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 Nridigital.com

Photo: Getty Images
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What do Labour's lost voters make of the Labour leadership candidates?

What does Newsnight's focus group make of the Labour leadership candidates?

Tonight on Newsnight, an IpsosMori focus group of former Labour voters talks about the four Labour leadership candidates. What did they make of the four candidates?

On Andy Burnham:

“He’s the old guard, with Yvette Cooper”

“It’s the same message they were trying to portray right up to the election”​

“I thought that he acknowledged the fact that they didn’t say sorry during the time of the election, and how can you expect people to vote for you when you’re not actually acknowledging that you were part of the problem”​

“Strongish leader, and at least he’s acknowledging and saying let’s move on from here as opposed to wishy washy”

“I was surprised how long he’d been in politics if he was talking about Tony Blair years – he doesn’t look old enough”

On Jeremy Corbyn:

"“He’s the older guy with the grey hair who’s got all the policies straight out of the sixties and is a bit of a hippy as well is what he comes across as” 

“I agree with most of what he said, I must admit, but I don’t think as a country we can afford his principles”

“He was just going to be the opposite of Conservatives, but there might be policies on the Conservative side that, y’know, might be good policies”

“I’ve heard in the paper he’s the favourite to win the Labour leadership. Well, if that was him, then I won’t be voting for Labour, put it that way”

“I think he’s a very good politician but he’s unelectable as a Prime Minister”

On Yvette Cooper

“She sounds quite positive doesn’t she – for families and their everyday issues”

“Bedroom tax, working tax credits, mainly mum things as well”

“We had Margaret Thatcher obviously years ago, and then I’ve always thought about it being a man, I wanted a man, thinking they were stronger…  she was very strong and decisive as well”

“She was very clear – more so than the other guy [Burnham]”

“I think she’s trying to play down her economics background to sort of distance herself from her husband… I think she’s dumbing herself down”

On Liz Kendall

“None of it came from the heart”

“She just sounds like someone’s told her to say something, it’s not coming from the heart, she needs passion”

“Rather than saying what she’s going to do, she’s attacking”

“She reminded me of a headteacher when she was standing there, and she was quite boring. She just didn’t seem to have any sort of personality, and you can’t imagine her being a leader of a party”

“With Liz Kendall and Andy Burnham there’s a lot of rhetoric but there doesn’t seem to be a lot of direction behind what they’re saying. There seems to be a lot of words but no action.”

And, finally, a piece of advice for all four candidates, should they win the leadership election:

“Get down on your hands and knees and start praying”

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.