HM Treasury announced that the UK’s infrastructure pipeline has more than £500bn in planned public and private investment.
With over 700 projects and programmes with a total value of more than £500 billion, it is being hailed as the largest and most comprehensive infrastructure plan ever. It has bolstered confidence in several public sectors and promises to improve the nation’s productivity and economy.
The announcement has come hot on the heels after the chancellor’s announcement of the new £23 billion National Productivity Investment Fund (NPIF).
According to David Gauke, chief secretary to the Treasury, “The NPIF will boost our productivity in the long-term – which is critical to help raise living standards and wages – while also improving living standards in the short-term by making passenger journeys quicker and more reliable, improving broadband connections, and building more homes.”
“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.”
The key points published in the report are as follows
- The separate Infrastructure Pipeline and Construction Pipeline have been merged into a single consolidated pipeline.
- The pipeline now contains over 700 projects and programmes, with a total value of more than £500bn. The net increase in the value of the pipeline since Spring 2016 is £37bn.
- More than 20 schemes have been added to the pipeline since it was last updated in March 2016, including the Oxford-Cambridge Expressway announced at the Autumn Statement.
- 239 of the pipeline’s projects are in the ‘pre-construction’ phase, while 490 are actively under construction, with 360 due for completion by 2020/21.
- Transport remains the largest sector, accounting for £92bn of the Pipeline. Energy accounts for £79bn, £15.5bn for communications and £12.9bn for housing and regeneration.
- More than 50% of the pipeline is funded by the private sector.
According to Tony Meggs, chief executive of the Infrastructure and Projects Authority, this pipeline created will provide the industry vision and certainty to invest strategically considering the entire market and not just tactically for projects.
The message has indeed come out loud and clear – Britain has thrown her gates wide open for business.