Balfour Beatty is calling on the Government to bring forward ‘shovel ready’ schemes, including flood defence works, in its‘Small Scale, Big Impact: Infrastructure and Economic Regeneration’ paper published today.
The international infrastructure group is stressing the importance of small and medium scale infrastructure schemes on the wider UK economy, commenting:
“We believe it would send a strong signal if the green light were given to the myriad transport and other projects which are currently awaiting funding.”
In the paper the company draws on its considerable experience and understanding of the link between infrastructure and economic regeneration. Balfour Beatty examines the role small scale, quickly implementable projects can play in boosting economic growth nationally in the short to medium term, while simultaneously providing a longer-term structural contribution to the economy for example, by addressing congestion on the roads.
Such ‘shovel ready’ schemes will provide the construction industry with the pipeline and certainty to invest in training future experts who will be needed to deliver larger scale projects such as HS2 and the third runway at Heathrow.
The paper says there are a number of flood defence schemes which could be reinstated, ensuring a positive impact on the growth and regeneration of a range of towns and cities.
The ‘shovel-ready’ schemes highlighted across the UK include the £190 million flood alleviation scheme in Leeds, which Balfour Beatty says could be brought forward relatively quickly. The paper says that while the scheme which has already seen some additional funding in the 2016 Budget as part of a £150 million package, the original fund for the full Leeds scheme was £180 million in 2011.
It also points out that the impacts of flooding and coastal changes in the UK are already significant and expected to increase. Meanwhile, the cost to the UK economy of flood damage, both in terms of the effect on homeowners and business, far outweighs the infrastructure costs.
The paper also examines funding, pointing out that in a number of infrastructure-related areas, the way the impact of the scheme and therefore its value is calculated means that some schemes are automatically cancelled out.
For example in terms of flood defences, the value of assets protected is a key element in the economic formula for deciding where taxpayers money should be spent, skewing the system towards wealthier areas where property prices are higher, the paper says. Alternative economic modelling should be considered, which makes a more robust economic case for infrastructure investment more broadly across the country.
Key recommendations within the paper include:
- the need for a solid project pipeline;
- the importance of considering alternative economic modelling which makes a more robust economic case for infrastructure investment more broadly across the country;
- ensuring that fiscal stimulus is not directed solely towards new infrastructure;
- and that there is an early and integrated policy response to the skills shortage.
Leo Quinn, Balfour Beatty Group Chief Executive, said:
“Whilst major infrastructure investment will be vital to the strength of the UK over the mid-term, we believe there is also a way for the government’s industrial strategy to drive rapid economic stimulus, with considerable geographic precision."
“As of today a number of road, rail, public realm, flood defence and construction projects exist which meet the Chancellor’s tests, in many cases have been approved, but are stalled by lack of funding. Taking advantage of current low borrowing costs to select and implement those with potential to bring maximum impact on a localised basis would quickly disperse uncertainty and set the country on the path to an economic growth that works for everyone.”
Click here to download the paper
Waterbriefing is media partner with the Environment Agency’s major three-day conference and exhibition Flood and Coast 2017 which takes place from 28 to 30 March 2017 in Telford. Click here for more information