The Chancellor of the Exchequer, Philip Hammond has today made his budget statement.  The Chancellor explained that the economic growth forecast for this year has been raised to 2%. In 2018 growth is forecast to slow to 1.6%, before picking up to 1.7%, then 1.9%, and back to 2% in 2021.

  

The Chancellor announced that whilst the Autumn Statement had been about infrastructure this budget was focussing on the skills to deliver on that investment.

 

Andrew Hugill, Director of Policy & Technical Affairs said:

 

“We welcome the budget statement today which again included a number of announcements that are of significant importance to CIHT.

 

We were pleased to see an acknowledgement of the challenges facing the local road network. Whilst we welcome the offer of funding we are conscious that a number of local authorities are already finding it a challenge to dedicate the resources needed to take part on these types of competition. 

 

“CIHT are working with the government on ensuring we have the necessary skills in the sector to deliver the infrastructure outlined in previous statements. We welcome the added investment in technical qualifications and welcome the provision of the 1,000 additional places for PHD students in STEM related subjects.”

 

Skills

The government is seeking to support the delivery of 3 million apprenticeship starts by 2020.  The chancellor also announced the new T-levels to support 16-19 year olds in Technical education, delivering on the recommendations of the Lord Sainsbury’s panel. £500m has been allocated to assist the roll out. The new framework with have 15 routes to skilled employment, these new routes are focused to meet industry requirements.  For more details on the new T-levels and a further commentary by CIHT on the funding boost for technical education, please see here.

 

• £300m for research talent, including 1,000 PhD places for STEM subjects
• £270m to address disruptive technologies such as robots, driverless cars and biotech

• £90m for the North & £23m for the Midlands as part of a £220m fund to address pinch-points on the national road network. 
• £690 million competition for local authorities across England to tackle urban congestion – the Transport Secretary will announce details of the competition in the next few day. 
• Vehicle Excise Duty (VED) – From 1 April 2017, VED rates for cars, vans and motorcycles registered before April 2017 will increase by Retail Prices Index (RPI).
• HGV VED and Road User Levy – HGV VED and Road User Levy rates will be frozen from 1 April 2017. 
• A call for evidence on updating the existing HGV Road User Levy will be launched this spring. The government will work with industry to update the Levy so that it rewards hauliers that plan their routes efficiently, to incentivise the efficient use of roads and improve air quality. 
• Air Passenger Duty (APD) – APD rates for 2018-19 will be uprated in line with RPI rates for 2019-20 will be set at Autumn Budget 2017 to provide good notice for the airline industry.
• Aggregates Levy – The Aggregates Levy rate for 2017-18 will be frozen at £2 per tonne, continuing the freeze that has been in place since 2009.
• The UK will lead the world in the development, design and manufacture of batteries that will power the next generation of electric vehicles, helping to tackle air pollution.