Budget: investment is welcomed but concerns persist over skills shortage
The Government says it will provide a total of £4.2 billion in funding from 2022-23, for five-year funding settlements for the eight Mayoral Combined Authorities.
In its Budget statement, the Government said: “While it will be for elected Mayors to put forward ambitious plans, the Government would welcome the opportunity to support a range of schemes such as the renewal of the Sheffield Supertram, the development of a modern low-carbon metro network for West Yorkshire, and tram-train pilots in Greater Manchester.
“As a first step, the Government will open discussions with Greater Manchester, Liverpool City Region and the West Midlands in the coming months.”
However, major decisions on infrastructure spending must await the publication of the National Infrastructure Commission’s National Infrastructure Strategy, which is promised in the spring.
Chancellor of the Exchequer
Rishi Sunak says the Government will also spend £20 million on developing the Midlands Rail
Hub, retain rail’s ability to use
‘red diesel’, spend £500,000 on
Bradford, and build a new station at Cambridge South.
The measures were announced in the Spring Budget on March 11. Other measures include £317m for West Yorkshire Combined Authority, including £38.9m for an upgraded station at Halifax and a tram-train station at Magna (Sheffield).
Reaction to the budget was broadly positive. Railway Industry Association Chief Executive
Darren Caplan acknowledged the difficulties that the Government faces with the ongoing Coronavirus epidemic, adding: “Looking to the long term, it is clearly welcome that Chancellor Rishi Sunak has re-committed the Government to infrastructure spending and rail investment, including backing major projects like Midlands Rail Hub, HS2 and Northern Powerhouse Rail. We also look forward to seeing the upcoming National Infrastructure Strategy, which we encourage the Government to publish as soon as possible.
“From the railway industry’s perspective, rail suppliers are excited and ready to deliver this ambitious programme of investment to ‘level up’
opportunities and unlock the full potential of UK rail.
“However, as we set out in our submission to the Budget last month, there are five ‘crunch points’ which could act as a barrier and hamper the sector’s ability to deliver the world-class railway everyone would like to see. These ‘crunch points’ are renewals, rolling stock, enhancements, decarbonisation and digitalisation.
“Investment in each of these areas can be characterised in terms of ‘boom and bust’, with some not ramping up until the middle of the 2020s - meaning a real shortfall in the next five years, when rail businesses need to be boosting capabilities and investing in people to deliver.
“So we urge the Government to work with the Railway Industry Association and our members to find solutions to these crunch points - for example, by bringing work forward from Control Period 7 into CP6 - and to smooth out ‘boom and bust’ investment so that we can continue to develop customer-focused rail in the UK and to increase UK plc’s offer abroad.”
Northern Powerhouse Partnership Director Henri Murison was also pleased with the Budget, saying: “A northern Chancellor has given a budget which makes a credible start towards levelling up - closing the North-South divide by investing in the infrastructure which will underpin the Northern Powerhouse. Ensuring those living and growing up here today can take advantage of the opportunities that will be created here is the challenge for the Comprehensive Spending Review.”
However, recruitment specialist Samuel Knight International sounded a warning of growing skills shortages in the rail industry.
“The current reality is the rail talent pool is nowhere near deep enough to support the scale of projects being lauded today,” said rail industry specialist Craig Charlton.
“More than 50,000 more people will be needed to work in rail between now and 2033. With new investment, the need for more people will be even greater. We also face a worrying challenge of a retiring workforce, with more than 40% of all registered engineers now aged 50 and above.
“Government and industry need to come together to plug the skills gap and bring new talent into the industry. To attract more diverse talent to the industry, we need to ensure it is promoted as an attractive career, where the forward-thinking, eco-friendly opportunities and prospects within the rail industry are clearly outlined to all.”
Campaign for Better Transport Chief Executive Darren Shirley criticised the Government’s decision to freeze fuel duty, saying that it has fuelled an increase in private car use.
“The Treasury should now look to replace fuel duty and Vehicle Excise Duty from 2025 with a road use charge based on distance travelled, time of day, and how polluting the vehicle is. The revenue raised by this charge should be retained locally and invested in public transport,” he said.
NIC Chairman Sir John Armitt, described the Government’s level of ambition as “welcome”, adding: “We are particularly encouraged by today’s announcements on five-year funding settlements for city leaders to invest in local transport improvements, and by the additional investment in electric vehicle charging points, both of which are in line with our National Infrastructure Assessment recommendations.”