Rishi Sunak Announced as new Prime Minister: what does this mean for the highways and transportation sector?

27th Oct 2022

Rishi Sunak has taken over the role of Prime Minister following the resignation of Liz Truss. What does this mean for the highways and transportation sector?

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The last 8 weeks have been quite a turbulent time for the UK Government in a time where the country – and the sector – needs certainty. This has been made increasingly difficult with endless ministerial changes and different policy priorities.

Last month (23 September) saw the previous Chancellor and PM – Kwasi Kwarteng and Liz Truss – present a mini budget, Growth Plan 2022 document, outlining a number of ambitious promises and policy initiatives to try and deliver growth for the UK economy.

The Growth Plan had a real focus on the speeding up of road infrastructure projects, ones that will have been welcomed by many CIHT members and partners working on these schemes.

With much of the Growth Plan now scrapped by the new chancellor, Jeremy Hunt, the focus has now turned to ‘balancing the books’ rather than the growth, growth, growth mantra of the Truss Government.

 

Certainty is needed

While the Growth Plan outlined a number of infrastructure projects important to that of CIHT members, “Presence on this list does not guarantee…funding, planning consent or approval for other regulatory or permitting processes” (Growth Plan 2022, p. 35). With Jeremy Hunt’s budget now delayed to 17 November, there is now even greater uncertainty as to whether there will be appropriate funding to carry out the acceleration of infrastructure projects outlined in the Growth Plan.

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.

CIHT has previously called for a National Transport Strategy (NTS) that should include the strategic and local highway networks, rail, aviation and ports and set out how those networks integrate with one another, and for a new focus on the Local Highway Network. 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 known as the largest emitter. Therefore,

CIHT will look forward to seeing how the new PM and Chancellor make sure that certainty is brought to the highways and transport sector and will be a priority area for investment in the full autumn statement. 

Ministerial changes at DfT

The Department for Transport sees Mark Harper MP come in as the new Secretary of State for Transport, replacing Berwick-upon-Tweed MP Anne-Marie Trevelyan who was appointed by Liz Truss’ Government back in September.

Sue Percy, CEO of CIHT said:  'CIHT would like to congratulate Mark Harper on becoming transport secretary and CIHT look forward to working with him and his team'.

CIHT would also like to congratulate those who have recently been promoted to ministerial roles by Rishi Sunak, including Jesse Norman MP who returns to DfT.

 

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