UK Budget 2024: What’s in Store for Major Infrastructure Projects?
With the UK budget around the corner, there’s a lot of speculation about what will be announced, especially in the world of infrastructure.
Here’s a rundown of what we might expect.
Energy
- Sizewell C: Last month it was announced that a further £5.5bn would be made available for the project through the Sizewell C Devex Scheme. This will likely be reannounced.
- Small Modular Reactors (SMR):
- Funding Commitments: The government may announce a further commitment to continue developing SMRs as part of the broader shift to nuclear energy. This could involve allocating some budget towards research, development, and early-stage projects.
- SMR Sites and Consortia: While a final decision on which consortium will be given funding is expected in 2025, there could be early indications of which companies or regions are likely to be involved.
- Carbon Capture: Expect a re-announcement of the £22bn pledged to support projects to capture and store carbon emissions from energy, industry and hydrogen production.
- Great Grid: While this is funded by the private sector the government may well mention the billions being invested by National Grid, Scottish Power and SSENT.
- Electric Vehicles (EV): With EV sales taking a downturn in the last year it’s possible the government could introduce further incentives for EV buyers as part of the shift to greener transport.
- Offshore & Onshore Wind: It is hoped that the chancellor will confirm that the £390m capital investment funding that was committed in the previous Autumn and Spring Budgets will be taken forward. They may also mention a co-funding programme with industry which aligns with the Industrial Growth Plan.
Rail
- Network North / Northern Powerhouse Rail: Connecting northern cities, like Bradford, to the TransPennine Route Upgrade (TRU) could be on the agenda again after it was given a boost in the last budget.
- Shadow Great British Railways (GBR): Don’t expect too much here – it seems unlikely we’ll hear any significant announcements but there could be a mention.
- HS2
- Euston Development: Lots of talk that we will get the green light for the route into Euston and the development of Euston station itself.
- Phase 2a: Could we get an update on the review for HS2 Lite north of Birmingham?
- Rail Systems: Will we finally get procurement decisions on the Rail Systems contracts?
- Light Rail & Trams: It would be fantastic if projects like the West Yorkshire Mass Transit could get some further backing.
Bus
Bus Reform: We could see further mention of competitive bidding processes in certain cities, which might shake things up in local bus networks. Will there be any extra money for local authorities and devolved transport bodies?
Highways
- Lower Thames Crossing (LTC): The decision to approve the Development Consent Order (DCO) has been delayed until May 2025. I expect that private finance options are being explored, but cancellation seems unlikely.
- RIS3: With RIS3 kicking off next year and many key decisions put off until after the election, it’s likely that it will be on the agenda.
- Potholes: With the record number of potholes across the UK, local authorities could see a boost in funding to tackle the problem. This would be a quick win for the new government to boost popularity.
Airports & Water
Both sectors generally operate outside of direct government funding so unlikely to see them mentioned in the budget.
Defence
The new government have expressed their commitment to defence but have been ambiguous around spending. There are lots of major programmes taking place in this area at the moment so we might we will hear commitment to the existing programmes reconfirmed rather than anything new being funded.
Telecoms
- 5G: There could be a mention of continued investment in 5G infrastructure, but it’s unlikely to be a key focus.
Health
- New Hospitals Programme: Any movement here? In July the government said the New Hospital Programme will also be subject to a complete review, with a “thorough, realistic and costed timetable for delivery”. This was only a year on from the previous government’s still claiming the UK was on track for the target of 40 new hospitals by 2030. So, it might be too early to get an update on the government's ambitions for new hospitals.
What are you hoping to see announced?
As always, the budget announcement brings both anticipation and speculation. While we can’t predict everything, there are certain areas – particularly energy and rail – that are likely to grab headlines this year. Keep an eye on these key sectors to see what’s in store for the UK’s infrastructure.
