Research from Scape Group, the public sector
procurement specialist, 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.
Scape’s
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 new report comes as National
Infrastructure Commission prepare to release its National Infrastructure
Assessment of the UK’s infrastructure requirements up until 2050.
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.
London
has seen the most construction output on infrastructure projects across the UK
in the past two decades (£54.14bn). However when analysing the data relative to
the population of each region, the North East is the most active region
relative to its size. Per person in 2017 the North East experienced 40% more
construction output on infrastructure projects than London, whilst the North
West saw 27% more – suggesting that these regions are catching up with the
capital and ending the traditional North-South divide.
In
London infrastructure output spiked from 2010, closely aligned to investment
around the Olympic Games and Crossrail. Output has since dropped down to
pre-2010 levels, whilst other regions are experiencing increased per capita
output. For the last three years infrastructure output per person has been
higher in the North East of England (£1,156) and North West (£901) than in
London (£864) and the South East (£799).
The
West Midlands has had the lowest infrastructure output per person since 2010.
Positioned at the centre of the UK geographically this should make the region a
hub for economic growth, but with a population of 5.8 million and £1.1 billion
in output last year it is seeing just £194 per person in construction output on
infrastructure.
Scotland
has consistently experienced high levels of construction output on
infrastructure - £36.09 billion since 1997 a huge £6,678 per person and the
highest output anywhere in the UK. Per capita Wales comes in third, after
Scotland and London, at £5,176.
Mark Robinson, Scape
Group Chief Executive, commented: "This data clearly illustrates that the
north-south divide in England, starts to disappear when construction output is
calculated per person.
"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. The
metro mayors have a vital role to play but at the same time we need to encourage
local authorities to work together to deliver infrastructure that meets their
common ambitions and aspirations.
"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.”
