United Kingdom

Details

  • Industry: Infrastructure, Building and Construction, Government & Public Sector
  • Type: Press release
  • Date: 27/06/2013

Infrastructure Investment: Ambitious programme but more is needed, says KPMG 

 

Richard Threlfall, KPMG’s Head of Infrastructure, Building and Construction comments on the infrastructure investment programme which was announced by the government today:

 

“In the last few years the Government has been pressed from all sides to provide clarity and outline a more long-term approach of its infrastructure investment plans and they certainly delivered that today. But taking a closer look at the numbers one has to ask the question whether the planned investments are really enough to boost growth and our competitiveness on a global level.”

 

“The plan is to spend about £20bn per year on infrastructure projects between 2015 and 2020. That’s just slightly more than 1 percent of the projected GDP per year, for 2019 and 2020 it will be even less than 1 percent. The reality is that the UK is spending less than most of its global competitors on new infrastructure.”

 

“There were also not many surprises in terms of new schemes. The best pieces of news are the Government deciding to put UK Guarantees behind New Nuclear and the Earn-Back deal with Manchester. The extension of the UK Guarantees for schemes due to close in 2016 is another piece of welcome news.”

 

“The real prize remains leveraging more private money in order to meet our infrastructure needs of the future. The government needs to provide a better climate for more private investment into our infrastructure. Experts estimate that the UK needs at least £400bn investment into our ailing infrastructure over the next 10 years.  Around 65% of the UK’s infrastructure is already privately financed and with Government spending under pressure, the UK has no choice other than to look to the private sector for infrastructure investment.”

 

-Ends-

 

 

For further information please contact:

 

KPMG Press office

Tel:  +44 (0) 207 694 8773

 

Katrin Boettger, KPMG Corporate Communications

Mobile: 0782 4475168

Katrin.boettger@kpmg.co.uk

 

About KPMG:

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

 

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