Costain and Vinci involved in schemes worth 拢1.3bn in total
Rachel Reeves has scrapped five road schemes in her first Budget as chancellor.
In another blow to civil engineers, the Budget revealed that a set of schemes, together worth an estimated 拢1.3bn, had failed to pass value for money tests and would not now proceed.
鈥淎s part of the government鈥檚 commitment to growth, it will take difficult decisions where there is not a clear value for money case to invest,鈥� said the Budget document.
It explained that, after a review, the transport secretary Louise Haigh had decided not to progress with a number of 鈥渦nfunded and unaffordable road schemes鈥�.
These include A5036 Princess Way, A358 Taunton to Southfields, M27 J8 Southampton, the A47 Great Yarmouth, Vauxhall Roundabout and A1 Morpeth to Ellingham.
Vinci had been set to deliver to A358, while Costain was lined up for the A1 dualling scheme in Northumberland.
It comes after cuts made in July, after Rachel Reeves鈥� audit of public spending claimed to identify 拢3.5bn in 鈥渦nfunded pressures鈥� related to transport in 2024-5.
The government in response cancelled several schemes, including the A303 Stonehenge tunnel, the A27 schemes and the Restoring Your Railway programme.
More on the Autumn Budget 2024
鈥業nvest, invest invest鈥�: Budget sets out plans 拢100bn for capital investment
Budget hits employers as Reeves raises taxes by 拢40bn
Rachel Reeves could get a lesson in harsh reality from business
Reeves confirms funding for HS2 Euston station tunnels, but not for station itself
Autumn Budget 2024: key measures for construction at a glance
Chancellor announces 拢3bn in guarantees for SME housebuilders
Yesterday鈥檚 Budget was not all gloom for the infrastructure sector however.
The government set out plans for more than 拢100bn of capital investment and recommitted to transport schemes including East West Rail and the Transpennine upgrade.
It also announced that it would provide funding for tunnels to get HS2 from Old Oak Common to Euston.
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