Transport secretary Louise Haigh was due to make a decision on planning by 4 October, after former transport secretary Mark Harper delayed the decision set for June.
Haigh said the delay was “to allow more time for the application to be considered further, including any decisions made as part of the spending review”.
But the latest delay will fuel growing fears within the industry that the project could be a high-profile casualty of spending cuts in the Budget to be announced later this month.
Haigh said the deadline for the decision was to be further extended to 23 May 2025 in order to allow more time for the application to be considered further, including any decisions made as part of the spending review.
Marie-Claude Hemming, director of operations at the Civil Engineering Contractors Association, said: “This is disappointing news for our industry, which has been primed to support the Government in delivering its five growth missions.
“While we understand the importance of ensuring the right decision is made, this last-minute delay will heavily impact upon the confidence and strength of the supply chain, which has primed itself for delivery.”
A joint venture between Bouygues Travaux Publics and Murphy is earmarked deliver the main 4.2km long tunnel section for the massive Lower Thames Crossing project.
Balfour Beatty has been selected to build the £1.2bn approach roads package north of the Thames while Skanska is set to build the £450m Kent roads section.
