Sunak to promise 'record' infrastructure spend

The government is set to promise to raise infrastructure spending to its highest in decades in the March Budget.

The Treasury has said that it will pledge to triple the average net investment made over the last 40 years into rail and road, affordable housing, broadband and research, leading to the 'highest levels [of investment] in real terms since 1955- - more than £600 billion over the five-year Parliament.

Chancellor Rishi Sunak will present the Budget less than a month after taking up the post, amid heightened calls for increased investment in a number of sectors to help tackle the coronavrius outbreak.

On 8 March, Sunak told the BBC's Andrew Marr that the NHS would get 'whatever resources it needs' during the crisis.

It is reported that Sunak will promise a gross amount of over £600 billion for capital spending - money put into projects like roads and rail - by the middle of 2025 - although doubts remains as to whether the government will stick to its own fiscal rules set out in its manifesto.

Shadow chancellor John McDonnell labelled the plans as 'exaggerated claims'. He said: "We've heard it all before. The Chancellor seems to have forgotten we have to dig ourselves out of the £192 billion hole in our infrastructure spend created by his government. Boris Johnson has a track record of boastful claims followed by non delivery and it looks like he is running true to form."

It is believed that Sunak will announce £2.5 billion in funding, or a £500 million bonus each year for the next five years, to improve road maintenance.

The Treasury said the funding package will also be available to local authorities to start resurfacing works, preventing potholes from appearing in the first place.

At the time of the 2019 General Election the Conservative Party promised £2 billion for filling potholes as part of its National Infrastructure Strategy. In the most recent spending round, £1 billion was allocated to road maintenance in England in 2020-21. The additional £500 million in funding will top up the spend to £1.5 billion, just exceeding the £1.3 billion spent in 2018-19. The previous pledge was also billed as costing £500 million a year in the Conservative manifesto costings document.