The DfT's work identifies three labour market effects which could have consequences for GDP and which may contribute to welfare benefits through the tax take:
- WB4a: More people choosing to work as a result of commuting time savings (because one of the costs of working - commuting costs - has fallen)
- WB4b: some people choosing to work longer hours (because they spend less time commuting)
- WB4c: relocation of jobs to higher-productive areas (because better transport makes the area more attractive to firms and workers).
The data requirements for WB4 are extensive and further guidance on the application within Scotland will be forthcoming.
