Record infrastructure investment
A new National Infrastructure and Construction Pipeline has been published, which confirms over £600Bn of private and public investment in UK infrastructure.
Published by the government’s Infrastructure and Projects Authority, it comes hot on the heels of the Chancellor’s Autumn Statement in which he promised investment into infrastructure and construction skills through a £23Bn National Productivity Investment Fund.
Government investment is supporting some 40% of projects included in the pipeline, which is the largest and most comprehensive ever, with private finance making up more than half of the pipeline to 2020/21. The pipeline will help deliver important local projects across the country including transport, broadband, flood defence, and housing.
Major projects featured in the pipeline include, Thames Tideway Tunnel, the rollout of smart meters, and the upgrading of the A14.
Through the pipeline, UK infrastructure investment is set to reach a record high. The investment fund includes infrastructure investments of over £2.6Bn to improve transport networks; a multi-million pound package to accelerate the future of broadband, and £7.2Bn to support the construction of new homes. Over 720 projects and programmes across transport, housing and digital to fire up the nation’s infrastructure are featured within the pipeline, with around 20 new schemes added to the pipeline since March 2016, including the Oxford to Cambridge Expressway
Investing in better infrastructure is at the heart of the government’s ambitious plans to close the UK’s productivity gap, and the NPIF is deigned to boost productivity in the long-term. If the UK raised its productivity by one percentage point every year, within a decade it would add £240Bn to the size of the economy; £9,000 for every household in Britain.
Chief Secretary to the Treasury David Gauke said: “This record infrastructure pipeline is set to make a real difference to people’s lives from quicker and easier journeys, to better broadband access, and building more homes for people who need them in high demand areas.
“It is clear proof that we are absolutely committed to ensure our infrastructure is fit for the future, which is at the heart of our ambitious plans to close the UK’s productivity gap and build a fair economy for everyone.
“It builds on our strong record of delivering the modern infrastructure this country needs for the twenty-first century.”
Chief Executive of the Infrastructure and Projects Authority (IPA), Tony Meggs: “Creating the IPA has enabled us to produce a more comprehensive pipeline. Having the visibility and certainty of a pipeline of construction and infrastructure investment allows industry to invest strategically for the market, not just tactically for the project.
“We will continue this comprehensive approach, working with industry to deliver the pipeline.
“It is an important step in the IPA’s mission to deliver important infrastructure projects successfully, so we can raise people’s living standards, boost our productivity and grow our economy.”
Alasdair Reisner, Chief Executive of the Civil Engineering Contractors Association (CECA): “If the UK infrastructure sector is to plan for the investment in skills and innovation that will be required to deliver world-class infrastructure in the coming years, it is vital that companies are able to strategically allocate funding on a basis of projected need.
“The pipeline is a crucial tool that enables companies to plan ahead and deliver optimal outcomes for clients, taxpayers, and communities.”
Nick Baveystock, Director General of the Institution of Civil Engineers (ICE): “Infrastructure services enable balanced economic growth and thriving communities.
“This updated National Infrastructure and Construction Pipeline sets out the value of infrastructure to the economy and provides long term visibility to industry.
“ICE welcomes the government’s commitment to infrastructure delivery and a more strategic approach to addressing the UK’s infrastructure needs.”
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