Construction on £9bn scheme expected to start next year
Rachel Reeves has announced funding of £891m for the Lower Thames Crossing as the final tranche of government support before the private sector can start construction on the £9bn scheme next year.
The funding, announced by the chancellor as part of the autumn Budget, will be used to complete the publicly funded works for the road link between Tilbury and Gravesend.
The Treasury said its preferred financing model for the scheme is the Regulated Asset Base (RAB) model, an approach often used on large infrastructure schemes which allows investors to earn a return on their investments during construction.
A formal market engagement will be launched on the project next year, the department said.
Set to be one of the UK’s largest road projects in decades, the Lower Thames Crossing is aiming to reduce congestion on the Dartford Crossing with the construction of the country’s longest road tunnels beneath the Thames.
National Highways said in March that the 23km route, which will link the A2 and M2 in Kent with the A13 and M25 in Thurrock, could start construction next year and open by 2032.
The road operator awarded a contract to a Bouygues Travaux Publics/ Murphy joint venture in December last year for the construction of the bored tunnels. Skanska won the £450m contract for the route’s southern section, while Balfour Beatty was given a £1.2bn package for roads on the northern side of the river.
Reeves’ other announcements on infrastructure today included confirmation of an extension of the Dockland Light Railway to Thamesmead, which will be funded by borrowing by Transport for London and the Greater London Authority.
The Treasury said the government will continue to work with London to finalise funding details and will continue to work with the GLA to look at options for “innovative financing” to support the delivery of infrastructure projects in the capital.
Reeves also reconfirmed government support for the £11bn Transpennine Route Upgrade, which is currently under construction.
Ben Goodwin, director of policy and public affairs at the Civil Engineering Contractors Association (CECA), said: “Commitments on the Lower Thames Crossing, the Transpennine Route Upgrade, city-region transport and local roads will all support jobs, improve connectivity and boost productivity.”
But Goodwin said CECA members were still operating on a “two-speed industry” with road and rail schemes lagging behind other infrastructure sectors including energy and utilities.
He said: “We need clear, stable investment programmes, backed by fair procurement models and a skills system that lets employers invest in the workforce needed to deliver.”
Budget 2025: full coverage
Reeves commits final £900m of government support for Lower Thames Crossing
Construction firms to pay more in minimum wages but spared costly landfill tax rise
Mixed industry reaction to £26bn tax raising Budget
No comments yet