A manifesto for UK infrastructure

Natasha Levanti
23 May 2017

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General election 2017

Just two years after the last general election, the UK is once again going to the polls. Natasha Levanti looks at the ACE election manifesto and its calls for infrastructure investment.

Since 2010 we have seen a greater level of appreciation for both the social and economic importance of infrastructure and also a corresponding increase in government spending. Yet, as the UK faces a general election on 8 June, the country stands at a crossroads. Either the UK invests in social and economic infrastructure networks that can compete with emerging economies, or it continues to underinvest and sees its international competitiveness fall. 

Whilst much has been achieved there is still more to do. As a country we need to develop greater cross-party consensus on the development and implementation of large-scale infrastructure projects, stabilising a pipeline of much-needed infrastructure projects for years to come.

The Association for Consultancy and Engineering (ACE) as the voice of the consultancy and engineering industry working in the built environment has highlighted a number of priorities in its Manifesto 2017 Engineering growth. All of them should be considered by politicians and the industry as election day approaches.

Transport

While the current and previous government have recognised the scale of the transport challenge due to population growth and increased demand, more can and must be done. Airports are maxing out capacity and road network inefficiencies continue to cost as much as £12.2bn per year. While projects such as High Speed 2, 3 and Crossrail 2 will help, the National Infrastructure Delivery Plan (NIDP) 2016-2021 has identified over £88.4bn in transport investment needed for the UK.

Utilities

Within ten years, 10-12% of current power generating capacity will be lost, unless approximately £112bn in investment in made. The challenge is magnified by increased future demand. Other utilities are also strained. The water industry will invest £43bn over the next five years. And, according to the National Infrastructure Commission’s 2016 report Connected Futures, UK broadband lags behind Peru, Albania and Panama in terms of network access.

Housing

ACE’s 2013 report found that the UK had a ‘housing gap’ of around £185bn or almost 900,000 homes by 2021, representing a city twice the size of Birmingham. The report also highlighted the impact that current pricing, wages, and mortgages systems have on individuals. With a couple on an average wage needing to save for over 35 years to put enough aside for a 25% mortgage deposit, this inevitably has societal consequences. While recent measures like ‘Help to Buy’ have only been partially successful, it’s clear that the most effective solution has to be to radically increase the number of homes being built, thus ensuring supply for current and future generations.

Finance

For the government to be able to access significant sums of private finance, it must ensure stability of the regulatory and funding conditions, as well as firmly commit to the much needed projects within the infrastructure pipeline. With £297bn in investments required for the NIDP pipeline, the government needs to help build the investment capacity of alternative sources of financing, such as pension funds.

Procurement

As the UK approaches a period of increased infrastructure investment alongside the continued devolution of power and delivery responsibilities, if just 5% of the total UK annual public procurement spend is spent inefficiently this equates to £11.5bn in poor investment. Improving efficiencies in public procurement will require a shift in prioritisation from in/out specifications towards outcomes and outputs in the procurement process, as well as further refinement of client procurement methods.

Sustainability

As the UK continues to develop, there will be correlating pressures on our natural resources and ecosystems. With the UK having emitted 569m tonnes of carbon dioxide in 2013, rising traffic volumes impacting urban air quality, limited land available for food demand and urban sprawl, as well as the legally binding carbon budgets, the UK must reduce its emissions by approximately 80%.

Skills

The impacts of Brexit on EU nationals currently employed in the UK consulting and engineering industry are, as of yet, unknown, and this may compound the previously projected UK qualified engineer shortfall of 36,800 by 2050. Skills are a vital concern for the industry. Reaching out to diverse pools of future UK talent, ensuring STEM skills are taught early on, and provisions for inclusive skills development opportunities are vital. While there has been progress in the level of government support for specialised colleges and apprenticeships, UK skills development must be a part of the political agenda going forward.