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This paper proposes that there is a significant link between infrastructure investment and economic growth. It discusses a potentially effective financing mechanism – an ‘infrastructure contract’ – to fund the next generation of UK infrastructure assets. It concludes by annotating how consultancy and engineering firms are not only central to the delivery of sustainable infrastructure networks but also to enhancing the efficiency gains of governments and local authorities.
Infrastructure investment is a critical component of economic growth. The UK is facing a £500 billion infrastructure crunch. The government needs to roll out a strategic infrastructure plan as a key cornerstone of our economic future and to get the country moving again;
The consultancy and engineering sector can play a crucial part in delivering efficiency savings on integrated supply and management contracts. Evidence suggests these can reduce infrastructure operational expenditure by up to 50%;
The government can help boost investment in infrastructure by offering engineering firms and investors tax and regulatory relief for providing critical infrastructure services;
ACE call on the government to explore ways of employing the Regulatory Asset Base finance model (as articulated by Dieter Helm, University of Oxford) to maximise infrastructure investment and enhance the capital expenditure environment.
 Full document.
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