£30 billion earmarked for transport despite spending review
October 20th 2010 The Government has assured the transport sector that it will invest £30 billion in projects over the next four years, which is more than was spent in the last four years, according to Chancellor George Osborne.
The Transport Department’s budget will increase initially then decrease after several years. Its budget is forecast as £13.1bn in 2010-11, rising to £13.3bn in 2011-12, and to £13.4bn in 2012-13, then falling to £12.8bn in 2013-14 and £12.2bn in 2014-15.
Speaking to parliament Osborne said: “When money is short we should ruthlessly prioritise those areas of public spending which are most likely to support economic growth, including investments in our transport infrastructure. After our defence requirements are met, the Department for Transport will receive the largest capital settlement."
Secretary of State Philip Hammond is expected to announce next week how the £30 billion will be allocated.
A number of projects were announced by Osborne.
- In London, on top of the Olympics, a major investment in the capital city’s transport infrastructure will take place.
- Crossrail will go ahead and key Tube lines will be upgraded for the twenty first century.
- In the North West, investment will be made in rail electrification between Manchester, Liverpool, Preston and Blackpool and funding provided for a new suspension bridge over the Mersey at Runcorn.
- Rail and roads are devolved to the Scottish executive, as are roads in Wales – but major rail investments around Cardiff, Barry and Newport will go ahead.
- In the East Midlands the M1 and A46 will be improved.
- In the West Midlands, the Midland Metro will be extended and Birmingham New Street station will be redeveloped.
- In the South West, improvements will be made to the M5 and M4, and the new transport scheme for Weymouth.
- In the East of England, the A11 to Norwich will be upgraded.
- Around London, the M25 will be widened between ten different junctions and the improvement to the A3 at Hindhead will be completed.
The Chartered Institute of Logistics and Transport (CILT) welcomed the Government’s positive attitude towards transport investment in today’s Comprehensive Spending Review.
CILT Chief Executive Steve Agg said: "The Chancellor has clearly recognised the fundamental and undeniable link between transport investment and economic growth, and appears to have retained plans for continued considerable investment in the nation’s key road and rail infrastructure.
"We await next week's statement from the Secretary of State for Transport which will provide more comprehensive details. Despite some cuts in both capital transport spending and support for local transport, it is clear that the Chancellor is committed to retaining substantial spending on road and rail, and the limited details featured in his speech give us reason for optimism."
James Hookham, FTA’s MD of Policy and Communications, added: “We are encouraged with Osborne’s declaration of support for transport projects and it is good news that many of the Trade Routes that FTA identified to transport ministers as priority projects demanding further investment have been protected.
“While we have yet to learn the full details of other road and rail projects it looks like the message has got through: for future growth to happen infrastructure is not an optional extra but an absolute essential.”
The Road Haulage Association was pleased that despite all the dire warning that the roads budget would face severe cuts in the Chancellor’s Comprehensive Spending Review, common sense prevailed in its view.
“We are delighted that our repeated requests that outstanding transport plans be completed rather than ‘mothballed’ have been heeded”, said RHA spokesperson, Kate Gibbs. “When times are hard, road improvements are usually, quite literally, the first to fall buy the wayside. We are therefore pleased that Mr Osborne has recognised the vital part an efficient road network plays in the UKs economic recovery and future viability”.
The RHA remains concerned about the impact on road maintenance of the slashing of local authority budgets – by 7.1% a year for the next four years – and massive devolution of financial control.
It said: "Road users may have to fight for every pothole repair. A key issue will be how Hammond can ensure that roads do not deteriorate to the extent that we have to pay much higher maintenance costs later – which he has already told the transport select committee must not happen." More articles from Handling & Storage Solutions: | 
