The new Labour government faces critical infrastructure decisions regarding transport, energy, and planning.
- Key transport issues include the renationalisation of railways and the potential revival of the Northern Powerhouse Railway project.
- Energy policies focus on achieving renewable energy goals, with emphasis on wind, solar, and nuclear power.
- The water sector anticipates significant developments, including new reservoirs, pending government approval.
- The new administration seeks to reform the planning system to facilitate infrastructure projects efficiently.
The recent election has placed the Labour government in the position of addressing a plethora of significant infrastructure challenges. Among these, the renationalisation of the railways stands out as a pivotal issue. In April, the government released its ‘Plan to Fix Britain’s Railways,’ emphasising the transition to a publicly-led model by consolidating management under the Great British Railways. Despite the absence of specific pledges for new rail projects, there’s momentum to enhance connectivity, particularly across northern England. Andy Burnham, Mayor of Greater Manchester, has been vocal about the necessity for prompt action in advancing the Northern Powerhouse Railway, aiming to bridge key cities like Manchester and Liverpool.
The situation concerning High Speed 2 (HS2) remains complex. With the previous government’s cancellation of the Birmingham to Manchester section, Transport Secretary Louise Haigh is reportedly advocating for reinstating Phase 2a between Birmingham and Crewe. This area, as highlighted by the National Infrastructure Commission, cannot sustain a ‘do nothing’ approach. Furthermore, the East West Rail project faces scrutiny as its diesel-powered plans come under fire amidst growing calls for electrification or alternative energy solutions.
In the roads sector, the potential approval of the £9bn Lower Thames Crossing is imminent, with a decision due by October. This project has polarised opinions, balancing between alleviating congestion and environmental impact concerns. Meanwhile, the new government has been urged to reassess its road network strategies, taking into account previous criticisms of the Roads Investment Strategy and its prioritisation methodologies.
Labour’s energy agenda is ambitious, with plans to enhance renewable capacity significantly. Recently, the government lifted restrictions on onshore wind, aiming to double capacity by 2030. This initiative is part of a broader strategy to establish Britain as a clean energy leader, which includes substantial investments in offshore wind, solar energy, carbon capture, and nuclear power. Additionally, the prospect of developing the Mersey Tidal barrage highlights potential advancements in marine energy capabilities.
Finally, the water sector remains predominantly within private enterprise; however, it requires government consent for substantial builds like new reservoirs by entities such as Anglian Water and Thames Water. The approval process involves navigating the RAPID system set up by Ofwat and the Environment Agency, yet complexities in planning suggest a lengthy journey before fruition. Furthermore, Chancellor Rachel Reeves indicated that systemic reforms in planning are underway, aimed at streamlining approval processes to bolster infrastructure growth effectively.
The new Labour government is poised to navigate a complex landscape of infrastructure priorities, balancing innovation with strategic foresight.
