{"id":144191,"date":"2024-10-02T07:05:16","date_gmt":"2024-10-02T06:05:16","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=144191"},"modified":"2024-10-01T17:15:39","modified_gmt":"2024-10-01T16:15:39","slug":"uk-faces-1-6bn-gap-infrastructure-spending","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/uk-faces-1-6bn-gap-infrastructure-spending\/144191\/","title":{"rendered":"UK faces \u00a31.6tn gap in infrastructure spending"},"content":{"rendered":"

The accountancy firm EY has published a report demonstrating a missing \u00a31.6tn gap in infrastructure spending<\/h2>\n

EY<\/a> have published a report examining the UK’s existing and forecasted capital spending commitments, highlighting a \u00a31.6tn gap in infrastructure<\/a> spending.<\/p>\n

The report examines the National Infrastructure Commission, the Department for Health and Social Care, and the Ministry of Defence.<\/p>\n

The report lists the projects the funding is needed to cover<\/h3>\n

The list includes many infrastructure projects, such as new road and rail projects, decarbonising public buildings, and funding social infrastructure including schools and hospitals.<\/p>\n

EY estimates that, excluding private sector projects, \u00a31.8tn will be required in cumulative capital spending over 15 years.<\/p>\n

As a result of this, and due to current fiscal rules, the government must decrease public debt as a percentage of GDP at the end of a five year period, allowing them to spend only \u00a3900bn on public spending, and leaving \u00a3700bn unaccounted for.<\/p>\n

The shortfall could increase to \u00a31tn<\/h3>\n

If the infrastructure project cost overruns of the last decade stay the same for the next 15 years, the shortfall could be increased to \u00a31tn.<\/p>\n

Mats Persson, EY Parthenon partner, said: “Almost every Western country is facing a growing gap between the capital investment needed to meet green, economic and strategic priorities, and the amount governments can afford to spend. Plugging this gap will require the entire value chain, from policymakers through to developers and investors, to urgently come together to find alternative sources of capital and utilise new technologies to bring down the cost of these projects.”<\/p>\n

Sayeh Ghanbari, business consulting leader at EY, said: “Infrastructure projects have traditionally been slow to incorporate new technologies, even in areas where it\u2019s widely accepted as best practice. Unless the infrastructure sector significantly accelerates its adoption of productivity-enhancing tech, the eventual spending shortfall could delay or even prevent the completion of critical, national priority capital projects. The acceleration of AI presents an opportunity for the sector to reverse this trend.”<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The accountancy firm EY has published a report demonstrating a missing \u00a31.6tn gap in infrastructure spending.<\/p>\n","protected":false},"author":32,"featured_media":144193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,276,579],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-144191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-government","10":"tag-infrastructure"},"acf":[],"yoast_head":"\nUK faces \u00a31.6tn gap in infrastructure spending<\/title>\n<meta name=\"description\" content=\"The accountancy firm EY has published a report demonstrating a missing 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