What are the current spending plans for UK infrastructure?
Despite the uncertainty of the Brexit process and any effects that this may have on the UK economy, UK infrastructure investment is still set to have reached a record high this year, with continued increase into 2018.
£500 billion infrastructure investment
In December 2016, the UK government released details of their new National Infrastructure and Construction Pipeline detailing over £500 billion worth of investment. Major projects included within this budget are the Thames Tideway Tunnel (the 15-mile sewer underneath the River Thames), upgrade works on the A14, and the beginning of the rollout of Smart Meters, which was given a 5 year extension in June to ensure that delivery is as effective as possible.
UK infrastructure initiatives
Private and public investment into infrastructure across the UK is a priority for the government, and at the forefront of planning to meet housing requirements as well as the private and retail sectors. This commitment to such a huge investment follows the announcement during the Chancellor’s 2016 Autumn Statement that there would be allocated a £23 billion National Productivity Investment Fund.
The NIIP aims to raise productivity and living standards over time, and part of this is building homes to keep up with increasing demand. The plan includes £7.2 billion specifically to support this new home construction. This means ongoing demand within the construction sector to provide not only homes but retail projects and increased infrastructure to accommodate the growing population.
Vision for the future
The IPA (Infrastructure and Projects Authority) have set greater certainty and visibility through the pipeline of construction and infrastructure, and tactically delegated funds to ensure the success and completion of these projects. It should help the UK government to plan ahead for future requirements and, over time, boost our economy and support communities throughout the nation by providing their infrastructural needs.
The bigger picture
The current spending plan for the UK infrastructure, including the £7.2 billion allocated to the construction of new homes, will benefit the UK as a whole and also meet social and economic needs. As demand increases for more infrastructure projects, it will also open up greater employment opportunities within the construction sector, providing workers with skills and resources.
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