Impacts of Brexit on UK Rail & Infrastructure Infrastructure Infrastructure Infrastructure industry
Key points about Brexit and its impacts...
• Core infrastructure being unlikely to decline and having immunity from exchange rate and economic fluctuations
• The industry could be impacted if immigration controls are put in place, there is currently a skills gap and this control would heighten this issue
• The UK Government has specified its preparation to increase Greenfield infrastructure spending, predominantly smaller scale projects. This will bolster jobs and offset any wider downturn
• The government has also set a course for a permanently-higher share of GDP to be spent by government on strategic economic infrastructure eg transport
• According to the latest forecasts by the Construction Products Association (CPA), Construction output is expected to rise each year between 2017-2019, by 1.3% in 2017, 1.2% in 2018 and 2.3% in 2019
• There has been no change to the plans on HS2, the government will not be scrapping the plans to fund Brexit Bill
• Infrastructure projects in the energy, rail and water sectors, including Hinckley Point C and HS2, are set to fuel growth driven by the £300 million National Infrastructure and Construction Pipeline
Since the UK vote to leave the European Union there has been a state of economic and political uncertainty. Whilst on the 8th of June some political clarification will occur, as the UK public head to the ballot box to express their votes, the decision to leave the UK is fixed.
While Brexit brought initial uncertainty supported by the fall of the sterling, industries such as infrastructure have remained sanguine about the costs of Brexit. This is for good reason as the UK industry remains attractive for foreign investors.
12 | MANE RAIL & INFRASTRUCTURE | JUNE 2017