Partner London
"Key proposals include a 30% government funding commitment for national infrastructure."
Infrastructure is vital to the UK economy and supports substantial employment, sustainable communities, and innovation. The document underscores the necessity for stability, continuity and streamlined planning to enhance infrastructure investment, ensuring economic growth and improved quality of life. Key proposals include a 30% government funding commitment for national infrastructure, adopting the recommendations of the National Infrastructure Commission, appointing a dedicated Cabinet Minister for Infrastructure and fostering private investment through clear policies and new financing models. Stability is complemented by momentum and a timely, holistic approach to decision-making in key areas such as new nuclear, carbon capture, utilisation and storage (“CCUS”) and offshore wind to maintain momentum and give industry and investors confidence, with strategic investments in supporting infrastructure such as ports and key highways undertaken simultaneously.
The Blueprint further highlights the need for improved budget estimates for major infrastructure projects to ensure affordability and avoid unrealistic budgets leading to cost overruns and public disapproval. Efficient risk allocation, real-time adjustments and transparent reporting further enhance project delivery. Embracing whole-life decision-making and regularised investment on critical projects, such as rail electrification, are vital for sector stability and efficiency. In addition, to meet national objectives like achieving net zero emissions and improving infrastructure the Blueprint recognises a need for new financing mechanisms, which are necessary to replace outdated schemes like the Private Finance Initiative (“PFI”).
"The Blueprint recognises a need for new financing mechanisms."
Recommendations include increasing early supplier involvement (“ESI”), adopting whole-life decision-making, investing in continuous infrastructure enhancements, ensuring consistent implementation of the Construction Playbook and supporting modern methods of construction (“MMC”). Maintaining investment continuity in significant projects such as HS2 and Lower Thames Crossing also emphasises the importance of prevention of cost escalations and sector uncertainty. All these measures aim to drive productivity and ensure sustainable infrastructure.
In terms of reforming and streamlining the planning and consenting process, the Blueprint recommends enhancing collaboration between local and national interests, which are vital for timely infrastructure delivery and UK prosperity. Current processes cause delays and inflate costs, deterring investment. Key issues include prolonged planning bureaucracy, resulting in costly delays and loss of industry expertise. Recommendations include adopting a self-certification system for post-consent changes, simplifying judicial review processes, and mandating local authorities to consider national economic interests. Strategic spatial planning, as suggested by the Winser Review, should be expanded, and specialist capabilities in planning departments increased. These measures aim to expedite project timelines and support the national growth agenda.
"A flexible ‘skills levy’ and a responsive immigration system are needed."
Lastly, to support industry skills and capability, the Blueprint recognises that delivering major infrastructure projects requires skilled professionals. Yet the sector faces significant challenges in attracting and retaining talent. The UK’s infrastructure ambitions are hindered by a shortage of technical and engineering skills, exacerbated by global competition and uncertainty in the project pipeline. To address this, a flexible ‘skills levy’ and a responsive immigration system are needed to bridge skill gaps and bring in experts from other countries. Simplifying bureaucratic processes for short-term workers will ensure timely delivery of infrastructure schemes.
In addition to the overall recommendations, investing in infrastructure is also one of the most effective, efficient and sustainable ways of spreading jobs and skills across the country. Not only does this equalise the impact of enhancing transport connectivity, but it also improves energy and communication networks.
As we are now in election season, it will be interesting to see how the respective political campaigns address this and what promises will be made and potentially broken. In a time where there are so many challenges facing construction, it will be more important than ever to invest in the backbone of the sector.
