Although the headline focus is on the economic emergency due to the impacts of Covid-19, transport infrastructure plays an important role in the Spending Review. The Chancellor, Rishi Sunak announced a once in a generation investment in infrastructure, a National Infrastructure Strategy, a new UK Infrastructure Bank, and a £4bn levelling up fund.

Central to all these budgetary measures is transport.  A key element for the roll-out of the vaccine for Covid-19 will be a functioning transport system, so the network needs investment to maintain it, as it is fundamental to how society functions.  

CIHT welcomed the budget with Sue Percy, Chief Executive saying:

“It was noticeable in the Chancellor’s address just how important investment in transport was to the Settlement – to support economic growth but also to support the Government’s levelling up agenda. Transport infrastructure can deliver many benefits, not just economic, but social, environmental and health benefits also.  CIHT is in the prime position to work with the Department for Transport in its role in building our way to recovery but this must include the wide range of transport modes and not at the expense of delivering on the net zero carbon challenge.”

“Although no specific mention was made of road pricing, CIHT sees benefit in consideration of a form of  pricing system to address not just falling fuel duty revenues but as a measure to achieve carbon reduction.”  

Key figures:

• Capital spending on infrastructure will total £100bn, a £27bn real terms rise from last year.  According to the Chancellor this is the "highest sustained levels of public investment in more than 40 years.”
• A new UK infrastructure bank, to be headquartered in the north of England, will finance infrastructure projects from next spring, alongside the private sector.
  £4bn Levelling up fund:  The chancellor says any local area will be able to bid directly to fund local projects - but they must be delivered within this Parliament "and they must command local support".  They could include a new bypass, upgraded railway stations, less traffic or more libraries, museums, and galleries.
• National Infrastructure Strategy sets out plans to transform UK infrastructure in order to level up the country, strengthen the Union and achieve net zero emissions by 2050.

CIHT will be addingto this review as more emerges from today's announcement.

CIHT submitted a representation to the Treasury that can be seen here.