October 13, 2024
Investment

Private investment for Lower Thames Crossing questioned by campaigners


Tolls could be brought into plans for another Thames road crossing between Essex and Kent, but campaigners against the scheme have cast doubt on its viability.

The Treasury is reportedly investigating if private investment can help deliver the estimated £9billion Thames Lower Crossing project between Thurrock and Gravesham.

The Financial Times has reported that officials are considering allowing private investment in return for a lease that could run for 125 years or even indefinitely.

But campaigners from the Thames Crossing Action Group have said a PFI model would only work if the crossing was profitable -which they have doubted.

Matt Jackson, of the Thames Crossing Action Group, said the group has pointed to a 2022 report that listed the project as ‘poor’ on the Department of Transport’s ‘Value for Money’ ratings. A later adjusted rating still only gave the project a ‘low’ value for money score.

Mr Jackson said: “If you were a business would you be willing to spend a pound and have 48p to show for it? Would any sensible business invest with such a poor return?

“It’s a shame the government have not kicked the LTC into the long grass when other rail-based options exist to remove freight from ‘all our roads’ not just the M25 and Dartford crossing. We also have Gateway Tramlink (Kenex) which shows huge potential connecting people to work – who may not own a car. “

While PFI was abolished by the UK government in October 2018 due to concerns around value-for-money it is understood the government could turn to the model used on the Thames Tideway project.

This sees private investors paid back through higher charges on utility bills. But in the case of a road project, this could be through higher toll charges.

Thames Crossing Action Group added: “The LTC has no public transport provision and excludes anyone from crossing who may not own a car.

“The LTC is an environmental catastrophe, National Highways can’t even maintain surface water lagoons without fear of polluting the farmlands that provide us food. Besides the destruction of ancient woodlands, fenlands and listed buildings in the pathway of the proposed road.

“This is grossly out of step with what’s needed to address freight and transport and sustainability needs of the future. Our government should be thinking rail not more roads.”

An HM Treasury spokesperson said: “The Government retired PFI and PF2 models in 2018, and there has been no change to this policy. The Government is committed to harnessing private investment and restoring growth, and will work in partnership with the private sector to deliver its missions.”





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