£30bn spending gap threatens transport projects

Major transport projects face "looming spending cuts" as details of a £30bn spending gap have emerged.

The Guardian reported that a leaked industry memo warned of the cuts after Department of Transport officials described the consequences of restoring order on public finances.

Schemes now face being delayed, reduced or scrapped. They could include:

• A potential delay to the £16bn Crossrail scheme linking Heathrow airport to Canary Wharf and Essex, as reported by ContractJournal.com last week.
• Possible cuts to the £6bn road building programme including the extension of the hard shoulder on Britain's motorways.#
• A decade-long delay to proposed high-speed rail route.

The paper reported that the DfT is braced for a reduction in its capital expenditure plans that could total £28.9bn over the next decade.

In a presentation to industry by permanent secretary to the DfT, Robert Devereux, is reported to have shown that future growth in capital expenditure would be flat and would no longer include a 1.25% annual increase, limiting the outlay on new projects to £7.4bn per year.