Analysis of the UK Government’s Construction Pipeline highlights that transport projects dominate construction spend at £66.2bn, accounting for over half of the total pipeline value, according to analysis published today by KPMG.
The report, UK Government Construction Pipeline - KPMG Analysis, looks at the £116bn forecast spend by central and local government across 1,886 projects in three spend periods: 2014-16, 2016-20, and 2020 and beyond. The pipeline reveals:
Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction said: “Our analysis of the UK Government’s Construction Pipeline shows the huge dominance of rail and road schemes in the Government’s infrastructure spend. Nearly 60 percent of the total value forecast to be spent over the next 10 years and beyond is on schemes such as HS2 and the national road network."
“The total number of schemes is over 1,800, but in practice most of those schemes are individually of small value. It is concerning that a third of the total projects currently have no specified completion date as industry confidence in the pipeline would be improved if there was certainty around timescales to get schemes delivered."
“We welcome the Government’s initiative in developing the Construction Pipeline, but more needs to be done to increase the completeness and robustness of the data."
“We will be issuing analysis on future updates to the Pipeline and we hope that there will be improvements in the data set so it becomes a reliable planning tool against which the UK construction industry can plan and invest with confidence."
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Nahidur Rahman, KPMG Press Office
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About the UK Government Construction Pipeline Analysis
The UK Government Construction Pipeline – KPMG Analysis reviews the Construction Pipeline issued by the UK Government. It provides a detailed analysis of the pipeline from sector, regional and services commencement perspectives of the 1,886 projects and programmes with committed funding in three spend periods: 2014-16, 2016-20, and 2020 and beyond.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.