The government’s 10-year infrastructure plan which commits £413bn of spending over the coming decade needs to do more to drive private sector investment, according to KPMG.
The National Infrastructure and Construction Pipeline, announced last month, “looks to be gaining ground”, the accounting firm said, but still lagged behind targets set by the United Nations.
The plan lays out where the government’s spending will go, with £189bn on the energy sector, £123bn on transport and £47bn on utilities.
Meanwhile, housing and regeneration gets £14.4bn, education gets £14bn and communications gets £6.8bn of spending, with the average infrastructure spend per capita at £907 for the country.
Jonathan White, KPMG’s UK head of infrastructure, building and construction, said it was “encouraging” the pipeline accounted for 1.5 per cent of GDP.
But the fact that the total public and private spend made up three per cent – below the 3.7 per cent recommended by the UN – meant “more investment” was needed, he added.
He said: “The Treasury has been criticised for regional disparity when it comes to infrastructure investment, with London often being centre stage. This year, the allocation of funds is spread out across the country.
“Notably, the South West and North West are set to receive the greatest spend, but most of this budget is allocated to nuclear power stations, such as the development of Hinkley Point C in the South West and the decommission of four nuclear power stations in the North West.
“For many, this will be disappointing when there is still a pressing need for investment in transport and digital infrastructure in these regions.”