The highways sector reacted with almost one voice to the Spring Budget this week, with leading figures all commenting that the spending did little to support the extensive asset management issues across the network.
There was also a consensus around the more novel point that there seemed to be a lack of long-term planning and vision for local roads. Hamstrung by a lack of funding, the sector suggested that nonetheless more could be done to find a strategy out of the downward cycle of deterioration.
£200m Pothole fund
Trailed prior to the Budget announcement in the Daily Mail, which had run a campaign against potholes, a key announcement for the roads industry was another £200m towards the Government's nominal 'Pothole fund'.
Chancellor Hunt spoke of the 'curse of potholes' but while such talk wins headlines, the cash can be spent far wider than simple reactive defect repair - which in itself indicates the much bigger issues councils are up against.
The Budget document states: 'This increase will enable local authorities in England to fix more potholes, complete resurfacing, and invest in major repairs and renewals, such as keeping bridges and major structures open. Better roads enable faster and safer journeys for all users, contributing to productivity gains. The increase is expected to fix the equivalent of up to 4 million additional potholes across the country.'
He then pushed his point home: 'Unlike other transport networks, there is no visible long-term investment plan for local roads and without one, road users won't see any real improvement in structural conditions on the roads they use every day and on which all other locally provided services rely.'
The Road Surface Treatments Association called for the money to be spent on 'the only way to stop potholes forming in the first place' - namely road treatments and preservation.
In a statement, it also noted that 'more incentives need to be given to local authorities in any future allocations to deliver more proactive work, to reduce the money councils have to spend on pothole repairs and resurfacing'.
Paul Boss, chief executive of the RSTA argued that: 'After the last Spending Review there was a 25-30% reduction in capital funding for highway maintenance and the same again due to the hyperinflation experienced last year, this funding is therefore very welcome.
'The next step is incentivising any future funding for councils to deliver more proactive and sustainable surface treatments which will help keep the roads in a decent state, in better condition for longer and stopping potholes forming in the first place, whilst also reducing carbon generation and protecting our planet for future generations.'
Professor Gooding said: 'Ultimately, whether it is potholes or bridges, we need a long-term deal that would set a sound and steady basis for the maintenance of our roads.'
Fuel Duty
Another key announcement in the road sector was the continuing freeze on fuel duty for another 12 months at least.
Prof Gooding, who was formally director general at the Department for Transport, said: 'It might be tempting to see the fuel duty freeze in terms of a give-away to motorists, but really it is a boost to the economy. Fuel prices are huge part of the household budget of many millions of people and a massive cost to business that is inevitably passed on to consumers.
'We should not feel too sorry for the chancellor. For every litre of petrol and diesel sold to motorists on the forecourts he is still taking about half of the pump price in tax, a mix of fuel duty and VAT. In cash terms that's about £40 every time the tank of an average car is filled up.'
Transport
In the wider transport arena, there was progress on city region funding and deals, with Greater Manchester and the West Midlands in line for more financial devolution under single settlement funding deals.
A second round of the City Region Sustainable Transport Settlements worth £8.8bn from 2027-28 to 2031-32, will also be used to 'increase the devolved powers of mayoral combined authorities' the Treasury suggested, as well as boost more local sustainable transport.
The chancellor also announced 12 'new Canary Wharfs' with Enterprise Zones, each 'investment cluster' will have access to interventions worth £80m over five years, including tax reliefs and grant funding.
And third round of the Levelling Up Fund was announced, due to proceed as planned later in 2023 with a further £1bn to level up places across the UK
Director of economic think tank IPPR North, Zoë Billingham, said: 'Regional growth is key to national growth. The historic trailblazer devolution deals in Greater Manchester and the West Midlands and an intention that others will follow are a huge step forward in empowering local leaders and communities. Through these, the chancellor could set the country on a path to an upgraded form of English devolution to unleash the potential of their areas.
'Twelve re-shaped investment zones are an improvement on their predecessors, but Canary Wharf is a strange model for the chancellor to point to because Tower Hamlets, where Canary Wharf is based, has the highest rate of child poverty in the UK. We need a better model than that. What's more, it was supported by major transport and infrastructure investment – something denied to the North.'
Director of operations for the Civil Engineering Contractors Association (CECA) Marie-Claude Hemming focused mainly on the Government reinvigoration of the British nuclear industry, a sector that has not seen much real progress in decades.
'We welcome the Government's ambitions to support this critical green industry in the UK, and look forward to working with our members and other stakeholders to translate the vision of a new nuclear future into the reality of sustainable, reliable, and home-grown electricity for generations to come.'
Interestingly, there was very little comment on the announcement that the government will withdraw support for Local Enterprise Partnerships (LEPs) from April 2024, with the powers transferred back to councils. Although the lack of reaction might be the most telling comment of all.