The Chancellor Rachel Reeves has revealed the government is exploring private investment options to finance the Lower Thames Crossing.
The £9billion project would see a new road connect Kent and Essex through a tunnel beneath the River Thames.
The 14.3-mile stretch of road, will provide a link off the M2 near Gravesend, under the River Thames, and emerging near Tilbury where it will eventually link up to the M25.
Today (January 29), in a speech on growing the economy, the chancellor expressed plans to push ahead with the project.
She said: “We will work with the private sector to deliver the infrastructure that our country desperately needs, this includes the Lower Thames Crossing which will improve connectivity at Dover, Felixstowe and Harwich, alleviating severe congestion as goods destined to export come from the North and the Midlands and across the county to markets overseas.
“To drive growth and deliver value for money for taxpayers we are exploring options to privately finance this important project.”
The announcement has been applauded by those working in the freight industry.
Natalie Chapman, head of head of public affairs at Logistics UK, said: “We’re delighted to hear the positive sentiment the chancellor has made about this really crucial scheme which is not only important down here in the southeast but will actually deliver growth nationally.
“70% of traffic from the port of Dover uses the current crossing and it’s a critical route for UK exports.
“We need to make sure we have got a transport network which is as efficient as possible, which allows drivers to make as much progress as they can within their driving hours.”
Tudor Price, chief executive of the Kent Invicta Chamber of Commerce, which represents firms, big and small, across Kent and Medway, said they “couldn’t be happier”.
“The fact there is a commitment to move forward with this is all we needed. We recognise their is a need to use private finance but that’s not a problem,” he said.
“We already know that there are private investors sniffing around this already are looking at the model through tolls and revenues already in place at the Dartford Crossing.
“That appeals to them because it comes as part of the investment package for the new Lower Thames Crossing.
“So we’re absolutely confident the investors will be there so as long as the government gives the green light and pushes through the planning and we don’t have the whole HS2 debacle – which it doesn’t sound like we will – then this is really good news for Kent.”
Nick Fenton, CEO of the inward investment promotion agency for the county, Locate in Kent, which supports Kent County Council (KCC), Medway Council and the districts with bringing investment and businesses to Kent, said the comments in the Chancellor’s speech today were “encouraging”.
He said: “This key infrastructure project is not only important for Kent but also for advancing the government’s growth agenda.
“It bodes well that ministers are considering all possible means to deliver a project that will be critical to keeping UK freight passing through the Channel Ports, tackling congestion and supporting increased housing and future economic growth for the region.”
But not everyone is pleased by the push forward, The Lower Thames Crossing project has received criticism from environmental campaigners.
Conservation charity, Kent Wildlife Trust, said the plans were “short-sighted” and threaten climate and nature.
The Trust’s chief executive, Evan Bowen-Jones said: “The decision to move forward with the Lower Thames Crossing highlights a wider issue, nature must be recognised as critical infrastructure, not a constraint.
“To build true resilience for the future, we need smarter decisions that prioritise restoring and protecting nature as the foundation of a sustainable infrastructure network.”
Meanwhile, Emma Waller, a planning and policy officer with the conservation charity added that the decision the project will “destroy irreplaceable habitats, increase carbon emissions, and contribute to long-term environmental degradation”.
Echoing this sentiment, chief executive of The Campaign to Protect Rural England, Roger Mortlock, said the funding should be directed into sustainable public transport instead.
He added: “CPRE Kent has highlighted how the crossing’s environmental and economic impacts on the local area would far outweigh any supposed benefits.”
Dartford council’s Conservative leader, Jeremy Kite, said the announcement is a “major step forward in our town’s long and hard-fought campaign to get the crossing built”.
He said: “Dartford residents know better than anyone that failure to get on and build the Lower Thames Crossing would continue to have a huge negative impact on local people and businesses.
“It was a disappointment when a decision to grant the development consent order was halted by the General Election last July and a concern when the decision was further postponed last October but today’s announcement is hugely welcome.”
Labour MP for Dartford, Jim Dickson, said in a post on X, the government’s announcement was a “big moment” for residents in his constituency.
He wrote: “After years of waiting there is finally a light at the end of the tunnel and we now have confirmation the Lower Thames Crossing will be built”.
The statement said the project will put an end “daily misery” for residents who want to go about their lives without getting stuck in traffic.
But, why is the decision taking so long? Here’s everything we know about the £9bn crossing.
Yesterday, Conservative MP for Sevenoaks and Swanley, Laura Trott, presented a petition to build the Lower Thames Crossing to Parliament which included over 1,300 signatures.
In a post on Facebook, she wrote: “It is a clear how important the Lower Thames Crossing is to our community, which suffers with delays or gridlock caused by the Dartford Crossing on an almost daily basis. This can’t continue and we need action now.”
She added: “By working together, we will ensure this vital project gets delivered as soon as possible.”
This was echoed by Labour MP for Rochester and Strood, Lauren Edwards, who said she welcomed the announcement from The Chancellor.
She said: “This is a decision that is many years overdue and will help to both relieve congestion in the area and remove one of the key barriers to growth in our region.”
A decision on whether the government was to give the plans go-ahead was expected from Transport Minister Louise Haigh back in October – but has now been pushed back until May.
This is a developing story – more to follow
