Chancellor says “easy option” capital spending cuts would have limited the future

Big infrastructure projects avoided the cuts many in the sector feared would be in Chancellor Jeremy Hunt’s Autumn Statement last week.

The Chancellor committed to completing HS2 to Manchester and also said the “core network” of the Northern Powerhouse Rail project and the East West Rail scheme will go ahead as planned.

Plans for the second round of the Levelling Up Fund were also confirmed, with at least £1.7bn to be allocated to priority local infrastructure projects around the UK before the end of the year.

Describing infrastructure as one of three government growth priorities, along with energy and innovation, Hunt said, “If a modern economy needs secure, clean and affordable energy – it also needs good roads, rail, broadband and 5G infrastructure.”

Hunt said capital spending cuts were often seen as an “easy option” and added “but doing so limits not our budgets, but our future” as he confirmed the Treasury will not be “cutting a penny” from the UK’s capital budgets over the next two years.

He committed to maintaining the current level of capital spending in cash terms meaning previous planned rises are frozen to 2024/25 but said it would still amount to £600bn investment over the next five years.