Public Accounts Committee says government鈥檚 national infrastructure plan lacks clear priorities and a strategic vision
The government鈥檚 infrastructure plan is merely a long list of expensive projects that lacks clear priorities and a strategic vision, an influential group of MPs has said.
In a report on the government鈥檚 National Infrastructure Plan, the Public Accounts Committee said the government maintained that the plan had identified 40 priority projects and programmes, but in reality it lists 200 individual projects that are said to be priorities.
The committee also warned that with around 64% of 拢310bn in investment required for the programme to come from the private sector, with consumers likely to shoulder the cost through higher bills for utilities and other services.
Margaret Hodge, Labour MP and chair of the Public Accounts Committee, said: 鈥淚nvestment in infrastructure is crucial for stimulating economic growth. However, the Treasury鈥檚 Infrastructure Plan is simply a long list of projects requiring huge amounts of money, not a real plan with a strategic vision and clear priorities.
鈥淭he Government needs to urgently assess the impact on consumers and how this can be contained.
鈥淕iven the difficulty in raising private finance, the government may have to use taxpayers鈥� money to attract investors through direct grants, guaranteed incomes or agreeing to bear certain risks.
鈥淎lthough the level of government support required is not yet clear, it will be either consumers or taxpayers who will have to pay up, and so openness about the impact of government decisions is essential.
鈥淚nvestors must also accept proper transparency over their costs and rewards in delivering infrastructure projects to show that their returns are reasonable and that any government support they receive is justified.鈥�
John Cridland, director general of the CBI, said: 鈥淚 have a queue of businesses at my door telling me delivery of the government鈥檚 infrastructure plan needs speeding up. 鈥淲e need ministers to pick three or four big infrastructure projects that demonstrate to investors what we can achieve and then doing everything in their power to see them through.鈥�
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