A MANIFESTO FOR UK INFRASTRUCTURE

- Future government must commit to vital infrastructure investment –

13 January 2010: Whichever party wins the coming General Election, they will have to find a way of maintaining investment in the infrastructure projects that will deliver long-term social, economic and environmental benefits, says the Institution of Civil Engineers (ICE) in its Manifesto for UK Infrastructure , published today.

While there is general agreement across the political spectrum that infrastructure investment must be maintained, there is debate and uncertainty about how the necessary capital can be raised, due to the current economic difficulties, and which infrastructure projects are priority at a time of scarce resources and growing demand.  

ICE believes it is vital that existing projects which will underpin economic recovery and drive a low carbon agenda - such as Crossrail, Thames Tideway Tunnels and the new nuclear energy programme - still go ahead despite the strain on the public purse. Feasibility studies for proposals such as the Severn tidal project and high speed rail links to Scotland must also be driven forward.

The newly formed Infrastructure UK can provide a focal point for planning and prioritising investment for UK infrastructure projects in the coming years. However ICE has raised concerns that projects cannot be planned and prioritised until long term funding sources have been identified and secured.

The Manifesto for UK Infrastructure summarises the ICE’s principal recommendations aimed at addressing some of the main issues facing the UK in terms of investing, building and maintaining infrastructure:

The creation of a UK National Infrastructure Investment Bank (NIIB)

It has been estimated that the UK will need to spend in the region of £400 billion* on new and refurbished infrastructure by 2020 in order to address historic underinvestment and kick start the transition to a low carbon economy.   The financial crisis has, however, placed enormous pressure on public finances - reducing the availability and increasing the cost of both private and public capital. ICE has been calling for a NIIB as a way of attracting the large volumes of private capital which will be needed to fund essential infrastructure investment. The concept of such a bank has already gained support from the Liberal Democrats, former EU Transport Commissioner Lord Neil Kinnock, Author/Economist Will Hutton and right-leaning think tank Policy Exchange.

A fair and efficient planning system

ICE believes that the National Policy Statements (NPSs) and the special consent regime for infrastructure projects of strategic national importance created by the Planning Act 2008, are beneficial to the economy and to society. They should therefore both be preserved, in order to ensure that vital infrastructure projects can proceed without undue delay.

However, ICE also believes that Parliament should be asked to approve the National Policy Statements to secure their legitimacy through cross party support. It also feels that NPSs should be linked to the Comprehensive Spending Reviews, and existing strategic investment plans. The newly announced Infrastructure UK provides a vehicle for making this happen.

Urgent action on energy

The UK faces two major challenges in the field of energy. These are the predicted gap in electrical power generation capacity from 2016 onwards, and the stringent CO2 emission targets set out in legally binding carbon budgets for the periods 2008-12, 2013-17 and 2018-22.

Urgent action needs to be taken to reduce overall energy generation requirements through investment in domestic insulation, and the expansion of Combined Heat and Power Schemes. At the same time reserve capacity needs to be developed through a substantial increase in gas storage capacity. The UK has just one eighth of the storage capacity of the USA, and one sixth of the storage capacity of France.

There also needs to be a boost in generation capability through the development and application of carbon capture and storage. There is no shortage of coal either in the UK or globally, and if the pollution can be mitigated through carbon capture and storage, this would help keep this resource in the energy mix.

ICE Director General Tom Foulkes said: “There is a clear case for continued investment in our transport, energy, waste, flooding and water infrastructure, despite the restrictions the current financial situation places on government spending. This is not just for the benefit of industry and the economy, but for the benefit of society as a whole – our quality of life depends on infrastructure.

“The newly formed Infrastructure UK has a remit to assess the UK’s long term infrastructure needs and facilitate their delivery. This provides a great opportunity to create a framework which successive governments can adopt and develop, thereby creating a virtuous circle of increased industry confidence and an improvement to the public’s quality of life.

“But the effectiveness of initiatives such as Infrastructure UK, the National Policy Statements and the recently appointed Chief Construction Adviser will depend on the generation of new and innovative ways to fund the much-needed infrastructure - ongoing barriers to private investment must be addressed.

 “We will continue to work with politicians, industry and economic experts, to develop the idea of a UK National Infrastructure Investment Bank, which could help increase the availability of infrastructure funding and reduce its costs.”

The Manifesto for UK Infrastructure also looks at specific policy areas such as transport, energy, flooding, defending critical infrastructure, waste management, water and waste water, capacity and skills and research and development. See for more detail on these areas.  

The Institution of Civil Engineers (ICE) is made up of over 80,000 professional civil engineers. Most of them work in the UK, but ICE members also operate in 164 countries worldwide. ICE’s Royal Charter obliges it always to have regard to the public benefit, and always to act in a manner which is consistent with the public good. True to these obligations, ICE is not a lobby group, but a professional body which aims to harness engineering knowledge and expertise for the benefit of society.