Trade groups welcome roads pledges in chancellor’s speech

By Categories: NewsPublished On: Friday 31 January 2025

Transport trade associations have praised the recognition of the importance of major road improvements by the chancellor Rachel Reeves in a speech earlier this week.

The chancellor used a visit to Siemens Healthineers in Oxfordshire on Wednesday to highlight her commitment to economic growth, including through roads and infrastructure improvement.

Among the projects highlighted in the speech were upgrades to roads to cut journey times between Milton Keynes and Cambridge; and also the proposed Lower Thames Crossing, which would connect Tilbury in Essex and Gravesend in Kent via a new route underneath the Thames.

National Highways has estimated that the crossing, which would incorporate the largest road tunnel in the UK, would reduce traffic at the Dartford Crossing –  a notorious congestion spot – by 20 per cent.

“We will work with the private sector to deliver the infrastructure that our country desperately needs,” said Ms Reeves.

“This includes the Lower Thames Crossing, which will improve connectivity at Port of Tilbury and Dover, London Gateway and Medway, alleviating severe congestion as goods destined for export come from the North, and the Midlands and across the country to markets overseas.

“To drive growth and deliver value for money for taxpayers, we are exploring options to privately finance this important project.”

Road Haulage Association (RHA) managing director Richard Smith said the project would provide much-needed reliability for transport operators, highlighting the reduced productivity and increased costs they face as a result of delays at Dartford.

“We welcome the chancellor’s speech yesterday setting out the importance of transport infrastructure, reform of the planning system and delivery of vital road schemes such as the Lower Thames Crossing,” said Mr Smith.

“We’ve been really clear that improving our road networks is a critical element to facilitate growth – and we’re pleased that the government recognises that.

“It’s right that they’re pledging long-term action to deal with the challenges of congestion, lack of connectivity and unreliability which are often all too present on our road network.

“Congestion alone costs the economy £30bn a year so the likes of the Lower Thames Crossing which will take pressure off the nearby Dartford Crossing in years to come.”

He also welcomed the chancellor’s commitment to the upgrades between Milton Keynes and Cambridge, as well as her announcement of a new logistics park at East Midlands airport – and said the RHA was looking forward to investment in key freight corridors as part of the government’s third road investment strategy (3RIS).

“The strategic road network is the workplace of our sector and is absolutely critical in keeping the flow of goods and people moving,” he continued.

“These are vital long-term commitments which will benefit operators of HGVs, coaches and vans – and will consolidate our sectors within the broader logistics industry and wider economy.”

But he said that there was more the government could do in the shorter term to help struggling haulage firms, which he pointed out were “closing at record levels”.

“Recent Office for National Statistics figures tell us the picture is still bleak with 36.8 per cent of transport and storage firms saying they are out of cash reserves. And of course, we have national insurance increases coming in April which will hit businesses even further.

“We applaud the long-term outlook through road building commitments but the government must relieve pressure on businesses now too.”

Meanwhile Logistics UK said the government’s support for nationally significant infrastructure projects, including the Lower Thames Crossing, was the type of action industry had been urging for a long time.

Speaking in Oxford after the chancellor’s speech, David Wells OBE, the group’s chief executive, said: “Today’s announcement represents an intention which will be welcomed by our member businesses, but 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, benefiting 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.”

He added: “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…

“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…

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

At the RHA’s parliamentary reception (left to right): Bill Esterson MP; Lilian Greenwood MP; Moreton Cullimore (RHA chair); Rachel Taylor MP; Tim Wray (RHA vice chair); and Richard Smith (RHA managing director). Photo: RHA

The chancellor’s speech follows the launch by the RHA of a new report at a parliamentary reception at Westminster last month, making the economic argument for major investment in key road improvement projects.

The release of The Future of Roads Report: Deliv­ering Sustainable and Inclusive Economic Growth – which was presented to the roads minister Lilian Greenwood and MPs at the event – comes ahead of the publication of the RIS3 later this year.

The report highlights how 70 per cent of all HGV kilometres are on the strategic road net­work, and cites National Highways’ analysis suggest­ing that the existing road investment strategy delivers £26.7 billion in value benefits to the UK economy.

“It represents high value for money – meaning that more than £2 of benefits are generated for each £1 spent on new bypasses, junction improvements and carriageway widening,” said the RHA.

According the report, improved road designs that reduce stop-and-start traffic can lead to fuel savings of up to 10 per cent per journey for hauliers, equating to 7.6bn litres of diesel, or £760 million, across the industry each year.

It recommends that nine specific road improve­ment schemes are included in RIS3 – including as priorities enhancements to the A66, the major freight route connecting Cumbria and North Yorkshire, and the proposed Lower Thames Crossing, which is expected to cut journey times by up to 60 per cent.

Funds should also be included within RIS3 to sup­port infrastructure such as truck parking, driver facil­ities and green refuelling stations, the report says.

It also calls for “urgent reform” of the planning system, highlighting how slow decision-making on nationally significant infrastructure projects in recent years had delayed much needed road improvements.

The report outlines the significant issues posed by congestion, which it says accounts for 16 per cent of the current cost of running an HGV due to lost productivity and missed opportunity. The Dartford Crossing was among the problem spots highlighted, which the report identified as “one of the country’s most unreliable roads”; the UK is said to lose more than £200m each year in time lost sitting in traffic there.

It was a message echoed by logis­tics provider Europa Worldwide Group, which in January lent its voice to a campaign in support of the Lower Thames Crossing to al­leviate the issues at Dartford. The company said it experiences reg­ular frustration with congestion in the area, where its headquarters and 1Hub facility are located.

Kirsty Dean, Europa’s market­ing and communications director, said: “It isn’t uncommon for Eu­ropa to witness severe traffic de­lays on the Dartford Crossing, par­ticularly if there are problems on the M25…

“Congestion can cause thousands of pounds worth of de­lays and contingency plans for us, our customers and British busi­ness. Delays in transit pose a risk to reputations, not to mention the financial consequences of having to make alternative arrangements to meet consumer demand…

“We believe that the Lower Thames Crossing promises a sig­nificant lifeline, streamlining con­nections across the UK, into Eu­rope and improving transit times.”

In a keynote speech at the parliamentary reception, RHA chairperson Moreton Cullimore emphasised the crucial role of transport operators in realising the government’s housebuilding vision, as well as their part to play in decarbonisation through the movement of wind turbines, solar panels and other components.

“A serious plan for economic growth needs to include a plan for growth in our road infrastructure,” he said.

“Road haulage is the fa­cilitator industry, and it needs sup­port in order to continue its job of supporting our economy.”