£420m for potholes – and an end to PFI

Philip Hammond made a series of announcements when it came to transport and infrastructure.

There was some announcements on transport schemes in the North but the biggest news was the decision to bring down the curtain on Private Finance Initiatives.

The policy of using private finance to pay for public schemes such as schools and hospitals was introduced by Tony Blair’s first Labour Government.

The Chancellor said that there is compelling evidence that PFI does not deliver value for taxpayers or genuinely transfer risk to the private sector.

However, the Chancellor says the government will honour existing contracts and a centre is being set up to handle PFI schemes.

Mr Hammond announced that the Transforming Cities Fund, which aims to “address weaknesses in city transport systems in order to raise productivity and spread prosperity”, will receive an extra £2.4bn.

There will also be an additional £37m of development funding for the Northern Powerhouse Rail, which is a cross-pennine rail links between northern cities including Liverpool, Manchester, Leeds, Bradford, Huddersfield, Sheffield and Hull.

The Chancellor also announced that more money is being made available to tackle potholes with winter just around the corner.

£420m will be made available to Local Highways Authorities “to tackle potholes, bridge repairs, and other minor works in this financial year”.

He added: “Every Member of Parliament will testify that potholes are high on the public’s list of concerns.”

There was also extra money for transport schemes.

This will include an extra £90m to trial “new models of smart transport”, including ‘on demand buses’ – which he says mean taxis.

And he also said he wanted to help British exporters.

As a result E-passport gates at Heathrow and other airports across the country which are currently only available to EEA nationals will also be able to be used by visitors from the US, Canada, New Zealand, Australia and Japan.

Finally – there was an attempt at toilet humour with the announcement there will be a business rates relief for public lavatories.

Announcing the rate relief he said: “So that local authorities can, at last, relieve themselves.

“For the convenience of the House and without wishing to get unduly bogged down in this subject this relief will extend to any such facilities made available for public use, whether publicly or privately owned.

“Honestly, this is virtually the only announcement in this budget that hasn’t leaked.”

 

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