One-third of government projects ‘have no completion date’

11 Aug 14

Around one-third of the 1,886 government construction projects currently in the pipeline have no specified completion date, accountants KPMG have revealed today.

The UK Government Construction Pipeline report looked at the money allocated by central and local authorities for construction up to 2020 and beyond.

KPMG’s analysis of government data shows that 40% of the projects are stated as due to complete before 2016, but these only represent 7% of the pipeline’s total £116bn value. Just under a fifth are due to complete after 2016.

Richard Threlfall, KPMG’s UK head of infrastructure, building and construction, said it wasconcerning that a third of the total projects currently have no specified completion date. ‘Industry confidence in the pipeline would be improved if there was certainty around timescales to get schemes delivered,’ he added.

Trelfall said the government’s pipeline data needed to be more complete and robust in order for it to become‘a reliable planning tool against which the UK construction industry can plan and invest with confidence’.

The report also looked at the sectors where the most spending is taking place. Almost 60%, or £66.2bn, of forecast construction spending will be on transport projects, it revealed, including schemes like HS2 and the national road network.

Energy projects were the second largest category by value at 13%, while defence, justice and police contribute to 7% of the total.

The report also analysed the geographic spread of spending. Nearly one-third of the total number of projects are in the south east and south west of England, but in terms of value, nearly half were deemed to bring national benefits.

 

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