Time for a boost from Boris

Britain is one of the worst countries in the developed world for building infrastructure projects. Figures from the World Economic Forum show the UK is not even in the top ten of 140 nations when looking at how infrastructure contributes to competitiveness.

Comparing all infrastructure projects, the WEF ranked us in 11th position, behind Spain.

in rail, the UK came in tenth position, and in 26th place for roads.

Yes, when we do go for ‘les grands projets’ – whether it’s the renovation of King’s Cross St Pancras or the magnificent Crossrail – we do them surprisingly brilliantly. But there are not enough of them.

Boris Johnson now has the opportunity of a lifetime to change that and go big.

the Prime Minister can put what he calls ‘boosterism’ to the test by launching a couple of ‘rocket boosters’ to turbo charge the economy with financing for a couple of bold projects. and he can do so cheaply because the Government can borrow in the bond markets over ten years so cheaply.

at thursday’s price, the ten-year bond yielded a tiny 0.46pc.

Professor Douglas McWilliams of the Centre

for Economic and Business research estimates for me that if the Government spent an extra £10bn on infrastructure over the coming year, the cost of borrowing would be about £31m a year, or £310m over ten years.

that, as they say, is as cheap as chips and it’s why additional spending on some carefully selected, but vital infrastructure projects, is a no-brainer.

Spending on longer-term projects has a terrific knock-on impact on so many other factors. For every £10bn a year more spent on infrastructure, the wider economy would be boosted by £18bn a year once everything is in full flow.

Spending extra also leads to a permanent lift in productivity, something this country desperately needs.

there are social as well as economic benefits. For 1,000 jobs created by any one construction project, there will be another 3,000 added elsewhere.

in his new book, the inequality Paradox, McWilliams shows that improved infrastructure helps reduce inequality.

Providing people with better links between work and home improves health outcomes, reduces crime and so forth.

Luckily the signs are that Johnson will not need much convincing to spend on either upgrading or building new infrastructure. He has already made pledges for new hospitals and investing in broadband.

His Chancellor Sajid Javid has similar instincts and is likely to support Johnson in such plans. Javid promised another £100bn of spending on new projects as part of his leadership bid and £50bn on social housing, a policy he feels strongly about.

His earlier attempts to get money out of the treasury for housing were blocked by the previous PM. now’s his chance to make good. With borrowing costs so low, you could argue that Johnson not only has an opportunity, but an obligation, to put muchneeded fizz back into an economy suffering from Brexit fatigue and fears of a global slowdown.

if he survives attempts to overthrow him, a good start might be a bridge across the Channel.