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Highlights: National Infrastructure Plan 2013

The government has today set out an update on its priority strategic infrastructure projects and claimed 99 per cent of its capitally-funded schemes are “on track”.

The National Infrastructure Plan hinted that tough decisions are to come, with decisions about individual projects and programmes which may “require trade-offs between the future cost of under-supplying infrastructure, and the costs that it imposes on taxpayers and/or consumers”.

Aside from the measures reported by Construction News this morning, including insurers’ plans to invest £25bn in infrastructure and funding pledges for nuclear, roads and Gatwick Airport, here are some of the sector highlights from the National Infrastructure Plan 2013.


The overall value of the pipeline has increased from over £309bn to over £375bn of investment, most of which is in the energy and transport sectors, worth over £340bn of combined investment

£260bn (71 per cent) of capital value of the pipeline is for the next parliament and beyond.

The value of forward investment in the energy sector now sees more than £98bn of investment from 2020.

Treasury has estimated that average annual infrastructure investment has increased to £45bn per year compared to an average of £41bn per year between 2005 and 2010

The overall value of forward investment in the energy sector has increased from £176bn in the 2012 update of the pipeline to over £215bn this year. The largest subsector within energy – electricity generation – has also increased from £123bn in 2012 to £147bn.

Strike Prices for CfDs:

Onshore Wind95959090
Offshore Wind155150140140
Solar Large120115110100
Biomass (conversion)105105105105

Olympic Park:

Plans for a new higher education and cultural quarter on the Olympic Park, in partnership with University College London and the Victoria and Albert Museum

UK Guarantees:

40 projects worth £33 billion are now prequalified for the UK Guarantees scheme

The government will operate a presumption in favour of prequalification for the UK Guarantee Scheme for any project that is part of a Top 40 priority investment, subject to the scheme’s criteria. It “welcomes an approach by any such projects that fall within the scope of the scheme”.

Local authorities:

Plans to allocate nearly £800m of borrowing at the Public Works Loan Board project rate to Local Enterprise Partnerships in partnership with local authorities in 2014-16 and 2015-16.

Allowing local authorities in Scotland and Wales access to cheaper borrowing at the PWLB project rate to support the delivery of priority infrastructure projects.


The government will publish a ‘Roads Investment Strategy in December 2014 and will aim to conclude on the transformation of the Highways Agency into a government-owned strategic highways company in Spring 2015.

It has committed to build at least 52 major road projects by 2020 - 21/ resurface as much as 80 per cent of the strategic road network over the next seven years.

Major rail station improvements:

The government will “particularly monitor” the investments in the following projects:

  • Birmingham New Street
  • Bristol Temple Meads
  • Manchester Victoria
  • Peterborough
  • Reading


It will “particularly monitor the project that is of largest capital value within the programme” in each of the English regions:

  • Manchester Metrolink extensions
  • Nottingham NET2
  • Leeds New Generation
  • Norwich Northern Distributor Road
  • Sunderland Strategic Corridor
  • A380 South Devon Link Road
  • Croxley Rail Link
  • Midland Metro extension

Transport/Airport access:

  • A study will be set up into southern rail access to Heathrow
  • Government will “accelerate” a Network Rail study into the Brighton Mainline
  • Extend the scope of the East Anglian Mainline study to include access to Stansted Airport
  • Access to Gatwick will be included in the Highways Agency study on local motorways


Local growth fund allocations and negotiations will be concluded in ‘growth deals’ with all 39 LEPs by July 2014

The LGF will be a minimum of £2bn per annum from 2015-16 to 2020-21 and includes over £6bn over six years capital spending previously earmarked for transport infrastructure and £600m over two years for skills capital spending.

LEPs will compete for the LGF on the basis of the strength of their strategic economic plans.


The final report of the HS2 Growth Taskforce will be published in spring 2014

The government has launched a review of the Nationally Significant Infrastructure Project regime that will seek views on:

  • streamlining consultation and environmental information requirements to speed up the pre-application phase
  • flexibility to make changes to Development Consent Orders after a decision is made
  • expanding the scope of the ‘one stop shop’ for consents
  • efficiency and flexibility during the examination phases
  • strengthening guidance on engagement between the developer, Statutory Consultees, Local Authorities and communities

Treasury and the Department for Business will commence a study looking at developing better joint working, more clearly explaining the role of economic regulation, and facilitating cross sector infrastructure investment. Recommendations from the study will be made in spring 2014.

A final report and legacy plans from the Infrastructure Cost Review, will be published in spring 2014.

The government and industry client working group, will set out in spring 2014 an action plan to identify and implement the measures necessary to address skills and capacity issues identified across the pipeline and Top 40 priority infrastructure investments

A consortium of professional and trade bodies across the entire highways supply chain, including the Institution of Civil Engineers and the Chartered Institution of  Highways and Transportation will work on building a new supply chain map. It will develop local employment and supply chain opportunities, including apprenticeships and training vehicles and will address the changing skills and capabilities for a 21st century road network.

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