Member Article

UK government infrastructure plan 'a blueprint for Britain' unveiled

A “blueprint for Britain” infrastructure spending plan has been unveiled by the government today.

The National Infrastructure Plan (NIP) is a government plan to invest around £375 billion in energy, transport, communications and water projects over the next two decades.

The insurance industry also plans to spend £25bn over the next five years.

The government plans to sell its 40% stake in the Eurostar rail service as part of the plan.

Speaking at the Institute of Civil Engineers in Westminster, Danny Alexander, chief secretary to the Treasury, said the plan was “a blueprint for Britain” that would lead to “long-term sustainable growth.

“Underground, overground, on shore, offshore, wired or wireless, tarmac or train track. You name it, we’re building it right now.”

He denied that there was a north-south divide in how spending was being allocated, saying: “There are projects going on in every part of the country.”

No new money will be forthcoming to fund the plan, and analysts have warned that little of the investment will have any short-term impact on the economy.

Deloitte head of infrastructure Nick Prior said: “The reality is, little of this money will be spent this side of 2015, so we won’t see shovels in the ground on new projects for some time… The intention is there but the funding is still aspirational.”

Mat Riley, head of infrastructure at consultant EC Harris, said the revised plan was “again, strong on headlines but unclear on delivery”. He added that “politicians are in denial” and that much of the cost will ultimately be passed on to consumers.

No final decision has been made on the proposed sale of the stake in the Eurostar. Last month, the company posted a rise in revenues and passenger numbers compared to last summer.

Previous infrastructure spending programmes have been criticised for slow progress, but he said that of the 646 projects outlined in this plan, 291 had already been started or completed.

Other highlights of the plan include a further £50 million for a redevelopment of the railway station at Gatwick Airport, a government guarantee to support finance for the development of a new nuclear power station in Wales, and a target for the sale of corporate and financial assets will be doubled to £20 billion between 2014 and 2020.

Despite all the proposals, the shadow chief secretary to the Treasury is not convinced. Chris Leslie 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.”

The government’s record on infrastructure had been one of “complete failure”, he said.

This was posted in Bdaily's Members' News section by Graham Vincent .