The Institution of Civil Engineers has published its annual State of the Nation report - in a departure from the sector specific focus of previous reports, this year’s report looks at the impact of the government’s devolution agenda on the UK’s core infrastructure sectors: energy, flood risk management, transport, waste and water.

State of the Nation 2016: Devolution focuses on infrastructure as the key driver in rebalancing the economy but cites the quality of people’s living environments as a priority.

Launching the report, ICE President Sir John Armitt re-iterated ICE’s support for the Government’s goals of devolution - rebalancing the UK economy and driving local growth and extolled the virtue of infrastructure’s many potential benefits. He said that infrastructure must continue to be at the heart of the devolution agenda.

Infrastructure improvements at the heart of the devolution agenda

The report summarised that devolution of infrastructure policy has many potential benefits. Decisions can be based on an understanding of local needs, integration of services is easier to deliver on a local scale and securing vital public support for projects more achievable when it is the same community that benefits.

Adrian Coy, vice president of the ICE, and chairman of its State of the Nation: Devolution report who is a Local Authorities Strategic Director with AECOM, re-iterated the important impact that investment in infrastructure can have for regions but said that its role in rebalancing the economy should not just be limited to the financial benefits.

Adrian Coy commented:

“We would also like to see more rounded devolution proposals. Rebalancing the economy should not only be thought of in financial terms. Enriching people’s lives is not just about increasing their income but also the quality of their living environments. More integrated proposals, setting out how they will also achieve environmental and social goals, will deliver broader benefits to society.”

The ten recommendations set out in the report are as follows:

• All future devolution proposals should demonstrate how they will improve quality of life and environmental sustainability in addition to driving economic growth
• Authorities seeking a devolution deal should demonstrate a clear model for leadership and accountability; however models to achieve this should reflect each area’s unique identity
• Restrictions stopping combined authorities from accessing flexible private finance streams must be lifted if they are to deliver and maintain transformative infrastructure
• Future devolution deals must include funding for digital infrastructure so smart technologies which improve services for the public and the environment can be developed
• Infrastructure strategies should be developed for emerging economic areas in England setting out needs, to provide a framework for decision-making
• Similar approaches to identify strategic needs should be developed for London, Northern Ireland, Wales and Scotland
• Infrastructure strategies must have resilience at their heart – considering the interdependent nature of each areas networks and mitigating the knock-on failure which can occur during extreme weather, affecting local businesses and economies
• Regional pipelines setting out confirmed infrastructure projects should be developed, enabling government, authorities, industry and academia to invest in the right training in the local area
• Combined authorities should be given responsibility for the skills development of those aged 16-19 - in addition to those aged 19 plus - to create a more joined up approach
• Government should provide pre-submission advice - to ensure high quality devolution proposals that deliver effective outcomes for the country
• Will the UK infrastructure sector be better or worse placed to access the skilled labour it needs to meet the nation's demand for infrastructure services?
• Will the UK be better or worse placed to access the Foreign Direct Investment it needs to meet the UK's demand for infrastructure services?

The report drew its evidence from a wide range of resources including regional workshops and focus groups, stakeholder interviews and a public opinion survey. The expertise of ICE’s knowledge panels has also been drawn upon to arrive at the report’s recommendations.

Referendum outcome: “the picture does not need to be gloomy”

Commenting separately on the referendum result and its implications for UK infrastructure, Adrian Coy said:

"Providing we can smoothly replace EU strategic funding for infrastructure, the picture does not need to be gloomy.”

"In many ways the European superstate did not fit the regional devolution model favoured by Government of taking infrastructure development and decision-making to the most appropriate level."

"It is right that infrastructure investment is the driving force behind Government's plans to rebalance the economy, and we hope to see ongoing commitment to the devolution agenda during the EU exit negotiations, so momentum is not lost.”

"Looking forwards, combined authorities must now take the helm and deliver these benefits locally. This will be no mean feat, but with the right frameworks, investment and skills in place they can succeed. "

Ahead of the referendum, ICE had posed a number of questions designed to encourage figures on both sides of the debate to explain how their position will impact on the UK's ability to secure its high performing infrastructure.

They included questioning the impacts on project delivery, infrastructure investment, research funding and collaboration, access to skills and use of common codes and standards. ICE had said the responses should be backed up with evidence to help voters make an informed decision about whether to remain in the EU or to leave.

Key questions included:

• Will the UK infrastructure sector be better or worse placed to access the skilled labour it needs to meet the nation's demand for infrastructure services?
• Will the UK be better or worse placed to access the Foreign Direct Investment it needs to meet the UK's demand for infrastructure services?

Click here to download ICE State of the Nation 2016: Devolution 

Click here to learn about the report via the Waterbriefing Watch channel