Major road investment is critical to keeping goods moving and unlocking economic growth, but the government’s spending review revealed a “concerning lack of priority” towards this, according to the RHA.
The chancellor’s review of the budgets for government departments revealed big winners, including the NHS and defence, but the RHA said the announcement of £24bn to cover both the strategic road network and the local road network appeared to be a real terms cut compared to the previous period.
MD Richard Smith said: “If so, this would be a missed economic opportunity.
“We need to see quicker turnaround, and spades in the ground on more key road projects that cut congestion, speed up journey times, connect communities and help businesses.”
However, he also said: “We welcome the £1.2bn skills investment, supporting apprenticeships.
“Achieving growth will require a skilled workforce ready to meet future demand. We want to see flexible skills investment such as heavy vehicle driver and technician bootcamps continued and expanded.
“This is key to meeting the 200,000 HGV drivers we will need to keep up with demand over the next five years. We’ll work closely with training providers and all levels of government to maintain and expand these programmes.”
Logistics UK said there were bold pledges for transport, but if they were to achieve economic growth then the government had to prioritise the logistics sector in the upcoming industrial, trade and infrastructure strategies:
“It is why 30 chief executives of some of the UK’s biggest businesses recently wrote to Jonathan Reynolds, requesting that logistics is included as a foundational sector in the forthcoming industrial strategy,” said Keving Green, Logistics UK policy director.
“While we welcome the spending review in principle, we, along with our members, are making clear to the chancellor that this investment cannot be funded by higher taxation on hard-pressed businesses.
“Increases in employers’ national insurance contributions are costing our sector an estimated £1.7 billion, and our members simply cannot afford any more whether this is through fuel duty or other business taxes.
“It is SMEs that power the UK economy and they will be forced to pass on any cost increases which will drive inflation and hamper growth.”
The Asphalt Industry Alliance (AIA) said clarity on who will receive a share of the £24bn, as well as how and when was not evident: “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,” said AIA chair David Giles.
“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.”
