The Government has announced its fourth national infrastructure plan which includes over £375 billion of planned public and private sector investment.
The plan not only sets out investment for energy, transport, flood defence, waste, water and communications infrastructure up to 2030 and beyond but comes at the same time as six major insurers have revealed plans to collectively invest £25 billion in UK infrastructure over the next five years.
The Treasury believes the National Infrastructure Plan provides the visibility and improved certainty industry has been looking for in order to commit to big investments.
It is also suggested the plan shows the government is delivering a long term strategy to make sure the UK tackles decades of under investment and moving forward, is able to provide the infrastructure required to compete in the global race.
What the experts say
Danny Alexander, Chief Secretary to the Treasury said: “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 needs renewal. It will boost the UK economy creating jobs and making it easier to do business.”
Nick Baveystock, Director of the Institution of Civil Engineers 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.
“The new 2013 Plan, with its updated pipeline of projects, further £25 billion 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 said: “The additional infrastructure funding is welcome but we need much clearer sight of where this money will actually be spent.
“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.”
Commercial Secretary to the Treasury, Lord Deighton said: “Investment is increasing to around £375 billion 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.”
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