UK Budget: Not a great deal in it for ports

In his Autumn Statement, the Chancellor set out his support for infrastructure development, particularly the rail network, but only with relation to passenger traffic. But he did mention a future study on the future of freight.

“The UK needs to see an upgrading of its freight networks alongside passenger traffic,” said Tim Morris, chief executive of the UK Major Ports Groups.

But he warned that a “a reinvigorated approach” is needed to significantly increase the attractiveness of coastal locations more widely as investment locations.

What’s in it for ports

Richard Ballantyne, chief executive of the British Ports Association, said that against the backdrop of Brexit and economic uncertainty there wasn’t a great deal in this Budget for ports.

“We do however welcome the Government’s decision to allocate £3bn on Brexit scenario planning, he told Port Strategy. “It is as yet unclear if this will be used to ensure, among other things, the adequacy of founding for the boarders agencies and to resource personnel and facilities for potential new customs checks and disruptive port health inspections.”

Separately, he said that the BPA is pleased that the Chancellor announced that the National Infrastructure Commission has been tasked with examining freight networks.

As part of this exercise, the BPA will be highlighting that ports are vital components of the freight and logistics chain, as well as promoting the Department for Transport’s forthcoming Port Connectivity Study, that it expects to be published shortly.

Other areas of interest for ports in this Budget include a £3bn Net increase in the National Productivity Investment Fund, as well as specific North Sea oil and gas tax changes to encourage continued offshore extraction with an easier transition on to decommissioning projects.

There are also the much publicised stimulatory measures for house building which the BPA hopes might see an increase in construction materials being imported in through ports and finally, re-confirmation that the Severn crossing tolls will be abolished by the end of 2018.

Bigger picture

Just last week, the UK Government announced a new £1.7bn Transforming Cities Fund to boost links between prosperous city centres and struggling suburbs.

The Transforming Cities fund aims to improve connectivity, reduce congestion and bring in new technology to create high-quality jobs and spread wealth around the country.

But it’s unclear as yet whether ports will benefit from this fund.

The Government also announced that it was making the “game-changing” decision of putting regional body Transport for the North on a statutory footing, giving it some input into funding decisions in future.

The trouble is that so far these new transport pledges have failed to appease those who argue that they don’t go far enough to radically transform the transport infrastructure of the UK.