The Chancellor has finally given the go-ahead to the Lower Thames Crossing in a major speech on economic growth today (Wednesday, January 29).
The Government delayed approving the new tunnel in the autumn, issuing a new decision deadline of May 23, 2025, in order to “allow more time for the application to be considered further, including any decisions made as part of the spending review”.
However, ahead of the publication of its industrial strategy in the spring, the Chancellor, Rachel Reeves, pledged to “work with the private sector to deliver the infrastructure that our country desperately needs”.
“This includes the Lower Thames Crossing, which will improve connectivity at Dover, Felixstowe and Harwich, alleviating severe congestion as goods destined to export come from the North and the Midlands and across the country to markets overseas,” she said.
“To drive growth and deliver value for money for taxpayers, we are exploring options to privately finance this important project.”
The tunnel linking Kent and Essex would relieve pressure on the nearby Dartford Crossing which is one of the most congested roads in the country; it costs the economy more than £200 million every year in lost productivity and freight delays.
The crossing would almost double capacity across the Thames east of London and would be expected to provide a boost of up to £40 billion to the UK economy.
The Road Haulage Association (RHA) welcomed the Lower Thames Crossing (LTC) announcement as a major victory for the road transport sector and for the wider economy.
The RHA has been calling for improvements to the strategic road network to tackle congestion and improve efficiency across the country.
Just last week, the association launched a new ‘future of roads’ paper highlighting a series of projects (including LTC) and called for needed investment in the road network to ensure supply chains run smoothly and efficiently.
RHA MD Richard Smith said: “I’m delighted to welcome today’s announcement by Chancellor Rachel Reeves regarding the Lower Thames Crossing – a critical infrastructure project that has been a long-standing priority for the RHA.
“This is a major victory for our sector and this nationally significant scheme has the potential to turbocharge the economy.
“The project will provide much-needed reliability for businesses. The delays at Dartford decrease productivity and increase costs for businesses, particularly those reliant on freight.
“The LTC will allow goods to flow more freely, improving journey times.”
He added: After many years of delays in giving LTC the green light, today’s announcement will be a welcome relief to operators of lorries, coaches, and vans who must navigate the daily knock-on economic impact of persistent delays.
“The Lower Thames Crossing offers value for money and will bring wider economic benefits nationally. It’s a big step forward in helping to drive forward the long-term economic growth the Government has pledged.”
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