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The Actuary The magazine of the Institute & Faculty of Actuaries

Record £500bn infrastructure investment announced

The government have announced a new National Infrastructure and Construction Pipeline worth £500bn of private and public investment, with £300bn of this to be made by 2020/21.

Infrastructure to close productivity gap ©iStock
Infrastructure to close productivity gap ©iStock

This new fund is the largest and most comprehensive ever, with private finance making up more than half of the pipeline, and will go towards improving transport, broadband, flood defence and housing.

In addition the government have published a new funding and finance supplement to attract further private sector investment as part of plans to close the UK’s productivity gap.

Chief Secretary to the Treasury, David Gauke, said: “This record infrastructure pipeline is set to make a real difference to people’s lives from quicker and easier journeys, to better broadband access, and building more homes for people who need them in high demand areas.

“It is clear proof that we are absolutely committed to ensure our infrastructure is fit for the future, which is at the heart of our ambitious plans to close the UK’s productivity gap and build a fair economy for everyone.

“It builds on our strong record of delivering the modern infrastructure this country needs for the twenty-first century.”

The pipeline includes over 720 projects such as the Thames Tideway Tunnel, the rollout of smart meters, upgrading the A14, the Oxford to Cambridge Expressway, as well as a multi-million investment in broadband and £7.2bn to support the construction of new homes.

It is estimated that if the UK raised productivity by 1% every year, it would add £240bn to the size of the economy within a decade, £9,000 for every household.

The Institution of Civil Engineers (ICE) director general, Nick Baveystock, said: “Infrastructure services enable balanced economic growth and thriving communities.

“This updated National Infrastructure and Construction Pipeline sets out the value of infrastructure to the economy and provides long-term visibility to industry.

“ICE welcomes the government’s commitment to infrastructure delivery and a more strategic approach to addressing the UK’s infrastructure needs.”

This latest development comes after the Chancellor announced a £23bn National Productivity Investment Fund in his autumn statement last month.