1.6 The Government estimates that it requires a further £200 billion of new economic infrastructure investment over the next five years19 mainly to facilitate transport and energy services. Much of this spend, for example, new power stations, will be financed and delivered directly by private sector companies. The cost of such private sector investment will ultimately be paid for by consumers through utility bills. In addition, as public sector finances are currently constrained, it is likely that privately financed solutions will still be considered for other infrastructure projects paid for by taxpayers.
1.7 A positive development has been the publication in autumn 2010 by Infrastructure UK20 of the results of a study to identify ways of reducing the costs of delivering infrastructure projects. The study included comparisons with overseas experience. The Treasury is now targeting savings of £2-3 billion a year.21
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19 Infrastructure UK, National Infrastructure Plan 2010, October 2010.
20 The Treasury set up Infrastructure UK in 2010 to oversee the planning of infrastructure across Government.
21 See http://www.hm-treasury.gov.uk/iuk_cost_review_index.htm