There has been a £38.9 billion increase in spend on projects in the UK Government infrastructure and construction pipeline
Analysis by KPMG has revealed a £38.9 billion jump in the value of the UK Government infrastructure and construction pipeline since March 2016. It also revealed that 60 per cent of the £502.3 billion in pipeline value is predicted to be spent within the term of this Parliament, i.e. by 2020.
The report, National Infrastructure and Construction Pipeline – KPMG Analysis, reflects a total allocated value of £502.3 billion, from £463.4 billion in March 2016, and highlights that the largest changes in the pipeline are due to:
- An increase of £12 billion in housing and regeneration including new spend around Accelerated Build, Affordable Housing and Housing
Infrastructure fund programmes - Investment into communications (£15.5 billion), which has increased £9 billion since the March 2016 pipelines. 75 percent (£11.7 billion) of the investment into communications is allocated to the Digital Economy, £6.5 billion of which is new allocated spend since the March 2016 pipelines.
Allocated investment into energy, transport and utilities has remained largely consistent since the last pipelines (1st, 2nd and 3rd highest spends respectively). Combined they make up a total of 84 per cent of the total pipeline, accounting to £419 billion in value.
Overall, 65 per cent of spend is attributed to projects that benefit the whole of the UK (£326 billion) followed by the South at £71.9 billion and then the North at £47.8 billion. Spend per capita suggests equal funding per person between North and South.
“This is the first time the Government has produced a combined infrastructure and construction pipeline. Our analysis confirms that there has been a significant increase in the value of that pipeline, and that energy and transport remain the biggest sectors and hence provide the best opportunities in the UK market.”
Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction
For further information on the National Infrastructure and Construction Pipeline click here
