Title

WHITEHALL

Spending Review: Transport major plank of Osborne's spending plans

Chancellor George Osborne made transport investment a major plank of his spending plans once again, including an eye-catching £250m local pothole fund.

Chancellor George Osborne made transport investment a major plank of his spending plans once again, including an eye-catching £250m local pothole fund.

Mr Osborne confirmed that more than £5bn would be spent on roads maintenance this parliament, as well as £250m towards a ‘permanent' pothole fund over the next five years for local roads and £13.4bn on the Roads Investment Strategy for the trunk network.

A worse than expected 37% cut in the Department for Transport's (DfT) operational budget was offset with a planned 50% increase in capital expenditure for the DfT - rising to a total of £61bn.

Mr Osborne said: ‘It means the construction of HS2 to link the Northern Powerhouse to the South can begin. 

‘The electrification of lines like the Trans-Pennine, Midland Main Line and Great Western can go ahead. 

‘We'll fund our new Transport for the North to get it up and running and London will get an £11bn investment in its transport infrastructure.'

There will also a £300m commitment to cycling and a £250m cash pot has been earmarked for Kent to provide facilities to ease the burden of Operation Stack - the queuing of lorries on the M20 when services across the English Channel are disrupted.

In a statement, Treasury officials said there would also be £475m over the parliament to fund large local transport projects ‘enabling local areas to bid for funding for projects that would be too expensive for them to pay for by themselves, such as the Lowestoft Third River Crossing and the North Devon Link Road'.

There will also be £300m for a new Transport Development Fund for potential future projects such as Crossrail 2 and proposals emerging from Transport for the North.

Transport users will also benefit from new powers to claim compensation from their rail tickets if their train is more than 15 minutes late and the Government will make it harder for people to claim compensation ‘for exaggerated or fraudulent whiplash claims' under plans to reduce annual insurance costs for drivers by between £40 to £50 a year.

Elsewhere in infrastructure investment £2.3bn will be spent on more than 1,500 flood defence schemes across the country, protecting 300,000 homes.

WHITEHALL

Total Place: Still all about leadership

By Stephen Taylor | 29 July 2026

Stephen Taylor and Max Wide reflect on the lessons from Total Place 1.0 and the implications for Total Place 2.0 and conclude the need for bold, mature, cons...

WHITEHALL

Putting innovation at the heart of devo

By Kathy Nothstine | 28 July 2026

Place-based innovation funds can help Andy Burnham’s devolution agenda deliver growth, better services and regional prosperity, says Kathy Nothstine.

WHITEHALL

Rayner's three steps towards helping deliver devolution

By Gil Richards | 28 July 2026

Gil Richards looks at how Angela Rayner, reappointed as secretary of state for housing, communities and local government, should deliver the Prime Minister’s...

WHITEHALL

Reorganisation repercussions

By Paul Marinko | 23 July 2026

Following the latest round of local government reorganisation last week, ministers claim the new unitaries will boost growth and strengthen our cities but no...

Popular articles by Dominic Browne