Important projects may be cut if efficiencies are not found, consultant claims
Dramatic cost increases could jeopardise the UK’s infrastructure project pipeline, with inflation set to add an additional £84bn to the bill.
According to consultant Currie & Brown, the total cost of the country’s national infrastructure pipeline will reach £438bn by 2026, 20% of which would be the direct result of inflation.
Its report warns that important projects could be cancelled or delayed if preventative measures are not taken to improve efficiency.
Nick Gray, chief operating officer for Currie & Brown in the UK and Europe, said the country needed to “urgently change the way we approach infrastructure investment” if projects are to be successfully delivered.
“A business-as-usual approach is simply not feasible. We are calling on the government, local authorities and stakeholders to take immediate action,” he said.
“Early and informed decision making will be critical to safeguarding the infrastructure pipeline, and Britain’s economic recovery.”
The report was compiled using market perceptions evaluated through Currie & Brown’s tender price inflation index and figures from the National Infrastructure and Construction Pipeline 2021.
A new national infrastructure and construction pipeline had been due for release last November, but a series of reshuffles in Whitehall, along with the turmoil that followed the autumn mini-Budget, have meant it has been delayed.
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