a laboured dig at Ed Miliband. "So should – to use a ridiculous example – someone have two kitchens, they will be able to control both fridges from the same mobile phone." Oh, our sides.

 
 
 
 

Everything you ever wanted to know about the Seoul Metro System but were too afraid to ask

Gwanghwamoon subway station on line 5 in Seoul, 2010. Image: Getty.

Seoul’s metro system carries 7m passengers a day across 1,000 miles of track. The system is as much a regional commuter railway as an urban subway system. Without technically leaving the network, one can travel from Asan over 50 miles to the south of central Seoul, all the way up to the North Korean border 20 miles north of the city.

Fares are incredibly low for a developed country. A basic fare of 1,250 won (about £1) will allow you to travel 10km; it’s only an extra 100 won (about 7p) to travel every additional 5km on most lines.

The trains are reasonably quick: maximum speeds of 62mph and average operating speeds of around 20mph make them comparable to London Underground. But the trains are much more spacious, air conditioned and have wi-fi access. Every station also has protective fences, between platform and track, to prevent suicides and accidents.

The network

The  service has a complex system of ownership and operation. The Seoul Metro Company (owned by Seoul City council) operates lines 5-8 on its own, but lines 1-4 are operated jointly with Korail, the state-owned national rail company. Meanwhile, Line 9 is operated jointly between Trans-Dev (a French company which operates many buses in northern England) and RATP (The Parisian version of TfL).

Then there’s Neotrans, owned by the Korean conglomerate Doosan, which owns and operates the driverless Sinbundang line. The Incheon city government, which borders Seoul to the west, owns and operates Incheon Line 1 and Line 2.

The Airport Express was originally built and owned by a corporation jointly owned by 11 large Korean firms, but is now mostly owned by Korail. The Uijeongbu light railway is currently being taken over by the Uijeongbu city council (that one’s north of Seoul) after the operating company went bankrupt. And the Everline people mover is operated by a joint venture owned by Bombardier and a variety of Korean companies.

Seoul’s subway map. Click to expand. Image: Wikimedia Commons.

The rest of the lines are operated by the national rail operator Korail. The fare structure is either identical or very similar for all of these lines. All buses and trains in the region are accessible with a T-money card, similar to London’s Oyster card. Fares are collected centrally and then distributed back to operators based on levels of usage.

Funding

The Korean government spends around £27bn on transport every year: that works out at 10 per cent more per person than the British government spends.  The Seoul subway’s annual loss of around £200m is covered by this budget.

The main reason the loss is much lower than TfL’s £458m is that, despite Seoul’s lower fares, it also has much lower maintenance costs. The oldest line, Line 1 is only 44 years old.


Higher levels of automation and lower crime rates also mean there are fewer staff. Workers pay is also lower: a newly qualified driver will be paid around £27,000 a year compared to £49,000 in London.

New infrastructure is paid for by central government. However, investment in the capital does not cause the same regional rivalries as it does in the UK for a variety of reasons. Firstly, investment is not so heavily concentrated in the capital. Five other cities have subways; the second city of Busan has an extensive five-line network.

What’s more, while investment is still skewed towards Seoul, it’s a much bigger city than London, and South Korea is physically a much smaller country than the UK (about the size of Scotland and Wales combined). Some 40 per cent of the national population lives on the Seoul network – and everyone else who lives on the mainland can be in Seoul within 3 hours.

Finally, politically the biggest divide in South Korea is between the south-west and the south-east (the recently ousted President Park Geun-Hye won just 11 per cent of the vote in the south west, while winning 69 per cent in the south-east). Seoul is seen as neutral territory.  

Problems

A driverless train on the Shinbundang Line. Image: Wikicommons.

The system is far from perfect. Seoul’s network is highly radial. It’s incredibly cheap and easy to travel from outer lying areas to the centre, and around the centre itself. But travelling from one of Seoul’s satellite cities to another by public transport is often difficult. A journey from central Goyang (population: 1m) to central Incheon (population: 3m) is around 30 minutes by car. By public transport, it takes around 2 hours. There is no real equivalent of the London Overground.

There is also a lack of fast commuter services. The four-track Seoul Line 1 offers express services to Incheon and Cheonan, and some commuter towns south of the city are covered by intercity services. But most large cities of hundreds of thousands of people within commuting distance (places comparable to Reading or Milton Keynes) are reliant on the subway network, and do not have a fast rail link that takes commuters directly to the city centre.

This is changing however with the construction of a system modelled on the Paris RER and London’s Crossrail. The GTX will operate at maximum speed of 110Mph. The first line (of three planned) is scheduled to open in 2023, and will extend from the new town of Ilsan on the North Korean border to the new town of Dongtan about 25km south of the city centre.

The system will stop much less regularly than Crossrail or the RER resulting in drastic cuts in journey times. For example, the time from llsan to Gangnam (of Gangnam Style fame) will be cut from around 1hr30 to just 17 minutes. When the three-line network is complete most of the major cities in the region will have a direct fast link to Seoul Station, the focal point of the GTX as well as the national rail network. A very good public transport network is going to get even better.