A new report has revealed the Midlands is falling behind other regions when it comes to allocation for government construction projects…
A new report from accountancy firm KPMG has revealed the Midlands is lagging behind other regions.
Despite the Midlands having around a 20 per cent stake in the Construction Pipeline, which provides details of government funded construction projects, the value of these schemes combined comes in at nine per cent.
Currently, the region has 445 projects within the pipeline. This is broken down further with 179 projects worth £3.2bn in the West Midlands, 161 projects amounting to £2.2bn in the East Midlands, and 105 projects with a value of £5.5bn in the East of England.
However, the region will be bolstered by national projects such as HS2, which will see a significant amount of investment as the service is developed in the Midlands.
The analysis from KPMG revealed ten sectors have committed funding to the area. This includes transport, police forces, education, and health.
The region has a total of 224 Ministry of Defence and Justice projects, with a combined allocated value of £1bn. This amounts to 50 per cent of the region’s pipeline.
There are also 30 education projects, with a value of £1.1bn; 24 health projects with committed funding of £1bn; 62 transport projects worth £5.5bn; and 88 police force projects with a value of £1.8bn.
However, of the 445 project a total of 339 do not have a stated construction start date. This accounts for 32 per cent of the total pipeline value.
Mike Froom, partner for infrastructure, building and construction in the Midlands at KPMG, said: “We have had under investment in infrastructure in the Midlands for too many years now and the frustration of projects not reaching fruition continues with the number of potential projects removed from the pipeline.
“Whilst we have seen great examples of businesses growing in the region by expanding their penetration in overseas markets we need government to recognise that the region needs better infrastructure – particularly with regards to transport.
“The opening of Grand Central in Birmingham this weekend shows the impact that investment in transport can have, both on infrastructure itself, but also on the profile and reputation of a city and region.”
