Five questions answered on the UK governments’ infrastructure plans

After Danny Alexander admitted to underspending on infrastructure over several decades, just how much do they expect to spend?

Today the government unveiled its infrastructure plans for the next two decades. We answer five questions on the announcements.

What is the big news from the National Infrastructure Plan (NIP) announced today?

The most significant news includes the government selling off its 40 per cent stake in the Eurostar rail service, as reported by the BBC. What's more, the insurance industry, which isn’t traditionally a big infrastructure investor, is to invest £25bn in infrastructure over the next five years.

The government has already announced a £10m guarantee for new energy efficient lighting systems across car parks in the UK.

It has said it will also open a £10m competitive fund in early 2014 to test innovative solutions to deliver superfast broadband services to the most difficult to reach areas of the UK.

Plus it will build on the Spending Round commitment of £2.3bn capital investment for flood defences by developing a new long-term plan, including naming key projects by Autumn Statement 2014.

How much is expected to be spent over all?

About £375bn of investment is expected to be spent on energy, transport, communications, and water projects.

What has the government said?

The Chief Secretary to the Treasury, Danny Alexander, told the BBC: "The most important thing we've done as a government is create an environment in which people want to come in and invest in British infrastructure."

But he admitted that the UK had "underinvested ... over several decades".

He added: "There are projects going on in every part of the country."

Lord Deighton said today 45 per cent of the projects that have been announced by the government since 2010 are under construction, with lots already completed.

What have the experts said?

Mat Riley, Head of Infrastructure at EC Harris told the Telegraph:

“Today’s revised infrastructure spending programme is, again, strong on headlines, but unclear on delivery. The government is working hard to attract investors such as the insurance funds, but the UK still does not have the right policy environment for these funds to be put to good use and make a real difference, which is compounding the problem.”

“Who would want to take the risk and invest in a nation that cannot even put together a coherent Energy Policy without fear of ridicule? Regulation is largely ineffective, and the balance of power now sits with asset owners and their investors, which means only one outcome for the consumer, and that is higher costs. Politicians are in denial, the real issue is how much cost consumers are ultimately going to bear, and by when.”

What has the opposition said?

Chris Leslie, shadow chief secretary to the Treasury, speaking to the BBC said: "With the country facing a cost-of-living crisis we need to invest in infrastructure to create jobs, boost living standards, and strengthen our economy for the long-term."

He added that the government’s record on infrastructure had been "a complete failure".

"The Office for National Statistics says that infrastructure work is down 3.7 per cent in the last year, and fell by 10 per cent in 2012.”

Danny Alexander said the UK had "underinvested ... over several decades". Photograph: Getty Images.

Heidi Vella is a features writer for

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The strange death of boozy Britain: why are young people drinking less?

Ditching alcohol for work.

Whenever horrific tales of the drunken escapades of the youth are reported, one photo reliably gets wheeled out: "bench girl", a young woman lying passed out on a public bench above bottles of booze in Bristol. The image is in urgent need of updating: it is now a decade old. Britain has spent that time moving away from booze.

Individual alcohol consumption in Britain has declined sharply. In 2013, the average person over 15 consumed 9.4 litres of alcohol, 19 per cent less than 2004. As with drugs, the decline in use among the young is particularly notable: the proportion of young adults who are teetotal increased by 40 per cent between 2005 and 2013. But decreased drinking is not only apparent among the young fogeys: 80 per cent of adults are making some effort to drink less, according to a new study by consumer trends agency Future Foundation. No wonder that half of all nightclubs have closed in the last decade. Pubs are also closing down: there are 13 per cent fewer pubs in the UK than in 2002. 

People are too busy vying to get ahead at work to indulge in drinking. A combination of the recession, globalisation and technology has combined to make the work of work more competitive than ever: bad news for alcohol companies. “The cost-benefit analysis for people of going out and getting hammered starts to go out of favour,” says Will Seymour of Future Foundation.

Vincent Dignan is the founder of Magnific, a company that helps tech start-ups. He identifies ditching regular boozing as a turning point in his career. “I noticed a trend of other entrepreneurs drinking three, four or five times a week at different events, while their companies went nowhere,” he says. “I realised I couldn't be just another British guy getting pissed and being mildly hungover while trying to scale a website to a million visitors a month. I feel I have a very slight edge on everyone else. While they're sleeping in, I'm working.” Dignan now only drinks occasionally; he went three months without having a drop of alcohol earlier in the year.

But the decline in booze consumption isn’t only about people becoming more work-driven. There have never been more alternate ways to be entertained than resorting to the bottle. The rise of digital TV, BBC iPlayer and Netflix means most people means that most people have almost limitless choice about what to watch.

Some social lives have also partly migrated online. In many ways this is an unfortunate development, but one upshot has been to reduce alcohol intake. “You don’t need to drink to hang out online,” says Dr James Nicholls, the author of The Politics of Alcohol who now works for Alcohol Concern. 

The sheer cost of boozing also puts people off. Although minimum pricing on booze has not been introduced, a series of taxes have made alcohol more expensive, while a ban on below-cost selling was introduced last year. Across the 28 countries of the EU, only Ireland has higher alcohol and tobacco prices than the UK today; in 1998 prices in the UK were only the fourth most expensive in the EU.

Immigration has also contributed to weaning Britain off booze. The decrease in alcohol consumption “is linked partly to demographic trends: the fall is largest in areas with greater ethnic diversity,” Nicholls says. A third of adults in London, where 37 per cent of the population is foreign born, do not drink alcohol at all, easily the highest of any region in Britain.

The alcohol industry is nothing if not resilient. “By lobbying for lower duty rates, ramping up their marketing and developing new products the big producers are doing their best to make sure the last ten years turn out to be a blip rather than a long term change in culture,” Nicholls says.

But whatever alcohol companies do to fight back against the declining popularity of booze, deep changes in British culture have made booze less attractive. Forget the horrific tales of drunken escapades from Magaluf to the Bullingdon Club. The real story is of the strange death of boozy Britain. 

Tim Wigmore is a contributing writer to the New Statesman and the author of Second XI: Cricket In Its Outposts.