Doubling in total UK transport spending predicted by investment advisor PwC

Global infrastructure spending is expected to more than double by 2025, with $1.5 trillion to be spent up until then in the U.K alone, according to a new analysis.

The analysis of planned capital project spending by PwC suggests that the UK's overall spending will keep pace with other major European countries, with total annual spending reaching £106bn by 2025, almost half of this transport spending. PwC expects annual growth in transport spend will rise twice as fast in the Parliament after next, when it is likely to rise by 2.4% a year.

The report, which Oxford Economics assisted with, estimates that the global capital project and infrastructure market should grow by as much as six to seven per cent annually between 2014 and 2025, with the UK's market in these projects growing by 3.8%. This would still leave total capital spending at 3.6% of GDP, less than 2008's 4.5%.

There is likely to be "a substantial rebound in transportation spending, including rail and air upgrades," the authors predict. PwC said that transport spending would be critical to ensuring economic growth, and expects that private investment, including from pension funds and sovereign wealth funds, will be the dominant source for this spending.