Yorkshire and the Humber projects total £3.9bn in the UK Government construction pipeline

Analysis by KPMG has revealed that there has been a £62.6bn increase in the value of the UK Government construction pipeline since August 2015.

The report, UK Government Construction Pipeline - KPMG Analysis, identifies £181bn of spending on Government funded projects, which is an increase from £119bn in August 2015.

This jump reflects inclusion in the pipeline of the full cost of HS2 to Birmingham, Leeds and Manchester, and additional spend on education and nuclear decommissioning.

The value of government funded projects located in the North of the UK is £20.7bn, with Yorkshire and the Humber specific projects totalling £3.9bn.

The largest changes in the pipeline are due to an increase of £32bn in the transport sector attributable to inclusion of the Spending Review 2015 budget for HS2 Phases 1 and 2, and an additional £15bn in the education sector, due to an increased balance of spend as identified in ‘Investing in Britain’s Future’.

The report also highlighted £10bn in the value of the energy sector pipeline attributable to additional spend on nuclear decommissioning.

Projects that benefit the whole of the UK represent the largest spend by geographic split in the pipeline (69%) at £124.5bn which includes HS2. The second highest spend is represented by the South at £22.8bn.

The volume of projects in the North totals 3,085, with the highest proportion by value, at £9.9bn, relating to energy, followed by £5.8bn on 220 transport projects.

Of the 15 sectors covered in the report, 84% of the pipeline value comprises projects in Transport (£92.2bn), Energy (£32.3bn) and Education (£27.9bn). A further 15% comes from Ministry of Defence (£6.9bn), Science and Research (£6.9bn), Flood (£4.9bn), Health (£4.3 bn), Justice (£1.8bn), Housing and Regeneration (£1.4bn) and Police Forces (£1.3bn).

Waste, Further Education, the Coal Authority, Culture, Media and Sport and Home Office all represent £1bn or lower per sector in project value.

Richard Threlfall, KPMG’s UK head of infrastructure, building and construction, said: “It is encouraging to see the dramatic increase in forecast spending resulting from the Government including the full budget for HS2 phases 1 and 2 in the pipeline.

“The focus now needs to be on efficient delivery to ensure that projects are delivered to time and budget.”