1. UK Government Plans for Infrastructure Geoffrey Spence CEO, Infrastructure UK

2. The National Infrastructure Plan 1 A coherent vision for UK – setting out Government strategy to deliver key infrastructure Transparency and certainty to developers, the supply chain, and investors Underpinned by £411bn pipeline of future projects 564 projects and programmes in the pipeline £100bn of public investment committed for this parliament

3. Long term plans for each sector 2 Road Rail Airports Ports Energy (inc oil & gas) Communications Flood Defence Water Waste Science

4. Achievements of the last Parliament Over 2,650 infrastructure projects or schemes completed Between 2010 and 2013 more than £45bn was invested in new electricity generation and networks. Around 20GW of new electricity generation capacity created – enough to power around nearly 23 million homes Completion of King’s Cross redevelopment, along with improvements to over 400 other stations Completed all 42km of tunnelling for the £15bn Crossrail scheme – the largest engineering project in Europe Completion of more than 520 flood and coastal erosion defence improvement schemes, improving the standard of protection to over 175,000 homes £22bn of investment in water and sewerage networks 3

5. UK infrastructure investment pipeline 4

6. Sources of funding by sector 5

7. Roads 6 Over £15bn to 2020-21 to undertake: over 100 road schemes Resurfacing up to 80% of the Strategic Road Network Over 1,300 additional lane miles Investing in new ‘expressways’ to connect under-served areas including the A303 and A1 in the North East (already under construction) Highways England now created to deliver the programme

8. Rail 7 High Speed 2 £50bn capital envelope Hybrid Bill progressing well – due for Royal Assent next year Phase 1 to start construction in 2017 Network Rail £38bn Network Rail delivery plan Sir Peter Hendy appointed to ensure Network Rail can deliver effectively £800m Northern Line extension due to start construction this year Crossrail tunnelling now complete and will be fully operational by 2019 New Inter-City Express trains from 2017

9. International Gateways 8 Decision on a South East runway this year £6bn of private sector aviation investment in the pipeline including £3.5bn+ regulated investment at Heathrow and Gatwick £1bn 10-year programme at Manchester Airport Other investment at Bristol, Luton and London City £300m Liverpool 2 port development due to open in December Public investment in better road links to ports and airports to 2020-21, including M42 in Birmingham A5036 in Liverpool £290m A6 to Manchester Airport (already underway)

10. Energy 9 £140bn of new electricity generation investment in the pipeline £45bn of investment in energy networks in the pipeline Continued support for new nuclear - £45bn planned investment for 3 projects: Hinkley Point C, Wylfa, Moorside 2013 Energy Act will support up to 250,000 jobs in low-carbon generation by 2020 Faster decisions on shale gas through a dedicated planning process New Energy bill to support cost- effective decarbonisation

11. Flood Defence 10 £2.3bn capital investment committed helping to avoid more than £30bn in economic damages Investment to 2020-21 to support: more than 1,400 schemes improved protection for at least 300,000 homes 10% efficiency savings planned across the investment period

12. Communications 11 95% of the UK will have access to superfast broadband by 2017 Since 2010 3 million extra homes have access for the first time 40,000 new homes passed each week 70% of rail passengers to benefit from high- speed broadband on trains by 2019 4G to reach 98% of premises by 2017

13. Water 12 Thames Tideway Tunnel licence awarded to Bazalgette Tunnel Ltd £4.2 billion project to build a 25-kilometre tunnel, using new model for private investment Contracts awarded for construction to start in 2016 Avoiding 39 billion tonnes of untreated sewage entering the Thames Cost to customers £20-25/yr compared to £70-80 estimated Consortium of investors comprising funds managed by Allianz, Amber Infrastructure Group, Dalmore Capital Ltd and DIF Over £25bn of water and waste water investment in the pipeline

14. Financing UK infrastructure 13 The new government has committed £100bn of public funding to infrastructure. Over 60% the infrastructure pipeline is expected to be privately funded and financed – largely through corporate finance. Around £80bn of project specific investment opportunity in the pipeline - £45bn of which is new nuclear. Government support for private investment includes: Energy Market Reform – Capacity Market mechanism; Contracts for Difference for low carbon energy UK Guarantees Scheme - £40bn of government guarantees for infrastructure PF2 – new model of PPP for investment in social infrastructure

15. National Infrastructure Plan for Skills 14 Published in September, the NIP for Skills presents analysis of the labour required to build and maintain world-class infrastructure as set out in the National Infrastructure Pipeline. Key challenges facing industry in order to deliver the Pipeline: demand for over 250,000 construction and over 150,000 engineering construction workers by 2020 recruit and train nearly 100,000 additional workers by 2020 retrain and up-skill around 250,000 of the existing workforce over the next decade difficult for skilled workers to move easily between sectors and projects Detailed actions and progress will be set out alongside further updates of the National Infrastructure Plan and in sector specific responses.

16. National Infrastructure Commission 15 As part of a four-point plan, the Chancellor has announced the creation of a new independent National Infrastructure Commission (NIC). The NIC will: help to create a better understanding of the UK’s long-term needs help in the forward planning of nationally significant infrastructure and timely strategic decisions on investment ensure major investment decisions support and promote long-term sustainable economic growth be chaired by Lord Adonis, until a permanent chair is appointed before Budget 2016, publish advice to the Government on three immediate work priorities begin work on a national infrastructure assessment, looking ahead to requirements for the next 30 years, across key economic infrastructure sectors

17. Next Steps 16 National Infrastructure Commission to be set up on an interim basis, until legislation is introduced Spending Review 2015 to set capital budgets in key infrastructure sectors to 2020 Plan to publish a new long-term National Infrastructure Plan Decisions on the future of the UK Guarantee Scheme airport expansion in the South-East Shaw Report on long-term financing of Network Rail