The leading engineering body said the creation of the NIP, setting out a clear vision for the shape and performance of UK infrastructure, was a victory in itself and that it had progressed in the right direction since its launch in 2010. But it called on the Chancellor to not “lose sight of the scale of the challenge” and implement a raft of measures in the Budget to speed up the NIP’s delivery.
ICE’s recommends Government should:
- Produce a delivery timeline for the NIP “top 40” priority project list - clearly identifying its own actions and prioritising those which are critical to timely delivery
- Commit to rapid completion of Electricity Market Reform and publication of the outstanding National Policy Statement on Transport Networks – both are holding back major investment or potential projects and causing uncertainty
- Prioritise action on finance and funding – the NIP envisages a rise in infrastructure investment to £50bn per annum over the next decade and the UK is a long way off achieving this
- Set out more detail on what is required from each infrastructure network in order to meet government’s own goals, including clarity on acceptable trade-offs (e.g. achieving economic growth v reducing emissions) – this would enable more effective prioritisation of investment
- Support industry efforts to unblock smaller, local projects - so they can move from planning to delivery and contribute to shorter term economic growth
- Prioritise the UK’s flood defences for any additional public capital expenditure – for every £1 spent on flood risk management, £8 is saved in avoiding future damage.
ICE Director General, Nick Baveystock, said: “Some significant steps have been made to translate the NIP from a brochure into an action plan that allows infrastructure to deliver as the critical enabler to economic growth - from the creation of a NIP strategic engagement forum, right through to the launch of the Guarantees Scheme. But Government should not lose sight of the scale of the challenge – further steps are needed if we are to shift the infrastructure agenda from rhetoric to reality.
“The autumn statement reported that annual investment in infrastructure had risen to £33bn from 2010-2012, yet the NIP envisages an increase to £50bn per annum over the coming decade. Addressing this shortfall must remain a priority for Government, but it must also prioritise areas of investment more effectively. The NIP broadly identifies how infrastructure development will contribute to economic and environmental goals, but gives little detail on the level of performance required from each network to meet those goals. Setting out more detail would determine where investment is required, at what scale and how urgently.”
On stimulating growth in the shorter term, he added: “There are a vast number of smaller scale infrastructure projects that are struggling to progress from planning to delivery. These projects, if unblocked, could rapidly translate into jobs and growth. The industry has a role to play in getting these projects off the ground, but it is vital that Government also plays its part.
“This Budget presents a real opportunity for Government to drive the infrastructure agenda forward and make the NIP work - not only to kick start growth in the shorter term but for the longer term - enabling the UK to compete in a modern world, creating jobs and growth and achieving a stable environment to grow our engineering skills and capacity. ICE stands ready to assist where necessary.”
See the full ICE budget submission: www.ice.org.uk/budsub13
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