4.7A Infrastructure investment

• Infrastructure = basic physical and organisational structures and facilities needed for the operation of a society or enterprise
• UK infrastructure investment e.g. HS2 and Heathrow expansion
• National policies to reduce inequality:

  • Tax and benefit system
  • education, skills and training
  • balanced economic growth
• • Most projects are public-private partnerships
  • The private sector is used to design, build, finance and/or maintain public sector investments in return for a share of profits generated by the project
•  variety of stakeholders are involved in regeneration projects:

  • Department for Culture, Media and Sport
  • Department for Environment, Food and Rural Affairs
  • Local councils
  • Non-governmental organisations 
  • Local individuals
• • Examples of infrastructure investment projects
  • HS2 is a new high-speed rail network that will connect London to Birmingham and then the north
  • Phase 1 is expected to open between 2029 and 2033
  • It has been announced (2023) that phase 2 will no longer go ahead
  • Estimated to create 22,000 jobs
  • Cut travel times by half
• Expansion and upgrade of Heathrow Airport

  • Building a third runway to increase flight capacity by 260,000 flights per year
  • Terminals 1 and 3 would be demolished, and terminals 2 and 5 would be expanded over 30 years
  • It is expected to cost just under £20 billion, which would be privately funded
  • Business leaders are in favour of the expansion, which could boost the wider economy by £61 billion and create an additional 77,000 jobs
  • Local residents and environmental NGOs oppose the project as 761 homes will be demolished and pollution will increase