RHA responds to the Chancellor's Spending Review

Today’s Spending Review showed little recognition for the vital role of the freight and logistics industry in keeping supply chains moving. While significant rail investment has been announced, there remains a concerning lack of priority given to the much-needed road investment required to unlock growth and alleviate congestion.

Based on current information, we're concerned that the government’s announcement of £24bn to cover both the Strategic Road Network and the Local Road Network appears to be a real terms cut compared to the previous Road Investment Strategy period. If so, this would be a missed economic opportunity.

The Strategic Road Network is the workplace of the commercial vehicle sector and is absolutely critical in keeping the flow of goods and people moving, boosting productivity through reduced congestion, strengthening regional economies, creating jobs and stimulating investment. We await further information on the exact settlements for RIS3 and local road maintenance funding and will work with Government and National Highways to ensure that this investment delivers for our industry, British businesses and the wider economy.

Today’s significant investment in housebuilding will only deliver intended benefits if the Government prioritises investment in road infrastructure to support its target of building 1.5 million new homes. RHA research has found that new housing developments are too often denied planning permission due to underinvestment on the highways network.

We welcome the £2.6 billion capital investment to decarbonise transport but, as our recent member survey showed, substantial additional support will be needed to help businesses decarbonise to meet the UK’s diesel lorry phase out dates in 2035 and 2040. 70% of HGV operators surveyed say they have no plans to add zero emission vehicles to their fleets. Concerns raised by businesses must be overcome and we are calling for urgent action on financing options and green infrastructure if net zero targets are to be met.

On skills, we welcome the additional £1.2 billion investment per year by 2028-29 for skills funding and await further details on how this will be allocated. The RHA has found that 200,000 more HGV drivers will be needed over the next 5 years to keep up with demand and future proof our sector for the long term. It is vital that skills investment supports this. 

 The HGV Skills Bootcamp has proven to be a highly effective, flexible model helping tens of thousands into HGV driving roles. This must be continued to avoid a significant training gap in the sector.

We welcome the combined £11.3bn transport funding devolved to local communities for them to invest in their local transport priorities.

Where these funds have not yet been allocated to specific infrastructure projects, we urge local leaders to use this investment to tackle congestion and properly integrate modern road freight into their local transport networks. As we await specific details on how these funds are allocated, we’ll work with the Mayoral Combined Authorities and other transport authorities to reiterate the case that investment in our road network is the quickest, most sustainable way to deliver economic growth and the additional housing our communities need.

Decisions made at the Third Road Investment Strategy (RIS3) and the 10-year infrastructure plan loom large for our industry and these will set out the future of major road investment and a long-term plan for how infrastructure projects are planned and delivered. The government must recognise that major road investment is critical to keep goods, passengers and communities moving and connected.