The first Budget Statement from the new Labour government has set out spending plans for the year ahead, as well as outlining the government’s intention to deliver a more regularly updated Spending Review. There has been widespread reaction across the rail sector.
Richard Risdon, Managing Director for UK and Europe at Mott MacDonald, has responded to the announcements. He said: “Today’s confirmation on the changing of the fiscal rules, which could free up significant funding for major projects, shows that the government has recognised that growth is not possible without investment in infrastructure. This has the potential to create a longer-term approach to investment that is comparable with other nations in Europe. The benefits extend to more than creating a firmer pipeline of work for us as an industry – the new assets it funds will deliver a better outcome for society too.
“The plans set out by Sir Keir Starmer for a mission led government are key to achieving net zero but can only be delivered in the timescales planned through consistent investment in infrastructure. The new funding detailed today is critical for delivering those environmental improvements and creating climate resilience for the UK, while also improving public services and connectivity with better access to jobs and services.
“Hearing the government’s commitment to progress HS2 from Birmingham to Euston demonstrates their understanding of the role of connectivity in delivering economic growth and opportunities.”
Richard Robinson, AtkinsRéalis President – UK & Ireland, said
"This Budget has cemented the importance of infrastructure investment as the catalyst for economic growth across the UK.
"We’re encouraged by the commitment to a long-term programme of infrastructure renewal which will underpin the economic and social opportunities that will define communities for generations to come: greater connectivity from improved transport links, more affordable, high quality homes, and thriving communities and cities through a sustainable, resilient built environment fit for the future.
“We are particularly pleased to see confirmation of funding for key projects including the Transpennine Route Upgrade, tunnelling between Old Oak Common and Euston for HS2, East West Rail and Sizewell C – all of which will secure jobs and investment, giving confidence to the sector.
"We also welcome the commitment to reform the planning system to support the delivery of infrastructure which will drive – rather stifle – growth, and now hope to see a 10-year infrastructure plan and a modern industrial strategy that provide further certainty and stability.
“The government has set a clear direction of travel, and we now look forward to supporting them to get Britain building.”
Railway Industry Association (RIA) Chief Executive Darren Caplan said:
“Ahead of the Budget the Railway Industry Association (RIA) wrote to Chancellor Rachel Reeves urging her to be ambitious in leveraging the full economic potential of UK rail, including supporting private investment.
“Rail suppliers will therefore welcome today’s decision to progress HS2 tunnelling between Old Oak Common and Euston, which means that there will now be a sufficient basis for future north-south capacity, something RIA specifically asked for in our Budget submission.”
Caplan added: “RIA also applauds the Chancellor’s commitment to continue delivering the TransPennine Route Upgrade (TRU), the delivery of East West Rail, and the other announcements to strengthen both national and regional rail connections.
“Additionally, we welcome that the Budget document specifically acknowledges the value rail manufacturing brings in the UK and hope that this will be reflected in the forthcoming Industrial Strategy.
“Looking ahead to the comprehensive spending review and ten-year infrastructure strategy due next year, we hope the Government will consolidate on today's commitments by setting out a long-term investment pipeline for both infrastructure and rolling stock, giving businesses the confidence to continue to invest.
“RIA continues to seek clarity from the Government on both rail enhancements and on leveraging private investment into public infrastructure projects. Rail is a significant enabler of UK economic growth – today is hopefully a first step towards a fresh start for rail, enabling the railway industry to help boost the UK’s economy and it’s productivity in the years ahead.”
Photo credit: HS2
