Chancellor Rachel Reeves has suspended the Stonehenge tunnel project and cancelled the A27 Arundel bypass, citing financial constraints. These decisions come as part of a broader governmental review of infrastructure projects in the wake of a significant budget shortfall.
- A £22bn undisclosed deficit in public spending has prompted the government to pause several infrastructure projects, including the Stonehenge tunnel and the A27 bypass.
- Transport Secretary Louise Haigh is assessing the viability of existing projects, emphasising a halt on those deemed unaffordable by the previous government.
- The £1.7bn Stonehenge tunnel and the £350m A27 Arundel bypass are notable casualties of this new financial strategy.
- The Restoring Your Railway programme has also been discontinued, marking a significant shift in government priorities.
In a strategic move to address the previously undisclosed £22bn gap in public spending, Chancellor Rachel Reeves has paused the Stonehenge tunnel project and cancelled the A27 Arundel bypass. These actions reflect a recalibration of the government’s infrastructure priorities amid fiscal challenges.
Transport Secretary Louise Haigh has taken the initiative to evaluate ongoing and planned transport projects, halting progression on those identified as financially unsustainable. The Stonehenge tunnel and the A27 bypass are prominent examples, previously endorsed yet now re-evaluated under current fiscal scrutiny.
The proposed £1.7bn Stonehenge tunnel under the World Heritage Site had been poised for approval, with the MORE joint venture including FCC Construcción, WeBuild, and BeMo Tunnelling anticipating contract execution by year-end. However, this project is now enveloped in uncertainty, consequent to the financial reassessment.
The cancellation of the £350m A27 Arundel bypass aligns with Labour’s election manifesto, rendering its cessation a predictable outcome despite its impact on stakeholders like contractor Bam Nuttall. This move highlights the government’s commitment to fiscal responsibility over previously agreed infrastructure promises.
Moreover, the decision to terminate the Restoring Your Railway initiative, set to save £85m in the coming year, underscores a broader shift away from expansive infrastructure spending. Reeves’ statement reinforces this, expressing an unwillingness to pursue unaffordable commitments made by former administrations.
Health Secretary Wes Streeting is also reviewing the hospital building programme, indicative of a wider governmental shift towards austerity and prudent financial management, as the government navigates the complexities of inherited fiscal liabilities.
The government’s decisions reflect a recalibration of priorities towards financial sustainability, impacting major infrastructure prospects.
