12.1 Significant Changes to LTP2 Assumptions and Policies
12.1.1 There have been a number of government reviews since the publication of GMLTP2 in March 2006. The most relevant to transport policy in Greater Manchester are the Stern review into the economics of climate change and the Eddington review into the long term links between transport and economic productivity.
Stern Review
12.1.2 The Stern review looked at assessing the evidence for, and building the understanding of, the economics of climate change.
12.1.3 The review estimates that without action, the overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, at present costs. In contrast, the costs of action to reduce greenhouse gas emissions to avoid the worst impacts of climate change can be limited to around 1% of global GDP each year.
12.1.4 The AGMA authorities commissioned a 'Mini Stern' review, to assess the impact of climate change legislation, policy and regulation on economic growth.
12.1.5 Greater Manchester's progress in reducing it's carbon footprint can be seen in 9.2 ‘Delivery & achievements to date’.
Eddington Review
12.1.6 There is now a substantial body of evidence to support the strong links between improved connectivity and economic performance, including the Eddington Transport Study, which indicated that a 5% reduction in travel time for all business travel on the roads could generate around £2.5 billion of cost savings.
12.1.7 Greater transport connectivity can increase employment by increasing the size of accessible labour markets, as well as by attracting new investment into our key centres of activity and boosting their contribution to GDP and the wealth of the nation as a whole. AGMA has long-argued that effective connectivity is an essential component of sustained economic growth.
12.1.8 Eddington also highlighted the value of city regions to the future prosperity of the nation and the links that were identified between economic growth, congestion management and transport investment also lie at the heart of the TIF proposals.