The Chancellor’s message is that his Budget will offer "long-term solutions to long-term problems”, with announcements which are " pro-infrastructure and pro-devolution" and to make Britain “fit for the future”.
Most importantly, the Chancellor confirmed his support of the National Infrastructure Commission’s “impressive” recent reports on Crossrail 2, smart power and greater transport connectivity in the north.
In particular, he confirmed that Crossrail 2 will be commissioned, he gave the green light to HS3 and confirmed he will adopt all the recommendations on smart energy. This includes ICE’s recommendations for reducing regulatory barriers to greater deployment of electricity storage.
The Chancellor also set out areas for the Commission to carry out further work and to provide targeted recommendations to the Government, including helping the UK become a leader in 5G infrastructure and to maximise the potential of the Cambridge – Milton Keynes – Oxford corridor, as a single, knowledge intensive cluster.
ICE’s East of England Regional Director Glen Owen said: “The confirmed financial backing for vital transport projects in the North is excellent news. The next step should be to underpin this commitment with an integrated plan embracing a mix of ambitious, transformational projects alongside smaller scale investments. If the plan can be developed swiftly, it will maintain confidence in the vision and enable the benefits to be felt sooner. Similarly, the funds allocated to develop the case for Crossrail 2 are welcome, but this should move forward at a good pace so the hybrid Bill can be submitted in Parliament.
“While the headlines are focused on important large projects, the upkeep of our existing infrastructure – from flood defences to local roads – should not be forgotten. We await details on any local authority cuts and the impact on maintenance budgets, and will continue to encourage a shift from reactive patch-up work towards a ‘whole life’ approach to infrastructure investment.”
Read the full speech, wider summary and accompanying documents.
Relevant infrastructure announcements
Transport
- Confirmed that Crossrail 2 will be commissioned - £80 million funding.
- Green light for HS3 - £60 million announced to develop plans to cut journey times to around 30 minutes between Leeds and Manchester, as well as improving transport connections between other cities in the north.
- New funding for a four lane M62.
- New tunnel road from Manchester to Sheffield.
- Upgrades to A66 and A69.
Flooding
- A £700m boost in funding for flood defences by increasing the standard rate of insurance premium tax by 0.5% (all extra funds raised committed to flood defences).
- Go ahead for flood defense schemes for York, Leeds, Calder Valley, Carlisle and across Cumbria.
- Review under way with Environment Secretary (Liz Truss) and the Chancellor of the Duchy of Lancaster (Oliver Letwin) to determine how the money is best spent.
Economic headlines
- OBR pronounced that a vote to leave the EU could usher in an extended period of uncertainty, with negative implications for economic activity and greater volatility in financial markets.
- OBR revised down the UK’s growth forecasts but Chancellors says UK is still set to grow faster this year than any other major advanced economy in the world.
- UK on course to achieve a budget surplus.
- Target to lower debt as share of GDP missed.
- Government spending set to fall to 36.9% of GDP by 2020, a further cut of an extra £3.5bn a year up to 2019/2020.
- UK productivity growth forecast revised down.
- Inflation forecast for 0.7% this year and 1.6% next year.
- Unemployment rate falling fastest in North East and youth unemployment falling fastest in West Midlands.
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