Chancellor Rachel Reeves visiting a construction education facility (Image: Getty)
TABLE OF CONTENT Lower Thames Crossing Silvertown Tunnel Crossrail Heathrow, Luton and Gatwick Airport Expansions
Labour MPs have warned that the Treasury must stop pouring money into London and the south east while neglecting the rest of the country.
Spending on schemes such as major transport projects is much higher in the south, making the wealthiest parts of the country even richer while the north and midlands are left behind, according to Labour backbenchers.
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They told Sir Keir Starmer that Labour could lose “red wall” seats unless there was a major shift in policy.
The MPs said: “Without action, we condemn the country to lower living standards and fuel the rise of populism.”
The warning came in a report from think tank Labour Together, which was backed by MPs including Chris Curtis, who represents Milton Keynes North, and Jo White, MP for Bassetlaw and convenor of the Red Wall Group of Labour MPs.
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Sir Keir and Chancellor Rachel Reeves have made growing the economy their key goal following Donald Trump’s tariffs that have sent stock markets tumbling and threaten jobs in industries such as car manufacturing.
These are four projects in the South of England which have seen or could see billions of pounds of investment.
Lower Thames Crossing
Proposed Lower Thames Crossing (Image: National Highways)
A ￡9 billion road crossing between Kent and Essex has been given the go-ahead by Transport Secretary Heidi Alexander.
The Planning Inspectorate said the Cabinet minister has approved a development consent order application by National Highways for the 14.5-mile Lower Thames Crossing.
Work on the project has been ongoing since 2009, and more than ￡800 million of taxpayers’ money has been spent on planning.
The Lower Thames Crossing is aimed at reducing congestion on the Dartford Crossing with a new motorway-style road.
It would connect the A2 and M2 in Kent to the A13 and M25 in Essex via a 2.6-mile tunnel under the Thames, which would be the UK’s longest road tunnel.
This would nearly double road capacity across the Thames east of London. National Highways said the Government is “currently exploring private finance options for the project”. Construction could start next year, with the new road expected to open in the early 2030s.
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Silvertown Tunnel
A construction worker in the new Silvertown Tunnel in east London (Image: PA)
The first new road crossing east of London’s Tower Bridge in 33 years opens on Monday. Silvertown Tunnel, which cost ￡2.2billion, will connect Silvertown with Greenwich Peninsula, running under the River Thames.
It is hoped the new 1.4km (0.9-mile) crossing will reduce the severe congestion around the nearby Blackwall Tunnel.
It is being funded through private finance and Transport for London (TfL) will pay back ￡100m a year through money made on the toll.
Car drivers will be charged up to ￡4 per journey, with discounts for automatic payments and travelling at off-peak times.
Failure to pay the crossing tolls fee will result in a penalty charge notice being issued for ￡180, reduced to ￡90 if paid within a fortnight. TfL said charges will help manage traffic levels, repay construction costs and cover ongoing maintenance and operation fees.
The Silvertown Tunnel was built by the Riverlinx consortium, which is made up of private financial companies. As of 2022, it had secured ￡1.2 billion of private finance to build, operate and maintain the tunnel.
Crossrail
Elizabeth Line (Image: Elizabeth Line)
The Elizabeth line, formerly known as Crossrail, is a railway that runs through central London, connecting Reading and Heathrow in the west to Shenfield and Abbey Wood in the east.
It was officially opened in May 2022. With a total project cost of nearly ￡19 billion, it was funded by a combination of government investment, London's businesses, and other sources.
Meanwhile a ￡41billion "Crossrail 2" project running north-south through London may never be built due to lack of funding having been paused more than four years ago. The line would run between Surrey and Hertfordshire - from Epsom, Shepperton, Chessington and Hampton in the south to Broxbourne and Southgate in the north.
Trains on Crossrail 2, which was first proposed 50 years ago, would go underground between Wimbledon and Tottenham - using a new tunnel through Central London. The project gathered momentum in 2016 when ￡80million of development funding was confirmed by the Government, to be matched by Transport for London (TfL).
The project was suspended in 2020 due to projected costs being too high.
Heathrow, Luton and Gatwick Airport Expansions
Heathrow Airport expansion is backed by the Government (Image: PA)
Luton airport’s expansion plan has been approved by Transport Secretary Heidi Alexander despite a recommendation she reject it.
The Cabinet minister gave the go-ahead to the Bedfordshire airport’s development consent order (DCO) application regardless of advice from the Planning Inspectorate that she should turn it down over environmental concerns.
The project is centred on raising the airport’s cap on annual passenger numbers from 18 million to 32 million by the mid-2040s, allowing its runway to be used for 77,000 more flights per year than it saw in 2024.
Luton was the UK’s fifth busiest airport last year, with 16.9 million passengers travelling on 132,000 flights.
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Rachel Reeves backed a third runway at London's Heathrow Airport as part of a fresh plan to get the UK's sluggish economy growing.
Meanwhile the Government has requested additional time to review Gatwick Airport's proposal for a second runway.