Capital Projects & Infrastructure

Investment in infrastructure by the UK government was estimated around £18.9 billion in 2016, of which over 85% was on transport infrastructure. Almost 40% of the investment was funded by local government, with the remainder coming from central government. Infrastructure accounted for 36% of total government investment in 2016, up from 25% in 2010.

On the supply side, the construction industry built £19.7 billion of new infrastructure in 2017, and carried out a further £8.8 billion on repair and maintenance. Of the new work, 37% was carried out on behalf of public sector clients, the highest public share since 2014. Electricity infrastructure accounted for the largest share (45%) of new infrastructure work in 2017. This data doesn’t account for construction done “in-house” by organisations outside the construction industry.

On a regional basis, 31% of new construction work in the North East in 2017 was infrastructure, the largest such share of any region. The lowest share of infrastructure in total new construction work in 2017 was in the West Midlands (7%), closely followed by London (11%). The infrastructure share has fallen sharply in London from 30% in 2011, as other types of construction, including private housing, have risen.
It is estimated that the infrastructure stock in the market sector was worth around £130 billion in 2016, which accounts for 6% of the total capital stock in the market sector.