Wednesday, December 25, 2024

Budget: Five ‘unaffordable’ road schemes scrapped | Construction News

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The government has scrapped five National Highways road projects, saying it cannot afford them.

Treasury documents released alongside yesterday’s Budget show that it is halting work on the A5036 Princess Way, A358 Taunton to Southfields, M27 J8 Southampton, the A47 Great Yarmouth Vauxhall Roundabout and A1 Morpeth to Ellingham schemes.

The documents said: “As part of the government’s commitment to growth, it will take difficult decisions where there is not a clear value for money case to invest.

“After a review, the transport secretary has decided not to progress with the […] unfunded and unaffordable road schemes on the strategic road network.”

The A1 Morpeth to Ellingham dualling project was granted a development consent order in May.

Work on the scheme in north-east England was awarded to Costain in 2021, and was due to be completed by 2025.

The then transport secretary Mark Harper green-lit the project in May, and the previous government said it would be funded from money saved by scrapping the northern leg of HS2.

Contractor Graham and consultant Mott MacDonald were involved in planning for the A47 Great Yarmouth Vauxhall Roundabout revamp.

Norfolk County Council has called for “urgent talks” with the government over plans to scrap the work, according to a report in the Eastern Daily Press.

Kier Highways had carried out surveys for the £345m A5036 Princess Way port of Liverpool bypass scheme.

Designed to reduce “severe congestion” according to National Highways, the scheme was due to pass through Rimrose Valley country park.

But it had already been suspended, along with the Lower Thames Crossing, in March 2023 over cost concerns. The Budget made no mention of the Lower Thames Crossing or how it will be funded. A 10-year infrastructure strategy is due to be published alongside phase 2 of the Spending Review in the spring.

Taylor Woodrow landed the £500m A358 Taunton to Southfields scheme in 2021 but work was yet to begin on the Somerset project.

The £50m M27 J8 Southampton project to improve the junction and the Windhover roundabout had also stalled after the previous government rejected an application from National Highways for the compulsory purchase of property nearby in June 2023.

Civil Engineering Contractors Association (CECE) director of operations Marie-Claude Hemming called on the government to rethink plans to scrap the projects and work with industry on “value-for-money” business cases for them.

“Investment in infrastructure has a significant multiplier effect in terms of creating jobs during construction, boosting productivity on delivery, and delivering gross value-added returns for road users, the supply chain, and ultimately, the taxpayer.

“CECA is strongly supportive of the government’s mission to deliver a high-growth economy but cancelling schemes is counter-productive to this aim, as ultimately they will have to be delivered to meet demand, and inevitably this will mean they will have to be delivered at a higher cost in the future,” she said.

Other Department for Transport announcements in the Budget included confirmation that HS2 will run to Euston, delivery of two more phases of East West Rail, and building the TransPennine Route Upgrade between York and Manchester via Leeds and Huddersfield.

It also said it would invest £200m during 2025/26 in electric vehicle charging infrastructure and more grants to help van drivers switch to electric vehicles.

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