Relief for UK cement producers as mega projects go ahead

UK cement producers will be breathing sighs of relief this morning that mega projects such as HS2, the Sizewell C nuclear plant, and the Northern Powerhouse Rail plan will be going ahead. Jeremy Hunt, UK chancellor, confirmed in his Autumn Statement on 17 November 2022 that the government has given its full backing to all three projects and that capital spending would not be cut for the next two years.

Despite the UK economy facing recessionary conditions, more than GBP600bn (US$708bn) of capital investment has been safeguarded over the next five years, covering major projects in the transport, health, education and energy sectors. 

Commenting on the importance of infrastructure investment, Mr Hunt said: “Such connections matter because they allow wealth and opportunity to spread to every corner of the country. When looking for cuts, capital is sometimes seen as an easy option but doing so limits not our budgets, but our future. Smart countries build on their long-term commitments rather than discard them, so today I can confirm, alongside the Sizewell commitment, we will deliver the core Northern Powerhouse Rail, HS2 to Manchester, East-West rail, the new hospitals programme and gigabit-broadband roll-out.”

The Northern Powerhouse Rail plan, however, has been pared back to the scheme announced under Boris Johnson’s administration a year ago, including new track between Warrington and Greater Manchester and Marsden in West Yorkshire, rather than the full line from Liverpool to Hull as announced by former prime minister Liz Truss. 

Contracts to progress the Sizewell C nuclear plant are expected to be signed over the coming weeks, according to news reports.