Budget: Funding secure for Metrolink extension

MAJOR infrastructure projects in the North West, Yorkshire, and West Midlands all received a welcome boost in today’s Budget with a Government commitment to continue funding despite the record peace-time deficit.

The announcement means projects such as the extension of the Manchester Metrolink and the £600m redevelopment of Birmingham’s New Street Station are ring-fenced.

Chancellor George Osborne said an agreement to fund the infrastructure improvements was a vital step forward in helping to rebalance the economy in the regions.

“As a step towards rebalancing our economy, we are today announcing support for those regions more dependent on the public sector,”he said.

“First, even when money is so short, we will commit to these important regional transport projects:

•The extension of the Manchester Metrolink;
•And improvements to the rail lines to Sheffield and between Liverpool and Leeds.
•The redevelopment of Birmingham New Street station;
•The upgrade of the Tyne & Wear Metro;

He also announced the creation of a large Regional Growth Fund to provide finance for regional capital projects over the next two years, the full details of which will be announced shortly.

However, priority will be given to projects that have the greatest impact on innovation and jobs.

In other transport measures, Mr Osborne said the Government would also look to dispose of assets which he said, “should rightly be in private ownership”.

These include the sale of High Speed 1, while he said the Government would also look at disposing of its shareholding in NATS, the national air traffic control service.

The haulage sector will have been relieved by the decision not to touch road tax duty or fuel, although the proposed increase in VAT in January is likely to have far-reaching consequences for everyone operating in the sector.