Infrastructure lies at heart of the uk’s ambition to expand beyond europe current market risk premium 2016

Not only does the UK need major infrastructure building programmes to boost its economy, Brexit offers the UK a golden opportunity to rewrite the infrastructure rulebook and get projects “shovel-ready”. For years the UK led the world with procedural clarity for its infrastructure projects.

We must generate the same confidence again in the major economic infrastructure this country needs, and keep pursuing new mechanisms to release funding for the infrastructure asset class. Market risk premium calculator An infrastructure boom has been intimated by Philip Hammond, the Chancellor.

But what, realistically, can the Government do to prove to the world that the UK is embarking on a new phase of infrastructure investment? What we require is a blueprint for the UK to rapidly upscale its infrastructure building programme, focusing on creating better procurement

and planning processes and investment vehicles.

Negotiation with, and the subsequent decoupling from, the EU could act as the catalyst to achieve this. What is the market risk premium today Where we can go with state aid will depend on whether the Government negotiates a “hard” or “soft” Brexit. Market risk premium s&p 500 State aid is a complex beast, but its rationale is generally supported in the UK – competition on a level playing field generates innovation and growth.

Whilst there are changes which could be made to the state aid regime generally, block exemptions exist already in the infrastructure field, for example in the ports and airports sector, where it is acknowledged that investment aid, under certain conditions, does not give rise to undue distortion of trade.

If we want ongoing access to the internal market, EU member states will understandably require state aid restrictions to be part of the package. Market risk factors But there is a difference between subsidies which impact on exports, and those supporting economic infrastructure.

The Brexit package must seek to ensure that the UK can take absolute control of the framework by which its national infrastructure network is approved. Stock market risk Discretion to award contracts directly would certainly speed up the infrastructure procurement process, but requiring contractors to compete in an impartial procurement process can generate better value for money and more innovative approaches.

Whether we take a “hard” or “soft” Brexit route, the broad principles on which the EU procurement regime is based is the World Trade Organisation’s government procurement agreement, in connection with which, for reciprocity reasons, we would want to be a signatory. Global risks 2016 For the UK not to do so would risk losing its legitimacy in cross-border trading.

Having said that, adopting a less regulated approach than the EU procurement directives could be beneficial as part of the infrastructure blueprint post-Brexit. Ibbotson market risk premium 2015 Quick and efficient planning approvals are necessary to ensure that flagship infrastructure projects progress, which will in turn inspire more confidence from investors and future partners.

Planning is not an EU competence, but EU legislation on sustainability and environmental issues impacts the UK planning process. Current market risk premium 2016 In the event of a hard Brexit, the Government could forgo UK implementing legislation in these areas, but any changes would need to take into account that public participation in environmental decision-making and access to environmental information are broader obligations which the UK has signed up to under international conventions such as the Aarhus Convention.

The real problem with planning is closer to home – although the process for nationally significant infrastructure projects has generated improvements, the system still has its fair share of the much-maligned red tape.

Finally, the all-important nettle of how to most effectively fund large-scale infrastructure needs to be grasped. Market risk premium australia 2015 The Chancellor has alluded to the introduction of infrastructure gilts, which would be underwritten by UK Government and issued on the capital markets to attract investment from pension funds and FDI.

Despite considerable efforts to attract long-term investors, the state has hitherto failed to get the volume necessary to meet its needs. Stock market risk and return Infrastructure gilts, underpinned by government guarantees and attractive yields, could be the financial instrument which could finally garner the requisite funds.

George Osborne’s initiatives to use the huge resources available via Local Government Pension Funds were to be commended, and, given the investment appetite and local political buy-in, we hope to see further incentives in his successor’s Autumn Statement.

Reading the runes from the scant policy nuggets we’ve received since the new Government was formed is a little tricky, but the mood music in Westminster suggests that Keynesian-style borrowing for capital projects is being strongly considered.

The Government must lead by example. Equity risk premium historical data It would send a strong signal if it were to activate myriad transport and alternative energy projects which are currently awaiting approval. Historical market risk premium s&p 500 The Chancellor has recently hinted at the expansion of the Northern Powerhouse initiative to include economic growth plans across the regions of the UK.

If we get this right and adopt an “infrastructure first” policy, then not only can we deliver a significant boost to the economy, but demonstrate also that the UK is very much open for business. Market risk premium uk Furthermore, it intends to expand its ambitions beyond the EU trading bloc. World-class infrastructure lies at the heart of such an ambition, which is why the Government’s next steps are so important.