Armitt: Not surprising if infrastructure strategy is delayed

Sir John Armitt warned Utility Week’s Investor Summit yesterday (5 March) that the new chancellor of the exchequer may not feel confident enough to publish the National Infrastructure Strategy (NIS) alongside next week’s Budget.

The comments from the chair of the National Infrastructure Commission came hours before the BBC suggested that the government was delaying the project. Its sources believe publication will now occur in May.

In the Queen’s Speech in December, the government promised publication of the blueprint for development over the next 30 years alongside the Budget on 11 March.

However, Armitt said that Rishi Sunak, installed as chancellor less than a month ahead of his first Budget,  faced a huge challenge in tackling the demands of an evolving energy system and counting the cost of the net zero push.

Asked whether he still expected the strategy to be published alongside the Budget, Armitt said: “I wouldn’t be surprised if, in the current political context, the Budget is primarily focussed on the priorities set put in the (Conservative) manifesto.

“We have a new chancellor and I think the biggest challenge he faces is energy. We are all waiting for the energy white paper at the same time.

“Will the new chancellor feel confident alongside the budget to announce the NIS? I hope he will be. Will I be that surprised if it were to be put back a bit? Probably not.”

Treasury sources told the BBC that despite the delay to the NIS, the commitment to make investments to “level up” the regions remained and would be reflected in the Budget.

Armitt insisted that the government would be unable to keep these promises without assessing the role of infrastructure.

“Levelling up cannot happen without some digging up”, he told the conference.

“It’s clear that there is real ambition within government for visible investment outside of London that will drive employment opportunities and wider prosperity across the north of England in particular. The commission welcomes that ambition but we do caution that it must be set within a proper strategic approach that looks closely at what is actually needed in the communities we’re seeking to support. We have to make sure we are asking the right questions.”

The potential delay to the NIS comes after an admission that the energy white paper will not be ready until the end of the month.

However, the sector has already received some positive news from the government with the news on Monday that onshore wind and solar projects will be permitted to take part in the next Contracts for Difference auction.

Read more about the sector’s wish list for the Budget here.