Improved infrastructure to boost economic growth across the UK and meet climate goals is both achievable and affordable if the right policy steps are taken now, according to the government’s independent advisers on infrastructure strategy.
Among their recommendations they back electrification as the only viable option for decarbonising buildings at scale, to reduce reliance on volatile fossil fuels, lower energy bills over the long term and to meet the UK’s climate targets
The government they say should be fully subsidising the costs of installing a heat pump for one third of households – based on income – and offering £7,000 support to all others to switch to a heat pump or heat network
Ther should be major public transport upgrades in England’s most congested cities to unlock economic growth, and an urgent and comprehensive review of rail priorities for the North and the Midlands following government’s recent decision on High Speed 2
The country should be building additional water supply infrastructure and reducing leakage, while introducing compulsory water metering as part of efforts to reduce water demandUrgently implementing reforms to meet a 65 per cent recycling target by 2035 and phasing out energy from waste plants that do not include carbon capture facilities.
The report is upfront about the need for significant public and private investment in infrastructure if the UK is to rebalance its economic geography, meet climate obligations, improve resilience and enhance the natural environment.
The Commission calculates that government’s commitment to a sharp increase in public sector investment in infrastructure to around £30 billion per year will need to be sustained until 2040.
This sits at the top of the funding envelope set by HM Treasury for the Commission’s recommendations of up to 1.3% GDP a year. Meanwhile, private sector investment will need to increase from around £30-40 billion over the last decade to £40-50 billion in the 2030s and 2040s.
Attracting this investment to the UK in the face of global competition will require a new approach, says the Commission
The Assessment also sets out the likely impact of the Commission’s recommendations on households, where private investment is recouped through infrastructure service bills. It finds that the average household will save at least £1,000 per year by the mid 2030s compared to today, largely driven by the transition away from fossil fuels onto cheaper low carbon electricity.
In addition, it calls on government to rule out the use of hydrogen for heating and focus hydrogen on power generation and industrial decarbonisation.
New networks will need to be up and running by 2035 for the storage and transmission of hydrogen and carbon, to serve these needs and ensure heavy industry has the means to decarbonise and remain competitive in global markets. The Assessment sets out proposals for encouraging the private sector to build these networks, and an indicative map of core initial pipelines connecting key industrial hubs across Britain.
The Commission calls for action to tackle road congestion and improve public transport, calling for investment of £22bn in mass transit schemes in the cities outside London with the greatest likely need for increased passenger demand, beginning with Birmingham, Bristol, Leeds and Manchester and their city regions.
To increase capacity sufficiently to meet future demand, the Assessment indicates that city regions benefiting from major new public transport schemes will also need to identify ways to reduce the volume of car journeys into city centres, especially at peak times. The Commission is clear that the design and sequencing of such demand management schemes should be for local leaders to decide and are only likely to be appropriate once public transport options offer passengers a viable alternative to using private cars.
Following government’s recent decision on the northern legs of HS2, “a new comprehensive and long term strategy that sets out how rail improvements will address the capacity and connectivity challenges facing city regions in the North and Midlands is needed,” says the Commission. Such a review, undertaken in partnership with local leaders, should lead to “a rigorously costed portfolio of schemes with clear delivery timescales.”
Increased funding for the maintenance of road and rail networks is also proposed, with targeted enhancements to networks to improve underperforming routes between key locations. The Commission offers initial analysis on where such routes lie, as a starting point for a future integrated transport strategy.
Writing in the report’s foreword, Sir John Armitt, Chair of the National Infrastructure Commission, said:
“The good news is that modern, reliable infrastructure can support economic growth, help tackle climate change and enhance the natural environment.
“We stand at a pivotal moment in time, with the opportunity to make a major difference to this country’s future. But we need to get on with it.
“People often talk about infrastructure as the backbone of our economy: what our infrastructure needs now is the collective mettle to turn commitments into action that will reap rewards for decades to come.”
