The fact that the UK has its first ever National Infrastructure Plan is a victory in itself. Infrastructure has a major role to play in the race to kick start economic recovery, drive the low carbon agenda and ensure we have energy security – therefore the need for a longer term strategic approach to infrastructure was becoming ever more pressing.
Infrastructure has a major role to play in the race to kick start economic recovery
Tom Foulkes, director general, Institution of Civil Engineers
This long term plan demonstrates strong political commitment and carries huge potential in ensuring decisions on the UK's infrastructure development are not made in isolation but based on the long term needs identified across all the sectors. It also paves the way for the private sector to take a lead role in delivering sustainable funding for future infrastructure – £200bn over the next five years.
Commitment
This welcome commitment and momentum from Government must now continue in order to really build investor confidence. We will also be looking for strong lines of accountability and transparent decision making as the plan is implemented.
Given the scale of the budget deficit ICE expected that a number of infrastructure projects would face cutbacks in the Spending Review. At the same time, making the argument that economic growth depended on investment in infrastructure, ICE remained hopeful that Government would recognise the value of continued investment in our transport, energy, waste, flooding and water infrastructure.
ICE believes that Government has accepted this argument; the Comprehensive Spending Review demonstrates that – despite budgets reductions across almost all departments – the temptation to further reduce or compromise key projects which would deliver growth and drive the low carbon agenda have been avoided.
The Institution of Civil Engineers has led the debate surrounding the creation of a national institution to better facilitate private finance in certain infrastructure projects, including its well received discussion paper ‘A National Infrastructure Investment Bank'.
Investment Bank
The Comprehensive Spending Review did continue the Government commitment to the establishment of a Green Investment Bank (GIB). Such a body could have huge potential, however ICE is concerned that the expected initial fund has been halved from £2 billion to just £1 billion and that such a body may not begin operating for years. In all, ICE accepts that discussions between industry and Government on the precise role of the bank are continuing and will seek to ensure its views are continued to be firmly represented so that the GIB has capacity.
Included in the spending review was a welcome addition of £200 million for the development of offshore wind technology and manufacturing at port sites. The acknowledgement that efficient transport infrastructure is key to our economic recovery is also welcomed. However, the yet to be announced detail on precisely how the overall 21% reduction to transport spend will affect project delivery and maintenance funding will reveal the real picture.
Framework
The Comprehensive Spending Review has set out the framework for Government spending for the next five years; however the document must be considered alongside the National Infrastructure Plan and the forthcoming announcement regarding the constitution and role of the Green Investment Bank.
The Institution of Civil Engineers will continue to work closely with Government to help shape these and other future Governments' announcements in the interest of our economy, society and the profession.
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