The Government has signalled its support for the Lower Thames Crossing and said it’s exploring options for privately financing the project.
Speaking today (29 January) in a major speech on plans to kickstart economic growth, Chancellor Rachel Reeves said the Government would work with the private sector to “deliver the infrastructure that our country desperately needs”.
This includes assessing ways for privately financing the 14-mile Lower Thames Crossing, which would link Gravesend in Kent and Tilbury in Essex via a tunnel beneath the river, improving connectivity across vital ports and alleviating congestion.
A decision on whether the proposed crossing will go ahead was delayed for the third time in October, as the Government considers the application further.
A final outcome on the scheme, which will cost around £8.3bn, is expected in May.
Separately today, the Chancellor confirmed backing for a third runway at Heathrow and pledged to build Europe’s answer to Silicon Valley in the Oxford to Cambridge corridor. She also vowed to overhaul housebuilding and planning reform, along with infrastructure rules, while outlining a major boost to the UK’s EV charging infrastructure under the new National Wealth Fund.
‘Half-measures on infrastructure will no longer cut the mustard’
The National Infrastructure Commission said the Chancellor’s speech “recognises that half-measures on infrastructure will no longer cut the mustard”.
NIC deputy chair Julia Prescot welcomed the plans and said accelerating investment in line with the commission’s existing recommendations was essential.
She added: “The Government’s readiness to consider private finance options for the Lower Thames Crossing is also important; the Thames has been a pinch-point on our national road network for too long and a barrier to trade, so anything that helps get this project delivered as early as possible will be a boon for businesses across the country.”
National Highways estimates that the Lower Thames Crossing will be vital for reducing transit times, providing a new route for freight, connecting the North, Midlands and Short Straights, where over half of all goods traded between UK and EU are transported.
Speaking earlier this month, the Lower Thames Crossing Consortium, which represents around 80 major businesses, said an urgent decision was needed.
Jim Dickson, Dartford MP and Consortium leader, said: “This project is more than a road – it is a gateway to new markets, a catalyst for job creation, and a solution to the congestion that constrains constituents and our economy. We need to get on with the job and get the crossing delivered, doubling capacity over the Thames east of London and kick-starting economic growth in the south east.”
And Logistics UK, speaking in Oxford today after the Chancellor’s speech, said nationally significant infrastructure projects, including Heathrow’s third runway and the Lower Thames Crossing, should be progressed at pace to ensure that the country’s economy gets the boost it needs.
David Wells, the group’s chief executive, said: “If nationally important projects such as the Lower Thames Crossing and third runway at Heathrow become a reality, we can deliver goods more efficiently across the country, benefiting everyone nationwide. The Lower Thames Crossing is vital for connecting businesses across the whole of the UK with Europe and must be delivered to address the country’s overreliance on the congested Dartford Crossing. Heathrow is the UK’s biggest port by value, and a critical hub which provides access to the rest of the UK and the world for British business – the opening of a third runway will expand the reach of industry to new global markets both for imports and exports.”
He added: “Logistics in the UK is getting less efficient. The World Bank Logistics Productivity Index shows that the UK has slipped from fourth in the world to 19th in the last 10 years – primarily because of congestion and delays, friction at our borders, and a lack of infrastructure investment.
“If we make the right investments, to get back to fourth in the World Bank index, Oxford Economics suggests that would turbocharge growth across the whole economy.”
