Commons Sense

House of Commons · Westminster Hall

Funding for Major Infrastructure Projects — [Mr Virendra Sharma in the Chair]

03 May 2023 · 6 other contributors · 10,545 words

Opened by Wera Hobhouse Lib Dem Bath

Responding minister: Gareth Davies

EconomyTransportEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Wera Hobhouse raised concerns about funding for major infrastructure projects — [mr virendra sharma in the chair] in Westminster Hall. A government minister responded.

Key points

  • The Government lacks a long-term coherent infrastructure strategy and fails to capitalise on the benefits of upgrading infrastructure.
  • Public investment levels in the UK are 2.5% of GDP per year, compared to the OECD average of 3.7%.
  • The Government is not delivering infrastructure projects fast enough, with delays like those for HS2 leading to higher costs and uncertainty.

Key requests to Government

The Government should meet the Institution for Civil Engineers to discuss a statutory underpinning for publishing a national infrastructure strategy every five years, provide greater clarity on net zero investment definitions, and close the gap with OECD counterparts by increasing public investment levels. The Minister is asked about reversing cuts to active travel funding and clarifying how net zero investments will be defined.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Wera Hobhouse Lib Dem Bath

The Government lacks a long-term coherent infrastructure strategy and fails to capitalise on the benefits of upgrading infrastructure. Public investment levels in the UK are too low at 2.5% of GDP per year, compared to the OECD average of 3.7%. The Government is not delivering fast enough according to the National Infrastructure Commission, with delays like those for HS2 leading to higher costs and uncertainty. Projects such as electrification face constant delay, impacting health and public finances. Network Rail has stated that only 1.4 miles were added to electrified track last year when 278 miles are needed annually to reach net zero.

Other contributors (6)
  • Alistair Carmichael Lib Dem Orkney and Shetland

    He discussed the importance of strategic infrastructure projects such as ferries and tunnels for communities in Orkney and Shetland. He highlighted £26 million funding for a replacement Fair Isle ferry and mentioned tunnel feasibility studies, citing potential benefits including carbon efficiency and economic development. Carmichael called for Treasury engagement and support to explore fixed link options.

  • Jim Shannon DUP Strangford

    Questions the lead MP on initial contracts signed with HS2 contractors, seeking transparency in delivery plans to ensure viability for taxpayers. Raises concerns about additional costs from delays and the need to scrutinise spending.

  • Peter Grant SNP Glasgow East

    He highlighted the lack of lessons learned across government departments when projects go wrong, and criticised the inflexibility of Treasury rules that make it difficult to manage long-term contracts on an annual budget. He also pointed out how EU funding was more community-focused compared to UK schemes, which often ignored local priorities and needs.

  • Sarah Green Lib Dem Chesham and Amersham

    I share my hon. Friend's concerns that even the Government's attempts to keep construction of HS2 in budget will, in practice, only add to the already spiralling costs.

  • Stephen Hammond Con Wimbledon

    The hon. Member is making an interesting speech, and I agree with some of what she has said, but let us be clear: the reason so little track was built was because Network Rail failed to deliver it. Agreed with some of Wera Hobhouse's points, emphasised the need for long-term vision and strategic planning in infrastructure projects. Highlighted issues such as project creep on major projects like Great Western electrification upgrade, leading to cost overruns due to unrealistic expectations. Suggested underwriting contractor liabilities could reduce costs. Advocated for a balanced approach involving private sector investment alongside government financing.

  • Tulip Siddiq Lab Hampstead and Highgate

    The UK is underinvesting in green industries compared to Germany, France, and the USA. The slashing of solar subsidies has resulted in higher household energy bills by £2.5 billion this winter. Home insulation rates have dropped due to cuts in 2013. Onshore wind job creation has fallen behind Denmark despite the UK being larger. Planning reform for onshore wind was missed by April and needs confirmation from the Government. The UK's rail infrastructure rankings have declined, causing delays in major projects like the trans-Pennine route, costing £16 billion to the northern economy. Housebuilding plans are withdrawing due to planning changes, leading to a fall in housebuilding since the second world war.

Government Response

Gareth Davies

It is a great pleasure to see you in the Chair, Mr Sharma. The Government remains committed to delivering robust transport infrastructure while balancing sustainable public finances. HS2 is a key part of our rail strategy, supporting tens of thousands of jobs, improving connectivity and providing a low-carbon alternative for decades. We are increasing funding for infrastructure projects; £100 billion has been invested in economic infrastructure during this spending review period, including over £35 billion for rail investment. The Government is committed to delivering HS2 from Euston to Manchester, with the first high-speed services running between 2029 and 2033. We have electrified 1,224 miles of track since 2010, compared to just 70 miles in England and Wales between 1997 and 2010. The transport decarbonisation plan aims for a net zero railway by 2050. Almost half of the UK's future infrastructure pipeline is forecasted to be privately financed, with £650 billion estimated across public and private sectors in the next decade. We expect the Infrastructure and Projects Authority to crowd in more than £40 billion of investment through its £22 billion financial capability. The Government are committed to a total of £30 billion for the green industrial strategy.

▸ Assessment & feedback
Summary accuracy