Sam Gould, director of policy and external affairs at the Institution of Civil Engineers, examines the 10-year Infrastructure Strategy, the government’s long-term plan for delivering economic, housing and social infrastructure
The Institution of Civil Engineers (ICE) and the wider industry have long called for an enduring infrastructure strategy, transparent pipeline and a commitment to learning the lessons from major project delivery.
The 10-Year Infrastructure Strategy (10YIS) represents an important moment for infrastructure professionals’ ability to plan, fund and deliver projects of all sizes.
Taken together with the Industrial Strategy, Infrastructure Pipeline, Spending Review and the learnings from a recent report on High Speed 2, the government has sent a clear message that it is looking for long-term solutions. In the world of politics – which is often oriented to the short term – this can be a hard sell, but it’s a crucial step forward.
The strategy
The £725bn 10YIS sets out the government’s priorities over the next decade, and introduces changes to the delivery system that, if implemented well, will make the UK a better home for investors and developers.
Direction on the future use of Public-Private Partnerships (PPPs) (a model for private investment in infrastructure), a new spatial planning tool that layers environmental, infrastructure, industrial growth and housing needs, and the inclusion of social infrastructure for the first time are all welcome changes.
The Industrial Strategy, released shortly after, continues the 10YIS focus on improved certainty and clarity for investors and infrastructure delivery bodies.
The government has also recently published its Infrastructure Pipeline, which puts more meat on the bones of the government and regulated businesses’ commitments and provides essential clarity to enable better workforce planning and attraction of private finance.
Attracting private investment
One of the key benefits of long-term clarity for the sector is the attraction of much-needed private capital to infrastructure in the UK.
The government has also indicated that it is open to the use of PPPs, and willing to learn the lessons of the Private Finance Initiative model.
This is an important shift in tone. The National Infrastructure Commission (now the National Infrastructure & Service Transformation Authority – NISTA) has signalled that much of the increased spending required in the next decade (from £55bn to £70bn-£80bn a year) will need to come from private investors.
Policy stability and clarity on the use of financing models are important factors for investors deciding where to put their money. For a country which has had the lowest levels of investment in the G7 for 24 of the last 30 years, this is much-needed progress.
Who’s delivering the strategy?
NISTA has a big job ahead of itself.
Previously, the National Infrastructure Commission was independent of government but since it joined with the Infrastructure Project Authority to form NISTA, the combined body now sits jointly within HM Treasury and the Cabinet Office.
The 10YIS assigned it new roles and responsibilities. From running the pipeline and spatial planning tool to updating the government’s approach to PPPs, retaining its important role in project assurance and acting as a repository of best practice for government. There will be plenty for NISTA to get on with.
Its role in assessing and approving major projects is an important one. The 10YIS includes a commitment from the government to tie funding to review milestones in the planning stages of megaprojects. This is an important change that the ICE supports.
As the central system lead, NISTA will also need to act as a champion for infrastructure.
ICE commissioned polling reflects that almost two-thirds of British adults (62%) feel that major infrastructure projects are poorly communicated to them. As a result, transformative infrastructure projects – from rail to clean energy to interventions to cleaning up river pollution – are often mired in controversy.
A long-term strategy also requires support from across the political divide. Infrastructure delivery is a long-term endeavour, so projects often span multiple parliamentary terms.
Public support is crucial in helping politicians commit over the long term to deliver the infrastructure the country needs. Consequently, NISTA’s role must include work to raise the profile of infrastructure with the public to gain their support and trust.
NISTA has a leadership role to play but better project delivery will need to be supported by improved commercial expertise across central and local government. The increasing use of digital systems and technologies will also require new skills.
The 10YIS is an important step forward in meeting the UK’s infrastructure ambitions.
But it will require cross-government support, a well resourced NISTA and a public that is engaged and supportive of the UK’s wider infrastructure ambitions.
After all, this isn’t about the assets. It’s about people, the planet and the UK’s ability to deliver for future generations.
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