By the end of 2016, spades will be in the ground in over 80 per cent of the projects in the UK Government Construction Pipeline, according to analysis published today by KPMG.

The analysis indicates that 84 per cent of the projects included in the pipeline (2,656) are expected to have commenced construction by 2016. This includes 1,279 projects which are reported as being already under construction. The uplift in the number of projects due to start will add to the pressure on the construction industry which is already struggling with an acute shortage of skilled labour.

The report, UK Government Construction Pipeline – KPMG Analysis, reflects 3,148 projects covering 16 sectors with a total value of approximately £128 billion being procured by central and local government in three spend periods: 2014-16, 2016-20, and 2020 and beyond.

Construction cranes (PD)The analysis shows a massive increase in the number of projects since the last pipeline produced by the Government, from 1,886 in July 2014 to 3,148 in December 2014, an increase of 1,262. This is largely due to projects that were previously grouped into larger programmes now represented as individual projects. But the total value of the pipeline has also increased by £11.6bn due to additional spend on nuclear decommissioning and the Priority Schools Building Programme.

The analysis also reveals that:

• Transport projects continue to dominate the pipeline, accounting for £66.5bn or 52per cent by  value

• Justice, MoD and Police projects represent over 80 per cent of projects in the pipeline by volume

Richard Threlfall, KPMG's UK Head of Infrastructure, Building and Construction said:

"It is encouraging to see the Government's pipeline of construction and infrastructure projects continuing to grow in both volume and value. It is not yet clear however whether the industry will be in a position to deliver the 84 percent of projects due to start by 2016. There is currently an acute shortage of skilled labour in the industry and unless that is resolved soon some projects will be delayed."

The detailed report can be found here.

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