30 Apr 2012
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Construction pipeline updated as economy double-dips

In the week the UK economy officially plunged back into recession, the Government has attempted to sweeten the blow by updating its construction pipeline, which now includes over 600 projects and programmes and around £40bn of investment over four years to 2014/15, reports the Construction Enquirer website.

Originally published in November 2011 alongside the National Infrastructure Plan, the new updated pipeline contains spending plans from additional Government departments and local authorities including 500 highways jobs. Updates to the construction pipeline are now expected every six months.

For a full list of projects click here: http://www.hm-treasury.gov.uk/infrastructure_pipeline_data_update.htm

The move forms part of a wider public procurement push by Cabinet Minister Francis Maude, who detailed a total £70bn of tendering opportunities across the spread of government activities, including property and FM, travel and ICT.

In addition, 17 bodies representing supplier industries, including the UKCG, have signed up the government's new Procurement Pledge.

Announcing the changes, Francis Maude said: “Never before has a government been so open about its long-term business needs. Publishing data on what we plan to buy – whether it’s tunnels or computers – means we can identify skills gaps sooner and give industry a heads up so UK businesses are in a better position to compete.”

But the Government is facing renewed pressure to stimulate the economy after its own figures revealed a 0.2% fall in GDP in the first quarter of the year, dragging the UK into its first double dip recession since the seventies.

The data showed that construction was primarily responsible for damaging the overall economy after it fell 3% in the first three months of 2012. The construction industry itself is also officially in recession again after recording a 0.2% fall in GDP in the last quarter of 2011.

The worrying figures prompted calls for the chancellor to increase construction spending to stimulate growth. Noble Francis, economics director at the Construction Products Association told Construction Enquirer: “With new orders for construction falling 14% in 2011, the industry is likely to endure further falls near-term.

“Given that independent economic analysis has shown clearly that for every £1 spent in construction, £2.84 is generated for the wider economy, it is essential that government does its utmost to switch its current spending towards the more productive capital spending,” he said.