Glenigan reveals £60 billion gap in government construction pipeline

Latest News Tue, Mar 22, 2016 5:31 PM

Glenigan reveals £60 billion gap in government construction pipeline

Figures released by construction intelligence providers Glenigan show an additional £60 billion of projects in the central government development pipeline which are missing from official records.  

Glenigan has tracked an extensive pipeline of nearly 2,100 central government projects with a combined value of £179 billion - 50% more than the £119 billion identified in the government's own pipeline, last published in December 2013.

If delivered to their current schedule, these projects would strengthen and broaden the emerging recovery - both in the construction industry and the wider UK economy.

However, with the next general election approaching in 2015, the pressure is on the coalition government to release more schemes to site, to help to secure and sustain the forecasted recovery in construction output.

Allan Wilén, Economics Director at Glenigan, said: "Our analysis shows that there is an extensive potential pipeline of central government projects that can deliver real improvements to the UK's built environment and long term economic growth.

"With the general election just a year away, the clock is ticking for the coalition if it is wants to secure the political benefits for these projects."

Identified schemes are projected to contribute £73 billion to construction output from 2013 to 2016 - 46% more than the £50 billion spend tracked in the government's official pipeline.

Glenigan analysis shows that the pipeline includes £61 billion of projects that are already on site and will be built out during the current and future years. The remaining projects, with a combined value of £118 billion, are at earlier stages of development.

Other key findings from Glenigan's Central Government Pipeline report include:

  • The Department for Transport (DfT) has the largest development pipeline at £77 billion - accounting for 43% of the total.
  • Infrastructure is expected to be the largest single sector from 2014 to 2016, accounting for 33% of projects by value.
  • Housing projects account for 15% of planned starts from 2014 to 2016, mainly due to major long term regeneration schemes planned for parts of east London.
  • HS2 Ltd is the largest client, with a total project value of £ 43,600 million.
  • The Homes and Community Agency (HCA) and the Ministry of Defence are also key client departments, accounting for 9% and 6% of the pipeline respectively.
  • London has the largest development pipeline, with 313 projects valued at £79,014 million, in part due to major transport schemes including Crossrail 1 & 2 and the first phase of HS2.
  • While the majority of schemes are scheduled to start on site during 2014 and 2015, the pipeline also includes major infrastructure projects, such as High Speed 2, that will be built in phases over the next twenty years.

In addition, Glenigan has identified, and continues to track, more than 150 projects that are currently on hold or where the site is to be sold on.

Glenigan data has no government restrictions and includes projects at all stages of development, thus presenting a more comprehensive picture of planned construction activity to 2026.

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