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Lords motion to take note of the case for improving investment in and planning for the United Kingdom's national infrastructure. Agreed to on question.
Lords motion to take note of the case for improving investment in and planning for the United Kingdom's national infrastructure. Agreed to on question.
Lords motion to take note of the Autumn Statement and measures to promote economic growth and to support businesses in the United Kingdom. Agreed to on question.
Lords motion to take note of the Autumn Statement and measures to promote economic growth and to support businesses in the United Kingdom. Agreed to on question.
To ask Her Majesty’s Government how much is being invested in national infrastructure in 2014, and how much planned over the next five years, as a percentage share of gross domestic product; and how that compares with the long-run Organisation for Economic Co-operation and Development average. [HL120]
To ask Her Majesty’s Government how much is being invested in national infrastructure in 2014, and how much planned over the next five years, as a percentage share of gross domestic product; and how that compares with the long-run Organisation for Economic Co-operation and Development average. [HL120]
The Government’s measure of total public infrastructure investment is public sector gross investment (PSGI). The Office for Budget Responsibility (OBR) forecast at the March 2014 Budget that this will be 3.0 per cent of gross domestic product (GDP) in 2014-15. Forecasts of government expenditure are generally made on a financial rather than a calendar year basis and are presently only available out to 2018-19.The figures to the end of the forecast period are as set out below:
| 2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 | |
| Public
sector gross investment as % of
GDP | 3.0 | 2.9 | 2.9 | 2.8 | 2.8 |
PSGI measures the direct spending on infrastructure projects by the whole public sector, unlike other measures such as net investment which are adjusted to exclude certain elements of spending. Internationally comparable figures for PSGI are not readily available. The UK’s fiscal framework is based around the entire public sector, many other countries only use a measure for general government that excludes public corporations so these are often the only comparative measures available. The OBR forecasts include some international comparisons of different investment measures. These can be found at the link below:
http://budgetresponsibility.org.uk/economic-fiscal-outlook-march-2014/
Neither PSGI nor the OBR figures include private investment in infrastructure which is an important element of overall infrastructure investment in the UK. The published infrastructure pipeline, which covers economic infrastructure only, provides an overview of planned public and private investment to 2020 and beyond, and can be found at the link below:
https://www.gov.uk/government/publications/national-infrastructure-plan-2013
To ask Her Majesty’s Government what assumptions were made about the use of secondary aggregates in HM Treasury’s Infrastructure Carbon Review, and about the estimated possible carbon reduction which could be achieved by the use of secondary aggregates.[HL3771]
To ask Her Majesty’s Government what assumptions were made about the use of secondary aggregates in HM Treasury’s Infrastructure Carbon Review, and about the estimated possible carbon reduction which could be achieved by the use of secondary aggregates.[HL3771]
The Technical Report, published by the Green Construction Board alongside the Infrastructure Carbon Review on 25 November considers the impact on carbon reduction through use of recycled materials1.
The report highlights that the selection of lower carbon materials is a good way of reducing the carbon impact of infrastructure. Such materials could be alternatives to steel or concrete or more traditional materials with recycled content. Representative asset owners from the water and transport sectors, who were consulted as part of this study, have claimed that the use of such materials in new infrastructure assets has brought significant carbon and cost reductions. The report also noted that when selecting a lower carbon material with recycled content (such as recycled aggregates), the location of the material source is key as, if located too far from the construction site, the carbon impact of transporting this material to the site could result in a higher carbon impact.1 http://www.greenconstructionboard.org/index.php/resources/infrastructure-carbon-review
To ask Her Majesty’s Government what progress they have made in delivering major infrastructure projects.[HL2953]
To ask Her Majesty’s Government what progress they have made in delivering major infrastructure projects.[HL2953]
The 2011 National Infrastructure Plan set out the Government’s Top 40 priority infrastructure investments.
The Government will publish a comprehensive infrastructure delivery update in the next version of the National Infrastructure Plan, due before the end of the year.
Already, 150 railway station upgrades have been completed, including the refurbishment of Kings Cross Station. Others, such as the £600m investment at Birmingham New Street are over half way complete and the upgrade of Reading Station has been accelerated by a year.
30 road projects have been completed since the 2010 Spending Round and 96 per cent of national major road schemes announced this Parliament are on, or ahead of, schedule.
London's two largest international airports are being upgraded. Gatwick is two thirds through the biggest transformation in its history and Heathrow Terminal 2 will open in June 2014, handling 20 million passengers a year.
81 new free schools have now opened, 84,000 affordable new homes have been built and National Grid have begun a programme to replace 2,000km of mains network.
The Government is also implementing Infrastructure Capacity Plans with four key Departments (DCLG, DCMS, DfT, DEFRA). These plans will assist Departments in developing their infrastructure delivery capability, including assessing their need for and use of commercial expertise, and the governance of their infrastructure projects and programmes.
To ask Her Majesty’s Government what plans they have for improving infrastructure to enable businesses and employment to grow.
To ask Her Majesty’s Government what plans they have for improving infrastructure to enable businesses and employment to grow.
My Lords, the Government laid out their infrastructure plans at the spending review in their document Investing in Britain’s Future, committing to fund publicly specific projects worth over £100 billion and facilitating private investment by both extending
the UK guarantees scheme and providing policy certainty, for example to energy businesses and investors through the early publication of renewable strike prices.
My Lords, the Government laid out their infrastructure plans at the spending review in their document Investing in Britain’s Future, committing to fund publicly specific projects worth over £100 billion and facilitating private investment by both extending
the UK guarantees scheme and providing policy certainty, for example to energy businesses and investors through the early publication of renewable strike prices.
My Lords, the Government laid out their infrastructure plans at the spending review in their document Investing in Britain’s Future, committing to fund publicly specific projects worth over £100 billion and facilitating private investment by both extending
the UK guarantees scheme and providing policy certainty, for example to energy businesses and investors through the early publication of renewable strike prices.
To ask Her Majesty’s Government what plans they have for improving infrastructure to enable businesses and employment to grow.
I thank my noble friend for those observations about the signs of good news that are beginning to be seen in the economy. Based on my discussions with small businesses, they are most concerned about access to finance, improved broadband and better roads. The Government are addressing all of those through the Funding for Lending scheme to get cheaper financing and through the business bank to get about £1 billion of capital committed in non-bank funding. We are rolling out broadband as fast as possible both privately and through government intervention and we have committed a record amount not only to building new roads but to improving and repairing existing roads so that small businesses can get around. As for the participation of small businesses themselves in these large infrastructure projects, those businesses operate down the supply chain, and giving them a long-term warning that these projects are coming is extremely helpful. By way of example, I think that about 58% of the businesses which benefit from Crossrail spend would be classified as small and medium-sized.
I thank my noble friend for those observations about the signs of good news that are beginning to be seen in the economy. Based on my discussions with small businesses, they are most concerned about access to finance, improved broadband and better roads. The Government are addressing all of those through the Funding for Lending scheme to get cheaper financing and through the business bank to get about £1 billion of capital committed in non-bank funding. We are rolling out broadband as fast as possible both privately and through government intervention and we have committed a record amount not only to building new roads but to improving and repairing existing roads so that small businesses can get around. As for the participation of small businesses themselves in these large infrastructure projects, those businesses operate down the supply chain, and giving them a long-term warning that these projects are coming is extremely helpful. By way of example, I think that about 58% of the businesses which benefit from Crossrail spend would be classified as small and medium-sized.
I thank my noble friend. On this exceptionally happy day, could we perhaps spend a moment looking on the bright side? It might be too early to spot green shoots but there are certainly a number of blue shoots around. Growth is accelerating, exports are rising and unemployment is falling. Confidence among consumers and business is growing. However, many challenges still lie ahead. Does my noble friend agree that small businesses are consistently at the sharp end of economic revival? How do he and his colleague intend to ensure that the huge and very welcome infrastructure programme that he has announced gives a fair share to Britain’s small businesses?
The actual expenditure on infrastructure is difficult to predict because, of course, the predominant portion of infrastructure is financed by the private sector. That is why we focused on developing our energy policy, so that we can trigger investments with offshore wind, with nuclear and with various gas developments. We have laid out our expenditure plans and the proportion of investment that is capital investment is laid out in the spending round for this year and for future years. We have shifted, I believe, £9.3 billion from current spending to capital spending during the time of this Government. We have put an extra £18 billion into capital investment in Budget 2013. As a result of those changes, public investment as a share of GDP will be higher on average between 2010-11 and 2020-21 than it was under the previous Government. We are trying to shift it into the more productive areas. Transport
investment in 2013-14 will be higher than at any point under the previous Government despite the fact that we were in something of a boom time there, and it will rise every year until 2020.
The actual expenditure on infrastructure is difficult to predict because, of course, the predominant portion of infrastructure is financed by the private sector. That is why we focused on developing our energy policy, so that we can trigger investments with offshore wind, with nuclear and with various gas developments. We have laid out our expenditure plans and the proportion of investment that is capital investment is laid out in the spending round for this year and for future years. We have shifted, I believe, £9.3 billion from current spending to capital spending during the time of this Government. We have put an extra £18 billion into capital investment in Budget 2013. As a result of those changes, public investment as a share of GDP will be higher on average between 2010-11 and 2020-21 than it was under the previous Government. We are trying to shift it into the more productive areas. Transport
investment in 2013-14 will be higher than at any point under the previous Government despite the fact that we were in something of a boom time there, and it will rise every year until 2020.
The noble Lord will know that I strongly welcome the news of the amounts being spent. However, as he has now taken direct responsibility in this area, can he answer the vital question of how much will be spent in the next two years?
Again we are dealing with a hypothetical question because in 2010 our plans for capital investment were broadly similar. Since then, because of our ability to focus on government efficiencies and the delivery of other programmes more cheaply, we have been able to transfer, first, the £10 billion to which I referred into capital spending within our fiscal envelope and, then, a further £18 billion through 2020-21. These capital expenditure investments are very focused on the most productive areas—economic infrastructure—but they are also all fully costed and within a fiscal envelope that is affordable.
Again we are dealing with a hypothetical question because in 2010 our plans for capital investment were broadly similar. Since then, because of our ability to focus on government efficiencies and the delivery of other programmes more cheaply, we have been able to transfer, first, the £10 billion to which I referred into capital spending within our fiscal envelope and, then, a further £18 billion through 2020-21. These capital expenditure investments are very focused on the most productive areas—economic infrastructure—but they are also all fully costed and within a fiscal envelope that is affordable.
My Lords, can my noble friend tell the House how much less would be spent on infrastructure and capital projects if the plans of Alistair Darling and the previous Labour Government had been implemented?
I share the noble Lord’s observation that the current performance of the banks in supporting small and medium-sized businesses needs support. That is why we introduced Funding for Lending and amended it to make it more effective in cheapening banks’ funding for those areas. It is also why we have the business bank in place. I agree that some of the schemes need time to bed in, and they need to be activated faster and more effectively, because this is a critical part of our plan to get the economy growing again.
I share the noble Lord’s observation that the current performance of the banks in supporting small and medium-sized businesses needs support. That is why we introduced Funding for Lending and amended it to make it more effective in cheapening banks’ funding for those areas. It is also why we have the business bank in place. I agree that some of the schemes need time to bed in, and they need to be activated faster and more effectively, because this is a critical part of our plan to get the economy growing again.
My Lords, given the palpable failure of the regional growth fund, can the Minister report on the Government’s proper ambition to try to switch access to finance for small businesses from the current 80% secured from their banks in the United Kingdom to the 80% secured from the capital markets which applies in the United States of America?
I thank the noble Earl for drawing attention to the importance of flexibility in the workforce, the way that it relates to our policies in the area of welfare and its reform and the support that we are giving to get valuable members of the workforce back into being productive members of this economy.
I thank the noble Earl for drawing attention to the importance of flexibility in the workforce, the way that it relates to our policies in the area of welfare and its reform and the support that we are giving to get valuable members of the workforce back into being productive members of this economy.
My Lords, can the Minister say what part high-quality, affordable childcare will play in freeing up the workforce for small and medium-sized enterprises, particularly for women entering the workplace?
This goes back to the noble Lord’s earlier point about being creative about finding every possible way to get finance into smaller businesses. The noble Baroness is right: getting everybody to pay on time, including the ministries, is a critical part of
that, and we have a programme in place to ensure that we perform in the same way as we are encouraging the rest of business to.
This goes back to the noble Lord’s earlier point about being creative about finding every possible way to get finance into smaller businesses. The noble Baroness is right: getting everybody to pay on time, including the ministries, is a critical part of
that, and we have a programme in place to ensure that we perform in the same way as we are encouraging the rest of business to.
Can my noble friend say whether ministries are paying all their small business suppliers on time?
To ask Her Majesty’s Government, further to the Written Answer by Lord Deighton on 17 June (WA 21), whether, in the light of the high cost of large infrastructure schemes to public funds, they will initiate new research into the means by which any rise in land values as a...
To ask Her Majesty’s Government, further to the Written Answer by Lord Deighton on 17 June (WA 21), whether, in the light of the high cost of large infrastructure schemes to public funds, they will initiate new research into the means by which any rise in land values as a...
Land value increases that are a consequence of major developments are captured for community benefits through the planning system, when it is fair and viable to do so.
As land values increase there is typically a corresponding increase in development. The government places a levy on developers to invest in community infrastructure when planning applications for development are approved; either through the Community Infra- structure Levy or by agreeing planning obligations between local councils and developers under section 106 of the Town and Country Planning Act 1990.
The Government continues to consider options to capture land value uplifts both to finance developments and to benefit communities.
To ask Her Majesty’s Government whether they have made an assessment of the potential rise in land values attributable to large infrastructure projects in progress or planned; and whether they will promote the use of some of the developer or landowner gains to help finance the projects.[HL700]
To ask Her Majesty’s Government whether they have made an assessment of the potential rise in land values attributable to large infrastructure projects in progress or planned; and whether they will promote the use of some of the developer or landowner gains to help finance the projects.[HL700]
The Government promotes the use of developer gains to finance infrastructure projects where it is viable and fair to do so. These options to capture increases in land value associated with major infrastructure are considered on a project by project basis.
For example, in 2012 two developer funded revenue streams were established by the Greater London Authority to secure a £1 billion loan from the Treasury for the Northern Line extension to Battersea:
1) The growth in business rates revenue in the development sites around the new station within a new ‘Nine Elms Enterprise Zone'.
2) Contributions from local developers collected by the local authority under the section 106 and Community Infrastructure Levy (CIL) regimes in the planning system.
In a separate example, the Mayor of London has introduced a new charge on development in London to raise £300 million to fund Crossrail. The Community Infrastructure Levy charge is set according to the Borough's average house price and the extent to which it will benefit from Crossrail; thereby capturing a portion of the land value uplift from the developer.
Infrastructure UK and Government bodies will continue to innovate financially to help both the private and public sector deliver Britain's next generation of infrastructure.
To ask Her Majesty’s Government whether they have plans to increase longer-term public sector infrastructure outlays for the purpose of increasing total overall non-inflationary demand.[HL43]
To ask Her Majesty’s Government whether they have plans to increase longer-term public sector infrastructure outlays for the purpose of increasing total overall non-inflationary demand.[HL43]
At Budget, the Government announced that they will increase their capital expenditure plans by £3 billion per annum from 2015-16. Detailed plans will be announced at the spending review. This will include long-term plans for most economically valuable areas of spend.
As a result of this change and previous increases to capital spending plans, public sector gross investment (PSGI), as a share of GDP, will be higher on average between 2010-11 and 2020-21 than under the previous Government.
The Office for Budget Responsibility’s estimated fiscal multipliers suggest that infrastructure investment has a larger effect on the economy than other forms of government spending.
To ask Her Majesty’s Government, further to paragraph 2.231 of Budget 2013, which options they are considering for making more use of independent expertise in further developing their infrastructure strategy; and when they will announce their decisions in that regard.[HL6463]
To ask Her Majesty’s Government, further to paragraph 2.231 of Budget 2013, which options they are considering for making more use of independent expertise in further developing their infrastructure strategy; and when they will announce their decisions in that regard.[HL6463]
In addition to creating an enhanced central cadre of commercial infrastructure specialists, the Government will establish infrastructure capacity plans to drive forward progress in key government departments. These reforms will be undertaken in conjunction with Cabinet Office-led efforts to strengthen Whitehall's commercial capability and Lord Browne’s work to improve the Government's management of major projects including through an enhanced Major Projects Authority. The Government are also considering options for making more use of independent expertise in shaping their infrastructure strategy.
The number and type of additional commercial specialists that will be recruited into Infrastructure UK will be informed by the outcomes of the infrastructure capacity plans.
Infrastructure capacity plans will be composed and used by departments with the support of Infrastructure UK and other government partners. They will form part of the assessment of how much additional commercial expertise departments require and they will assist departments in developing their infrastructure delivery capability, including their use of commercial expertise and governance of projects.
The following departments will develop infrastructure capacity plans by the summer: Department for Culture, Media and Sport, Department for Environment, Food and Rural Affairs, Department for Transport, Department of Energy and Climate Change. The publication of outputs from infrastructure capacity plans will be announced in due course.
The Government are currently considering various options to incorporate independent expertise in the development of their infrastructure strategy in ways that avoid costly or time-consuming institutional changes.
To ask Her Majesty’s Government, further to paragraph 2.230 of Budget 2013, for which departments they will publish infrastructure capacity plans; and when those plans will be published.[HL6464]
To ask Her Majesty’s Government, further to paragraph 2.230 of Budget 2013, for which departments they will publish infrastructure capacity plans; and when those plans will be published.[HL6464]
In addition to creating an enhanced central cadre of commercial infrastructure specialists, the Government will establish infrastructure capacity plans to drive forward progress in key government departments. These reforms will be undertaken in conjunction with Cabinet Office-led efforts to strengthen Whitehall's commercial capability and Lord Browne’s work to improve the Government's management of major projects including through an enhanced Major Projects Authority. The Government are also considering options for making more use of independent expertise in shaping their infrastructure strategy.
The number and type of additional commercial specialists that will be recruited into Infrastructure UK will be informed by the outcomes of the infrastructure capacity plans.
Infrastructure capacity plans will be composed and used by departments with the support of Infrastructure UK and other government partners. They will form part of the assessment of how much additional commercial expertise departments require and they will assist departments in developing their infrastructure delivery capability, including their use of commercial expertise and governance of projects.
The following departments will develop infrastructure capacity plans by the summer: Department for Culture, Media and Sport, Department for Environment, Food and Rural Affairs, Department for Transport, Department of Energy and Climate Change. The publication of outputs from infrastructure capacity plans will be announced in due course.
The Government are currently considering various options to incorporate independent expertise in the development of their infrastructure strategy in ways that avoid costly or time-consuming institutional changes.
To ask Her Majesty’s Government, further to paragraph 2.230 of Budget 2013, what will be the principal features of the infrastructure capacity plans; and how those plans will improve on the status quo.[HL6465]
To ask Her Majesty’s Government, further to paragraph 2.230 of Budget 2013, what will be the principal features of the infrastructure capacity plans; and how those plans will improve on the status quo.[HL6465]
In addition to creating an enhanced central cadre of commercial infrastructure specialists, the Government will establish infrastructure capacity plans to drive forward progress in key government departments. These reforms will be undertaken in conjunction with Cabinet Office-led efforts to strengthen Whitehall's commercial capability and Lord Browne’s work to improve the Government's management of major projects including through an enhanced Major Projects Authority. The Government are also considering options for making more use of independent expertise in shaping their infrastructure strategy.
The number and type of additional commercial specialists that will be recruited into Infrastructure UK will be informed by the outcomes of the infrastructure capacity plans.
Infrastructure capacity plans will be composed and used by departments with the support of Infrastructure UK and other government partners. They will form part of the assessment of how much additional commercial expertise departments require and they will assist departments in developing their infrastructure delivery capability, including their use of commercial expertise and governance of projects.
The following departments will develop infrastructure capacity plans by the summer: Department for Culture, Media and Sport, Department for Environment, Food and Rural Affairs, Department for Transport, Department of Energy and Climate Change. The publication of outputs from infrastructure capacity plans will be announced in due course.
The Government are currently considering various options to incorporate independent expertise in the development of their infrastructure strategy in ways that avoid costly or time-consuming institutional changes.
To ask Her Majesty’s Government, further to paragraph 2.230 of Budget 2013, in what respects other than appointing new commercial specialists they will reform their approach to infrastructure delivery.[HL6467]
To ask Her Majesty’s Government, further to paragraph 2.230 of Budget 2013, in what respects other than appointing new commercial specialists they will reform their approach to infrastructure delivery.[HL6467]
In addition to creating an enhanced central cadre of commercial infrastructure specialists, the Government will establish infrastructure capacity plans to drive forward progress in key government departments. These reforms will be undertaken in conjunction with Cabinet Office-led efforts to strengthen Whitehall's commercial capability and Lord Browne’s work to improve the Government's management of major projects including through an enhanced Major Projects Authority. The Government are also considering options for making more use of independent expertise in shaping their infrastructure strategy.
The number and type of additional commercial specialists that will be recruited into Infrastructure UK will be informed by the outcomes of the infrastructure capacity plans.
Infrastructure capacity plans will be composed and used by departments with the support of Infrastructure UK and other government partners. They will form part of the assessment of how much additional commercial expertise departments require and they will assist departments in developing their infrastructure delivery capability, including their use of commercial expertise and governance of projects.
The following departments will develop infrastructure capacity plans by the summer: Department for Culture, Media and Sport, Department for Environment, Food and Rural Affairs, Department for Transport, Department of Energy and Climate Change. The publication of outputs from infrastructure capacity plans will be announced in due course.
The Government are currently considering various options to incorporate independent expertise in the development of their infrastructure strategy in ways that avoid costly or time-consuming institutional changes.