Infrastructure investment pledges have become a regular feature of recent Budgets, but will chancellor Philip Hammond’s red box deliver anything of significance next week?
In the past decade, the UK has fallen to 27th in the World Economic Forum’s infrastructure quality rankings, so the case for more investment is strong.
The Confederation of British Industry has called on the chancellor to fast-track planned infrastructure projects in the current road and rail investment pipelines, with clear timeframes and implementation plans. It would also like to see Hammond distribute the £490m pledged in the last Budget to improve local infrastructure networks.
Key projects which could be game-changers for unlocking development are:
Northern Powerhouse Rail
Also known as HS3, an east-west rail link which would connect Leeds, Manchester, Manchester Airport, Liverpool, Sheffield, Newcastle and Hull. Metro mayors, MPs, councillors and business leaders across the North have been lobbying the Treasury to invest in the rail upgrade, which would unlock significant development opportunities. The £300m pledged for Northern rail investment at the Conservative Party conference was derided as a “drop in the ocean”, so the chancellor is under pressure to make a further commitment. Greater Manchester mayor Andy Burnham said: “We need that basic infrastructure to get us going, and the minute they commit to a proper Crossrail for the North, the development opportunities would open up for us all and those partnerships.”
Crossrail 2
After the March Budget failed to deliver funding certainty for Crossrail 2, supporters hope the chancellor’s speech next week will promise additional funding. It is expected that Hammond will decide on the future of the £31bn line, with Crossrail 2 seeking a £13m cash injection ahead of the Budget. The new rail line would link south-west and north London as well as destinations across Surrey and Hertforshire. It is estimated the line would unlock around 200,000 new homes and 200,000 new jobs.
HS2 station growth strategies
Funding for major regeneration projects around upgraded HS2 terminus stations could be announced. West Yorkshire, where a £1bn masterplan to rival King’s Cross has been planned, and Greater Manchester, where 4,500 new homes and more than 7.5m sq ft of commercial space is proposed, were both due to submit growth strategies in time for the Budget.
Heathrow Airport
Expansion delays continue, despite transport secretary Chris Grayling’s announcement in June that the government was still committed to plans for a third runway at Heathrow. Ahead of the Budget, the South East England Councils partnership has called on the chancellor to support any airport expansion with improved road and rail services.
Rail electrification for Wales and the North
Government is under pressure to revisit the decision over the summer that electrification of rail routes between Cardiff and Swansea; Kettering to Nottingham and Sheffield; and Windermere and Oxenholme are no longer needed. These commitments include upgrades to the trans-Pennine rail route connecting York, Leeds and Huddersfield with Manchester and Liverpool, and the delivery could unlock significant development potential.
Road improvements
Funding for strained road infrastructure upgrades has been requested by multiple local authorities in their Budget submissions. Kevin Hollinrake, Conservative MP for Thirsk and Malton, has called for improvements to congested roads such as the A64, where a journey of around 40 miles from York to Scarborough can take two hours. Improvements will have to demonstrate how they could stimulate wider development. For example, with road tolls being phased out in the South West, there have been demands for government to do the same with the Humber Bridge to promote the creation of an offshore wind energy hub. Labour MP for Scunthorpe Nic Dakin said: “If the Humber area of northern Lincolnshire, Hull and the East Riding is to be the ‘energy estuary’, we need investment to allow the area to blossom.”
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