The value of the UK government’s construction pipeline has grown by £62.6bn since August 2015…
An analysis carried out by KPMG has revealed growth in the UK government’s construction pipeline. According to the data there has been a £62.6bn jump in the value of the pipeline since August 2015.
This growth reflects the inclusion of major infrastructure projects such as the full cost of High Speed Rail 2 (HS2) to Birmingham, Leeds, and Manchester. It also includes spending on education and nuclear decommissioning.
In the analysis, ‘UK Government Construction Pipeline – KPMG Analysis’, it outlines £181bn spending on Government funded projects, increased from £119 billion in August 2015.
The increase includes £32bn in the transport sector relating to HS2 Phases 1 and 2; an additional £15bn in the education sector, as part of ‘Investing in Britain’s Future’; and £10bn increase in the value of the energy sector pipeline due to nuclear decommissioning.
The report covered a total of 15 sectors. Of which, 84 per cent of the pipeline value came from projects in transport (£92.2 billion), energy (£32.3 billion), and education (£27.9 billion).
A total of 15 per cent comes from Ministry of Defence (MoD) (£6.9 billion), science and research (£6.9 billion), flood (£4.9 billion), health (£4.3 billion), justice (£1.8 billion), housing and regeneration (£1.4 billion) and police forces (£1.3 billion). Waste, further education, the Coal Authority, culture, media and sport and Home Office represent £1bn or lower.
On a regional level, the south saw 13 per cent of the pipeline, at £22.8bn, while the north saw £20.7bn. Projects that benefit the whole UK saw 69 per cent, at £124.5bn.
KPMG’s UK Head of Infrastructure, Building and Construction Richard Threlfall 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.”
