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Transport severely outgunning housing in government's construction pipeline

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Transport severely outgunning housing in government's construction pipeline

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Published by Max Salsbury for 24dash.com in Central Government and also in Development, Finance, Housing, Local Government

Transport severely outgunning housing in government's construction pipeline Transport severely outgunning housing in government's construction pipeline

Transport projects currently dominate construction spend at £66.2 billion, accounting for over half of the government's total pipeline value and dwarfing the £5.6bn destined for housing and regeneration, new analysis has revealed.

KPMG's report - 'UK Government Construction Pipeline' - looks at the £116bn forecast spend by central and local government across 1,886 projects in three spend periods: 2014-16, 2016-20, and 2020 and beyond.

The report reveals:

• Transport projects account for 57% of the total pipeline value. Includes the cost of HS2 Phase 1 and Highways Agency schemes.
• Energy projects, the second largest category by value, total £14.8bn, nearly 13% of the total pipeline value.
• The highest numbers of projects are in the defence, justice and police sectors, making up 70% of the pipeline by number, yet contributing only 7% of total pipeline value.
• Nearly one-third of the total number of projects are in the South-East and South-West, but by value, nearly half are national projects benefitting the whole of England such as HS2 and national road schemes.
• 40% of the projects are stated as due to complete before 2016, but these projects represent only 7% of the total allocated pipeline value. Just under a fifth are due to complete after 2016 whilst a third of projects currently have no specified completion date.

More dauntingly for housing, of the approximately £57.9bn categorised for England alone only £3.4bn has been set aside for the affordable housing programme, whilst an enormous £23.9bn has been earmarked for the HS2 project.

Richard Threlfall, KPMG’s UK head of infrastructure, building and construction, said: “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% 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.

“The total number of schemes is over 1,800, but in practice most of those schemes are individually of small value. It is concerning that a third of the total projects currently have no specified completion date as industry confidence in the pipeline would be improved if there was certainty around timescales to get schemes delivered.

“We welcome the government’s initiative in developing the Construction Pipeline, but more needs to be done to increase the completeness and robustness of the data.

“We will be issuing analysis on future updates to the Pipeline and we hope that there will be improvements in the data set so it becomes a reliable planning tool against which the UK construction industry can plan and invest with confidence."

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