The following is an extract from HM Treasury’s National Infrastructure Plan 2013. The original research was carried out by Cebr for CECA in May 2013.
There is some evidence that a lack of investment in infrastructure has already been detrimental to the UK. In 2013, a report by the Civil Engineering Contractors Association found that:
• UK GDP could have been five per cent higher, on average, each year between 2000 and 2010 if its infrastructure had matched that of other leading global economies
• the cost of infrastructure in the UK which fell short of typical developed economy standards was up to £78 billion each year between 2000 and 2010
• if UK infrastructure is not brought up to the standard of other developed economies, by 2026 this could create an annual loss to the economy of £90 billion
The impact of infrastructure on economic performance can be observed in both the long and short term, with different sectors likely to contribute in different ways. For example, investment in sectors such as energy, water and waste is often necessary simply to enable economic activity to take place, though it can also have short-term growth impacts. In other areas, such as transport and digital, there is more likely to be a long-term multiplier effect.
Cebr research featured in the National Infrastructure Plan 2013 can be found here
The original report can be found here