More than half of the projected £775 billion investment in UK infrastructure over the next decade will be spent on energy, transmission and water projects.
The Infrastructure and Projects Authority’s (IPA) National Infrastructure and Construction pipeline reveals that 41% of all infrastructure investment is forecast to be spent on energy projects, with 10% of spending on transmission projects and 4% of the total project spend set aside for water and sewerage schemes.
The £315.8 billion projected investment in the energy sector is the single largest investment in any infrastructure sector. Transport is the second largest sector, with £233.8 billion projected to be spent by 2033.
In the short term, £36 billion is forecast to be spent in the next two years on energy projects.
The energy sector also offers the most private finance opportunities, with other sectors – such as transport and broadband – largely reliant on public finance.
The IPA’s Analysis of the pipeline estimates that there will be £63 billion worth of private investment opportunities within the next 10 years. Of that £32 billion is identified within the energy sector between now and 2033.
By way of comparison, social infrastructure will present just shy of £20 billion in private investment opportunities and transport offering £5.4 billion in investible schemes.
Writing in the report’s foreword, IPA chief executive Nick Smallwood said: “The £700-775 billion planned and projected investment in infrastructure over the next 10 years has never been more critical.
“We also now have our biggest ever Government Major Projects Portfolio (GMPP) on record, so we must maintain a strong delivery record that demonstrates real value.
“Government is clear that growth must now take priority and infrastructure plays a huge part in supporting this. None of us can rest on our laurels – we must all keep assessing the effectiveness of our projects, so they are nothing short of world class.”
He added: “It is critical that we set out to industry our projections of the investment and workforce required to deliver against our commitments.
“There has never been a more important time to work in project delivery and to bring new capabilities and resources into the sector – whether that be apprentices, technicians, graduates or other skilled workers.
“This pipeline will support industry in making strategic and informed decisions about their long-term business and project planning. While we are operating in an unprecedented time, we must nevertheless press on, we must save money for the taxpayer and we must adapt to this modern and rapidly-changing world.
“Projects change lives, save lives, and pave the way for the digital revolution, innovation and a greener United Kingdom.”