Industry bodies rue missed opportunities
Asphalt industry Alliance and Construction Products Association respond to Chancellor’s Spending Review
COMMENTING on local roads funding in the Spending Review, David Giles, chair of the Asphalt Industry Alliance (AIA), said: ‘We understand that there are tough funding decisions to be made but it seems as though the Chancellor has missed the opportunity to make a long-term commitment to maintaining our local roads in today’s Spending Review. If this is the case, it will only result in further deterioration of this vital asset and an even bigger bill to put it right in the future.
‘Local authorities have told us they need their highway budgets to more than double for the next five to 10 years if they are going to be able to address the backlog of repairs, which is now almost £17 billion in England and Wales.
‘So, while the Government’s commitment to additional funding for the 2025/26 financial year – the short-term cash injection with greater accountability announced in December – was welcome, it is unlikely to improve structural conditions or reduce road user complaints.
‘It looks like overall Department for Transport roads funding to 2030 has been cut to £24 billion (for both National Highways and local authorities) but further clarity on who will receive what share, how and when, is not evident. Nor is the level to which MHCLG resource funding allocations for highway maintenance may be impacted.
‘That’s why we were hoping that the Government would commit to more certainty within this multi-year Spending Review funding horizon to give local highway engineers the visibility to allow them to ‘….invest in significantly improving the long-term condition of England’s road network…’ and not just manage the decline of the network.
‘Ultimately, investing in local roads provides an effective return on investment for tax payers – provided that investment is sustained. It feels as if another opportunity has slipped by to help drive growth and make a lasting change to the condition of the roads on which we all rely.’
Responding for the Construction Products Association (CPA), economics director Professor Noble Francis said: ‘Clearly, it was a challenging Spending Review for the Chancellor, given that the Government is keen on sticking to its fiscal rule, but it was positive that the Government announced £39 billion for social and affordable housing over the next 10 years. This provides much-needed certainty and investment in housing over the long term, as well as a structural uplift to social and affordable house building.
‘However, given that the vast majority of housing in the UK is private, affordability remains the most significant constraint to house building in the short term, and the lack of a policy to enable demand for first-time buyers remains a great concern.’
He continued: ‘There was also certainty of funding for transport and flood defences in particular over the Spending Review period to 2029/30, and we also eagerly anticipate the Government’s upcoming 10-year Infrastructure Strategy, which will be critical to give the whole supply chain the confidence to invest in the skills, capacity, and innovative methods to deliver it.
‘Now that government has provided the certainty of funding over the Spending Review period, to 2029/30, what will be critical is to see delivery on the ground that matches its announcements.’
However, whilst there was positive focus on housing, infrastructure, and resilience, Prof. Francis said there was a lack of much-needed policies to help UK manufacturing on energy prices, and it will be essential that the Government’s upcoming Industrial Strategy addresses this, as competitiveness is vital for the future of the UK’s foundation sectors.
