The government will invest £23bn in infrastructure and innovation projects over the next five years, the chancellor has announced.
Philip Hammond today unveiled a National Productivity Investment Fund, which will be used for infrastructure, housing and research projects.
This will include billions of pounds of investment into infrastructure projects and programmes across the UK, aimed at boosting productivity.
Investments include: a £2.3bn Housing Infrastructure Fund to deliver infrastructure for new homes in areas of high demand; more than £1.8bn in Local Enterprise Partnerships to be spent on local infrastructure projects; and £390m on future transport technology.
Digital signalling across the UK’s rail network will get £450m, £100m will be put towards accelerating the East-West Rail line linking Oxford and Cambridge, while £1.4bn will be used for 40,000 affordable home starts.
Mr Hammond also confirmed that £1.1bn would be spent on England’s local transport network, £220m on traffic pinch-points on the UK’s strategic roads network and £2bn per year on research and development funding.
The government will also increase the amount of money it spends on assets covered by the National Infrastructure Commission to above 1 per cent until 2020, up from 0.8 per cent.
Assumed spending on infrastructure past 2020 will equal between 1 per cent and 1.2 per cent of GDP.
What does it mean for construction?
- A £2.3bn local infrastructure fund will be created to boost housebuilding across parts of the UK
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- A new pipeline of projects will be developed that could be delivered through government’s PF2 Public Private Partnership scheme
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