Spending Review: Biggest winners and losers in transport and infrastructure
Rachel Reeves is set to unveil billions of pounds of investment this week in the spending review, as she looks to fend off criticism over recent cuts.
This has made transport and infrastructure one of the big winners of Wednesday’s official announcement.
Some £15bn has already been earmarked for public transport projects outside London in areas such as Greater Manchester and the West Midlands.
The move was lauded as a “big bet” on northern growth by leaders in the region, who are urging the government to close a chasm in investment between the south-east and the rest of the country.
There is a more general push by the government to increase spending outside the capital, which could play out in future infrastructure funding.
The Chancellor is expected to rip up the Treasury’s green book, which determines what UK projects receive funding and has been criticised for a perceived pro-London bias.
Regardless, a number of long-awaited projects are in the spotlight ahead of Wednesday’s announcement.
Sizewell C: Government to back nuclear
Sizewell C nuclear power station, a joint-venture between the UK government and France’s national energy firm EDF, is awaiting a final go-ahead from ministers.
The project’s chief executive Julia Pyke said on Monday she was “very optimistic” this would come on Wednesday, however there have been reports that Starmer may give approval in July at an Anglo-French conference in London.
Ministers may also outline plans to build mini nuclear power stations, known as SMRs, in England and Wales.
The spending review is the final chance this parliament for the government to back nuclear energy and comes amid talks between EDF and UK officials to buy back a number of sites.
Nuclear looks set to take centre-stage.
TfL funding, Bakerloo Line and electric vehicles
Back in the capital, Transport for London (TfL) is again hoping for more funding after missing out during the Spring Statement.
London’s transport operator has managed to turn things around to some degree following a dire few years post-Covid.
However, it still lacks the multi-year funding arrangement it claims is crucial for significant upgrades.
It has submitted a business case to ministers for a long-term funding deal for projects including upgrading the Bakerloo Line and the London Orbital.
British carmakers have also called for fiscal measures to boost the transition to electric vehicles (EVs).
Many manufacturers are struggling against a tough economic backdrop and competition from Chinese manufacturers. Stellantis’ shutdown its Luton facility earlier this year, while there is uncertainty surrounding the future of Nissan’s Sunderland plant.
Carmakers’ requests include halving VAT on new purchases, while equalising VAT on public charging with home rates.