Summer Statement
Rail industry seeks a greater emphasis on infrastructure as Chancellor omits rail projects from Summer Statement.
“IF we are going to rebound and recover from the impact of COVID19, we need a greater emphasis on infrastructure.”
That was the immediate reaction from Midlands Connect Director Maria Machancoses, just minutes after Chancellor of the Exchequer Rishi Sunak delivered his Summer Statement on July 8.
It had been hoped that transport and infrastructure spending would be included in the plans, with Government consistently saying in recent weeks that major schemes such as building Northern Powerhouse Rail would help the economy recover.
However, in the Summer Statement, Sunak made no mention of any rail projects, while also confirming the winding down of the furlough scheme by the end of October.
He did mention a job retention scheme whereby employers will be paid a £1,000 bonus for retaining employees who had been furloughed, while businesses will also receive a £2,000 bonus for each apprentice they recruit (this drops to £1,500 for those aged over 25).
“The Government has said it is seeking to ‘build build build’ and has recently spoken of an ‘infrastructure revolution’, calling publicly for shovel-ready projects to help reboot a green economy post-Coronavirus. Yet we are concerned that no accelerated rail infrastructure projects were mentioned today, such as those in the Government’s own list of 58 rail enhancement schemes directly within its power to speed up,” said Railway Industry Association Chief Executive Darren Caplan.
“The Chancellor specifically unveiled a ‘Plan for Jobs’ - yet in the current circumstances, few sectors can generate jobs and GVA as quickly as rail.”
Machancoses added: “By accelerating the development and delivery of long-term projects such as HS2 and Midlands Engine Rail, the Government can create highvalue jobs and stimulate sustained investment and regeneration over the next decade. This certainty and commitment is what businesses need.”
She said more details were needed ahead of the next round of announcements in the autumn.
An industry source suggested that Secretary of State for Transport Grant Shapps could be making a specific announcement on transport spending in the week after this issue of RAIL went to press.
Sunak delivered his statement eight days after Prime Minister
Boris Johnson announced
£5 billion of spending on infrastructure - of which only £10 million was for rail, to help unlock capacity on the Castlefield Corridor in Manchester.
Transport for the North Strategic Rail Director David Hoggarth said after Sunak’s statement on July 8: “Getting the green light on infrastructure projects has been slow over the decades, with projects getting caught up in too much red tape and funding decisions being taken in ways that put the North at a disadvantage. This has exacerbated the economic divide.
“While £10m of development funding to help tackle rail congestion in central Manchester is helpful, it needs to be part of a planned-rolling programme of investment which shows real commitment to the region.
“The way to get things moving is to commit to a funding stream on the vital infrastructure projects our people and businesses desperately need. This means committing to a Northern Infrastructure Pipeline of rail and road schemes.”
Hoggarth called for a commitment to both HS2 and NPR in full.
National Infrastructure Commission Chairman Sir John
Armitt CBE said after Johnson’s speech: “To attract private investment to build on the public funding, and to ensure we have the skilled workforce needed to deliver, building schemes need to be set within a longer-term strategy that gives clarity on the future direction of government policy.
“We look forward to seeing more details of the Government’s plans over the coming weeks and, most importantly, in the National Infrastructure Strategy later in the year.”