The government is to increase investment in the UK’s infrastructure, including a budget boost for the Department of Transport of 9%, as well as considering the Crossrail 2 project.
Presenting his Spending Review 2013 today, George Osborne announced the department’s resource spending is to be reduced from £3.5bn in 2014-15 to £3.2bn in 2015-2016.
However, the largest increase of capital spending is to focus on the UK transport infrastructure, including support for the Crossrail 2 project.
The Department for Transport is to make a 9.3% saving in day-to-day spending, but will receive the largest boost of any department to its capital budget, which rises to £9.5 billion – to be repeated every year to 2020.
£50bn of capital investment is to be committed, amounting to more than £300bn for infrastructure including roads, railways, bridges, broadband, science and schools by 2020.
Osborne said the investment represents “the largest programme of investment in roads for 50 years and in railways since the Victorian age”.
The Government is to “look at the case” for the Crossrail 2 link in London, handing Mayor of London, Boris Johnson £9bn in capital spending, as well as additional funding power by 2020.
It is hoped the project will be completed by 2030, as well as generating new jobs in and around the capital.
John Cridland, CBI director-general, said: “The Chancellor has carefully walked a tightrope of protecting growth, while making sizeable savings to pay down the debt.
“Infrastructure is rightly singled out as the most effective engine for growth, as we urged. While the Government talks a good game on infrastructure we’ve seen too little delivery on the ground so far.
“It is critical we see a real pipeline of projects announced tomorrow, so investors know what schemes are going ahead, where and when.”