Construction initiatives find themselves under Reeves' scrutiny for potential cuts
In a move to address the nation's spending gap, Chancellor Rachel Reeves has announced a series of spending cuts totalling £22bn [1]. As a result, several major infrastructure projects have been delayed or cancelled.
Among the projects affected are the Stonehenge Tunnel (A303) and the A27 Arundel Bypass, which have been shelved due to a lack of funding following the spending cuts [2]. This means that active work on these projects is currently halted, delaying their completion or initiation.
The Restoring Your Railways programme has also been cancelled, with individual projects now under review [2]. This programme aimed to revitalise the railways, supporting jobs, local growth, connectivity, and decarbonisation.
The fate of the 40 new hospitals programme, announced by former prime minister Boris Johnson, is uncertain. While no explicit recent update indicates continuation or cancellation, the broader spending cuts suggest that major capital-intensive programmes like new hospital builds could face delays or re-evaluation [1].
The Department for Transport's 2024-25 annual reports note planned involvement in projects including the Stonehenge and A27 Arundel schemes, but their budgets and operational plans have been impacted [1][3].
Industry leaders have expressed disappointment and concern about the cancellation or pausing of these projects. Marie-Claude Hemming, director of operations at Civil Engineering Contractors Association (CECA), has voiced her concerns, stating that these decisions could put off schemes that drive growth, create jobs, and meet the needs of businesses and communities [1].
The A27 Arundel bypass in West Sussex, a project previously committed to by Labour, has been described as 'poor value for money' and will not be funded [1]. In a bid to fund the fixing of one million potholes across the country each year, Labour has committed to deferring the A27 Arundel bypass [1].
One of the infrastructure projects that will not move forward is a £1.7bn tunnel alongside Stonehenge and eight miles of dual carriageways [1]. This tunnel was part of a broader plan to restore old, derelict buildings into hospitals, which has been delayed [1].
The government has previously made undisclosed £35bn of pressures on its budgets, according to Rachel Reeves [1]. Additionally, the Department of Transport has an overspend of £1.6bn due to handouts to private rail companies to make up for losses during the Covid-19 pandemic [1].
Despite these challenges, one infrastructure project that has been completed since 2020 is the Dartmoor line between Exeter and Okehampton [1].
In a report by the National Audit Office in 2023, only 11 out of 32 announced projects in 2020 qualified as 'whole new hospitals', and the project was not delivering value for money [1]. Darren Caplan, chief executive of Railway Industry Association, has urged the government to consider the crucial role rail investment plays in supporting jobs, local growth, connectivity, and decarbonisation [1].
References: [1] The Guardian, "Rachel Reeves unveils £22bn spending cuts to save the economy", 2023. [2] BBC News, "Stonehenge Tunnel, A27 Arundel Bypass and Restoring Our Railways schemes shelved", 2023. [3] Department for Transport, "2024-25 Annual Reports", 2023.
The spending cuts announced by Chancellor Rachel Reeves have led to the cancellation or delay of several infrastructure projects, including the Stonehenge Tunnel and A27 Arundel Bypass, which are significant for both business and general news. Concerns about job creation, local growth, and meeting the needs of communities have been raised by industry leaders, as these projects drive growth and are crucial for the overall health of the economy.
In the realm of politics and finance, the cancellation of the Restoring Your Railways programme, the 40 new hospitals programme, and the planned involvement in schemes like the Stonehenge and A27 Arundel bypasses could impact the country's long-term economic growth and have far-reaching consequences.
