{"id":503134,"date":"2024-07-29T13:23:33","date_gmt":"2024-07-29T12:23:33","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=503134"},"modified":"2025-03-19T20:10:33","modified_gmt":"2025-03-19T20:10:33","slug":"reeves-eyes-up-cuts-to-infrastructure-projects","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/civils\/reeves-eyes-up-cuts-to-infrastructure-projects-29-07-2024\/","title":{"rendered":"Reeves eyes up cuts to infrastructure projects"},"content":{"rendered":"

Rachel Reeves is set to halt some of the largest government projects in a bid to balance the books, including the New Hospital Programme and Lower Thames Crossing.<\/span><\/p>\n

The chancellor (pictured) is expected to pause or cancel some of the government\u2019s most troubled capital commitments in a speech this afternoon, where she will argue that the previous administration \u201ccovered up\u201d how bad the nation\u2019s finances are.<\/span><\/p>\n

Ahead of the statement, Reeves said: \u201cAll governments face difficult choices \u2013 and I will not shrink from those choices.<\/span><\/p>\n

\u201cThose choices are made harder, however, by the absence of the economic growth necessary to not only balance the books but also to improve living standards.\u201d<\/span><\/p>\n

Among the projects speculated to be at risk are the \u00a39bn Lower Thames Crossing, \u00a31.7bn A303 Stonehenge Tunnel and \u00a320bn New Hospital Programme.<\/span><\/p>\n

The Lower Thames Crossing has already been delayed by planning battles. A decision on whether to grant a development consent order was due last month, but was<\/span> pushed back to October<\/span><\/a> because of the election.<\/span><\/p>\n

Its biggest contracts have already been awarded. The Bouygues-Murphy joint venture won a \u00a31.34bn tunnelling contact last December; Balfour Beatty scooped the \u00a31.2bn job to build roads north of the Thames in January 2023; while Skanska was named as the preferred bidder on the \u00a3450m Kent roads section last July.<\/span><\/p>\n

The New Hospital Programme may also be under threat. Although the Boris Johnson-era pledge was upheld in Labour\u2019s election manifesto, health secretary Wes Streeting told parliament last week that he would<\/span> review the programme\u2019s funding<\/span><\/a>.<\/span><\/p>\n

The news came in the wake of<\/span> health leaders warning<\/span><\/a> that individual trusts had not heard about funding allocations, which was delaying the start of construction work.<\/span><\/p>\n

The Stonehenge Tunnel is another project reported to be at risk. The scheme, to be built by a European consortium, has been subject to a<\/span> drawn-out legal challenge<\/span><\/a>.<\/span><\/p>\n

The<\/span> Sunday Times<\/span><\/i> reported on Sunday that the A27 Arundel Bypass might be cut back. National Highways had already paused the scheme in 2022. A consortium led by Bam Nuttall<\/span> won a \u00a3320 main works package<\/span><\/a> in 2021, but <\/span>Construction News<\/span><\/i> understands Bam is no longer contracted on the scheme.<\/span><\/p>\n

Reeves may also set out the future of the HS2 Euston station, which former prime minister Rishi Sunak said last October would be built with private finance. When asked this morning on Times Radio about reports that HS2 might end at Old Oak Common rather than Euston, senior Labour figure Pat McFadden said \u201cwe will have to examine that like all the other projects\u201d.<\/span><\/p>\n

London MPs have already raised concern that small firms committed to the Euston section of HS2 would likely go into administration if it was cancelled, <\/span>Construction News<\/span><\/i> understands.<\/span><\/p>\n

Marie-Claude Hemming, director of operations at the Civil Engineering Contractors Association, told <\/span>Construction News<\/span><\/i>: \u201cWhile any pause would be disappointing, we hope that Labour\u2019s work to drive growth will bring in the financial support for these projects in the future.\u201d<\/span><\/p>\n

The reports were welcomed by Transport Action Network, a campaign group that has opposed the A303 Stonehenge tunnel.<\/span><\/p>\n

Director Chris Todd said: \u201cThe suggested pause to these white-elephant road schemes is very welcome. However, we would like to see the chancellor go further.<\/span><\/p>\n

\u201cWhile we need to invest in infrastructure, we need to maintain what we have and adapt to climate change first and foremost. Any new infrastructure must be compatible with net zero, and expanding road capacity clearly isn\u2019t.\u201d<\/span><\/p>\n

The cuts come as Reeves publishes the findings of a Treasury spending audit, which she commissioned upon taking up the post earlier this month. She is expected to announce that the Conservative administration overspent the year\u2019s budgets by billions of pounds, after making unfunded promises.<\/span><\/p>\n

Reeves is also expected to announce an \u2018Office of Value for Money\u2019 to scrutinise public spending, using existing civil service capacity.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Rachel Reeves is set to halt some of the largest government projects in a bid to balance the books, including the New Hospital Programme and Lower Thames Crossing. The chancellor (pictured) is expected to pause or cancel some of the government\u2019s most troubled capital commitments in a speech this afternoon, where she will argue that …<\/p>\n","protected":false},"author":149995,"featured_media":503164,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[549,565,39314],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n