Data provider Barbour ABI runs the rule over projects that could get green light in this week’s autumn statement
Construction work in the north of England could soar by 500% if major transport projects such as phase two of HS2 and the Trans-Pennine High Speed Rail (HS3) are given the go-ahead in chancellor George Osborne’s autumn statement.
According to a new report by Barbour ABI, the construction pipeline in the north of the country would quintriple if the new high-speed lines – which are worth a combined £41.2bn - are given the go-ahead.
The latest report found the gross value of the top 25 biggest construction projects in the North of England which had secured funding totalled £8.2bn. However the figure could be set to quintuple if projects such as the £20bn Trans-Pennine high speed rail development and Phase 2 of HS2, worth £21.2bn, are approved.
The Barbour report also revealed that construction spending of £47.8bn for the top 25 projects in the South East dwarfed the £8.2bn of spending committed to the northern regions.
Experts also believe that the combined HS2 and HS3 are needed to create a fully integrated transport hub for the northern regions, facilitating the concept of a ‘ManSheffLeedsPool’ regional economy by building on the individual and collective power of each of these major conurbations.
It is thought the idea of a ‘northern powerhouse’ will be a focal point of Chancellor George Osborne’s Autumn Statement on December 3, with the Government set to outline plans for greater infrastructure investment and devolution outside of the capital.
Read the full Barbour ABI report.
Michael Dall, lead economist at Barbour ABI, commented: “Our report clearly shows that the northern regions would benefit greatly from investment in transport infrastructure, both in terms of boosting construction output and improving wider economic prosperity.
“While London and the South East are still dominant, accounting for more than a third (35 per cent) of the UK’s construction output last year, the northern regions are performing strongly in the medical, healthcare, industrial and residential sectors.
“At present, the construction pipeline for the top 25 most valuable projects in London and the South East totals £47.8 billion, outweighing the North’s by five to one. If these transport infrastructure projects do get the green light, it will surely go some way to bridging the gap.”