Infrastructure spending in the U.K. will need to increase after the country’s referendum vote to leave the European Union, according to London Mayor Sadiq Khan.
Khan believes that higher transport and infrastructure investments will reduce the negative impact of Brexit. He particularly relayed these concerns to National Infrastructure Commission (NIC) Chairman Lord Andrew Adonis.
Khan met with Lord Adonis to discuss the need for more investments in the country’s infrastructure network. The NIC acknowledged the need for improved spending on infrastructure that also includes those in the energy, digital and water industries.
As the country moves to stand alone from the EU, it makes sense to foster new growth and create more jobs by investing in infrastructure, according to Khan.
Hence, an increased budget for construction projects will definitely be a good boost for equipment suppliers such as steel pipelines and zirconium crucibles among others, which one can get from firms such as Winward Engineering LTD.
Businesses may begin to notice this trend in 2018, as the NIC released a list of the top 12 priorities for infrastructure investments for that year.
The NIC issued the list in June, and it tagged a third runway at Heathrow airport as the top infrastructure priority. Lord Adonis said that the project has best represented the country’s underinvestment in building projects since the planned runway has been in limbo for the last 14 years.
Air traffic congestion at the airport contradicts any claim that the country remains open to the world, if capacity is always full, according to Lord Adonis.
Aside from the Heathrow expansion, the list of priorities also includes the High Speed 2 and 3 projects, Crossrail 2, 5G mobile, and water and anti-flood infrastructure.
Infrastructure investments are important for the U.K. to ensure a stable future beyond its affiliation with the EU, as these will support economic growth and more jobs.