openPR Logo
Press release

Is The UK Government Meeting Its Promises On Infrastructure Investment?

04-05-2011 03:50 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: InfraNews

InfraNews

InfraNews

By Brendan Malkin

Just 15 seconds into his Comprehensive Spending Review (CSR) speech last October, George Osborne, the UK’s chancellor, trumpeted the need for “prioritising” investment into infrastructure. This set the tone for the rest of his speech, in which he announced plans to invest a whopping GBP200bn into the UK’s economic infrastructure and renewables sectors over the next five years.

In the budget announced a couple of weeks ago, Osborne said the word infrastructure only the once. This, in part, was probably because he had said all he wanted to say about infrastructure in his CSR speech. However, it also reflected where his current priorities apparently lie.

A glance at some of the capital projects currently in procurement would suggest that the infrastructure sector, while not as healthy as it was two years ago, is far from being in decline. In truth, however, the market appears to be ailing.

First, consider the UK’s social infrastructure sector. On the face of things, it looks as if it is going through something of a resurgence following its sharp decline after the end of New Labour’s reign. Take hospitals, for instance. A business case is currently under preparation for a new GBP120m paediatric hospital at Addenbrooke’s Hospital in Cambridgeshire; in June, draft final bid submissions are due in for the GBP288m Alder Hey Children’s Health Park PFI in Liverpool. Meanwhile, three consortia have been selected for the new Cambridge Biomedical Campus in Papworth. All this would suggest that the UK’s coalition government is intent on investing into hospital infrastructure.

Not necessarily, however. All these projects were inherited by the coalition from New Labour and do not reflect any urgent commitment to invest large sums in new projects. “These are legacy hospital projects,” said Nick Prior, a partner at Deloitte. “They reflect the government policy of cutting back some projects and keeping what they can.”

Meanwhile, the possibility of further capital investment into UK schools looks even shakier. A government review group is due to report on this investment programme by Easter. “However, we don’t know whether this is Easter this year or Easter 2012,” said one industry source. Another source said: “If you work for an investment company that has been used to building schools for the last five years, life is looking a bit grim.”

Economic Infrastructure
And what of the government’s flagship economic infrastructure plan? Again, there is a number of transport projects being procured, including various large-scale highway maintenance programmes, the Nottingham Tram PFI, Crossrail, IEP and Thameslink. High Speed II has also been given the green light. In addition, in its National Infrastructure Plan (NIP), published last October, the government earmarked investment for at least 35 transport-related capital schemes. The chancellor also announced in his budget speech this year that he is committed to investing GBP30bn in transport projects over the next four years. This is all well and good. Dig away a bit and a different picture altogether emerges. Again, all of these projects are legacy schemes. “They have been around for a while and didn’t get cut when the coalition came into power,” said one senior industry source.

Furthermore, many of these projects involving extending or building railway stations and road widening schemes. Such schemes are not only largely small scale, they are also difficult to manage, industry sources say. Therefore, attracting private sector investment, if indeed that is what the government is hoping to do, will not be easy.

To read the full article, click here: http://www.infra-news.com/analysis/news-analysis/852153/is-the-uk-government-meeting-its-promises-on-infrastructure-investment.thtml

For more information about InfraNews (www.infra-news.com) and find out if you are eligible for a free trial call Ken McAllister on + 44 (0) 207 786 9282 or e-mail at subscriptions@infraresearch.com. Please remember to quote your reference: INPR7OPR.

InfraNews is the most relevant, timely & accurate provider of news, analysis & research about the latest greenfield & brownfield infrastructure projects & deals across the European and global infrastructure communities.

Inframation Ltd
1st Floor
4 City Road
London
EC1Y 2AA
UK

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Is The UK Government Meeting Its Promises On Infrastructure Investment? here

News-ID: 169666 • Views: 1322

More Releases from InfraNews

Why the Eurozone Sovereign Crisis is a Bad Thing for Infrastructure Investors
By Peter Allison To say that fear stalked European financial markets during August is something of an understatement. While temperatures rose in Greece, Italy and Spain, markets headed in the opposite direction. The underlying theme was volatility. The swing in yields on ten-year Spanish and Italian government treasuries was an eye-watering 1% during one week in August. Equities dropped in value and then recovered slightly. Then they fell again. The price
Will KKR, Munich Re T-Solar Investment Kickstart Renewables M&A In Spain?
By Peter Kneller The Spanish solar market has been experiencing some strange goings-on of late, most notably KKR and Munich Re’s investment in Grupo T-Solar’s 168MW Spanish and Italian solar portfolio. The deal – one of the largest investments in an operational solar PV portfolio in the renewable energy sector’s short history - took place against the background of increased regulatory pressure in the country’s solar market. The bulk of installed solar PV
InfraNews Case Study: Multicurrency Programme Sets a Precedent for Infra Investo …
The NOK3.8bn (EUR477.8m) of sterling, dollar and kroner bonds that a venture between UBS International Infrastructure Fund and CDC Infrastructure issued in the second half of June to finance its acquisition of an 8% stake in Gassled has established a template for other recent financial investors in Norway’s offshore gas pipeline company to follow. Further bond issues to provide acquisition finance for shares in the company that ships a quarter
InfraNews Case Study: BAA Broadens its Investor Base with Inaugural US Dollar Bo …
UK airports operator BAA refinanced most of its outstanding medium-term bank debt in June with an inaugural USD1bn bond issue that significantly furthered the company’ strategic plan of broadening its investor base. The BAA funding securitisation vehicle, set up by the Ferrovial-led Airport Development and Investment (ADI) consortium in August 2008 to refinance its GBP10.3bn acquisition of the company two years earlier, has now issued significant volumes of capital markets

All 5 Releases


More Releases for UK’s

Fortna UK’s Michael Marienfeld named Mentor by University of Cambridge
READING, PA (May 20, 2019) - Fortna®, The Distribution Experts®, today announced that Michael Marienfeld, Director, Europe, has been named a “Launchpad Mentor” by the Judge Business School at the University of Cambridge, United Kingdom. Cambridge Judge Launchpad mentors are assigned to individual students and offer continuous 1:1 practical support throughout the year of the Diploma or the two years of the Masters. They are experienced entrepreneurs who aim to support
UK’s Leading Online Jewellery Boutique Rebrands Itself As Blooming Charms
Hertfordshire, United Kingdom – 17th August 2018 — A fashion leader in beautiful and customisable charms and women’s jewellery featuring stunning designs based on nature, I Love Charm Bracelets proudly announces that is has re-branded the company and expanded its offerings, becoming Blooming Charms. Blooming Charms continues to offer the highest quality bracelets, bangles, charms and other jewellery designed specifically for those special women in everyone’s lives. The company is committed
The Ultimate Summary of the UK’s Energy Stats in 2017
The UK Government’s Department for Business, Energy and Industrial Strategy has published statistics the UK's energy production and consumption. The department released four key publications under the Digest of United Kingdom Energy Statistics 2018: ● Digest of United Kingdom Energy Statistics 2018 ● UK Energy in Brief ● Energy Flow Chart ● Energy Consumption in the United Kingdom These documents provide a detailed analysis of the UK’s energy production, transformation and consumption in 2017. The key points of the reports
Co-op Insurance Launch UK’s First Car Insurance Chatbot
Co-op Insurance Launch UK’s First Car Insurance Chatbot A new service created by Co-op Insurance allows Facebook Messenger users to receive a no-obligation car insurance estimate in under 30 seconds. • Co-op is one of the first major insurance providers to offer chatbot services. • Customers receive a car insurance estimate after answering only four questions via Facebook Messenger. • Policy estimates are based on average data from existing car insurance customers at the Co-op. Co-op Insurance, one
Calling the UK’s leading women in technology
Applications are being welcomed for the UK’s leading Awards scheme recognising the achievements of women working in IT. The 2013 FDM everywoman in Technology Awards were launched by the UK’s largest female business community, everywoman, in association with womenintechnology.co.uk to recognise the achievements of women working in the sector and to encourage a pipeline of new talent who will become future industry leaders. FDM Group is partnering with everywoman for
PULS UK’s New Website Streamlines Product Selection
Leading Din Rail power supply manufacturer PULS UK has announced the launch of its new searchable website www puls co uk. The new site gives customers detailed information about the full range of PULS UK’s products as well as important contact details and company information. Visitors to the site will be able to use a special search facility to find the most suitable product for their application simply by entering the specification