The government’s decision to give the green light to the Lower Thames Crossing (LTC), announced by Chancellor Rachel Reeves today (29 January), is a “major victory for the road transport sector and for the wider economy”, according to the RHA.

The association said the move meets with its long-made call for improvements to the strategic road network to tackle congestion and improve efficiency across the country.

Reeves decision comes just one week after RHA launched a new Future of Roads paper which highlighted a series of projects, including LTC and called for much needed investment in the road network to ensure supply chains run smoothly and efficiently.

RHA said today’s announcement is a major step forward in that process. 

RHA MD Richard Smith added: “I’m delighted to welcome today’s announcement by Chancellor Rachel Reeves regarding the Lower Thames Crossing – a critical infrastructure project that has been a long-standing priority for the RHA.

“This is a major victory for our sector and this nationally significant scheme has the potential to turbocharge the economy.

“The project will provide much-needed reliability for businesses. The delays at Dartford decrease productivity and increase costs for businesses, particularly those reliant on freight.

“The LTC will allow goods to flow more freely, improving journey times. This will boost the region, but it’s more than a local project: This is a nationally significant scheme.

“After many years of delays in giving LTC the green light, today’s announcement will be a welcome relief to operators of lorries, coaches, and vans who must navigate the daily knock-on economic impact of persistent delays.

“The Lower Thames Crossing offers value for money and will bring wider economic benefits nationally. It’s a big step forward in helping to drive forward the long-term economic growth the Government has pledged.”

Reeves’  speech today was also met with praise from Logistics UK.

The association hailed the government’s decision to support major infrastructure projects, including Heathrow’s third runway and the Lower Thames Crossing, which it said it had been lobbying for, for a long time.

However David Wells Logistics UK chief executive, warned that these projects to be “progressed at pace”, adding that “the proof of the pudding will be in the speed at which planning decisions are taken and projects delivered, which will be critical to the success of the Chancellor’s plan. 

“If nationally important projects like the Lower Thames Crossing and third runway at Heathrow become a reality, we can deliver goods more efficiently across the country, benefitting everyone nationwide.

“The Lower Thames Crossing is vital for connecting businesses across the whole of the UK with Europe and must be delivered to address the country’s overreliance on the congested Dartford Crossing.

“Heathrow is the UK’s biggest port by value, and a critical hub which provides access to the rest of the UK and the world for British business – the opening of a third runway will expand the reach of industry to new global markets both for imports and exports.”

 Wells continued: “Logistics is fundamental to our economy, our way of life, and growth. It supplies our hospitals, schools, factories and shops with everything they need, everywhere, every day.

“Nothing moves without logistics. So efficient logistics is critical to growth and therefore needs to be at the centre of the government’s Industrial Strategy. 

“But logistics in the UK is getting less efficient.

“The World Bank Logistics Productivity Index shows that the UK has slipped from 4th in the world to 19th in the last 10 years – primarily because of congestion and delays, friction at our borders, and a lack of infrastructure investment. 

“If we make the right investments, to get back to 4th in the World Bank index, Oxford Economics suggests that would turbocharge growth across the whole economy.

“It is critical that logistics has a place on the government’s Industrial Strategy Council to ensure our industry can provide the engine for future economic growth.

“Our sector stands ready to drive the economy to the next level, providing the infrastructure exists to enable us to do so.”

However the Cold Chain Federation,whilst welcoming the government’s committment to major projects, gave a muted response to other elements of Reeves’ speech.

Phil Pluck, Cold Chain Federation chief executive said: “The Chancellor stated that she will make it easier for companies to invest but fails to acknowledge that increases in employment costs already imposed have resulted in the exact opposite. 

“The cold chain sector is looking at over £620m in extra employment costs and this is already having an impact on future recruitment decisions and investment plans.”

He added: “I welcome the confirmation that the government intends to reset the relationship with the EU.

“In doing so, it must work closely with the cold chain to fully understand the impact on food and medicine supply and on food inflation.

“The EU is our most important trading partner and to find common ground on food and pharma safety, import/export standards and inspection guidelines is vital.”