The Chancellor has committed to invest in major infrastructure projects after raising taxes by £40bn – the largest hike in 30 years.
To deliver projects, Rachel Reeves has made reforms to the fiscal frameworks to reduce net financial debt (public sector net financial liabilities) as a proportion of GDP, to make long-term investments in infrastructure.
“The only way to drive economic growth is to invest, invest, invest,” said Reeves. “There are no shortcuts and to deliver that investment, we must restore economic stability and turn the page on the last 14 years.”
It was confirmed in the budget today (October 30) that HS2 Phase One will reach Euston, as the government promised to fund tunnelling work to the central London terminus.
A plan to “get a grip of HS2” had already been unveiled by transport secretary Louise Haigh who launched an independent review into HS2’s spiralling costs to “bring the project back on track”. Bek Seeley has now been appointed to chair the Euston Housing Delivery Group, to drive forward an ambitious housing and regeneration initiative for the local area.
The Transpennine Route between York and Manchester will be upgraded, to transform northern rail connectivity and lay the ground for Northern Powerhouse Rail.
East West Rail is set to connect Oxford, Milton Keynes, and Cambridge and unlock land for housing and laboratories, supporting the wider Cambridge life sciences cluster.
The first East West Rail services will begin operations next year, running between Oxford, Bletchley, and Milton Keynes. The acceleration of the Marston Vale Line will ensure these services extend to Bedford from 2030. To deliver the next stages of East West Rail the government is launching a consultation.
To drive the ‘Modern Industrial Strategy’, long-term funding will be provided into ‘growth-driving sectors’ including £975m for the aerospace sector in the East Midlands, South West and Scotland over five years, more than £2bn over five years to support the automotive sector in the West Midlands and North East, and up to £520m for a new Life Sciences Innovative Manufacturing Fund.
The East Midlands Investment Zone set to support advanced manufacturing and green industries has been approved. Funding has been announced for Investment Zones and Freeports programmes across the UK alongside five new customs sites in existing Freeports.
More than £500m will be used in 2025‑26 to deliver Project Gigabit and Shared Rural Network to drive the rollout of digital infrastructure to underserved parts of the UK, including delivering full gigabit broadband coverage by 2030.
On planning, the government said it will respond to the National Planning Policy Framework consultation before the end of the year to confirm pro‑growth reforms to the planning system.
It will implement legislative changes to ensure a simplified and streamlined planning system, through the Planning and Infrastructure Bill to be introduced in Parliament early next year.
Now, it will provide an additional £5m for improvements to the planning regime for Nationally Significant Infrastructure Projects, as well as £46m to boost capacity and capability in local planning authorities.
£70m has been allocated in 2025‑26 to support infrastructure and housing development while ‘boosting nature’s recovery’.
To catalyse £70bn of private investment, the government will create the National Wealth Fund to boost investment in the UK’s clean energy and growth industries, and using the Pensions Investment Review, along with the British Growth Partnership, to unlock more pension fund investment into UK growth assets.
