果冻影院

Spending Review Construction Special: 鈥淥nce in a Generation Investment in Infrastructure鈥�

The Chancellor confirmed a 鈥渙nce in a generation investment in infrastructure鈥�, outlining 拢100 billion of capital spending in 2021-22, a 拢27 billion real-term increase compared to 2019-20.

Funding will be targeted at high-value, job-creating projects that are deliverable next year including:

• Almost 拢19 billion of transport investment in 2021, including 拢1.7 billion for local roads maintenance and upgrades.
• 拢4.2 billion for NHS operational investment next year to allow hospitals to refurbish and maintain their infrastructure.
• Over 拢260 million for transformative digital infrastructure programmes, including the Shared Rural Network for 4G coverage and Local Full Fibre Networks.

The Spending Review also maintained momentum on the government鈥檚 infrastructure plans with multi-year capital settlements including funding to start the delivery of:

• 拢1.3 billion investment in electric vehicle charging infrastructure by 2030.
• New Carbon Capture and Storage clusters by 2030.
• Over 拢58 billion of investment for road and rail infrastructure.
• Almost 拢20 billion of investment underpinning the government鈥檚 long-term housing strategy, including 拢7.1 billion for a National Home Building Fund and 拢12 billion for the Affordable Homes Programme.
• A multi-billion pound capital investment to deliver the government鈥檚 commitments on building hospitals, schools and prisons.
• 拢1.2 billion to subsidise the rollout of gigabit-capable broadband.

The Chancellor announced a new , outlining the government鈥檚 long-term vision for transforming UK infrastructure. Plans include the creation of a new UK infrastructure bank located in the North of England from next Spring. It will co-invest alongside private investors through a mix of loans and guarantees as well as taking equity stakes in projects.

The Chancellor also announced a refreshed set of funding rules for government schemes. The new rules are expected to increase the viability of proposed projects outside of London and the South East.

Allan Wilen, 果冻影院鈥檚 Economics Director, commented on the announcement: 鈥淚n our latest we had already highlighted the Government鈥檚 pledge to significantly increase investment in the UK鈥檚 infrastructure and so it's great to see that confirmed again by the Chancellor.

Whilst the spending review is generally only for the next year, the Chancellor has reiterated and provided greater detail to longer term capital spending plans. This will enable departments to move ahead with planned investment in a wide range of construction areas from social housing to schools, hospitals and infrastructure.

The Government already announced that the second Road Investment Strategy (RIS2) will spend over 拢27 billion between 2020 and 2025, taking forward schemes such as dualling the A66 Trans-Pennine route, and upgrading the A46 Newark bypass. These will take time to be 鈥榮hovel-ready鈥�, but may boost the sector towards the end of 2022.

Increased investment in the national road network is anticipated as Highways England brings forward projects under its collaborative framework. We anticipate that, initially, the additional funding increases will be directed at starting smaller improvement schemes and areas such as tackling the maintenance backlog on the nation鈥檚 roads.

In addition, Network Rail鈥檚 new five-year investment programme (CP6) is now underway. Within the programme, 拢4.1 billion has been allocated for maintenance and renewal work during the current financial year, a 23% increase on 2018/19. A further 12% increase in spending is earmarked for 2020/21.

The Spending Review has confirmed our expectations set out in the published this month that increased investment should help to lift civil engineering, health and education project-starts by 17%, 11% and 33% next year respectively. As forecast the spending review should also boost social housing activity from next year with capital funding for affordable housing set to rise by 20%.

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PR contact:
Rhys Gadsby (Economic Analyst)
T: 01202 786 714 鈹� E: rhys.gadsby@glenigan-old.thrv.uk