Foreign funding on the cards, as Kent looks to raise finances

12 November 2009

Vital infrastructure projects could be funded by bond schemes, borrowing abroad, or a national investment bank if new ideas revealed this week go forward.

Kent County Council revealed it is considering a range of alternative options to fund a rail link to Manston airport.

The council believes it could become an alternative to Heathrow’s third runway and London mayor Boris Johnson’s controversial estuary airport. But to succeed, a critical link to Ashford is needed to take travellers to London. But transport secretary Lord Adonis told Surveyor last week the Government would not pay for infrastructure from the public purse.

Kent’s leader Paul Carter said the development was so critical to improving deprived areas in Kent and the South East that other options would be considered.

Cllr Carter said: ‘We’ve got to seek creative solutions that don’t always come from the public purse. One option is funding from the Middle East. A bond issue is another – that might depend on who buys the channel tunnel rail link. There’s a massive economic opportunity and it could be very profitable.’ Another option could to create a subsidised bus link to connect the airport with Ebbsfleet. Alternative funding models to taxation are also being examined by national politicians.

Shadow communities secretary Caroline Spelman this week called on councils to find more imaginative ways to generate income. Ms Spelman told a New Local Government Network seminar: ‘Councils should not be coerced into putting up costs all the time simply to make ends meet. We need to look at more imaginative and genuinely localist ways they can derive income.’

She suggested council bonds and using scrutiny powers to examine public spending in their area to find cost savings. In its pre-budget report submission to chancellor Alistair Darling, the Institution of Civil Engineers (ICE) called for a national infrastructure investment bank to protect investment in vital infrastructure. The group warned cutting spending on roads, railways and other ‘big ticket’ projects would delay economic recovery.

Register now for full access

Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login