In the Spending Review on 25th November, the Chancellor confirmed a “once in a generation investment in infrastructure”, outlining £100 billion of capital spending in 2021-22, a £27 billion real-term increase compared to 2019-20.
Funding will be targeted at high-value, job-creating projects that are deliverable next year including:
- Almost £19 billion of transport investment in 2021, including £1.7 billion for local roads maintenance and upgrades.
- £4.2 billion for NHS operational investment next year to allow hospitals to refurbish and maintain their infrastructure.
- Over £260 million for transformative digital infrastructure programmes, including the Shared Rural Network for 4G coverage and Local Full Fibre Networks.
The Spending Review also maintained momentum on the government’s infrastructure plans with multi-year capital settlements including funding to start the delivery of:
- £1.3 billion investment in electric vehicle charging infrastructure by 2030.
- New Carbon Capture and Storage clusters by 2030.
- Over £58 billion of investment for road and rail infrastructure.
- Almost £20 billion of investment underpinning the government’s long-term housing strategy, including £7.1 billion for a National Home Building Fund and £12 billion for the Affordable Homes Programme.
- A multi-billion pound capital investment to deliver the government’s commitments on building hospitals, schools and prisons.
- £1.2 billion to subsidise the rollout of gigabit-capable broadband.
The Chancellor announced a new National Infrastructure Strategy, outlining the government’s long-term vision for transforming UK infrastructure. Plans include the creation of a new UK infrastructure bank located in the North of England from next Spring. It will co-invest alongside private investors through a mix of loans and guarantees as well as taking equity stakes in projects.
The Chancellor also announced a refreshed set of funding rules for government schemes. The new rules are expected to increase the viability of proposed projects outside of London and the South East.