"If we are to deliver existing projects more effectively and generate short term growth quickly, this is vital.
“However as Government itself acknowledges, 70% of investment in UK infrastructure will come from private investors and owners and Government must not lose sight of the scale of this challenge. The drawn out process of the Electricity Market Reform, and the scaled down hopes for investment from sources such as pension funds, show there is an urgent need for Government to improve its role as a facilitator of investment. We therefore welcome Government’s commitment to consider options for using independent expertise to help shape it’s strategy – and urge them to engage with the work of Sir John Armitt’s independent review which is looking at this issue.
“We would also like to see real, visible progress and fewer re-announcements on existing initiatives – such as the projects identified as receiving assistance under the infrastructure guarantees scheme and the level of funding available through the Pensions Investment Platform.”
The full Budget statement is available here -
http://www.hm-treasury.gov.uk/budget2013_documents.htm
and the infrastructure delivery update can be found here -
http://www.hm-treasury.gov.uk/d/infrastructure_delivery_update_200313.pdf
please see the last page for a map of the UK illustrating infrastructure project progress in the Eastern region/nation.
Broadly, the key points from the Budget/infrastructure update to note are:
- Additional capital expenditure of £3bn a year (£15bn over the next decade) – but not until 2015-2016. Therefore this won’t deliver immediate growth or address the danger of industry capacity being permanently lost.
- Following Lord Deighton’s review of Whitehall’s capacity to deliver infrastructure (announced at the Autumn Statement), Government will ‘implement a series of reforms to effect a step change in its approach to infrastructure delivery … these reforms include creating an enhanced central cadre of commercial infrastructure specialists in IUK who will be deployed into infrastructure projects across Govt, and the establishment by the summer of tough new Infrastructure Capacity Plans to drive forward progress in key Government departments.’
- Government is committed to ‘ensuring that investors have the confidence to make long-term decisions on major infrastructure projects, based on a policy framework that is informed by an objective and evidence-based assessment of the UK’s infrastructure needs and priorities. The Government will therefore consider options for making more use of independent expertise in shaping its infrastructure strategy.’
- There has not been an update – or at least any additional breakthroughs - on the 70% + of new infrastructure that will be owned or funded by the private sector.
- The Green Investment Bank operating as a full bank has been put back another year.
- In terms of energy, there has been some positive movement – Government intends to take forward two Carbon Capture Storage (CCS) projects to the detailing planning and design stage of the competition. This represents the next step in the £1 billion CCS commercialisation programme.’ Also new planning guidance on community benefits from Shale Gas development is due in the summer.
- The Comprehensive Spending Review (CSR) on 26th June will set out long-term public spending plans to 2020-21 for the most ‘economically valuable’ areas of capital expenditure in the 2015-16 Spending Round.
- Government ‘themes’ for the 2015-16 Spending Round will be growth, efficiency and public service reform, including localism and fairness.
- This week the Government announced its industrial strategy, with construction being one of the 11 sectors having a strategy announced by the summer.
- This week the Government also announced more devolution to Local Enterprise Partnerships (LEPs) and the creation of a Single Local Growth Fund, devolved to the local level through new Local Growth Deals. The Fund will be operational by April 2015. This follows the recommendations made in the Heseltine review.
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