Research issued: 08/07/2018
Essential Infrastructure 2018
Our new report, 'Essential Infrastructure' examines the changing landscape of infrastructure delivery in the UK over the last 20 years.
The report has shone a light on the delivery of infrastructure projects across the UK since 1997. New data reveals that despite record investment in infrastructure, the construction supply chain has not seen an equivalent increase in activity.
Our Essential Infrastructure report reveals that UK construction output on infrastructure, which measures the value of construction activity on public and private infrastructure projects, has increased by just £6.4bn or £70 per person in real terms between 1997 and 2017.
The report analysed publicly available Office for National Statistics (ONS) and Northern Ireland Statistics and Research Agency (NISRA) construction output data, adjusted for inflation, over the past two decades. Construction output is a key measure of UK Gross Domestic Product (GDP) and shows the value of work being undertaken by construction companies.
To encourage the increased delivery of infrastructure in areas where output has been low in recent years we need to continue to drive forward the devolution agenda. We recently passed the 10 month countdown on Brexit negotiations and it is more vital than ever that Great Britain is able to demonstrate its economic strength, reverse the negative swing in Foreign Direct Investment and prove that, we have an infrastructure plan in place to keep UK Plc in business.
Mark Robinson, Scape Group chief executive
Rethinking the regional divide
In our report, recommendations to improve the efficient decision-making and delivery of UK infrastructure include:
- A removal of retentions throughout the construction industry and a commitment from clients to ensure payments to Tier 1 contractors within 14 days, for contractors to pay Tier 2 suppliers within 19 days and Tier 3 suppliers within 23 days, improving upon the current requirements of the Construction Supply Chain Payment Charter.
- A commitment to driving forward the devolution agenda to support the joined up delivery of infrastructure.
- A widening of the National Infrastructure Commission’s remit to prevent the ‘politicisation’ of infrastructure decisions.
- A commitment to ensuring that all public sector contracts valued at £10m or more, produce at least 20 per cent of that figure in Social Value to the community.