Mr Osborne said that one the three pillars of the Spending Review would be growth, ‘to give Britain the education, enterprise and economic infrastructure it needs to win the global race’.
In his speech, he said that the Department for Transport will make a 9% saving in its day-to-day resource budget, with the running costs of Transport for London and rail administration to take a major hit. However he added that its capital budget will rise to £9.5bn – the largest rise of any part of Government – and this commitment will be repeated every year to 2020.
Further details on the government’s infrastructure plan are due to be announced by chief secretary to the Treasury, Danny Alexander, tomorrow (27th June).
The British Vehicle Rental and Leasing Association (BVRLA) welcomed the announcement but added that it believes that Britain’s existing road network also needs greater attention.
BVRLA chief executive, Gerry Keaney, commented: ‘We welcome the Chancellor’s clear message that capital investment in roads and other transport infrastructure needs to be a priority. Nine out of ten passenger miles are travelled on UK roads, as is the majority of freight movement. Britain urgently requires major investment in its roads and road maintenance and we would urge the government to look at a fairer distribution of the £47bn raised in motoring taxes each year. Taxpaying road users deserve more for their money.’
James Hookham, FTA’s managing director – policy & communications, also greeted the news, saying: ‘We welcome the additional funding for infrastructure projects announced today, and are anxious to work with the government to make sure it is invested in those projects on which economic recovery depends. The Chancellor is right to recognise that transport investment is key to the economic recovery; however it is vital that the money made available today is put to work in the right places to deliver the biggest possible benefit to the country. Our list of Trade Routes, which has been supplied to the Treasury, maps where these priorities are in the country.’
Charlotte Morton, chief executive of the Anaerobic Digestion and Biogas Association, commented: 'The Chancellor’s support for greater capital spending on transport infrastructure is welcome. Investment is desperately needed to reduce greenhouse gas emissions from transport, and improve our air quality.
'Major hauliers, logistics companies and others in the transport sector are crying out for natural gas and biomethane to fuel HGVs and buses. On the back of the Spending Review I hope we will see serious investment from government in the infrastructure needed to deliver this.'
