The Future of Infrastructure Investment Is in the North


Welcome to the Frederic Michel Verdier blog. Frederic Michel Verdier is a Funds veteran specializing in infrastructure equity investments and asset management. Boris Johnson has based his election campaign on promises about an infrastructure boom that would succeed at rebalancing the economy. One of the major points was that these projects would focus on the north of England, rather than the previous London-centered plans. One thing remains clear – the future of infrastructure investment lies in the north, but the timing for these projects remains somewhat uncertain.

Boris Johnson Delays Infrastructure Development

There is uncertainty building up about major projects such as HS2, which could cost as much as £106 billion, with a full-blown battle in the government over how the prime minister will eventually fulfill the remaining agenda and how he will organize the funding of the projects involved. Mr. Johnson’s decision is expected soon and it is an excellent opportunity for him to keep his election-time promise of closing the regional productivity gaps. It remains to be seen if the funding will back the prime minister’s promises.

frederic michel verdier Great Opportunities in the North

Regardless of how this particular project will turn out, Boris Johnson claims to be very serious about narrowing down the divide between London and the rest of the UK. The Conservative-led austerity agenda, which has been in action since 2010, has left the North very poor in terms of infrastructure investment. But with Mr. Johnson taking office in 2020, this will come to an end. In fact, the main focus of future investments will have a regional focus, which makes it an excellent time to consider getting involved in infrastructure investments. The upcoming prosperity announced for the North could be the incentive that businessmen are looking for to start new endeavors. Experts like Frederic Michel-Verdier can provide the required assistance for successful investments in infrastructure projects. With the proper guidance, there is great profit to be made in this field.

Why Is the Focus on the North Necessary?

Over the past 10 years, the divide in transport spending between the north and the south of the country has widened enormously. Let’s look at the facts – In London, the average annual spending on transport projects has risen by approximately £409 per person. This is absolutely huge when compared to the rise in the north, which was only £162 per person. Moreover, to put things into perspective, if the infrastructure investment in the north had gone as it has in the south, then as much as £66 billion more had been spent to this end. Surely enough, this is an enormous investment, one that can explain the regional divisions in today’s British society, but if more effort had been focused outside of London, then Pacer trains all the way from the ’80s would not still be rattling along the rails today in the north.

Why Infrastructure Investment Generates Prosperity

Investments in the transportation system are crucial for economic prosperity. Regional mayors from the north have pointed out that HS2 alone could generate a whopping 500,000 additional jobs in the area. More jobs mean more money for the locals, which, in turn, means more money for the state. In fact, according to the National Audit Office, throughout all its phases, HS2 could generate £1.40 for every £1.00 invested. And the prosperity list goes even further. HS2 requires a huge amount of UK steel, which means tremendous news for a British industry that has been struggling for years. This project alone could support as many as 2,000. If more projects follow HS2, then it could actually mean the revival of the steel industry.

There is even historic proof of the economic prosperity generated by better infrastructure. The Victorian railway boom has brought about significant growth in the population, as well as the economy of Britain. The most noticeable benefits were visible in the areas next to the stations and in medium-sized towns. You can read more resources, tips, and news about infrastructure on the Frederic Michel Verdier website here.

At the moment, Boris Johnson is deciding the fate of HS2. A lot lies in the decisions he makes now, for an entire country will be affected by it. It remains to be seen how HS2 will be developed, but whatever happens this time around, the time of the north has finally come! Great prosperity lies ahead for the north of England, and, in turn, for the whole of the UK!

About Frederic Michel Verdier

Frederic Michel Verdier has over 25+ years of experience in large scale Equity Investments and Asset Management of Global Infrastructure assets and financial services and has deployed billions of dollars in equity in the Power, Utilities and Transport sectors in his tenure at IFM Investors - a uniquely-structured open-ended global fund manager - with over $100 billion in assets under management and has held the position of Vice Chairman of Veolia Energia Polska for 10 years. Connect with him on the Frederic Michel-Verdier Facebook page. Browse the latest infrastructure videos on the Frederic Michel Verdier YouTube channel here and watch the video below. Alternatively, you can read the latest Frederic Michel Verdier news here.

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