The Budget: HS3, more transport devolution, capital spending protected

The Chancellor today signalled backing for HS3, pledged to protect capital spending despite a further fiscal squeeze, and announced new transport devolution deals.

Osborne said in the Budget 2015 that in the next Parliament despite further deficit-reduction he would want public sector gross investment to be held at the same rate in 2016/17 and 2017/18 in real terms as in 2015/16, and then would want it to grow in line with GDP from 2018/19 onwards. 

He welcomed the soon-to-be-published report on HS3 to create "a network of high-quality rail connections across the North" - a 'TransNorth vision' - to "bring the benefits of HS2 to the North sooner than planned and work towards a single smart and integrated ticketing system across the region".

The Budget announced a new devolution deal with the West Yorkshire Combined Authority to give it new powers over transport and unveiled a new deal with Greater Manchester Combined Authority to allow it to retain 100% of any additional business rate growth it secures through its plans.

He also announced a raft of regional transport schemes, including electrification of the Selby to Hull line; £34m for the development of the Croxley rail link to extend the Metropolitan Line in London to Watford Junction on the West Coast Main Line; to reduce tolls on the Severn River Crossing; a Lowestoft third river crossing; and a study to examine re-opening Plymouth airport. He will "shortly" reveal details of the new Great Western franchise.

And there was £138m investment in a UK Collaboratorium for Research in Infrastructure and Cities to ensure UK infrastructure is resilient; £100m for research and development into intelligent mobility to focus on enhancing the development of driverless car technology; and support for a Smart Cities demonstrator "to showcase new technologies".