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As part of Department for Transport’s spending settlement, Transport Secretary Philip Hammond announced the go-ahead for a further 16 road transport schemes in addition to the eight previously announced as part of the CSR.
These schemes aim to deliver major upgrades to relieve congestion, either through road widening or utilising managed motorway technology.
Within the Secretary of State’s statement to Parliament, the role of infrastructure was highlighted as key to facilitating economic growth. Philip Hammond said: “For every pound we spend on Highways Agency schemes, on average we will get back £6 of benefits and in many cases there are even higher returns for local authority schemes.”
Nelson Ogunshakin, ACE’s chief executive, said: “We are pleased that the highest level of government is aware of the value of infrastructure investment. The best designed schemes can achieve a significant return to the economy and we hope decisions on capital spending will continue to keep this in mind.”
In addition to that, a pot of over £600m of funding for further local authority projects has been announced. Under this scheme, local authorities will be invited to bid for funding for approved projects. This approach aims to encourage local authorities to consider in detail the cost benefit implications of projects and demonstrate the extent of their wider benefits to society and the economy. This should help to ensure that investments are undertaken in an efficient manner.
However, despite the economic benefits mentioned above, the Department for Transport has also indicated that funds remain limited as the deficit is reduced.
Philip Hammond said: “The level of funding required for schemes already under construction is such that it is unlikely that any new schemes will be able to begin construction before 2012/13.”
New local authority schemes other than those mentioned in the statement will not be considered under current spending plans.
The timing of investment will also be key to growth but, given current assumptions, 14 projects have been delayed until at least 2015. These 14 plans remain in development but with construction unable to take place until the next spending period.
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