The National Infrastructure and Service Transformation Authority (NISTA) has updated the infrastructure pipeline tool, increasing the total value of projects to £718bn over 10 years (up from £531bn when the tool was launched last summer).
The tool’s half-year update not only includes a slew of methodology and reporting updates, but also a workforce demand analysis function.
The infrastructure pipeline tool now includes new and updated data from a wider range of providers, including several mayoral combined authorities, which helps to explain the substantial increase in the total value of projects.
£252bn will be publicly financed and £466bn will be delivered through private or a mix of public and private financing. Over 10 years, 51% of the planned investment is in energy, 16% in transport, 11% in health and social care and 9% in water and wastewater.
Scotland can expect around £25bn of investment to 2034/35 due to the anticipated investment in onshore wind. The West Midlands is likely to see around £23bn of investment and the North West £16bn; this is due to significant investment in transport, energy, flood defences and water and wastewater. London has £59bn of planned investment with a further £30bn across the South East, linked to major investment in flood and coastal defences and water and wastewater.
Investor insight
Nearly 40 projects on the pipeline are seeking debt or equity finance, with just under 200 more potential investment opportunities. Of these, around £21bn of additional private investment is actively sought, mainly driven by the water sector.
The workforce analysis function suggests that delivering the planned investment in the pipeline will require an estimated annual average workforce of between 621,000 and 697,000 over the next two years and between 629,000 and 706,000 over the next five years.
Both new and experienced users of the pipeline tool should review the changes in methodology and reporting.
NISTA CEO Becky Wood said: “Transforming UK infrastructure needs a three-way collaboration between government, investors, and industry to succeed. The infrastructure pipeline is the foundation on which this relationship thrives, and this update now gives investors more granular information about forthcoming investable opportunities they told us they need for their strategic planning.
“Our industry partners across the sector can only invest in new skills, capacity and technology with the right data to assess what the pipeline means in the delivery context. By adding new information on what future workforce demand looks like they can plan with confidence, and the pipeline is also better placed to support the investment government is already making to address the construction skills gap.”
