Flood defence work gets £700m Budget boost

Aaron Morby 1 year ago
Share

Chancellor George Osborne has pledged to pump £700m extra spending into boosting the country’s battered flood defences.

Chancellor maintains momentum for next wave of major projects
Chancellor releases vital kick-start funding to maintain momentum behind next wave of major projects

The extra cash will bring forward urgently needed schemes in the worst hit areas across Cumbria and Yorkshire.

In today’s Budget the Chancellor said he would find the cash from raising the standard rate of Insurance Premium Tax by just half a percentage point.

He said: “The urgent review already underway by the Environment Secretary and the Chancellor of the Duchy of Lancaster will determine how the money is best spent.

“But we can get started now. I have had many representations from colleagues across the House.

“So we are giving the go ahead to the schemes for York, Leeds, Calder Valley, Carlisle and across Cumbria.”

Osborne has confirmed Government backing for the HS3 project between Leeds and Manchester and Crossrail 2 in London.

In hard cash terms, the Government will release £60m to develop plans to cut journey times to around 30 minutes between Leeds and Manchester, as well as improving transport connections between other cities in the north.

A further £80m will be released to fund development work for the Crossrail 2 link to connect south west and north east London.

The Chancellor said the Treasury was also brining forward £161m by two years to create a 4-lane M62, and will develop the case for a new tunnelled road from Manchester to Sheffield. In the North Pennines he also pledged to bring forward upgrades to the A66 and A69.

The government will also spend £50m on a world-leading centre for food and health research at Norwich, £2m refurbishing the Hall for Cornwall in Truro, and £5 million support to the Shakespeare North project to establish a new theatre in Knowsley.

“Across Britain this Budget invests in infrastructure – from a more resilient train line in the South West, to crossings at Ipswich and Lowestoft in the East – we are making our country stronger,” he added.

Further Budget infrastructure project details; Northern Power project start dates.

Budget 2016

Industry response

Mark Perkins, managing director at Wates-owned SES Engineering Services, said: “The next five years certainly looks bright for UK infrastructure, let’s hope that the reflected benefits of these developments are really felt in the wider economy and industry.”

Mark Cleverly, Head of Commercial Developers at Arcadis, said: “The outlook for population growth and prospects for development activity rippling out to the commuter towns and locations in the South East benefitting from Crossrail 2 now look very strong indeed, whereas the Northern Powerhouse cities of Manchester, Leeds potentially appear set for a golden period of regeneration.

“These infrastructure investments could pave the way for a re-balancing of the country and a 20 year renaissance in property development across the Midlands and the North.”

Dave Sheridan, Chief Executive of Keepmoat, said: “The reform to business tax, reduction of business rates and corporation tax will allow small businesses in our supply chain to grow quicker and become more stable, which will only help the housing sector in the long term. 

“The cut in capital gains tax may encourage landowners to sell their land to developers without fear of high tax rates, which could open up more opportunities for building much needed homes. “

Tony Kearns, operations director for rail at WSP | Parsons Brinckerhoff, said: “This commitment to major railway investments nationwide gives the engineering sector the confidence to recruit in preparation and develop the skills the industry needs to deliver these ambitious schemes.

“We now need the education sector to play a role in encouraging more young people into engineering to help us produce more high quality rail engineers.”

Institution of Civil Engineers director general, Nick Baveystock, said: “While the headlines are focussed on important large projects, the upkeep of our existing infrastructure – from flood defences to local roads – should not be forgotten.

“We await details on any local authority cuts and the impact on maintenance budgets, and will continue to encourage a shift from reactive patch-up work towards a ‘whole life’ approach to infrastructure investment.”

Latest news

Plans in for £400m Kent housing scheme

Medway's 1,400-home Rochester Riverside plan submitted
2 hours ago

Hotel contract row forces Primus into CVA

Contractor set up by former Multiplex boss Martin Tidd faces cash flow crisis
1 day ago

Manchester’s tallest building set for green light

Allied London's most ambitious scheme so far set for approval
1 day ago

Morgan Sindall hunts top talent at virtual jobs fair

Construction & Infrastructure division takes careers event online to boost diversity
1 day ago

Landmark VAT ruling on student rooms projects

Tax tribunal overturns HMRC’s VAT policy on student accommodation
1 day ago

Grenfell cladding fire test verdict due next week

Government slashes estimate of residential blocks at risk from 600 to 208
1 day ago

£100m East Riding prison gets green light

Category C jail to be built next to HMP Full Sutton, near York
1 day ago

GSK scraps £350m Cumbria pharma plan

Pharma giant will invest extra £140m existing facility expansion
1 day ago

Specialists land first trade packages at huge Berkeley site

Main construction starts on 88-acre Southall Waterside site
2 days ago

Electrification plans scrapped on three major rail routes

Contracts worth millions axed as Government switches focus to new train technology
2 days ago

Project delays dent Clugston results

Contractor confident about future prospects following a "challenging" year
2 days ago

UK drags Skanska Europe into £40m loss

Skanska chief aims to cut operational costs and tighten risk management
2 days ago

McLaren set to bag £45m Lakeside extension

Contractor beats off McAlpine, ISG and Sisk to take Essex retail deal
2 days ago

Demand grows for immediate revamp of building regs

Local council chief attacks BRE, contractors and manufacturers for not sharing previous fire test results
2 days ago

Canary Wharf Contractors pays £11,000 tax on £70m profit

Company offsets £13.9m Corporation Tax bill against losses at other group divisions
3 days ago

Mount Anvil plans 1,000 flats in London Royal Docks

Deal with London ExCel centre paves way to build block of apartments
2 days ago

Consultant RLB stages mass raid on Mace managers

Five senior figures jump ship to join rival
3 days ago

Ministers reject client levy option in Farmer Review

Government backs most calls for reform but stops short of 0.5% charge on clients
3 days ago

Construction and fit out boost profits at Morgan Sindall

Contractor bucks recent sector trend by telling City to expect higher than predicted profits
3 days ago

Lendlease ordered to pay £14.8m for city tower falling glass

Cladding contractor to pick up bill after 15-foot glass pane fell from 17th floor
3 days ago

Civil engineers act to avert Grenfell-style disasters

ICE launches review of lessons from tower tragedy to avoid infrastructure failures
3 days ago

Man killed in derelict church collapse

Tragedy at Cardiff site where old church was being demolished
3 days ago

CH2M and BDP to lead revamp of Parliament

Firms to assess scale of work needed ahead of potential £4bn restoration
3 days ago

Wates southern boss joins Midas

Peter Whitmore charged with growing turnover in the south to £100m
3 days ago

Willmott Dixon wins £24m laser testing centre

Another major win for contractor at Harwell Science Campus
3 days ago

HS2 confirms shortlists for new stations

Design teams battle to win trio of stations as development partners fight for major Euston site
4 days ago

Willmott Dixon starts redundancy talks as divisions merge

Contractor confident most housing staff will be redeployed during merger into main construction arm
4 days ago

Tower crane drivers hold ballot over summer strikes

Unite warns of widespread project delays as dispute with HTC Wolffkran intensifies
4 days ago

Government confident Carillion JV will deliver HS2 deals

Rail chiefs seek guarantees from joint venture partners
5 days ago

Site start next month for £70m Broadgate revamp

Facelift for 1 Finsbury Square as tech firm Mimecast set to move in to financial hub
4 days ago

Contractor services