Boris Johnson’s Infrastructure Plan
Last week, the UK government announced its National Infrastructure and Construction Pipeline plan (NICP), a £650bn investment in infrastructure as part of a new direction to renew the industry. This comes after the Treasury launched an Infrastructure Bank in June in order to support local growth and tackle climate change. Today we are breaking down everything you need to know in order to understand this exciting development.
The investment was decided by the Infrastructure & Projects Authority (IPA), which sits at the heart of government as the centre of expertise for infrastructure and major projects. In the context of the daunting shift towards a net-zero economy by 2050, which the IPA noted is a “gigantic undertaking that has never been done before”, infrastructure investment is in need of a serious boost. In order to meet these demands, the IPA pledged £650bn to infrastructure spending.
According to the CEO of the IPA, Nick Smallwood, the purpose of this “flagship programme” is “to lead system change in the built environment…to transform how the government and industry decide to intervene in the built environment, how to drive a step-change in infrastructure performance”.
How Will it Work?
The government released a statement upon the publication of its investment plan, stating that renewed infrastructure “is critical if the government is to achieve its long-term ambitions for people and business across the United Kingdom”. The plan is a step forward in the achievement of four key strategic initiatives of the government: “levelling up” across the country, strengthening the Union, meeting UN Sustainable Development Goals and getting on the path to net-zero by 2050.
The investment works in conjunction with the new National Infrastructure Bank. Chancellor Rishi Sunak has outlined the two objectives of the Bank as:
“To help tackle climate change, particularly meeting the UK Government’s net-zero emissions target by 2050;
To support regional and local economic growth through better connectedness, opportunities for new jobs and high levels of productivity.
The NICP plan itself outlines:
- £640bn of projected public and private investment over the next decade
- £400bn of planned investment in the pipeline, including more than £200bn invested in the next five years
- 425,000 jobs to be supported annually over the next five years
- Up to £31bn of planned procurement over the next year
What Does This Mean for the Industry?
The publication of the government’s plans was welcomed by industry leaders. Over the next year alone, between £21bn and £31bn of new infrastructure works will be awarded. Over three-quarters of this year’s funding (around £23.7bn) will be spent on transport infrastructure, with justice receiving approximately £2.8bn in the same time frame.
Business Writer at Foresight Works