House of Commons Library

Infrastructure Policy

Published Thursday, May 19, 2016

This note examines the current state of infrastructure in the UK, current levels of investment and recent Government policy.

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This note examines the current state of infrastructure in the UK, current levels of investment and recent Government policy.

According to the Infrastructure Pipeline, 59% of planned infrastructure investment will be privately funded, 37% will be publicly funded and 4% will be financed by a mixture of public and private investment.

Public Sector Net Investment (a measure of public investment in infrastructure) totalled £34.4 billion in 2015/16, 1.9% of GDP. The Treasury estimates that total infrastructure investment totalled £49 billion each year from 2010/11 to 2014/15.

The Government argues that a higher level of investment is needed if the UK is to have the infrastructure that it needs. This note outlines some of the measures that the Government has taken to increase infrastructure investment including:

  • The UK Guarantees Scheme
  • The Pensions Infrastructure Platform
  • The Green Investment Bank

In October 2015, the Government established the National Infrastructure Commission to provide “unbiased analysis of the UK’s long-term infrastructure needs.” 

In the 2016 Queen’s Speech, the Government announced that the National Infrastructure Commission would be placed on a statutory basis as part of the Neighbourhood Planning and Infrastructure Bill, which would be introduced to Parliament “as soon as Parliamentary time allows.”

Commons Briefing papers SN06594

Author: Chris Rhodes

Topic: Economic policy

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