04.12.13
Government launches £66bn investment in infrastructure
Transport projects will receive a share of £346bn investment to 2030 in the new National Infrastructure Plan (NIP), launched by the government today.
Investment in infrastructure will be increased by £66bn, with six big insurance companies also providing £25bn over the next five years.
The plan is set to include a further £50m for development at Gatwick Airport railway station, a confirmed UK guarantee for the £1bn Northern Line extension to Battersea, and the sale of the government’s shareholding in Eurostar.
A new court for infrastructure will be created to avoid unnecessary delays in the planning process for major projects.
Danny Alexander, the chief secretary to the treasury, will say in a speech: “Underground, overground, on-shore, offshore, wired or wireless, tarmac or train track. You name it; we’re building it right now.
“This is great news for the people of the UK because after years of neglect, the UK’s energy, road, rail, flood defence, communications and water infrastructure need renewal. It will boost the UK economy, creating jobs and making it easier to do business. It will also make the UK a better place to live for everyone who calls it their home.”
Commercial secretary to the Treasury Lord Deighton said: “The fourth National Infrastructure Plan shows that the government is delivering on infrastructure, with a long term strategy to make sure the UK tackles decades of underinvestment and gives us the infrastructure we need to compete in the global race.
“Investment is increasing to around £375bn over the coming years, with 45% of our prospective infrastructure already under construction. We’ve set out government priorities with clear delivery milestones and reformed planning rules to drive forward the most important projects, making sure we are building the strong, modern economy of the future.”
But Chris Leslie MP, the shadow chief secretary to the treasury, said: “For the last three-and-a-half years the Government’s record on infrastructure has been one of complete failure.
“Scheme after scheme has been announced to great fanfare but then little actually delivered. Yet another announcement from ministers about possible future investment will do little to reassure business that warm words will finally translate into diggers in the ground.”
Katja Hall, CBI chief policy director, said: “We’ve been calling for a more focused approach on infrastructure projects and look forward to seeing the Fourth National Infrastructure Plan. As ever the devil will be in the detail on timelines and delivery.”
She added: “With the majority of national infrastructure projects earmarked to be delivered by the private sector, the insurance industry’s £25bn investment is good news.
Institution of Civil Engineers (ICE) director general Nick Baveystock said: “The National Infrastructure Plan plays a critical role in enabling the UK to compete in a modern world, creating jobs and growth and providing the stability for the UK to grow its engineering skills and capacity. Previous editions of the Plan have set out a much-needed and welcome vision for infrastructure, but the need for it to evolve into a robust delivery plan – aligned with the UK’s strategic goals – has become more pressing. The new 2013 Plan, with its updated pipeline of projects, further £25bn investment and evidence of a shift to “delivery mode”, is a positive step and presents us with an opportunity to drive this agenda forward.”
Nick Prior, head of infrastructure at Deloitte, the business advisory firm, said: “The additional infrastructure funding announced by the Chief Secretary today is welcome but we need much clearer sight of where this money will actually be spent.
“The government guarantees scheme is making a difference. This has been the most impactful announcement on infrastructure to date. But the reality is little of this money will be spent this side of 2015, so we won’t see shovels in the ground on new projects for some time.
“The £25bn commitment from insurers is good news in demonstrating the attractiveness of UK infrastructure to investors. But they still need to see a clear pipeline of opportunities to put their money into and this will require some upfront commitment and ongoing funding from government. The intention is there but the funding is still aspirational.”
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Image c. Treasury