Detailed planning approvals fell compared to levels in the previous three months and in 2022. In contrast, project starts grew in the previous three months and detailed planning approvals received a boost compared to ‘last year.
Overview of the infrastructure
Totaling £3.032 billion, civil engineering works started on site in the three months to August fell 13% on the previous three months and were down 49% on the previous year. Large projects (£100 million or more), totaling £1.781 billion, fell 2% on the previous three months and were 58% lower than last year. Underlying project starts (less than £100m in value) were up 3% compared to the previous three months on a seasonally adjusted (SA) basis and down 19% compared to last year, with a total of £1.251 billion.
At £3.8bn, major civil engineering contract awards fell by 44% over the period to 4% less than the previous year. Major project contract awards, which at £2.501 billion were down 52% on the previous three months, were up 16% on the previous year. Underlying contract awards, at £1.299bn, were flat compared to the previous three months (QQ), down 28% on the previous year.
Totaling £8.647 billion, detailed civil engineering planning approvals were up 27% on the previous three months and tripled on a year ago. Major project approvals, at £7.701 billion, were up 35% on the previous three months and up 392% on a year ago. Underlying approvals did not fare as well, having fallen 5 per cent (SA) compared with the previous three months and were 24 per cent lower than a year ago, totaling £945m.
Types of projects started
At £738m, road projects accounted for 24% of civil engineering starts in the three months to August, despite a 14% decrease on the previous year. Energy also underperformed, with starts falling 88% on the previous year to a total of £116m. The segment represented a 4% share of starts.
Waste (£21m) and the water industry (£35m) each accounted for 1% of the sector’s share and fell by 99% and 82% respectively compared to One year ago. Rail was down 98 per cent, with starts totaling £23m, representing 1 per cent of the sector. In contrast, airports saw a four-digit increase on a year ago to a total of £96m, accounting for 3% of total value.
Regionals
Most regions saw a decline in civil engineering starts in the three months to August. However, London bucked the trend as the value of projects started on the site rose by almost 18 per cent on the previous year to a total of £1.742 billion. As a result, the region accounted for 57 percent of starts during the period, the highest of any area. This growth was driven almost exclusively by DWP Estates’ £1.55 billion workplace transformation programme. Northern Ireland was the only area where civil engineering project starts experienced triple-digit growth. Totaling £138m, the value of projects started in the region increased by 286 per cent to account for 5 per cent of the sector.
The North West accounted for 97% of the sector, making it the second most active region. The value of starts in the North West was up 37% on the previous year to a total of £279m. Growth was accelerated by the £226 million Carlisle Southern Link Road. East Midlands (£44m) and West Midlands (£73m) had a weak period, with a 94% and 89% decrease in work starting on site compared to a year ago , representing 1% and 2% of the start-ups in the sector, respectively.
Yorkshire & the Humber, at £3.8 billion, was by far the most active region for civil engineering planning approvals, with a 44% share. The value was up more than four digits on the previous year, which was accelerated by the approval of the £2.688 billion Hornsea Project Four offshore wind farm. The South West also saw four-digit growth on the previous year to a total of £1.364 billion, making it the second most active region with a 16% share of the sector. This growth was boosted by the approval of the £1.3 billion A303 Stonehenge road tunnel.
The North West was also a relatively strong region, with the value of approvals increasing by 443 per cent on last year’s figures to a total of £1.177 billion, a 14 per cent share of sector At £466m, the East Midlands saw four-digit growth on 2022 levels to account for 5% of approvals. At £341m, the value of consents in the North East more than doubled on the previous year to represent 4% of the sector.
