Publicly funded infrastructure plans will survive election, promises Alexander

National Infrastructure Plan is a firm commitment to 2021 and a NIP for skills is on the way.

Jackie Whitelaw
04 March 2015

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Infrastructure is going to be a key plank of the next government’s economic growth plans whoever is elected, chief treasury to the secretary Danny Alexander indicated to the sector’s business leaders.

“We want a rebalanced economy and to see growth in every part of country" - Alexander

Publicly funded investment in the latest National Infrastructure Plan should be seen as a firm commitment and will happen, he told the ACE National Conference.

“It is fundamental that long term decisions have to go beyond political cycles. So if something in the NIP is publicly funded then it is a firm commitment and will happen, all the way up to 2021, and not just by the next government but the one after” he said.

Alexander highlighted five key priorities for the next phase of infrastructure investment which included focusing on environment, skills, devolution, and the much longer term. He was also adamant that the UK should remain within Europe and guide infrastructure investment across the European Community.

The five priorities were, he said:

1.     “Think Green. It is not just environmentally friendly but a real driver of growth.” He highlighted the development of the Green Investment Bank - the first bank for the green economy and its £2bn of investment so far. And pointed to Monday’s announcement of plans for a series of tidal lagoons around the country as to how the future could look. “The UK ambition should be to lead the world in green technology, he said. “It can change our cities. Who would have thought you could charge an electric bus on a simple pad a couple of years ago as you can now in Milton Keynes.”

2.     “Create the right skills”. Government announced on Monday that it would create the first-ever National Infrastructure Plan for Skills to ensure that the UK has the skills it needs to maintain and deliver world-class infrastructure.

3.     “Empower local communities” which means greater devolution. There will always be major national projects like high speed rail, but the future will be about the regions taking control of opportunity to unlock local growth through infrastructure development, he said.

4.     “Work within the EU. “EU President Juncker plans to use infrastructure to drive growth –  I wonder where he got that idea?” Alexander said.  “I know we can work together. We need to be leading in Europe not talking about leaving Europe.”

5.     “Planning for the next 20, 30, 50 years. I’m relaxed about the format,” Alexander said, referring to debates about the Armitt commission. “The politics needs to be taken out of it … but I don’t like creating quangos.”

Alexander highlighted that the economic return figures for infrastructure investment speak for themselves.  “Every £1 of infrastructure investment there is £2.84 of economic impact. Every £1bn spent is 5000 jobs in construction alone.”

“It is fundamental that long term decisions have to go beyond political cycles. So if something in the NIP is publicly funded then it is a firm commitment and will happen, all the way up to 2021, and not just by the next government but the one after” - Alexander

But that return has to be shared around the whole country. “We want a rebalanced economy and to see growth in every part of country,” he said. Alexander had been in the south west at the start of the week announcing an infrastructure investment package for the region including £2bn of spending on roads. And looking ahead he suggested that if the structural deficit was eliminated by 2017/18 then the focus on road spending, along with with broadband and housing was likely to increase.

The chief secretary also thanked ACE chief executive Nelson Ogunshakin and the organisation for the “dedication and passion shown in the cause of infrastructure".

“We are also grateful to ACE and the National Infrastructure Plan Strategic Engagement Forum for helping us improve the NIP and focus on the issues that help industry and get long term pipeline right,” he said. In the future industry needed to help fire up the public about infrastructure and generate excitement about how it can change lives, he said.

“We need to make infrastructure exciting again. As much as getting long term plans in place are important, firing up the country about infrastructure really matters too.”