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Rail and road funding tops UK government’s infrastructure spend — KPMG

Spending of GBP66.2bn on transport projects in the UK account for more than half the government’s construction total pipeline value, professional services firm KPMG reported on Tuesday.

KPMG has published a report titled UK Government Construction Pipeline – KPMG Analysis. The review of the Construction Pipeline, issued by the UK government, studies the predicted GBP116bn spend by central and local government on 1,886 projects planned for 2014-16 and 2016-20, then 2020 onwards.

The pipeline shows that UK rail and road projects account for 57% of the total pipeline value, including the cost of HS2 Phase 1 and Highways Agency schemes.

Energy projects amount to nearly 13% of the total pipeline value and are the second largest valued category at GBP14.8bn. This value is lower because most UK energy projects are reportedly procured by the private sector, not directly by the UK government, so consequently are not included in the pipeline.

Defence, justice and police sectors are attributed with the most projects, which make up 70% of the pipeline by number; however these projects only contribute 7% of total pipeline value.

Of the total number of infrastructure projects, almost one-third of are in the South-East and South-West, however nearly half of these are national projects that will be of value to the whole of Britain

According to KPMG, 40% of the projects are expected to be completed before 2016, but these projects represent just 7% of the total allocated pipeline value. While just under a fifth of infrastructure projects are due to be finished after 2016, there are no specified completion dates for one third of the projects.

Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction stated: “Our analysis of the UK Government’s Construction Pipeline shows the huge dominance of rail and road schemes in the Government’s infrastructure spend. Nearly 60 percent of the total value forecast to be spent over the next 10 years and beyond is on schemes such as HS2 and the national road network.


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