The chancellor, George Osborne, has indicated a shift towards greater capital investment in transport infrastructure as part of the Government’s plan to create growth.
Delivering his Autumn Statement today in the Commons, Osborne claimed progress had been made but there was still much to do to get the economy back on track.
‘We are switching from current spending to capital investment in science, roads and education,’ he told MPs.
The chancellor believes he can boost growth by pushing a raft of major construction projects. He will spend an additional £1bn on four road schemes: to upgrade key sections of the A1, linking the A5 with the A1, and upgrading the M25 to boost links to ports.
Plans were also unveiled for a £1bn loan and guarantee to extend the London Underground’s northern line to Battersea Power Station. Super fast broadband will be rolled out across 12 cities including Cambridge, Oxford and York, while £600m will be provided to fund infrastructure research.
A recent commitment to spend an extra £120m on flood defences was also reiterated.
The chancellor revealed a statement would be forthcoming by transport secretary, Patrick McLoughlin in January on plans to take HS2 to Yorkshire and the North West.
Concluding his announcements on infrastructure, he claimed the annual average spend on infrastructure now stood at £33bn compared to £29bn under the previous administration.
