Increase spend on Gov. infrastructure and construction | KPMG | UK

£38.9 billion increase in spend on projects in the UK Government infrastructure and construction pipeline

Increase spend on Gov. infrastructure and construction

Analysis by KPMG has revealed a £38.9 billion jump in the value of the UK Government infrastructure and construction pipeline since March 2016. It also revealed that 60 percent of the £502.3 billion in pipeline value is predicted to be spent within the term of this Parliament, i.e. by 2020.

1000

Also on KPMG.com

The report, National Infrastructure and Construction Pipeline – KPMG Analysis, reflects a total allocated value of £502.3 billion, from £463.4 billion in March 2016, and highlights that the largest changes in the pipeline are due to:

  • An increase of £12 billion in housing and regeneration including new spend around Accelerated Build, Affordable Housing and Housing Infrastructure fund programmes
  • Investment into communications (£15.5 billion), which has increased £9 billion since the March 2016 pipelines. 75 percent (£11.7 billion) of the investment into communications is allocated to the Digital Economy, £6.5 billion of which is new allocated spend since the March 2016 pipelines.

Allocated investment into energy, transport and utilities has remained largely consistent since the last pipelines (1st, 2nd and 3rd highest spends respectively). Combined they make up a total of 84 percent of the total pipeline, accounting to £419 billion in value. 

Overall, 65 percent of spend is attributed to projects that benefit the whole of the UK (£326 billion) followed by the South at £71.9 billion and then the North at £47.8 billion. Spend per capita suggests equal funding per person between North and South.

Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction said: “This is the first time the Government has produced a combined infrastructure and construction pipeline. Our analysis confirms that there has been a significant increase in the value of that pipeline, and that energy and transport remain the biggest sectors and hence provide the best opportunities in the UK market. I expect infrastructure investors and the construction industry will both welcome having a comprehensive view of the spending plans of Government and utilities, covering both social and economic infrastructure.”

Ends

For media enquiries, please contact:

Nahidur Rahman, Senior PR Manager

T: +44 (0) 20 7694 8812

M: +44 (0)73 9376 0775

E: nahidur.rahman@kpmg.co.uk 

Follow us on twitter: @kpmguk

KPMG Press Office: +44 (0)207 694 8773

Notes to Editors:

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 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. 

Connect with us

 

Request for proposal

 

Submit