Data released on 27 November reveals that the construction pipeline in the North of England could increase five-fold if major transport infrastructure projects are given the go ahead in next week’s Autumn Statement.
Barbour ABI published its special report examining current trends in the northern construction market and its prospects for the future.
It found the top 25 most valuable projects in the pipeline for the North of England totalled £8.2bn - a figure that could be set to quintuple if projects such as the £20bn Trans-Pennine high-speed rail development and Phase 2 of HS2, worth £21.2bn, are approved.
It is thought the idea of a ‘Northern powerhouse’ will be a focal point of Chancellor George Osborne’s Autumn Statement on 3 December, with the government set to outline plans for greater infrastructure investment and devolution outside the capital.
Barbour ABI lead economist Michael Dall said: “Our report clearly shows that the northern regions would benefit greatly from investment in transport infrastructure, both in terms of boosting construction output and improving wider economic prosperity.
“While London and the South-east are still dominant, accounting for more than a third (35%) of the UK’s construction output last year, the northern regions are performing strongly in the medical, healthcare, industrial and residential sectors.
“The construction pipeline for the top 25 most valuable projects in London and the South East totals £47.8bn, outweighing the North’s by five to one. If these transport infrastructure projects do get the green light, it will surely go some way to bridging the gap.”