Major roads projects will be mothballed while parts of the HS2 line will be delayed on the back of soaring inflation.

The Government said “headwinds from inflation” were making it difficult to deliver on road schemes and HS2

Transport Secretary Mark Harper said the Government was having to take tough decisions on what could be achieved within original timeframes due to “headwinds from inflation”, triggered by the impact of Russia’s invasion of Ukraine, as well as supply chain disruption from Covid-19.

For the long-awaited HS2 rail project, it means the Birmingham to Crewe section of the line will be put back two years while the high-speed line may not arrive at Euston station until around 2040.

Roads projects impacted include the Lower Thames Crossing, where the Government will look to “rephase” construction by two years.

Projects on the A27 in Arundel and A5036 Princess Way will also be delayed due to “a range of challenges including environmental considerations” while schemes earmarked for rollout as part of Road Investment Strategy (RIS) 3 – which covers 2025 to 2030 – will be pushed back into the next decade. Work on active travel schemes will also be delayed.

The Government said it was investing a record £40bn of capital investment over the next two financial years, despite the challenging economic circumstances.

Mark Harper commented: “We know the power of transport as an engine for sustainable economic growth. That’s why – even in this tough economic climate – this government sees transport investment as a down payment on the country’s future and is committing £20bn over each of the next 2 years to improve the UK’s transport network.

“But we can’t ignore the current realities. Putin’s war in Ukraine has hiked up inflation, sending supply chain costs rocketing. The responsible decisions I’ve outlined today will ensure we balance the budget at the same time as investing record sums in our transport network to help halve inflation, grow the economy and reduce debt.”

However, the AA said that the cuts would have a detrimental effect.

Edmund King, president, commented: “The majority of goods and passenger journeys are dependent mainly on roads but also on rail for longer journeys. The slashing of expenditure on active travel by two-thirds is particularly harsh as even 68% of drivers think local roads require more investment to make cycling safer.

“Teaching safer cycling through Bikeability schemes is also an essential life skill for millions. Some real progress had been made in convincing more people to make short trips to local shops and services by foot and bike during and after the lockdowns, which now may be under threat.”

Business group Logistics UK warned of the impact for the transport sector.

Kate Jennings, director of policy, said: “We recognise the inflationary pressures that have brought about these delays, however it is essential to maintain momentum on delivery and avoid a stop-start investment, which reduces business certainty, adds cost to projects and brings economic costs in terms of reduced efficiency of the network.

“HS2, road investment schemes and other ambitious infrastructure projects are vital for unlocking economic growth across the country. When delivered, they will mean more capacity on our transport network, fewer inefficient delays from congestion and more opportunities for modal shift, enabling a cut in carbon emissions.”

She also expressed concerns about the long-term outlook for the affected schemes.

“Logistics businesses need assurance that these projects will be delivered. That is why Logistics UK is calling for a 30-year infrastructure plan to optimise the national freight network, which underpins UK economic growth and productivity every day.”

“Counterproductive to neglect crumbling local roads”

This week has also seen the Local Government Association (LGA) call for additional funding for councils to tackle our increasingly disintegrating local roads.

Transport spokesperson Cllr David Renard said: “All journeys by car begin and end on local roads, which make up the vast majority of our road network. Spending more on improving our motorways whilst neglecting crumbling local roads is counterproductive.”

Analysis by the LGA, which represents more than 350 councils in England and Wales, has found that the Government spent 31 times more per mile maintaining motorways and A-roads last year than it did on funding councils to repair local roads.

LGA research indicates that the Government spent £192,000 per mile on maintaining strategic roads, such as motorways or major A-roads compared to £6,000 per mile on fixing potholes on local roads.

This is despite local roads making up 180,000 miles of the UK’s overall network, with strategic roads making up just 4,800 miles.

It would already take almost a decade and £12bn to tackle our local roads repair backlog, and the cost of road repairs is soaring due to rising inflation and a shortage in materials. Latest estimates show it costs some councils up to 22% more to repair a pothole.

The LGA is calling on the Government to use the upcoming Spring Budget to urgently provide councils with additional funding so they can tackle repair backlogs and bring local road surfaces up to scratch.

It’s also urging for a government commitment to five-year funding settlements for local road repairs, enabling councils to plan for the future and make the best use of the money available.