In his Budget statement to Parliament, Rishi Sunak outlined the major impact Covid-19 has had on the economy – which has shrunk by almost 10% – and set out a series of measures to support recovery.

Commenting, CIHT chief executive Sue Percy said: “From getting key workers to jobs to the roll out of the vaccine, how we move people and products around the UK is central to the response to the pandemic. Transportation is critical to economic performance and productivity and addresses many of the Government’s key policy areas including carbon reduction, health and inclusion.”

The Budget announcement includes the publication of a prospectus for a £4.8Bn Levelling Up Fund, through which local areas will be able to submit bids starting this year to deliver town centre and high street regeneration and local transport projects.

However think tank IPPR North researcher Amreen Qureshi said: “Investment to level up should not involve bidding wars for insufficient pots of money.”

Over £1Bn has also been allocated for an additional 45 towns in England through the Towns Fund. Government also announced funding for a number of specific schemes including £135M to accelerate the start of construction on the A66 Trans-Pennine upgrade to 2024.

Documents accompanying the Budget confirm £50M will be provided to develop proposals for transport improvements around the High Speed 2 Birmingham Interchange Station, and a further £59M is pledged towards the construction of five new stations in the West Midlands.

In addition, the Budget unlocks £40M of funding towards reinstating passenger services on the mothballed Okehampton to Exeter line and £30M is committed to support establishment of a new Global Centre for Rail Excellence in Neath Port Talbot, Wales.

New English Freeports will be based in East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside, the Chancellor announced. These will be special economic zones where businesses will receive more generous tax reliefs, simplified customs procedures and wider Government support including investment in improved transport links.

Midlands Connect director Maria Machancoses welcomed confirmation of East Midlands Airport and the Humber as two of the Freeport locations and said: “We will now work in earnest with local authorities to make sure these sites are well connected, and that businesses have the road and rail infrastructure needed to trade with local, national and international partners.”

The Chancellor also announced that new bases for key Government departments including HM Treasury and the Department for Business, Energy & Industrial Strategy will be located at an economic campus in Darlington. The new UK Infrastructure Bank will also be headquartered in Leeds.

CIHT welcomes the bank and its proposed focus on green infrastructure investment. “The role of transport infrastructure in supporting achieving net zero is critical and we will be launching our climate change action plan later this year,” it says.

Consultant Arcadis’ city executive for the north Debbie Francis also welcomed the ‘vote of confidence’ in the north by moving parts of Government to Darlington. But, she added: “We must still ensure real powers and funding are devolved to Metro Mayors and local leaders.”

CIHT also welcomes focus on supporting apprenticeships and, responding to an announcement that high street shops and hospitality firms will be able to apply for grants from a £5Bn fund to help them reopen after lockdown, emphasised: “The role that transport and places play within supporting high streets is vital and having well maintained highways, footways and cycle paths will be important in supporting this sector get back to business.”

A further announcement by the Chancellor was to cancel a planned increase in fuel duty, meaning there has now been no rise in this tax for 11 years. This is likely to be criticised some by transportation professionals. But RAC head of policy Nicholas Lyes said: “Many drivers see their cars as a safe way to carry out essential journeys and believe having access to a vehicle is even more important as a result of the pandemic. If the Chancellor had raised fuel duty, he could have risked choking any economic recovery as it would have led to increased costs for consumers and businesses.”

The Budget also coincides with the publication of the Government’s new Build Back Better plan for growth, setting out how planned investments in infrastructure, skills and innovation will drive the UK economy.

Asphalt Industry Alliance chair Rick Green criticised the lack of a new funding settlement for local roads in today’s Budget. “What was needed from the Chancellor today was a five year commitment to investing in local roads, to allow local highway authorities to plan ahead and implement a more cost effective whole life approach to upgrades and maintenance,” he said.

(Photograph: HM Treasury)