Infrastructure Strategy
Today, the Government published its 10-Year Infrastructure Strategy, promising a fundamental reset in how the UK plans, funds, and delivers major infrastructure. It is backed by at least £725bn in public funding over the next decade and framed as a core pillar of its “decade of national renewal.”
Unveiled by Chief Secretary to the Treasury Darren Jones MP following last week’s Spending Review, the Strategy aims to hardwire stability and efficiency into a system long criticised for delays, cost overruns, and political short-termism. The publication follows yesterday’s intervention from the Secretary of State for Transport Heidi Alexander MP on HS2, describing a “litany of failures” and accepting all recommendations from the James Stewart review, making a coordinated push to restore credibility with regards to infrastructure delivery.
The flagship headline is the announcement of £9bn a year to tackle the maintenance backlog in hospitals, schools, and courts – rising to £10bn annually by 2034-35 – as part of a wider £725bn funding envelope. Sitting inside the Treasury, the National Infrastructure and Service Transformation Authority (NISTA) will oversee the implementation of the Strategy and advise on go/no-go decisions for major projects. Also promised is an updated online pipeline dashboard and digital tools to help bolster the ability of the private sector to plan, skill, and procure for upcoming infrastructure projects in specific locations.
Early industry reaction suggests cautious optimism, especially in response to the general shift to longer-term planning and clearer funding decisions. From across the Chamber, Shadow Chief Secretary to the Treasury, Richard Fuller MP broadly welcomed a more joined-up approach to infrastructure delivery but criticised the Government for what he called a lack of detail on funding decisions. Meanwhile, sectors including health, education, justice, and local transport stand to gain the most from this shift, after years of fragmented funding.
Today’s announcement is strategic, as the Government develops a more coherent, long-term roadmap for infrastructure to unlock investment, improve public services, and support economic recovery. It comes in a particularly busy period for the Government, with the Industrial Strategy expected next week, the imminent publication of the NHS 10-Year Plan, and the publication of the Long-Term Housing Strategy, and a number of other outstanding developments promised “in the Summer.”
As we approach July, a whole year on from Labour’s historic election victory, we have increasing clarity on the intended direction of travel. What remains to be seen, even after almost 12 full months in power, is how quickly the plans will deliver the change promised by Labour.
Key commitments include:
- At least £725bn total funding for infrastructure over the 10-year period.
- The National Infrastructure and Service Transformation Authority (NISTA), announced in January, will integrate infrastructure policy, strategy and delivery in the centre of Government.
- In July NISTA will set out a new Infrastructure Pipeline.
- NISTA will review the Government’s Major Projects Portfolio.
- NISTA will release a new national infrastructure spatial tool, a single digital platform using data and tools, including AI, to identify local infrastructure needs and constraints, to complement the Government’s Land Use Framework.
Transport
- £590m to start work on the Lower Thames Crossing.
- £24bn announced in the Spending Review for roads will include £1bn for the new Structures Fund to repair major structures like bridges, flyovers and collapsed roads.
Housing
- £16bn of capital investment for the National Housing Bank created as part of Homes England, alongside £6bn of existing finance, aiming to leverage in £53bn of additional private investment.
Water
- Unlocking £7.9bn for water resources in the next 5 years – including in the development of 9 new major reservoirs and 9 water transfer schemes.
Schools
- Almost £3bn per year by 2034-35 to improve the condition of the schools and college estate.
- Almost £20bn investment in the School Rebuilding Programme per year by 2034-35 to deliver rebuilding projects at over 500 schools within the existing scheme and allowing 250 schools to enter the programme.
Hospitals
- £6bn per year to 2035 for maintenance and repair of the NHS estate.
- £24bn for the delivery of 35 hospitals in England via the New Hospital Programme.
Flood resilience
- £7.9bn 10-year pipeline of capital investment for flood defences.
Justice
- At least £600m each year on average until 2035 for maintaining the justice estate.
- £6.3bn investment in prison expansion to build three new prisons in England by 2031.
Increasing private investment
- The Government will consider the use of Public Private Partnerships (PPP) in projects where there is a revenue stream.
- The Government will also assess the feasibility of using new PPP models for taxpayer-funded projects in limited circumstances where they could represent value for money.