The Chancellor George Osborne announced his 2016 budget (16 March) and demonstrated that transport will be crucial to the long term economic health of the UK. 

The Chancellor said:  "Last year I established a new National Infrastructure Commission to advise us all on the big long term decisions we need to boost our productivity."

The Chancellor then outlined how the Government is responding to the Commissions’ recommendations from three reports produced.

Stronger links across northern England:

• Green light HS3 rail link between Manchester and Leeds.  
• Develop the case for a new tunnel between Manchester and Sheffield.  
• Updates to the A66 and A69.
• New four lane M62 for better links between Leeds and Manchester.  

The Chancellor outlined just how crucial transport infrastructure is for the Northern Powerhouse, he said:  "We’ve put in place the mayors, we are building the roads, we are laying the track: we are making the Northern Powerhouse a reality and rebalancing our economy."

He also announced Crossrail 2 and a freeze on fuel duty.  

CIHT comment:

Andrew Hugill, CIHT Director of Policy & Technical Affairs, said:

"Transport infrastructure again takes a leading role in the budget. This is hugely welcome. The National Infrastructure Commission is reacting quickly and giving certainty to enable decisions to be taken, this is good for the sector, and will help move schemes forward.

"The Chancellor's announcement demonstrates just how crucial transport infrastructure is to achieving the aims of the Northern Powerhouse.

"However, the absence of a national transport strategy may end up with unintended consequences. There is also a financial focus on capital, with revenue funding continuing to be squeezed, this issue is particularly acute for local authorities and the local highway network will continue to suffer as a result."