The construction industry in the United Kingdom  only, is comprehensive and contains more than 250,000 firms that employ as many as 2.1 million people in various roles. The construction industry of the United Kingdom contributes as much as 10% of the total Gross Domestic Product (GDP). The construction industry of the UK is one of the top ten construction industries in the world. The output of the construction industry is more than 100 billion pounds. It varies, but includes construction of roads, dams, residential, industrial and commercial buildings, building services, bridges, tunnels and so on.

  • Overseeing and directing construction projects from conception to completion
  • Reviewing the project in-depth to schedule deliverables and estimate costs
  • Overseeing all onsite and offsite constructions to monitor compliance with building and safety regulations

With respect to the construction industry, the main centre is going to be Europe’s financial capital, London. This is because of its plan to increase its investment in residential property. There has been a tremendous shortage of houses in London and hence the local government of London is encouraging private investment to fulfil the demand of houses. London also has tremendous opportunities in the arena of intermediate housing. The London Development Agency, an agency of the mayor of London, is working to remove barriers that obstruct investment in London’s construction industry.

However, the main opportunity that comes with the construction sector in the United Kingdom is that of sustainable houses. Owing to the effects of global warming, there has been a dire need for eco-friendly houses. The main region that is ahead in this sector is the Northwest region of the United Kingdom. As investing in such environmental friendly constructions will improve the image and profile of the company in the marketplace, investors should not miss this opportunity provided to investors by the UK.

Furthermore, the United Kingdom’s engineering construction industry also has plenty of opportunities in store and is projected to grow in the coming 10-15 years. There will be a need for investment in maintenance, repair and upgrading.

To boost investment in the construction industry, the government of the UK is taking a number of steps,such as creating awareness among the local players who have the potential for international opportunities in the arena of construction.

The UK trade and investment agency, set up to encourage overseas companies, is tapping new opportunities in construction in developing countries such as India, China and developing EU member states. They have also tapped the investment opportunities in Brazil and have enlisted more than 80 projects that will prepare Brazil fully to host the Soccer World Cup in 2014 and the Olympic and Paralympic Games, which are going to take place in Rio in 2016.

The construction industry in the United Kingdom is all set to expand and has loads of opportunities in store for investors, especially for those who wish to invest in sustainable construction.

Construction Investment in the UK

  • Government releases details of its £500 billion-plus infrastructure investment pipeline
  • Pipeline includes major projects such as the Thames Tideway Tunnel, the rollout of smart meters, and upgrading the A14
  • Providing a single source of data for both government and the private sector, giving greater certainty for investors and suppliers

The government has today published a new National Infrastructure and Construction Pipeline, setting out over £500 billion worth of planned private and public investment over this Parliament and beyond with more than 40% of the pipeline being delivered thanks to government investment.

The pipeline which is being published by the government’s Infrastructure and Projects Authority, comes hot on the heels of the Chancellor’s Autumn Statement announcement of the new £23 billion National Productivity Investment Fund.

This new fund includes infrastructure investments of over £2.6 billion to improve transport networks; a multi-million pound package to accelerate the future of broadband, and £7.2 billion to support the construction of new homes.

The NPIF will boost our productivity in the long-term – which is critical to help raise living standards and wages – while also improving living standards in the short-term by making passenger journeys quicker and more reliable, improving broadband connections, and building more homes.

If the UK raised its productivity by one percentage point every year, within a decade it would add £240 billion to the size of the economy; £9,000 for every household in Britain.

Investing in better infrastructure is at the heart of the government’s ambitious plans to close the UK’s productivity gap.

Today’s pipeline is the largest and most comprehensive ever, with private finance making up more than half of the pipeline to 2020/21, and will help deliver important local projects across the country including transport, broadband, flood defence, and housing.

The government has also today published a new funding and finance supplement to help attract further private sector investment into some of the UK’s most important infrastructure projects.

This record planned investment sends a clear signal that government is working successfully with private investors to unlock the vital infrastructure that modern Britain needs.

It also provides a single source of data for both government and the private sector, giving greater certainty for investors and the supply chain and helping to better forecast future skills.

The new National Infrastructure and Construction Pipeline contain:

  • over £500 billion of planned investment, with over £300 billion of this to be invested by 2020/21
  • over 720 projects and programmes across transport, housing and digital to fire up the nation’s infrastructure
  • around 20 new schemes have been added to the pipeline since March 2016, including the Oxford to Cambridge Expressway

Chief Secretary to the Treasury David Gauke said:

This record infrastructure pipeline is set to make a real difference to people’s lives from quicker and easier journeys, to better broadband access, and building more homes for people who need them in high demand areas.

It is clear proof that we are absolutely committed to ensure our infrastructure is fit for the future, which is at the heart of our ambitious plans to close the UK’s productivity gap and build a fair economy for everyone.

It builds on our strong record of delivering the modern infrastructure this country needs for the twenty-first century.

Chief Executive of the Infrastructure and Projects Authority (IPA), Tony Meggs:

Creating the IPA has enabled us to produce a more comprehensive pipeline. Having the visibility and certainty of a pipeline of construction and infrastructure investment allows industry to invest strategically for the market, not just tactically for the project.

We will continue this comprehensive approach, working with industry to deliver the pipeline.

It is an important step in the IPA’s mission to deliver important infrastructure projects successfully, so we can raise people’s living standards, boost our productivity and grow our economy.

Alasdair Reisner, Chief Executive of the Civil Engineering Contractors Association (CECA):

If the UK infrastructure sector is to plan for the investment in skills and innovation that will be required to deliver world-class infrastructure in the coming years, it is vital that companies are able to strategically allocate funding on a basis of projected need.

The pipeline is a crucial tool that enables companies to plan ahead and deliver optimal outcomes for clients, taxpayers, and communities.

Nick Baveystock, Director General of the Institution of Civil Engineers (ICE):

Infrastructure services enable balanced economic growth and thriving communities.

This updated National Infrastructure and Construction Pipeline sets out the value of infrastructure to the economy and provides long term visibility to industry.

ICE welcomes the government’s commitment to infrastructure delivery and a more strategic approach to addressing the UK’s infrastructure needs.

Future Infrastructure Investments

Infrastructure shapes our lives. Transport links get us where we need to be, energy systems power our homes and businesses, and digital networks allow us to communicate. Infrastructure supplies us with clean water, takes away our waste and helps protect us from the elements. It is vital to improving our quality of life and integral to the creation of vibrant new places to live and work. Over the last Parliament we are proud of the progress made to improve the planning and delivery of UK infrastructure. This included implementing the first-ever National Infrastructure Plan, helping to increase investment and accelerate project delivery. In this Parliament we will be bolder, with public capital investment of over £100 billion committed to 2020-21, part of a £483 billion project Pipeline. The government is laying the foundations for improved infrastructure, a more productive economy and a better society for decades to come. More areas are benefitting from devolution of powers to target infrastructure investments that will deliver local economic and social benefits. The Northern Powerhouse will connect our great cities of the North, alongside growing numbers of City and Devolution Deals. We will improve our ability to understand needs and make decisions on future infrastructure; renew our efforts to encourage private investment; and continue to bear down on the drivers of delay, high costs and inefficiency in delivering these ambitious investment plans. We will put the right organisational framework in place. The National Infrastructure Commission, led by Lord Adonis, will enable long-term strategic decisions to be taken on future infrastructure needs. It has already produced 3 exciting and challenging reports (Smart Power, High Speed North and Transport for a World City) and later in this Parliament will set out priorities for the next 30 years through its National Infrastructure Assessment. The new Infrastructure and Projects Authority brings together the expertise of Infrastructure UK and the Major Projects Authority to improve delivery of major government projects. It has a renewed mandate to set out and help deliver our infrastructure priorities for the next 5 years in this refreshed National Infrastructure Delivery Plan, and will report annually on progress. The challenge to industry is to be confident in these plans. The government is better placed than ever to work with project owners, investors and the supply chain to ensure effective and timely delivery of our infrastructure priorities. Working together we can achieve these goals and grow our economy.


Chancellor George Osborne &

Commercial Secretary to the Treasury Lord O’Neil of Gatley