Government unveils long-term vision for UK infrastructure

The UK government has outlined an ambitious vision for the nation’s infrastructure, aiming to drive economic growth through strategic investment and reform. In a keynote speech at Skanska’s national headquarters, Darren Jones, Chief Secretary to the Treasury, emphasised the central role of construction and infrastructure in building a more resilient economy.

Speaking to industry leaders, Jones reiterated the government’s commitment to tackling the challenges facing the UK’s infrastructure, drawing on the Chancellor’s “three pillars” of stability, investment, and reform. He highlighted the nation’s lagging economic growth over the past 14 years, stating that if the UK had matched OECD growth levels, it would have £140Bn more in economic output, equating to an additional £58Bn for public services.

“Infrastructure is the engine for growth, but that engine is in serious need of an MOT,” Jones remarked, underscoring the importance of reliable transport, energy systems, and long-term investment strategies. The speech echoed findings from the National Infrastructure Commission’s report, which blamed escalating project costs on a lack of strategic clarity and called for comprehensive reform.

Jones announced plans for a ten-year National Infrastructure Strategy, set for release next spring. This blueprint will address key areas such as transportation, energy, housing, and social infrastructure, and aims to coordinate efforts across all levels of government. A renewed focus on public-private partnerships will see the National Wealth Fund invest billions of pounds alongside private sector finance, unlocking new opportunities for growth.

The Chief Secretary also revealed the creation of the National Infrastructure and Service Transformation Authority (NISTA), set to launch in 2025. This new body will streamline the government’s infrastructure strategy and delivery, combining the expertise of the National Infrastructure Commission and the Infrastructure and Projects Authority to ensure efficient project execution.

Jones reassured industry stakeholders that the government is committed to restoring trust and delivering long-term solutions. “We will deliver strategy and delivery,” he affirmed, stressing the importance of stability, regional growth, and net zero targets.

The Planning and Infrastructure Bill, expected to be introduced this parliamentary session, will simplify the consenting process for major infrastructure projects and expedite the connection of renewable energy projects to the grid. Additionally, the Deputy Prime Minister will now have powers to intervene in key planning applications that can unlock growth.

Jones closed his address by emphasizing the need for a new approach to the UK’s infrastructure challenges. “We are here to rebuild trust, rebuild our infrastructure, and together, rebuild Britain,” he said, expressing optimism for a decade of national renewal.

For the UK’s construction and infrastructure suppliers, this marks the beginning of a transformative period that promises increased investment, streamlined processes, and a long-term strategy for growth. The government’s infrastructure plan is poised to play a pivotal role in driving both regional and national economic development.

Key points from the speech delivered on the future of the UK’s infrastructure:

1. Government’s Growth Mission: The government is focused on boosting economic growth, with infrastructure playing a crucial role. The UK’s economy could have been £140Bn larger if it had grown at the OECD average over the last 14 years.
2. Challenges in Infrastructure: Escalating costs of major projects are linked to a lack of strategic clarity. The infrastructure sector is described as needing an “MOT” to address issues like unreliable transport, energy supply, and planning delays.
3. National Infrastructure Strategy: A ten-year National Infrastructure Strategy will be published in spring 2025, focusing on core areas like transport, energy, housing, and social infrastructure (schools, hospitals). This will be aligned across government for a more coordinated approach.
4. Partnership with Private Sector: The government aims to unlock private investment through public-private partnerships. The National Wealth Fund will invest billions of public money alongside private finance to drive growth.
5. National Infrastructure and Service Transformation Authority (NISTA): Launching in 2025, NISTA will merge the National Infrastructure Commission and Infrastructure and Projects Authority to oversee infrastructure strategy and project delivery, ensuring efficiency and effectiveness.
6. Planning and Infrastructure Bill: New legislation will streamline the consenting process for major infrastructure projects, speeding up delivery, especially in renewable energy projects.
7. Focus on Renewable Energy: The government is working with industry and regulators to accelerate renewable energy project connections, already approving significant solar capacity.
8. Long-Term and Strategic Change: The government is committed to long-term, stable, and strategic reform to avoid the past short-termism and chaos. A modern industrial strategy will guide key sectors and provide certainty to investors.
9. Regional Growth and Net Zero: Infrastructure plans will support regional growth and an acceleration toward the UK’s net zero commitments.
10. Building Investor Confidence: Restoring trust with investors is key. The government aims to deliver on promises and provide stability to encourage long-term investments in infrastructure.