It has also published a list of projects representing a £177bn pipeline of government projects, including nearly £119bn in construction.
Included in the construction pipeline are:
- almost £4bn of affordable home projects
- more than £12bn for education
- more than £4bn to enable the Highways Agency to resurface the vast majority of the national network by 2020 to 2021
- specific long-term funding settlement for flood defences.
The National Infrastructure Plan is intended to provide visibility and improved certainty that industry has been looking for in order to commit to big investments.
The infrastructure pipeline published alongside the plan is intended to add further certainty to give confidence to investors. It also acts as a prospectus for investors, identifying key UK private and public sector infrastructure opportunities.
At the same time, six major insurance companies have announced plans to invest £25bn in UK infrastructure over the next five years.
The future infrastructure pipeline, which only includes projects and programmes worth more than £50m, shows that planned investment in infrastructure has passed £375bn, up from £309bn last year. Of the 646 projects and programmes in the updated pipeline, 291 are under construction.
Energy makes up 58% of the total infrastructure pipeline in government’s National Infrastructure Plan.
As part of its infrastructure plan, the government has made a series of majore policy announcements. These include:
Wylfa deal: an agreement has been signed with with Hitachi and Horizon to support the financing of the development of a new nuclear power station at Wylfa in North Wales through a UK guarantee, subject to final due diligence and ministerial approval.
Gatwick rail upgrade: £50m funding has been approved for a full redevelopment of the railway station at Gatwick airport.
Renewables deal: Strike prices for renewable energy have been set out, so that energy providers know how much they will receive for electricity generated in the future.
Road schemes: Work will start on improvements to the A50 around Uttoxeter by 2016. Work will start on upgrading the A14 between Cambridge and Huntingdon in 2016 and plans to put tolls on this section have been dropped.
Northern Line: a UK guarantee has been agreed for the £1bn Northern Line extension to Battersea, unlocking massive development in the Nine Elms area.
Planning reform: a new court for infrastructure will be set up to accelerate the planning process for major projects.
Green Investment Bank: the government will also look at options to bring private capital into the Green Investment Bank to enable it to operate more freely in delivering its objectives.
Cabinet Office minister Francis Maude said: “We have a long-term growth plan that is stimulating the economy and creating opportunity for business. The government pipelines have proved a big hit with business since we launched them two years ago.
“They are helping big and small suppliers plan ahead, invest and ultimately grow by successfully bidding for more public sector contracts. By creating a level playing field for UK-based businesses, the pipelines open the door to small firms and to new ideas for promoting competitiveness, providing maximum value for taxpayers.
“The pipelines are updated every six months to provide suppliers with much earlier visibility of future opportunities within government.”
Chief secretary to the Treasury Danny Alexander said: “The announcement today that six major insurers will invest £25bn over the next five years is a massive vote of confidence in the UK economy. It supports the wider £100bn public investment to rebuild Britain over the next seven years that I announced at the Spending Round 2013.”
Commercial secretary to the Treasury Lord Deighton added: “The fourth National Infrastructure Plan shows that the government is delivering on infrastructure, with a long term strategy to make sure the UK tackles decades of underinvestment and gives us the infrastructure we need to compete in the global race.
“Investment is increasing to around £375bn over the coming years, with 45% of our prospective infrastructure already under construction. We’ve set out government priorities with clear delivery milestones and reformed planning rules to drive forward the most important projects, making sure we are building the strong, modern economy of the future.”
The full national infrastructure plan can be seen on the government's website at www.gov.uk/government/publications/national-infrastructure-plan-2013.
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