Relief as transport projects escape cuts

SUPPORT for the HS2 high speed rail link, the extension of the Midland Metro and the completion of the redevelopment of New Street Station were confirmed by Chancellor George Osborne in his Comprehensive Spending Review today.

The three schemes approved form part of a £700bn package of transport improvements designed to create the economic infrastructure necessary to lead Britain back to recovery.

However, there was confusion surrounding the HS2 link because although Mr Osborne omitted any mention of it in his speech, a press release subsequently sent by The Treasury confirmed support for the scheme.

In his CSR statement to the House of Commons, Mr Osborne said the Department of Transport would receive the largest capital settlement after the UK’s defence requirements are met.

Over the next four years, £30bn will be spent on transport projects – more than was invested during the past four years.

Of this, £14bn will fund maintenance and investment on the railways. Direct bus subsidies will be reduced, but statutory concessionary fares will remain.

The cap on regulated rail fares will rise to RPI +3% for the three years from 2012, but Mr Osborne said this would help pay for new rolling stock as well and improve passenger conditions. 

More details on how the transport budget will be spent will be outlined by Transport Secretary Philip Hammond next week.

Darren Walker, chair of Birmingham Future and associate at Cobbetts, said: “It was interesting that the Chancellor chose to mention the Midland Metro within his transport summary – along with the New Street Station Gateway project.

Spending review at-a-glance: click here

“Hopefully the transport priorities will become clearer with next week’s additional announcements. But in the meantime, while the Metro is not a Birmingham priority, we should be making the most of the opportunity it provides – reducing the strain on existing infrastructure and improving the connectivity across the city for all of Birmingham’s businesses.

“New visitors to the city can now stay on public transport to get from New Street to Snow Hill – hopefully, making it easier for those travelling to Colmore Business District via Snow Hill.”

Some of the projects Mr Osborne confirmed would go ahead are:

In Yorkshire and Humber, capacity on the M62 will be expanded, £90m will be spent to improve rail platforms across various towns and cities and there will also be improvements to line speeds across the Pennines.

In the North West, investment will take place in rail electrification between Manchester, Liverpool, Preston and Blackpool and there will also be funding for a new suspension bridge over the Mersey at Runcorn.

In the East Midlands, the M1 and A46 will be improved.

In the West Midlands, the Midland Metro will be extended and Mr Osborne reaffirmed the commitment announced by the previous Labour Government to completely redevelop Birmingham New Street station.

Confirmation of HS2, the high speed rail link which will run between London and Birmingham before splitting off to Leeds and Manchester, came in the subsequent Treasury press release.

In London, the M25 will be widened between 10 different junctions and improvements to the A3 at Hindhead will be completed.

On top of the Olympics, a major investment in the capital city’s transport infrastructure will also take place.

Crossrail will go ahead and key Tube lines would also be upgraded, said the Chancellor.

“This is nothing like the complete list,” said Mr Osborne. 

“So yes, we are saving money and putting the state on a more sustainable footing, but even then we will still be spending tens of billions of pounds on Britain’s future infrastructure.

“Next week we will also set out our national infrastructure plan – so that private money is also put to work in building for this country the economic infrastructure our businesses need.”