Speech

Danny Alexander on the National Infrastructure Plan 2013

The Chief Secretary to the Treasury gives an update on progress so far and explains the most forward-looking infrastructure pipeline to date.

• From: HM Treasury and The Rt Hon Danny Alexander
• Published: 4 December 2013

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

• Location: The Institution of Civil Engineers
• Delivered on: 4 December 2013 (Original script, may differ from delivered version)

Introduction

[Well] I hope that Paul바카라 사이트™s [Deighton, Commercial Secretary to the Treasury] comments바카라 사이트¦

And those completed projects he ran us through바카라 사이트¦

Show that our infrastructure plan is making a difference in every corner of Britain바카라 사이트¦

Underground, overground바카라 사이트¦

On shore, off shore바카라 사이트¦

Wired, wireless바카라 사이트¦

Tarmac, train track바카라 사이트¦

You name it. We바카라 사이트™re building it. Right now.

And the renewal of our infrastructure is renewing the very foundations of our economy.

I바카라 사이트™m enormously grateful to Paul, for the excellent job he바카라 사이트™s done 바카라 사이트“ during his first year in office 바카라 사이트“ in taking that work forward.

His influence has been felt not just down the corridor at the Treasury바카라 사이트¦

But across the rest of Whitehall and beyond.

But while we celebrate delivering today바카라 사이트¦

We should also remember that these 바카라 사이트“ the National Infrastructure Plan and the Investment Pipeline 바카라 사이트“ are live documents.

And for me 바카라 사이트“ they serve three main purposes.

First 바카라 사이트“ as we바카라 사이트™ve heard 바카라 사이트“ they act as a benchmark against which we can measure our progress.

Second 바카라 사이트“ their existence helps to embed the idea of infrastructure as a vital part of our national life.

And third. They give long term clarity and certainty to investors and the public.

In developing the National Infrastructure Plan 바카라 사이트“ as Paul said 바카라 사이트“ we바카라 사이트™ve worked in close collaboration with industry and finance바카라 사이트¦

To make sure we meet your needs, and remove any obstacles to delivering the programme.

You told us you wanted a clearer picture of future work.

So we created the pipeline.

You asked us to have a greater sense of priority바카라 사이트¦

So we designated the top 40 projects.

And you asked us to make it easier to get those priority projects through the system.

So we바카라 사이트™ve listened, and we바카라 사이트™ve delivered all the reforms to planning and judicial review that Paul has just set out.

The pipeline is the most comprehensive overview of planned and potential infrastructure investment ever produced.

It also acts as a prospectus for investors, identifying key UK private and public sector infrastructure requirements for decades to come.

Add the certainty that provides, to the economic stability the government is overseeing바카라 사이트¦

And you can see why Britain is now ranked number one in the Nabarro Infrastructure Index for attracting investment바카라 사이트¦

Which takes into account factors like credit and taxation and innovation.

I바카라 사이트™m delighted that investors are realising this, and taking advantage of the opportunities it offers.

Today, a group of insurers바카라 사이트¦

Aviva, Friends Life, Legal & General, Prudential, Scottish Widows and Standard Life바카라 사이트¦.

Have made a commitment to work with government and regulators바카라 사이트¦

And invest £25 billion in UK infrastructure over the next five years.

This was made possible because the government negotiated a successful outcome on Solvency II바카라 사이트¦

Which has put insurers in a strong position바카라 사이트¦

To make longer term investments.

I바카라 사이트™m delighted that those companies have made that commitment바카라 사이트¦

It is a fantastic contribution to Britain바카라 사이트™s economic future by some of Britain바카라 사이트™s most impressive companies.

It represents a massive vote of confidence in the UK economy바카라 사이트¦

And it will play a key role in financing key projects.

It also serves as real evidence that if the government demonstrates a long term vision바카라 사이트¦

It will help us to secure long term funding바카라 사이트¦

Which will lead 바카라 사이트“ in turn 바카라 사이트“ to sustainable, strong, long term growth for our economy.

Today바카라 사이트™s plan also sets out our intention to increase publically owned corporate asset sales from £10 billion to £20 billion by 2020바카라 사이트¦

Including exploring the sale of Eurostar.

While no final decision has been made, government shouldn바카라 사이트™t own assets it doesn바카라 사이트™t need바카라 사이트¦

And we should look at where these proceeds can be reinvested, including in Britain바카라 사이트™s infrastructure.

So this document before you, builds on the long term commitment of taxpayers바카라 사이트™ money that I set out in the Commons this June.

And it contains a series of new measures that will create opportunities for new jobs and for new growth across the UK.

Transport

Most of the value of the pipeline lies in our energy and transport sectors.

[And] Transport is an area where a little investment from government바카라 사이트¦

Can go a long way towards bringing investment from elsewhere.

Take Kings Cross [which Paul mentioned earlier.]

We committed £500 million of public investment into its redevelopment바카라 사이트¦

Which attracted 바카라 사이트“ in turn 바카라 사이트“ over £2 billion from the private sector, and led to the complete regeneration of that part of London.

Between April and September this year we invested £15 million every day towards improving our rail network바카라 사이트¦

And we hope our investment will unlock private investment at some of those stations바카라 사이트¦

Like Manchester, Birmingham and Reading바카라 사이트¦

That are seeing the benefits of that money.

But we also have to keep looking at other stations where further investment could unleash growth.

Howard Davies 바카라 사이트“ whose interim report is due to be published later this month바카라 사이트¦

Recently wrote to 바카라 사이트 pointing out the importance of improving surface access to airports.

And we agree.

The current station at Gatwick hardly provides the best first impression of Britain.

And it sits on a key transport route, linking London to some of our great coastal towns.

So we바카라 사이트™ve decided 바카라 사이트“ subject to contributions from the airport itself 바카라 사이트“ to provide £50 million to the cost of building a new rail station at Gatwick바카라 사이트¦

And to commission studies exploring rail and road improvements at both Heathrow and Stansted바카라 사이트¦

As well as the Brighton line.

This is good for those airports바카라 사이트¦

And the communities that surround them.

On our roads too 바카라 사이트“ as we바카라 사이트™ve seen 바카라 사이트“ rapid progress is being made.

But across the country, there are still too many pinch points where it isn바카라 사이트™t just traffic that바카라 사이트™s being slowed down.

It바카라 사이트™s growth too.

87 schemes have already been funded through our local pinch point fund바카라 사이트¦

But more work 바카라 사이트“ and on a bigger scale 바카라 사이트“ needs to be done.

At the A50 for example, where residents and businesses in the area face delays and congestion every day.

So today I바카라 사이트™m adding it to our priority roads programme바카라 사이트¦

So we can work with Staffordshire Council, the LEP, and the Highways Agency to find a solution.

We바카라 사이트™re also making progress on the other routes where we identified blockages in June.

We바카라 사이트™ve started feasibility projects into a number of areas, including:

• the A1 from Newcastle to Scotland
• the A303
• the A27
• and the Trans-Pennines routes

And we바카라 사이트™ll be publishing our plans for all those routes by this time next year.

As we develop those plans, we바카라 사이트™ll do our best to keep the public as involved as possible바카라 사이트¦

Just as we did with our proposals for the A14, where we set out a consultation exploring the idea of a tolled section of road.

The A14 is a crucial link to the Haven ports 바카라 사이트“ which are predicting a three-fold increase in throughput by 2030바카라 사이트¦

And improving the road could also support 10 000 new homes바카라 사이트¦

And a 22% increase in local jobs바카라 사이트¦

So we바카라 사이트™ve listened to the consultation responses, and we바카라 사이트™ve come to the decision that바카라 사이트¦

When this road goes ahead in three years time바카라 사이트¦

There will be no toll.

This will not lead to any delay in delivery바카라 사이트¦

And the cost will be covered by government.

But, as well as the economic benefits that our transport network brings바카라 사이트¦

We should remember that infrastructure can also add to the cultural life of our country, and our civic pride.

That바카라 사이트™s why the government will be providing £30 million to help make the dream of a Garden Bridge over the Thames a reality.

Providing this investment will 바카라 사이트“ I바카라 사이트™m certain 바카라 사이트“ help the Bridge바카라 사이트™s Trust to secure private donations for the scheme바카라 사이트¦

And move us closer to the target of a 2017 opening.

And as well as building the bridges and the railways and the roads for the future바카라 사이트¦

I want us to build the cars of the future too.

This summer government committed £500 million of funds to support ULEVS.

Details of which will be set out soon바카라 사이트¦

And today바카라 사이트™s National Infrastructure Plan puts £5 million towards promoting the use of ULEVs for all 바카라 사이트 car fleets.

But there are other opportunities for Great Britain too.

[Now] At present, the main advances in driverless car technology are happening in California.

Apparently they바카라 사이트™re making progress, but they바카라 사이트™ve found that the cars only really work in sunny weather.

So the UK has something to offer here!

And the National Infrastructure Plan contains plans to put our country at the forefront of driverless car technology.

바카라 사이트ƒ

Digital

If we want to be world leaders in new technology though바카라 사이트¦

We바카라 사이트™ll need to have the right digital networks in place to support those industries of the future.

Paul laid out our progress on making 95% of households superfast.

But we believe that everyone should have access to the opportunities the internet offers.

Especially with more and more of our lives and our jobs 바카라 사이트“ perhaps even our democracy? 바카라 사이트“ moving online

That바카라 사이트™s why we바카라 사이트™ve decided to open 바카라 사이트“ as part of this update 바카라 사이트“ a new £10 million competitive fund바카라 사이트¦

Which will market-test the kind of bold and inventive solutions that could deliver broadband to the most difficult to reach parts of the UK.

No area 바카라 사이트“ no matter how remote 바카라 사이트“ should be left behind.

Energy, the need for certainty, strike prices바카라 사이트¦..

Finally, the need for investment in our energy sector is enormous.

The energy measures we announced at the weekend will ease the burden of gas and electricity bills on hard pressed families over the next couple of years바카라 사이트¦

Without in any way undermining the support for investment in electricity generation.

But those lower bills will only be sustainable if we deliver that investment in newer and cleaner sources of electricity바카라 사이트¦

And this document updates you on our progress.

Back in June, I announced the draft prices the government will guarantee for those investing in renewable energy.

And this Plan updates and confirms the final prices we바카라 사이트™ll pay.

It shows that the price we바카라 사이트™re willing to pay for onshore wind and large scale solar farms has come down.

So we can drive every penny of efficiency바카라 사이트¦

And get consumers the best possible deal.

It shows that we바카라 사이트™ve maintained the amount we바카라 사이트™ll pay for converting coal stations to biomass.

And it also shows that we바카라 사이트™ll increase what we pay for offshore wind in 2018-19.

We believe that this plan will mean delivering 10GW of offshore wind by 2020 is achievable 바카라 사이트“ perhaps more if the prices come down.

This protects our commitment to green energy바카라 사이트¦.

While ensuring we get the best value for money for consumers, and ensure the huge potential of offshore wind is fulfilled.

But it바카라 사이트™s not just wind, wave and tidal power that are seeing the benefits of our policies.

Just twenty minutes ago바카라 사이트¦

In this very building바카라 사이트¦

I signed an agreement with Hitachi and Horizon바카라 사이트¦

Which commits us in principle바카라 사이트¦

To offering a guarantee for their Nuclear Power Station at Anglesey.

There is work to be done바카라 사이트¦

And putting the financing plan together will be a commitment from both sides.

But the agreement today shows that바카라 사이트¦

Just as we did with Hinkley바카라 사이트¦

This 바카라 사이트 is prepared to give certainty to investors바카라 사이트¦

To help them make the financial decisions that are critical for our nation바카라 사이트™s infrastructure.

The power station this agreement will support is set to create around 1,000 permanent jobs once complete바카라 사이트¦

With a peak workforce of over 5 000 during construction.

And 바카라 사이트“ along with the other Guarantees agreed in principle바카라 사이트¦

It shows that the government is doing all it can:

• to secure a stable, certain environment for energy investment바카라 사이트¦

• to create jobs바카라 사이트¦

• and to ensure the UK plays its full part in tackling climate change.

Conclusion

As I see it, this plan is a blueprint for Britain바카라 사이트¦

From which we will literally build the foundations of our future prosperity.

I want to see everybody바카라 사이트¦

Be they politicians or investors바카라 사이트¦

Project managers or engineers바카라 사이트¦

Getting behind it.

And helping to deliver it.

It바카라 사이트™s a plan that demonstrates a long term vision, for our energy and our transport and our digital networks바카라 사이트¦

It바카라 사이트™s a plan that is helping to secure long term investment 바카라 사이트“ as we바카라 사이트™ve seen from the insurance sector바카라 사이트¦

And ultimately, it바카라 사이트™s a plan that will lead to sustainable, strong long term growth.

And help us to build a stronger economy in a fairer society, where everyone can get on in life.

Thanks for listening.

Published 4 December 2013