Arcadis findings shows delays to planned infrastructure spend already cost the economy 拢6bn GDP in 2015/16
Tens of thousands of pounds are being lost every minute from the UK economy over cancelled and delayed infrastructure projects, according to new research from Arcadis.
The consultant in its latest report, Spiralling Cost of Indecision, shows that even a one month average delay in the transport infrastructure pipeline will see the UK economy miss out on 拢2产苍 of investment-related GDP over the next five years. This is equivalent to 拢48,425 for every minute of delay, it said.
The report also estimates that the cost of delivering all the transport projects in the pipeline could rise by 拢241尘 on the back of a one month delay. This is equivalent to 拢8尘 a day of the delay.
Rail is identified by the report as the 鈥済reatest cause of stalled or cancelled transport infrastructure spend鈥� and a one month delay on all rail projects could see costs rise by 拢4.2尘 for every day of slippage.
Delays in overall planned infrastructure spend led to a 拢6bn loss to GDP in 2015/16 and according to the National Audit Office over a third of major government projects due to be delivered in the next five years are in doubt, the report adds.
Over the next five years, the cumulative impact of stalling on those projects identified in the 2015-16 pipelines could see the UK economy miss out on up to 拢35 billion of investment-related GDP.
Chris Pike, infrastructure client development director at Arcadis, said: 鈥淐learly, there are a number of reasons for projects not going ahead on schedule but, all too often, stalling could potentially be avoided or, if the impacts were clearly understood, decisions may be taken differently.
鈥淚t is clear that government needs to send a clear message to the world that Britain is open for business by progressing vital infrastructure projects at the earliest opportunity, without compromising safety or security. Equally, infrastructure owners and industry need to work together to deliver on these commitments, allowing post-Brexit Britain to reap the full benefit, along with the inevitable bounce effect that will result.鈥�
How the delays tot up
| Missed investment-related GDP from delays and cancellations in transport infrastructure spending (over 5 years) | ||
| Average delay of one month on current plans | Daily equivalent | |
| Rail | 拢1.1产苍 | 拢36.8尘 |
| Roads | 拢396尘 | 拢13.2尘 |
| London | 拢282尘 | 拢9.4尘 |
| Local auth majors | 拢259尘 | 拢8.6尘 |
| Airports* | 拢52尘 | 拢1.7尘 |
| Total | 拢2产苍 | 拢69.7尘 |
| Additional costs from transport infrastructure spending delays and cancellations 2016-2020 | ||
| Average delay of one month on current plans | Daily equivalent | |
| Rail | 拢126尘 | 拢4.2尘 |
| Roads | 拢35尘 | 拢1.2尘 |
| London | 拢34尘 | 拢1.1尘 |
| Local auth majors | 拢32尘 | 拢1尘 |
| Airports* | 拢12尘 | 拢400,000 |
| Ports | 拢2尘 | 拢66,000 |
| Total | 拢241尘 | 拢8尘 |
*Excludes decision on additional capacity in South East as no project has yet been listed in the National Infrastructure Pipeline
Source: Arcadis
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