Chancellor's transport infrastructure commitment questioned across the media

The Chancellor's support for infrastructure upgrades has been questioned, with transport described as a "weak point" in the Budget, with public-sector investment continuing to decrease as a share of the economy.

 

The Independent commented: "The last remaining conventional stimulus that governments can use is investment in infrastructure. On this, the Chancellor can be faulted. He sees what to do, but won’t let himself do it. Six years ago he published a National Infrastructure Plan. Last October he set up a National Infrastructure Commission headed by the vigorous Lord Adonis. But [the Chancellor continues to say he] won’t borrow to pay for infrastructure investments, even though the British Government can currently raise funds that don’t have to be repaid for 30 years at 2.3 percent per annum.

 

"He might have to say to his children’s generation: “We knew there was a problem with infrastructure. We could have borrowed long-term money at just over 2 per cent per annum to build what the nation required – but we did nothing.”

 

The Evening Standard’s Jim Armitage said that the money the Chancellor announced to progress Crossrail 2 and projects in northern England was “barely a grain of sand in the desert-like lack of investment in roads, rail, schools and public housing over the past 40 years”. He said: “ Rather than continuing to drive through his cuts agenda today, the Chancellor could have taken advantage of near-zero interest rates to get more much-needed projects off the ground. Delivering projects to make the country more efficient for decades to come is the right way to “put the next generation first” and reverse our dismal record on productivity, not deeper austerity.”

 

“Private sector investors say they want to get involved in building roads, rail, schools and hospitals, but they need the Government to put more cash in as well to make them less risky.”  

 

While The Economist says that George Osborne "talks a good game on infrastructure," [but this was] "a weak point in the budget". It commented that after the Budget, "2020 public-sector investment as a percentage of GDP is forecast to be about half its level in 2010. Britain is slipping down international rankings of infrastructure quality." It had stated in the run-up to the Budget stated that, without an additional injection of cash, alternative ways of improving services would be needed.

"Fortunately, as well as building shiny new stuff there are also low-cost ways of improving infrastructure. Transport nerds favour ripping seats out of certain carriages in commuter trains, making them look more like Underground trains and thus increasing their capacity... Those willing to stand could pay less. “Smart motorways”, which were first deployed in 2006, use the hard shoulder as an extra lane at busy times. One plan popular with economists is to use “dynamic pricing”—similar to that used by taxi apps—where prices rise at peak times to discourage people from travelling. This could soon be a reality."