Figures in a new report show spending on Government construction projects has jumped £62.6bn since August 2015, bolstered by inclusion of the full cost of HS2 to Birmingham, Leeds and Manchester in the Government construction pipeline as well as increased spend on education and nuclear decommissioning.
A report by KPMG captures £181bn of spending on Government funded projects, which has increased from £119bn in August 2015. The report highlights that the largest changes in the pipeline are due to an increase of £32bn in transport from including HS2 Phases 1 and 2 in the 2015 Spending Review, an extra £15bn in the education sector and a £10bn from additional spend on nuclear decommissioning.
Of the 15 sectors covered in the report, 84 per cent of the pipeline value comprises projects in Transport (£92.2bn), Energy (£32.3bn) and Education (£27.9bn). Projects that benefit the whole of the UK represent the largest spend with the second highest spend represented by the south at £22.8bn (13 per cent of the pipeline) followed closely by the north at £20.7bn.
Richard Threlfall, KPMG’s UK head of infrastructure, building and construction said:
“It is encouraging to see the dramatic increase in forecast spending resulting from the Government including the full budget for HS2 phases 1 and 2 in the pipeline. The focus now needs to be on efficient delivery to ensure that projects are delivered to time and budget.”