Budget reaction: 'The general election will be crucial for infrastructure'

06/03/2024 | DOMINIC BROWNE

The 'place' and infrastructure sector has expressed dismay at the chancellor's latest Budget, suggesting that more long-term funding is desperately needed.

Anthony Payne, president of ADEPT said: 'There is no escaping the fact that the place-based services ADEPT members are responsible for delivering are struggling.

'A budget focused on cutting tax and a patchwork of investment will do nothing to help local authorities deliver the essential services people rely on every day. Councils across the country are making extremely difficult decisions based on painful choices that will impact everyone, but fall hardest on the most vulnerable in our communities.'

He went on to argued that 'without adequate resource and mitigation to alleviate inflationary pressures' vital local services cannot be delivered.

'We cannot continue to deliver for local places without the certainty of long-term funding settlements.'

Chris Richards, director of policy at the Institution of Civil Engineers (ICE), said: 'Today’s budget confirms that the general election will be a crucial one for infrastructure. It's now been confirmed that the spending review will take place after the election. That means the next government will be responsible for implementing the next National Infrastructure Strategy, delivering the next carbon budget, and reallocating HS2 funds for the North and Midlands.

'Certainty that there will be no significant changes to infrastructure projects and spending before the election is welcome, but there are still many decisions to be made. The ICE will shortly launch a programme of work that aims to spark conversations about what the next government’s day one infrastructure priorities need to be.'

Chancellor Hunt's Budget included an announcement that the Government intends to publish draft legislation on the extension of full expensing to assets for leasing but only 'when fiscal conditions allow'.

Director of Operations for the Civil Engineering Contractors Association (CECA) Marie-Claude Hemming said: 'Our sector is being asked to decarbonise its plant fleet at a time when profit margins are under strain at all levels of industry. Moves towards enabling the full expensing of leased construction plant has the potential to unlock vital funds to enable the roll-out of low-carbon machinery, as well as making it more affordable for the hirers that many contractors use to upgrade their fleets.

'We welcome the UK Government’s stated intention of publishing draft legislation on this issue as a move that it is taking seriously the need to decarbonise UK construction, while enabling businesses across the supply chain to remain profitable.

'At the same time, the condition that these changes will only be implemented ‘when fiscal conditions allow’ potentially implies unnecessary delay to the roll-out of this vital reform. CECA has long campaigned for this change as a means of unlocking necessary investment to help decarbonise our industry.'

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