Industry issues further responses to the Comprehensive Spending Review

Reactions to the Chancellor’s Spending Review announcement continue to reach us at Highways News.

Amey’s Chief Executive, Andy Milner, said:

“Amey welcomes today’s announcements from the Government of additional investment in infrastructure as part of the Spending Review and the recognition of the importance of defence, transport and public infrastructure in protecting our national security and driving economic growth across the UK. The allocation of funding for investment and the commitment to increase capital investment will also be essential to maintain industry and investor confidence; and retain talent across the supply chain so that the private sector can continue to deliver the necessary services to keep Britain growing.

“We look forward to the publication of the 10-year infrastructure strategy later this month and stand ready to support the delivery of these transformational programmes and integrated transport opportunities to ensure the UK has the resilient infrastructure it needs and can deliver the improvement in everyday lives the Government has committed to.”

Although the Chartered Institution of Highways & Transportation (CIHT) will be providing a more detailed analysis in the coming days, Sue Percy CBE, Chief Executive of CIHT made this initial statement:

“CIHT welcomes the commitment to transport spend outlined today by the Chancellor. The Spending Review, shows that the government understands the vital role that highways, transport and infrastructure plays in the UK economy.”

“The announcement of funding to support the key areas of transport decarbonisation, public transport, climate resilience and highway maintenance echo many of CIHT’s recent submissions to government. The reference to an increase in funding for apprenticeships and training to reach an extra £1.2 billion per annum by 2029 is a welcome emphasis on the need to support the future skills of the sector.” 

“CIHT will be working closely with the government to support these initiatives and more in the run-up to the forthcoming 10-year infrastructure strategy.”

Arcadis London City Executive Peter Hogg commented:

“The Chancellor’s announcements today included some positive investments in transportation, infrastructure, and nuclear energy in the North of England and the Midlands – Arcadis’ own analysis shows that these commitments are the best catalyst for local economic growth. However, to achieve the Labour government’s targets for growth – which the nation desperately needs – we need substantial infrastructure investments in London, which was not included in the Spending Review today. Now is the time to invest big in housing, transportation, and industrial capacity, and to do it everywhere. Only this level of commitment will deliver the vision for a better British quality of life.”

Responding to the Spending Review, Transport for the North Chief Executive Martin Tugwell enthused:

“We are very pleased with the extra investment in the North’s transport infrastructure and services that has been announced. An extra £3.5 billion for the TransPennine Upgrade, support for the reopening of Doncaster Sheffield Airport, and a four-fold increase in local transport grants are all very welcome, especially after last week’s announcement of billions for city region transport schemes.

“We are also pleased to see more support for bus services, including the extension of the fare cap, and franchising pilots in York & North Yorkshire and Cheshire. And we look forward to seeing the 10-year Infrastructure Strategy, including how Northern Powerhouse Rail will be progressed, later this month. The economy of the North is constrained by its creaking Victorian rail infrastructure; investment in new rail capacity is long overdue to unlock the region’s growth potential. “

Last but not least, David Giles (pictured), Chair of the Asphalt Industry Alliance (AIA) said:

“We understand that there are tough funding decisions to be made but it seems as though the Chancellor has missed the opportunity to make a long-term commitment to maintaining our local roads in today’s Spending Review. If this is the case, it will only result in further deterioration of this vital asset and an even bigger bill to put it right in the future.

“Local authorities have told us they need their highway budgets to more than double for the next five to 10 years if they are going to be able to address the backlog of repairs, which is now almost £17 billion in England and Wales.

“So, while the Government’s commitment to additional funding for the 2025/26 financial year – the short-term cash injection with greater accountability announced in December – was welcome, it is unlikely to improve structural conditions or reduce road user complaints.

“It looks like overall DfT roads funding to 2030 has been cut to £24 billion (for both National Highways and local authorities) but further clarity on who will receive what share, how and when, is not evident. Nor is the level to which MHCLG resource funding allocations for highway maintenance may be impacted. That’s why we were hoping that the Government would commit to more certainty within this multi-year Spending Review funding horizon to give local highway engineers the visibility to allow them to….invest in significantly improving the long-term condition of England’s road
network…and not just manage the decline of the network.

“Ultimately, investing in local roads provides an effective return on investment for tax payers – provided that investment is sustained. It feels as if another opportunity has slipped by to help drive growth and make a lasting change to the condition of the roads on which we all rely.”

(Pic: David Giles, Chair, AIA)

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