National Productivity Investment Fund
The Chancellor announced in today’s Autumn Statement that a new National Productivity Investment Fund (NPIF) will add £23 billion in high-value investment from 2017 – 2022. This will target 4 areas critical for improving productivity: housing, transport, digital communications and research and development.
The Government is set to publish a Housing White Paper which will include a comprehensive package of reform to increase housing supply and halt the decline in affordable housing. To help deliver this the Autumn Statement announces:
· A new Housing Infrastructure Fund of £2.3 billion, funded by the NPIF, will be allocated to local Government, where the housing need is greatest; delivering funding for projects such as roads and water connections that will support the construction of up to 100,000 new homes.
· Restrictions will also be relaxed on grant funding for affordable homes to allow providers to supply a mix of homes for affordable rent and low cost ownership. The NPIF will provide £1.4 billion to deliver 40,000 housing starts by 2020/2021.
· Another £1.7 billion will be used to speed up the construction of new homes on public sector land.
In the Autumn Statement the Chancellor confirmed that the Government will recommit to the National Roads Fund announced in the 2015 Budget.
The NPIF will provide an additional £1.1 billion by 2020/2021 in new funding to deliver much needed upgrades on local roads and public transport networks, an extra £220 million will be invested to tackle key pinch-points such as congestion on highways in England.
A further £390 million will be invested to support ultra low-emission vehicles, renewable fuels and connected and autonomous vehicles. They will also offer 100% first year allowances to companies investing in charge points for electric vehicles.
£450 million will be allocated to trial digital signalling technology to expand capacity and improve reliability of rail networks.
The Government will invest over £1 billion by 2020/2021, including £740 million through the NPIF, targeted at supporting the market to roll out of full-fibre connections and future 5G communications. This will be delivered through: