‘Disappointment’ as two major infrastructure projects scrapped

Industry body the Civil Engineering Contractors Association (CECA) has expressed disappointment after the government scrapped plans to deliver the A27 bypass around Arundel and a Stonehenge Tunnel scheme.

The CECA, a representative body for UK infrastructure companies, called Chancellor Rachel Reeves’ announced infrastructure cuts ‘disappointing’, though remains hopeful to work with the Government to drive economic growth.

Director of operations for the Civil Engineering Contractors Association (CECA) Marie-Claude Hemming said: “The Chancellor’s announcements are disappointing but will not come as a shock to industry, not least because a shortfall in funding for public projects has been evident for some time.”

The announcement came after Reeves alleged the new Labour government had inherited a £21.9 billion blackhole from the previous Tory government.

Hemming added: “The Labour Party rightly identified economic growth as its core mission, but as ever cancelling or pausing projects that will likely need to be delivered at a later date – and at higher cost – is putting off the potential for schemes to drive growth, create jobs, and meet the needs of businesses and communities.

“As the UK’s public finances are clearly in a weakened state it is all the more important that the government works with industry to identify how to move schemes towards delivery, rather than mothballing these crucial sources of growth.

“What’s more, it is frustrating that firms are expected to bear the costs of delay without regard to their forward planning in terms of workload and skills.

“We’re looking forward to working with our members and the UK Government to review schemes that have been put on hiatus and see how they might be brought back online in due course, and to identify other projects that can be unlocked in all parts of the UK.”

Both projects were scrapped amid a series of plans that were also binned to reduce government overspend, with Reeves stating: “If we cannot afford it, we cannot do it.”

Developer National Highways projected The A27 Arundel bypass to cost £320 million and the A303 Stonehenge tunnel £1.7 billion.

The BBC reported that stopping the “unaffordable” road and railway schemes would save £785 million next year.

Reeves added: “The spending audit has revealed nearly £800 million of unfunded transport projects that have been committed next year.

“The Transport Secretary (Louise Haigh) will undertake a thorough review of all these commitments.

“As part of that work, she has agreed not to move forwards with projects that the previous government refused to publicly cancel, despite knowing full well they were unaffordable.”

Despite Reeves’ calls to plug the country’s finances, the ramifications of the cancelled A27 Arundel Bypass scheme could impact the trade companies signed to the project. 

A 2021 BAM Nuttall press release revealed that the firm had agreed the £320 million contract to deliver the scheme, as part of the £8.7 billion Highways England’s Regional Delivery Partnership (RDP) Framework.

The chancellor also announced plans to scrap the “Restoring our Railways” programme, which has not yet commenced, but would reportedly save £85 million. 

BAM Nuttall was approached for comment.

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