The National Infrastructure Plan published today provides the visibility and improved certainty industry has been looking for to commit to big investments. The Infrastructure Pipeline published alongside the plan is the most comprehensive overview of planned and potential UK infrastructure investment ever produced. The future looking pipeline enhances visibility and certainty for investors and the supply chain, and allows government to work more effectively to ensure that the UK's infrastructure needs are met. It also acts as a prospectus for investors, identifying key UK private and public sector infrastructure opportunities up to 2030 and beyond. Building on the announcement at the Spending Round 2013 of £100 billion of capital investment in specific infrastructure projects, the government will also announce tomorrow that it will:
- Sign an agreement with Hitachi and Horizon to support the financing of the development of a new nuclear power station at Wylfa in North Wales through a UK guarantee, subject to final due diligence and ministerial approval
- Provide a further £50 million for a full redevelopment of the railway station at Gatwick Airport
- Confirm strike prices for renewable energy, so that energy providers know how much they will receive for electricity generated in the future
- Take forward steps to convert public sector car fleets to electric vehicles investing £5 million in a pilot during 2014-15
- Fund improvements to the A50 around Uttoxeter starting no later than 2015/16
- Confirm that there will be no tolling on the planned A14 scheme between Cambridge and Huntingdon, construction of which is planned to start in 2016
- Confirm that a UK guarantee has now been agreed for the £1 billion Northern Line extension to Battersea, unlocking a development the size of the Olympics in the Nine Elms area
- Announce a £8.8 million guarantee for new energy efficient lighting systems across NCP car parks in the UK
- Create a new court for infrastructure to avoid unnecessary delays in the planning process for major projects
- Open a £10 million competitive fund in early 2014 to test innovative solutions to deliver superfast broadband services to the most difficult to reach areas of the UK. Options may include enhanced mobile services, new fixed technologies and alternative approaches to structuring financial support, working closely with the communications industry
- Build on the Spending Round commitment of £2.3 billion capital investment for flood defences by developing a new long-term plan, including naming key projects by Autumn Statement 2014
- The target for the sale of corporate and financial assets will be doubled from £10 billion to £20 billion between 2014 and 2020, including the Government's shareholding in Eurostar
- The government will also look at options to bring private capital into the Green Investment Bank to enable it to operate more freely in delivering its objectives
Continuing Mr Alexander said: "The announcement today that six major insurers will invest £25bn over the next five years is a massive vote of confidence in the UK economy. It supports the wider £100bn public investment to rebuild Britain over the next seven years that I announced at the Spending Round 2013. Underground, overground, on shore, offshore, wired or wireless, tarmac or train track. You name it, we're building it right now.
Concluding Danny Alexander commented: "This is great news for the people of the UK because after years of neglect, the UK's energy, road, rail, flood defence, communications and water infrastructure needs renewal. It will boost the UK economy creating jobs and making it easier to do business. It will also make the UK a better place to live for everyone who calls it their home."
Shadow Chief Secretary to the Treasury, Chris Leslie, responding to the announcement said: "With the country facing a cost-of-living crisis we need to invest in infrastructure to create jobs, boost living standards, and strengthen our economy for the long-term. But for the last three-and-a-half years the Government’s record on infrastructure has been one of complete failure. The ONS says that infrastructure work is down 3.7 per cent in the last year and fell by 10 per cent in 2012. And in the spending review the Government set out plans to cut capital investment even further in real terms in 2015/16.
Mr Leslie concluding commented: Scheme after scheme has been announced to great fanfare but then little actually delivered. Yet another announcement from Ministers about possible future investment will do little to reassure business that warm words will finally translate into diggers in the ground.”
The CBI have also responded to the announcement by government on the launch of the Fourth National Infrastructure Plan. Katja Hall, CBI Chief Policy Director, said: "We’ve been calling for a more focused approach on infrastructure projects and look forward to seeing the Fourth National Infrastructure Plan. As ever the devil will be in the detail on timelines and delivery.”
Commenting on insurance industry investment, Ms Hall said: "With the majority of national infrastructure projects earmarked to be delivered by the private sector, the insurance industry’s £25 billion investment is good news.”
On the A14, she said: "After so much uncertainty, the news that a decision has been finally made on funding for the A14 means this essential upgrade will get off the ground sooner.This will come as nothing short of a relief for businesses given the importance of this trade route to link the port of Felixstowe to the rest of the country.”
On the redevelopment of Gatwick railway station, she said: "With some estimates suggesting that the south east’s airports could be full by 2025, this upgrade will help us make the most of our existing capacity, while the Davies Commission decides on where future runways should be built."
