Following years of steady low inflation rates, economic pressures are now hitting the sector hard at all levels; can this be used to re-evaluate the way in which we fund our infrastructure projects?
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The current economic climate has provided a rude awakening for the highways and transport sector. The war in Ukraine and the Covid-19 pandemic have led to demand outstripping supply causing supply chain shortages and unprecedented conditions for inflation.
Despite these economic pressures, budgets for infrastructure projects are based on everything being ‘business-as-usual’ – so this begs the question, why?
Governments at all levels across the UK are now having to decide what they can afford and what is at risk of being postponed, or indeed, even scrapped all together.
The Scottish Government has recently published a ‘Targeted Review’ of Capital Spending with the Scottish Finance Secretary, Kate Forbes, outlining, ‘The challenging external market conditions of inflation and supply chain impacts are already causing delays and placing pressure on budgets associated with certain projects.’
Not only is this a problem in Scotland, but it is one that is front and centre right across the UK and indeed the globe. In light of these economic pressures, Sub-National Transport Bodies in England are now having to choose carefully which projects get the go-ahead.
The Climate Change Committee’s recent report to parliament gives a stark warning, we will not achieve our net-zero target under current regimes. With this in mind, it is obvious that the way in which we fund our transport infrastructure programmes cannot be ‘business-as-usual’. CIHT outlined in the publication Improving Local Highways that we need to have inflation linked TOTEX funding for our local highways network. Now more than ever, this feels incredibly important that we not only see this for the local highway network, but across our sector to allow a degree of certainty in uncertain times. This will be pivotal if we are to heed the words of the Climate Change Committee’s latest report and make sure that the transport sector is no longer know as the largest emitter.
We need to create a new focus for our sector, one that creates a new focus for our highway networks, one that supports the delivery of a carbon-neutral system, creates sustainable, green, resilient, and accessible places, make transport healthier, and help the economy grow.
We need to make sure that people can know what to expect from our assets and services by having an outcome-based vision that will ultimately deliver net-zero.
To do this, funding needs to be allocated based on a sustainable transport hierarchy with walking and wheeling at the top. With devolved nations Scotland and Wales committed to policy objectives such as reducing the number of in car trips by 2030, and Wales currently reviewing road investment, coupled with external economic pressures and strikes from rail workers, we need to use this as a catalyst for change for the public benefit.
The next installment of the CIHT Monthly Masterclass series will examine transport’s post-covid recovery, with speakers highlighting how walking, wheeling, and cycling should be at the front of everyone's agenda when it comes to the post-covid recovery of our transport system.
Utilising a broad range of examples, the speakers will discuss the importance of sustainable transport workstreams in a transport strategy as well as the scope and scale of these.
The masterclass will also feature the importance of Local Cycling and Walking Infrastructure Plans (LCWIP), how these are utilised and the benefits they can bring in terms of securing investment and ensuring scheme delivery.
Join other savvy professionals just like you at CIHT. We are committed to fulfilling your professional development needs throughout your career
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