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Sharing knowledge will deliver the infrastructure promise

Infrastructure investment is a key economic driver. It provides a positive ‘multiplier effect’ for the economy by helping to attract and retain wider private sector investment, writes Britpave general manager Steve Elliott. 

For the latest issue of Britpave News, visit www.britpave.org.uk or click here

With the UK’s infrastructure comparing poorly against other competitor economies – according to the World Economic Forum the UK is ranked just 28th for the quality of its infrastructure – upgrading it is essential. 

Our global competitors continue to set an example on how to fund infrastructure projects. In Canada, pension funds are invested directly into infrastructure thereby reducing the reliance on bank finance. In Australia, the government shares refinancing risk on projects to allow short-term bank lending during the construction phase. Meanwhile, Germany and Brazil, among others, have state-owned infrastructure banks that lend to projects. A further consideration is that the UK is the only G20 country that does not offer tax relief for infrastructure investment in buildings and structures. 

However, before we start to believe that the UK is on the verge of a golden age of infrastructure investment, it is important to remember that announcements must be turned into real action. 

It seems that the government is recognising that something has to change. New funding announcements and prime ministerial photo-opportunities at major contractors underline the increasingly central role that infrastructure investment is playing in the government’s economic strategy. Recent announcements have pledged £36bn billion for the start of over 200 infrastructure projects during 2014/15. This announcement follows the 2013 Spending Review which saw the Treasury commit to invest over £100 billion for specific projects in the next parliament while the National Infrastructure Plan outlined £377bn of public and private sector investment.

However, before we start to believe that the UK is on the verge of a golden age of infrastructure investment, it is important to remember that announcements must be turned into real action. 

This is why the recent assurances from the commercial secretary to the Treasury, Lord Deighton, that the 2015 General Election will not stop the programme for infrastructure investment and the government is committed to delivery are so warmly welcomed. There have been too many false dawns in the past.

If infrastructure investment is fulfil its potential then in addition to government commitment, the construction industry must play its part.

The need to increase infrastructure investment is set against a background of decades of under-funding together with government’s continued determination to balance the books. This means that if infrastructure investment is fulfil its potential then in addition to government commitment, the construction industry must play its part. It must deliver infrastructure solutions that are cost-effective, offer long-term performance and durability and require minimum maintenance. We all need to work together and share information in order to achieve that.

As the industry focal point for cementitious infrastructure, Britpave, through its sector specific task groups, can help and is developing a range technical and best practice guidance that forward efficient and cost effective infrastructure solutions. You will find details of these initiatives in the latest issue of Britpave News, visit www.britpave.org.uk or click here to link to the pdf

Steve Elliott is Britpave's General Manager