Jeremy Hunt reiterated public spending commitments on infrastructure in as part of the autumn statement, confirming that planned investments worth £600bn will remain in place for the next five years.
As well as confirming projects such as HS2, the new chancellor of the exchequer emphasised the government’s commitment to investing in energy, following energy supply fears stemming from Russia’s invasion of Ukraine – although this was partially undermined by a windfall tax on energy producers.
In the statement, Hunt said: “Investing in high quality infrastructure is crucial for boosting economic growth and productivity.”
“(It) spreads opportunity and prosperity across communities by connecting people to new jobs through faster and more reliable routes.
“Infrastructure is also the foundation for securing our energy independence and transitioning to net zero.”
He added that £1.7bn will be allocated to local infrastructure projects as part of the second round of the government’s Levelling Up fund, , with successful bids due to be confirmed before the new year.
Despite criticism of HS2 as a ‘vanity project’ or white elephant, the rail project was among projects given renewed vocal backing, alongside investments in renewable energy generation and new nuclear power stations, including Sizewell C which he suggested could be signed off within weeks.
“Subject to final government approvals, the contracts for the initial investment will be signed with relevant parties, including EDF, in the coming weeks,” outlined the chancellor.
Peter Dickinson of renewable energy infrastructure firm, Glennmont Partners said: “We applaud the continued support for the renewable energy sector”.
Adding that continued public spending will mean “the private sector will be confident to provide the necesary investment” in infrastructure projects.
Digital infrastructure will also still see government support, with continued funding of projects aiming to achieve 85% gigabit-capable broadband coverage by 2025, something that contracted BT Group PLC (LSE:BT.A) will be delighted to hear.
News that public spending commitments on infrastructure have not been withdrawn will restore confidence for many contractors, including the likes of Kier Group PLC (LSE:KIE), Keller Group PLC (LSE:KLR) and Hercules Site Services PLC (AIM:HERC) which are all involved in the HS2 project.