The UK Government has published its National Infrastructure Plan 2011, announced in Chancellor Osborne's Autumn Statement. In the Statement, the Chancellor committed to £5bn of capital projects, promised to work with UK pension funds to unlock an additional £29bn of investment in infrastructure, and said that savings would be used to fund a further £6.3bn of additional infrastructure spending.
The Plan establishes:
- A clear plan for the UK's infrastructure
- A new strategy for co-ordinating public and private investment
- New investment in critical infrastructure projects
- A new focus on delivery.
More than 500 infrastructure investment projects and programmes are included in the Plan, across both the public and private sectors, and throughout the UK. 300 non-infrastructure projects are also included.
Sector-wise, transport and energy stand to gain most. 274 energy projects are identified, attracting £117.7bn, and 115 transport projects worth £89.3bn. £20.9bn of water projects, £20.4bn of communications projects and £3.8bn of waste projects are also named.
In summary, national projects include:
- Improving mobile coverage in the UK up to 99% of the population
- Urban broadband fund to create up to 10 "super-connected cities"
- Network Rail investment to tackle problems on the network more quickly
- Network Rail investment to improve the railway network including bringing forward bridge renewals, enhancing access to stations and improving resilience to winter weather
- Centres for Offshore Renewable Engineering
- Road Pinch Point Fund to ease bottlenecks and improve safety
- Additional funding for local authority major transport projects
- Additional funding for local transport.
In relation to rail, road, local transport, water, flood and waste matters devolved to the Scottish Government, the Plan confirms that before the end of 2011 the Scottish Government is to produce an updated version of its Infrastructure Investment Plan from 2008, to reflect the outcome of its September Spending Review. The new Scottish plan is to recognise the importance of co-ordinating with UK-wide initiatives, particularly cross-border investments such as High Speed Rail and Broadband, as well as shared interest issues including electricity and gas transmission networks.
An Excel spreadsheet of pipeline infrastructure projects has been produced, based on Government data. The estimates are declared to be indicative only. The information on the spreadsheet includes project/programme name, location, ownership, funding and costs. For construction projects there is also information about likely procurement routes. The investment pipeline data is to be refreshed annually, and the construction pipeline will be updated quarterly.
A full copy of the Plan can be found here, a link to the pipeline spreadsheet can be found here, and a regional map of Plan projects can be found here.
Comment
The Autumn Statement and National Infrastructure Plan, which focus on energy, transport and infrastructure, recognise the role of infrastructure in economic growth, which is now a common theme in many countries. In that respect, and in the promises made, the Plan is to be welcomed. However, further detail is required on how and when the projects will be procured. In particular, the statement regarding investment from UK pension funds, whilst expected, requires more substance to determine what role such funds will play in infrastructure investment.
For Scotland, there will be additional funds available for investment. With the release of the Scottish Infrastructure Investment Plan, expected next week, there may be a chance for the Scottish Government to further its plans for economic growth through infrastructure investment.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.