Over £260 million spent on suspended road projects, raising fiscal concerns.
- Two major UK road projects, A303 Stonehenge tunnel and A27 Arundel bypass, have been shelved.
- Chancellor Rachel Reeves cites lack of funds, halting the £1.7bn and £320m schemes.
- £179.2m was allocated to A303, and £86.9m to A27 before project cancellation.
- Call for review of infrastructure project assessment processes to ensure economic prudence.
In a move that has stirred public discussion, the UK government has announced the suspension of two significant infrastructure projects, incurring more than £260 million in sunk costs. These projects include the ambitious £1.7 billion A303 Stonehenge tunnel and the £320 million A27 Arundel bypass. The announcement came from Chancellor Rachel Reeves, who attributed the decision to a lack of financial resources to support these initiatives.
Detailed financial analysis reveals that the Department for Transport (DfT) invested £179.2 million in the A303 project and £86.9 million in the Arundel bypass before both were halted. This expenditure covered preliminary design work, construction preparations, and other associated activities. Notably, £38.4 million was spent on design work for the A303, with significant amounts also allocated to construction preparation (£41.9 million) and advanced works (£25.5 million).
The A27 Arundel bypass saw similar investments with £42.2 million spent on design and a notable £33.9 million on blight and discretionary purchases. The process of selecting design options alone cost £8.1 million. Such figures have amplified taxpayer concerns regarding government expenditure and raised questions about fiscal responsibility.
Steve Gooding, a former senior DfT official and current RAC Foundation director, has publicly questioned whether these taxpayer funds were judiciously used. His comments touch on a broader sentiment that there needs to be a reassessment of how major infrastructure projects are evaluated, focusing on their financial feasibility and practicality.
Furthermore, the decision aligns with Chancellor Reeves’ recent remarks on the previous government’s fiscal policies. According to Reeves, the former Conservative government had endorsed over £1 billion of unfunded transport projects, and her recent actions reflect a shift towards fiscal accountability and reassessment of government expenditure priorities.
In response to the project’s suspension, Labour’s newly formed National Infrastructure and Service Transformation Authority (NISTA) may review existing project evaluation processes. These reviews aim to enhance economic efficiency and ensure that future projects are both practical and financially viable.
The halting of these road projects underscores the importance of stringent fiscal planning and assessment in government infrastructure spending.
