02-Nov-2010

The Government's spending review

The Government’s spending review proved to be a mixed bag for the UK construction industry although capital spending projections were better than expected in the CSR compared to the emergency budget in June. Infrastructure faired better than many areas in that £200bn was committed by the Government in the next 5 years but, within that, different parts of the UK infrastructure market will suffer cut backs or have additional funds made available. In energy the River Severn Barrage has been dropped but 8 Nuclear Power Stations given the go ahead. In addition £1bn has been set aside to set up the Green Investment Bank with a view to funding renewable energy projects, this fund will be boosted further by the sale of Government assets. The Waste sector has lost funding for 7 PFI projects which will disappoint companies that saw waste as a significant growth area between now and 2020 but the transport infrastructure benefits with projects such as Crossrail, the Midland Metro extension, the Tyne & Wear Metro, various highways projects and continued investment for the London Underground all progressing. Investors and private sector backers of infrastructure are now seeing the UK as a good political risk so there is every reason to be confident that those projects highlighted as going ahead will come to fruition with whatever public / private funding initiatives are put in place. As we are constantly monitoring the marketplace in construction and civil engineering you may wish to contact us if you are considering a career move or are seeking work in any of our sectors. As the dust settles on the spending review a number of confirmed  projects will begin making plans for the staff needed at design and pre-contract stage and we may be able to help you find your next job. sean@mcginley.co.uk

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