Now’s no time to cut spending, says DfT

INFRASTRUCTURE

THE UNCERTAINTY created by the UK’s decision to leave the EU should not lead to a hiatus in infrastructure investment, transport secretary Patrick McLoughlin has said. 

In a speech last week, McLoughlin drew parallels between the uncertainty caused by the Brexit vote and the weak economic conditions of 2010 when the Conservatives and Liberal Democrats formed their coalition government. 

“In 2010, one of the first decisions that landed on George Osborne’s desk was the recommendation that he cancel Crossrail,” said McLoughlin.

“The argument was clear: our economy is in crisis and Crossrail will cost billions. Thank goodness the Chancellor saw it differently.

“Yes, we could have used the Crossrail funding to pay down our debt. But diverting that investment would only create new problems down the line.

“The economic boost and extra capacity that Crossrail is bringing is badly needed. Backing out would have shown the short-termism that got us into an economic mess in the first place.

“The case for Crossrail that we came across in 2010 is the same case for new infrastructure now.”

David Cameron’s decision to stand down as Prime Minister this autumn, in the light of the Brexit vote, has further delayed the Government’s decision on airport expansion in the South East. After months of delay, the Government had been expected to announce its preference between Heathrow and Gatwick this month.

The Times reports that the two candidates to become Tory leader and the next Prime Minister have quite different views of HS2. Theresa May supports the project but Andrea Leadsom, is opposed, “arguing that it is not vale for money”. “She has promised to fight the new line, having written to rail bosses saying it would devastate wildlife habitats,” said the paper.

Tender documents for construction of HS2 phase one were issued last month. Contract awards are scheduled to be made next April.