Last week, the UK government outlined its infrastructure investment pipeline which will see £500bn worth of projects set to be undertaken over the coming years. Following Chancellor Philip Hammond’s first Autumn Statement speech last month, in which he announced plans for a £23bn National Productivity Investment fund, the Treasury said government investment will be behind around 40% of the pipeline.
It is understood that £300bn worth of projects will take place by 2020-21, helping to deliver improvements in transport, broadband, flood defences and housing. This record infrastructure pipeline is set to make a real difference to people’s lives – from quicker and easier journeys to better broadband access, and building more homes for people who need them in high-demand areas. A primary aim of this investment is to improve UK productivity through targeted investment, thereby preparing Britain’s economy for any shocks from Brexit in the years ahead.
Last month the BWM Investment Committee introduced the VT UK Infrastructure Income fund into our Model Portfolios, which invests directly into UK infrastructure projects. We believe this planned spending from the UK government should therefore give additional value to our newest holding over the years to come.