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Chancellor’s transport cuts could “choke off economic recovery”, warns RHA

“A failure to invest in our road network now will mean a failure to tackle the growing problem of congestion on Britain’s roads and choke the economic recovery,” warned RHA chief executive Richard Smith, as Chancellor Rachel Reeves announced significant cuts to transport infrastructure on 29 July. The decision to cancel projects such as the A303 tunnel and the A27 Arundel bypass has raised concerns in the TSL sector about the impact on economic growth and logistics efficiency.

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Pölös Zsófia

Pölös Zsófia

Journalist Trans.info

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2.08.2024

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Cost factor transportation – how can we save on transport costs?

On 29 July 2024, the Chancellor of the Exchequer, Rachel Reeves, unveiled significant cuts to government spending, including cuts to several high-profile transport infrastructure projects. As part of a wider plan to tackle a £22 billion overspend inherited from the previous government, the cancellation of planned improvements to the A303 and A27 and the suspension of the Restoring Our Railways programme were outlined in her statement to the House of Commons. 

The Chancellor’s announcement followed an audit by the Treasury.

“The spending audit has revealed nearly £800 million of unfunded transport projects that have been committed next year,” Reeves stated.

Cuts prompted protests from transport organisations

Transport orgnaisations including the Road Haulage Association, Logistics UK and the Chartered Institution of Highways and Transportation all raised their voices against the announced cuts.

“We are disappointed at the announcements that key infrastructure projects – the A303 Tunnel at Stonehenge and the A27 Arundel bypass will be cancelled. Investment in the Strategic Road Network is a critical part of the Government’s mission to grow the economy,” stressed Richard Smith, Managing Director of the Road Haulage Association (RHA).

Smith further emphasised the economic impact of these cuts, noting that congestion costs the UK economy a minimum of £30.8 billion annually.

Kevin Green, Policy Director at Logistics UK, also voiced concerns about the cuts.

“For too long, investment in improving the UK’s infrastructure has been overlooked, making it more challenging for goods to be delivered to their customers,” Green remarked and added that logistics is crucial for economic growth.

Green also called for a re-prioritisation of key infrastructure projects to support the supply chain and economic recovery.

The Chartered Institution of Highways and Transportation (CIHT) echoed the disappointment but acknowledged the financial pressures faced by the government. Sue Percy CBE, CIHT Chief Executive, said,

“Whilst this is disappointing, it is not surprising given the continuing pressure on public finances.”

Percy urged the government to work with the sector to ensure a sustainable pipeline of transport projects to provide certainty and avoid disruption in infrastructure planning

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