The UK Government’s 2024 Autumn Budget, presented by Chancellor Rachel Reeves, placed a heavy emphasis on infrastructure investment.
Key takeaways for the infrastructure sector included:
1. Relaxed fiscal rules: It was announced that the fiscal rules will change, which could pave the way for increased public spending on infrastructure.
2. Long-term infrastructure strategy: A 10-year infrastructure strategy, to be launched in 2025, will guide investment, with oversight from the new National Infrastructure and Service Transformation Authority (NISTA).
NISTA will have a more prominent role in supporting major infrastructure projects, including approving business cases before they get funding.
3. Key project funding: A commitment was made to complete HS2’s line from Old Oak Common to Euston in central London. The government will also invest £2.4bn over two years to build new flood defences and maintain existing assets.
Announcements were also made on carbon capture, usage and storage (CCUS) and green hydrogen projects, however, there were no new announcements on the UK’s nuclear programme.
The ICE welcomes these announcements, specifically the change to fiscal rules to focus on the value of public infrastructure investment, as this is something the ICE has repeatedly called for.
Other positive measures include modelling the Budget’s impact for 10 years instead of five, which is key for the industry to thrive as long-term thinking provides certainty.
The ICE has launched a next steps programme on paying for Britain’s infrastructure system to highlight how private finance must be mobilised to help the UK meet its economic, social and environmental objectives.
The ICE wants to see a clear vision for infrastructure investment as well as clarification on exactly how NISTA will help improve infrastructure delivery.
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