Alongside the economic infrastructure that was the focus of its predecessor (principally transport, energy, communications, waste and water), the NIDP also covers large-scale housing and regeneration projects, as well as key social infrastructure (schools, hospitals and prisons). Its highlights include the following: Roads: in 2015, Highways England, the Government’s delivery body for the Strategic Road Network (SRN) in England, was given increased independence and a committed funding stream, in order to deliver an ambitious programme of upgrades and renewals over a five year period, via a comprehensive Road Investment Strategy (RIS). The NIDP confirms this investment of GBP 15 billion, with over 100 major schemes to be completed or in construction by the end of this period. Plans for a second RIS will also be developed, supported by legislation for a new Roads Fund, which will use direct revenues from Vehicle Excise Duty to provide long term funding certainty. Rail: the NIDP outlines the basis for the Government’s claims that it is implementing the largest rail modernisation programme since Victorian times. This includes the completion of the Elizabeth Line, the start of construction on HS2, and the development of plans for both Crossrail 2 and HS3 (following the NIC’s endorsement of each). Airports and ports: the NIDP outlines a package of road and rail projects to support private sector investment in airport and port capacity. The position on airport expansion around London, however, is less clear-cut. Whilst a new runway at Heathrow has been supported by an official commission, the issue remains controversial. The Government has accepted that greater
aviation capacity is required in the South East, but a final decision on whether the new runway is at Heathrow or Gatwick is not now expected until summer 2016 at the earliest.
Energy: the Government has taken a new direction in its energy policy
– seeking to achieve security of supply and decarbonisation, but in a way that puts consumers first and increases competition. This means that, whilst the UK has developed a strong renewable energy market (in onshore and offshore wind, biomass, energy fromwaste, and solar), the Government is now reducing its level of support to these industries, as they mature and costs reduce. At the same time, it intends to phase out the UK’s remaining coal-fired power stations, in favour of cleaner gas-fired plants, and is supporting an ambitious programme to replace the UK’s fleet of nuclear reactors, with new facilities planned at Hinkley Point in Somerset, Wylfa in North Wales, and Sellafield in Cumbria. All three rely heavily on international investors and contractors, with Chinese investment, in particular, being key to the vanguard project – EDF’s new reactor at Hinkley. Water and waste: water and sewerage services in England and Wales are provided by private sector companies that are subject to economic regulation. The stand- out project in the sector is the construction of the Thames Tideway Tunnel – a “super- sewer” that will protect the River Thames from pollution, by addressing the problem of overflows from the capital’s Victorian sewers. Works get under way in late summer 2016 and are due for completion in 2023, at a total estimated capital cost of GBP 4.2 billion (at 2014 prices). The project will be financed by an independent infrastructure provider, but with the benefit of a Government support
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