UK infrastructure needs £500bn

At least £500bn will need to be spent on the UK’s energy, transport, water and ICT infrastructure between now and 2020 in order that the UK can maintain its economic competitiveness, according to the Institute of Directors (IoD). The body says public spending on infrastructure is now so important that it should be ring-fenced, despite the huge fiscal deficit. It suggests the next government use all future proceeds from bank privatisation, which could be £50bn plus, to pay for new infrastructure. It adds that poor infrastructure has been a long-running problem for the UK economy, but competitive failings in this area have been offset in the past to some extent by the UK’s tax competitiveness and high value added financial services.