Following today’s Budget 2021 announcement by the UK Chancellor outlining the government’s infrastructure spending plans
Moustafa Ali, Economist at GlobalData, a leading data and analytics company, offers his view
“The UK’s Budget 2020 plans are expected to provide a significant boost for the construction industry following a difficult year in 2020. The plans include the creation of a new infrastructure bank, whose remit will be to finance and identify projects that will help the UK in reaching its net-zero emissions target. GlobalData expects the UK construction industry to grow by 8% 2021, supported by the government’s infrastructure investment plans.
“In total, the infrastructure bank will have £12bn (US$16.8bn) at its disposal. The creation of the bank will support growth in the infrastructure and energy and utilities construction sectors over the long run.
“The Chancellor has also announced the creation of eight new freeports in the UK, which will provide a further boost, particularly for the infrastructure construction sector. Alongside the free ports, the government has pledged to develop an offshore wind port hub at the Humberside free port, which is expected to create 3,000 jobs in the region.
“The Budget 2021 announcement will provide critical support to the construction industry, which was severely affected by the economic slowdown and the virus outbreak in 2020.”