In the Government’s 2020 Budget, record investment was promised for British infrastructure. More than half a trillion pounds (£640 billion) was pledged over the next five years, including £27 billion to improve transport routes, £12.2 billion to build more than 200,000 affordable homes and £500 million to support the rollout of a super-fast electric vehicle charging network.
But then came the COVID-19 pandemic. The Government has prioritised underwriting parts of the economy and providing payments to support businesses and individuals, which has led to a debt which will likely take generations to pay off.
But, as we look forward to economic recovery, we need to consider who will pay for the infrastructure projects that the country still desperately needs, and for which a significant amount of long-term capital will be required.