Infrastructure overview
- 1 per cent decline in project starts against the preceding three months
- 47 per cent decline in main contract awards against the previous year
- 257 per cent increase in detailed planning approvals compared to the previous year
Civil Engineering project-starts and main contract awards declined on both the preceding three months and the previous year. Elsewhere, detailed planning approvals rose sharply against the previous year to signal a strengthening of the development pipeline. Despite this, values were below the preceding three months due to a weaking in the value of major projects against the preceding three-month period.
The government has committed to at least £725bn in public infrastructure investment over the next decade, ensuring capital funding grows in line with inflation and providing a stable pipeline for the sector as part of the 10-year infrastructure strategy. Major allocations include funding for HS2, road improvements, and investment for the Sizewell C nuclear power station, and significant resources for energy infrastructure, including clean power and carbon capture.
Types of projects started
Performance across segments in the sector was poor, with four of seven sectors declining against the previous year.
- Roads accounted for the largest share of project starts, totalling £2.745bn (53 per cent of the total), a 97 per cent increase on the previous year.
- Energy had the second-largest share at £1.073bn (21 per cent), though this stood for a 74 per cent decline year-on-year.
- Meanwhile, Harbour/Ports activity surged by 270 per cent compared to the previous year, reaching £515.0m.
Regional
- The South East accounted for the largest share of sector starts but experienced a poor period.
- The East of England accounted for the largest share and the sharpest growth for planning approvals.
- Yorkshire & the Humber experienced sharp approvals growth.
The South East was the most active region for project starts, accounting for 28 per cent of the total, with a total value of £1.483bn, Despite this the region experienced a 32 per cent decline against the previous year. Elsewhere, Scotland bucked the national trend, rising 20 per cent against the previous year to account for one fifth of the total value, at £1.031bn.
The East of England accounted for the largest share of approvals (33 per cent), with the area experiencing four-digit growth against the previous year to total £5.944bn. Yorkshire & the Humber accounted for the second largest share of approvals (31 per cent), the sector increased 798 per cent against the previous year to total £5.542bn.