£725bn infra strategy aimed at salvaging UK’s reputation for large project delivery
The publication of the 106-page document served to reaffirm several initiatives already announced but revealed little new about Labour’s plans to fix the foundations of the nation.
The Government’s 10-year infrastructure strategy sets out its high-level priorities for roads, railways, airports, water, energy, digital and housing infrastructure, as well as hospitals, schools, and prisons, over the next decade.
A ministerial foreword written by Darren Jones, chief secretary to the Treasury, states that the plan sits “at the heart” of the government’s plans to “renew” the UK.
It is aimed at improving the country’s recent record on infrastructure delivery, which has led investors to “question our intent and our capabilities”.
“When we say we will build something, they question if we will and if we can,” Jones said.
HS2, which has seen extensive delays, rocketing costs, and culminated in the cancellation of the Northern leg from Birmingham to Manchester, is one an example of the UK’s infrastructure shortcomings.
The country’s beleaguered and bloated water industry, pothole-riddled roads, crumbling schools and hospitals, and a National Grid struggling to cope with demand are other examples of the country’s infrastructure woes.
As part of its Plan for Change, Labour has pledged to make inroads into these issues with a £725bn strategy.
Published yesterday, the infrastructure strategy reaffirms a commitment made earlier this year to form the National Infrastructure and Service Transformation Authority – NITSA – a Treasury body that will advise the government on large infrastructure projects.
“The government has huge ambitions for the country, but we are committed to doing fewer things better instead of the same things badly,” Jones said.
Three new prisons by 2031, 35 new hospitals, investment in clean energy projects through GB Energy – including a push for small model nuclear reactors – forcing water companies to invest, rolling out the New Towns Programme, and continued investment in digital connectivity are among the priorities set out in the strategy.
In terms of transport infrastructure, the government’s plan for Northern Powerhouse Rail will be fleshed out “in the coming weeks”, while Barrow – set to receive £200m over the next decade – is expected to see “improving transport connectivity”, according to the strategy.
Meanwhile, there is no mention for Crewe, which was heavily impacted by the cancellation of HS2 North.
Iain Gamble, partner and head of real estate at Brabners, said: “Regeneration has been a priority for successive governments but delivering transformative projects requires a holistic, long-term approach that has previously been lacking.
“By putting a 10-year framework in place, the new infrastructure strategy moves us closer to a position where critical projects are able to transcend parliamentary cycles and provide the foundations for wider regeneration and economic growth.
“Critically it also seeks to address the financing challenges that have limited the scale of private investment into UK real estate, with a renewed willingness to discuss public-private partnership models.
“With NISTA and a new legislative agenda in place to support more streamlined planning and development, it’s imperative that local combined authorities and the private sector are now strategically aligned to make the most of the regenerative opportunities available to their respective regions.”
Justin Young, chief executive at the RICS, said: “If we are to meet the 1.5m housebuilding target, the government set last year, we need the critical infrastructure – the roads, schools, hospitals and other social service buildings that go with it.
“It is not enough to just build homes – we must build communities with them, and this starts with a clear, joined-up infrastructure strategy that incorporates long-term thinking and vision.”
He added: “This new strategy sets the country on a considerably clearer path and represents a significant shift in how the government approaches infrastructure and industrial capacity.
“Importantly, it seeks to unlock development across the country while promoting sustainability and energy efficiency.”
