Government infrastructure and construction pipeline up by £38.9bn since March

Analysis by KPMG has revealed a £38.9bn jump in the value of the UK government infrastructure and construction pipeline since March 2016. It also revealed that 60% of the £502.3bn 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 £502.3bn, from £463.4bn in March 2016. 

The report highlights that the largest changes in the pipeline are due to an increase of £12bn in housing and regeneration including new spend around accelerated build, affordable housing and housing infrastructure fund programmes and also investment into communications (£15.5bn), which has increased £9bn since the March 2016 pipelines. 75% (£11.7bn) of the investment into communications is allocated to the digital economy, £6.5bn 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 (first, second and third highest spends respectively). Combined they make up a total of 84% of the total pipeline, accounting to £419bn in value. 

Overall, 65% of spend is attributed to projects that benefit the whole of the UK (£326bn) followed by the south at £71.9bn and then the north at £47.8bn. Spend per capita suggests equal funding per person between north and south.

Richard Threlfall, KPMG’s UK head of infrastructure, building and construction said: “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. 

“I expect infrastructure investors and the construction industry will both welcome having a comprehensive view of the spending plans of government and utilities, covering both social and economic infrastructure.”

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