Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what the reason is for the difference in the number of projects and programmes listed in the infrastructure pipeline data published by his Department in 2013 and 2014.
The government’s commitment to supporting infrastructure investment and delivery is a key element of its long-term economic plan. The infrastructure pipeline, now published twice a year, is a forward-looking bottom up assessment of planned infrastructure investment across the public and private sectors. It enhances visibility and certainty for investors and the supply chain and allows government to work more effectively to ensure that the UK’s infrastructure needs are met.
The value of the infrastructure pipeline increased to £383bn at the 2014 summer refresh from £375bn in December 2013.
The infrastructure pipeline published in December 2013 included a number of individual energy projects being considered by developers. However, as set out in the National Infrastructure Plan 2013 and in the pipeline itself, the number of potential projects being considered by developers exceeds expected demand. It is a sign of a competitive market when developers are considering more schemes than will be required, allowing only the most competitive schemes to come forward into development. Weighted assumptions were applied to the overall energy investment figures in the 2013 pipeline to reflect this.
At the summer refresh, to provide as much clarity as possible for industry and investors, it was decided only to name energy projects where a final investment decision or other firm commitment had been made to a project as opposed to the previous approach which was largely based on those projects that had applied for connections. The remainder of the money which is anticipated to be spent in generation was then included in a balancing line. This reflects the fact that the government makes no judgment on the outcome of the competitive process between developers. This change in presentational structure did not affect the underlying modelling assumptions regarding the amount of anticipated investment.
The flood section of the pipeline in the December 2013 publication contained a large number of very small projects. At the summer refresh, the smaller schemes were grouped in to the Regional Flood and Coastal Committee programmes, with only the larger schemes being listed out individually. Further details on the full programme of works is available via the Environment Agency website. As with the changes to the energy section of the pipeline, this is for ease of reference and does not reflect any change to the overall level of planned floods investment.
An update of the pipeline will be published alongside the National Infrastructure Plan this December