Autumn Statement 2016 - Impact on UK Infrastructure

UK workers’ productivity rates are below those in several EU countries. The Chancellor reprioritises spending to “build an economy that works for everyone” and “prepare our economy to be resilient as we exit the EU” - this follows on from Government policy that says economic infrastructure (transport, energy, flood defences, water, waste, and digital communications) is crucial for the economy. He is investing in skills, R&D and infrastructure to try to get the UK’s productivity “match fit” for a post-Brexit competitive global economy. The cut in corporation tax (designed to attract and retain Foreign Direct Investment following the Brexit vote), coupled with new infrastructure spending, indicates a keenness to stimulate the economy ahead of triggering Article 50. The Autumn Statement has presented the UK as ‘open for business’ post-Brexit. We believe this focus on investment is good for business.

Juliet Reingold, Partner in our Government Group, summarises and comments on the impact of the Autumn Statement on the Infrastructure Sector.