The Chancellor of the Exchequer made his budget statement on 29 October 2018.  

Matthew Lugg, President, CIHT said:

‘CIHT welcome the acknowledgement by the Chancellor that investing in infrastructure is key to boosting the UK’s economy. We at CIHT have long called for more certainty of funding and the announcement around RIS2 helps towards providing the consistency that our industry needs.’

'We are pleased to see the acknowledgement of a need to invest in our local road network with the additional £420m made available for local highway authorities. CIHT believe much more needs to be done in this area and we should be moving to using preventative measures including whole-life asset management.'

'We will be releasing the CIHT Lugg Review early next year that will be looking at future ways of funding and maintaining our local road network.'

Budget 2018 - CIHT Briefing

CIHT has produced a commentary on some of the specific announcements that impact on highways and transportation and infrastructure.

Certainty of funding – RIS 2 funding

CIHT welcomes the ongoing certainty of funding directed through the next Road Investment Strategy (RIS 2) for the strategic road network in England with a funding package of £25.3bn for 2020-2025.  The model of providing a five year envelope of funding, provides the certainty to invest and helps drives efficiency savings through the supply chain. CIHT has long called for certainty of funding and welcomed the original RIS.

CIHT welcomes the government’s  commitment to hypothecate English Vehicle Excise Duty to roads spending, announcing that the National Roads Fund will be £28.8 billion between 2020-25. The Fund will provide long-term certainty for roads investment, including the new major roads network and large local major roads schemes. CIHT has called for this commitment to be extended to the remainder of the local highways network.

Local roads

The local highway sector also received a funding boost as the Chancellor announced an additional £420m for local highway authorities - available immediately - to tackle potholes, bridge repairs, and other minor works (in this financial year).  

Matthew Lugg, President, CIHT said:

'This will be very welcome news for cash strapped English local highway authorities who have been struggling to maintain their road networks after all the surface damaged caused by a particularly harsh and prolonged winter.'

'The extra funding for structures is equally important as there is increasing concern about the resilience of many bridges that are now coming to the end of their design life. It is important that this funding is targeted to where it is most needed and local authorities are not required to go through a lengthy bidding process.'

'This extra funding will make a difference however there need for a more effective long term solution to tackle the national maintenance backlog estimated at around £8billon.'

Local high streets

The Budget saw the announcement of £1.5 billion to support local high streets, including 1/3rd off business rates for smaller retailers.  CIHT’s has undertaken key work on local high streets including documents such as ‘Manual for Streets 2’ produced with the Department for Transport.  CIHT would see that enhancements in the public realm will be a key factor in supporting a vibrant and attractive local high street environment.

Productivity

CIHT acknowledges that the government is keen to tackle the productivity and technology challenge.  As the Chancellor noted, this is about building on our legacy as the nation of the industrial revolution.  

The Chancellor said we can solve the productivity challenge if we can make the choice to invest in our infrastructure, in research, in skills, in our regions and CIHT will be exploring this further in their Annual Conference next year.  

Additional areas of note included:  
•    £1.6bn to support the Industrial Strategy to fund advanced technologies like nuclear fusion and quantum computing
•    £38bn by 2023/24 National Productivity Investment Fund - over next 5 years total public investment is growing by 30% to highest sustained level in 40 years.  
•    Meeting the productivity challenge means reaching the potential of our nations and regions.  The Chancellor said they are increasing the Transforming Cities Fund to £2.4bn and he announced an additional £90m to trial new models of smart transport - including on demand buses.

PPP and PFIs

Half of the £600bn infrastructure pipeline will be built and financed by the private sector.  For investment in public infrastructure, the Chancellor still sees benefit in public private partnerships where it delivers value for the tax payer and where it genuinely transfer risk; but he says there is 'compelling evidence' that PFI does neither.  
The government will honour PFI commitments but will set-up a centre of excellence to manage these contracts.  'The Chancellor said:  "I have never signed off a PFI contract as Chancellor, and I can confirm today that I never will.  I can announce that the Government will abolish the use of PFI and PFI2 for future projects'.

CIHT will be exploring what this means for the highways & transportation sector as further clarifications emerge.

Housing

The Chancellor announced a further £500m for the Housing Infrastructure Fund, to help get a further 650,000 homes built.  He also says he will make it easier for neighbourhoods to allocate or permission land for housing.  

CIHT is developing new guidelines, that will help decisions be made about how we build and manage our towns and cities. 'Better planning, better transport, better places' is being produced through its Sustainable Transport Panel.

For more information on any of the above, please contact e: communications@ciht.org.uk