Budget view: Infrastructure investment ‘will make little difference’Mar 21, 2013
Richard Threlfall, UK head of infrastructure, building and construction at business advisers KPMG, said: “From an infrastructure perspective, the Budget was disappointing. £3bn infrastructure investment per annum – scrapped off other savings – will be welcome but will make little difference in solving the UK’s infrastructure challenge.”
Experts say that the UK needs at least £400 billion investment in its infrastructure over the next ten years.
Mr Threlfall added: “What is clear is that the UK must now look to private stimulus for infrastructure investment after the Chancellor turned his back on additional borrowing.
“Around 65% of the UK’s infrastructure is already privately financed but we will not unlock new development spend from the private sector without action and a consistent message from the government, to build confidence amongst developers and investors.
“However, tucked away in the Chancellor’s speech was an intriguing reference to UK guarantee support for “the new power stations of tomorrow”. This could be a game-changer for new nuclear if the government is really serious about debt support as well as fixing the strike price. “