Ministers yesterday unveiled the 10-Year National Infrastructure Strategy, backed by at least £725 billion of government funding over the next decade. Announced to MPs by Darren Jones, the Chief Secretary to the Treasury, the strategy aims to deliver “stability, investment and national renewal.”
Infrastructure planning and investment are central to this Government’s mission to get economic growth back on track. As a first step, the Autumn Budget introduced a new fiscal rule based on public sector net financial liabilities to free up funding for investment.
This was followed by the establishment of the National Infrastructure and Service Transformation Authority (NISTA) and the Planning and Infrastructure Bill, key initiatives aimed at enhancing the efficiency of infrastructure processes. Yesterday’s 10-Year Infrastructure Strategy is the next move in this ongoing effort.
Set against a backdrop of increasing geopolitical uncertainty, ministers will be hoping that the strategy is a symbolic step towards regaining economic stability, signalling a determination to move forward with investment in the UK despite unpredictable world events.
Welcome news for many investors will be the nod towards once again exploring the use of Public Private Partnerships (PPPs).
“PPPs will be considered for projects and sectors where there is a revenue stream and appropriate risk-transfer can be achieved, and value for money for taxpayers can be secured,” the strategy document says, citing the planned upgrade of London’s Euston Station as one possible candidate for PPP.
Championed by Gordon Brown under the last Labour government, until now PPP has remained a political hot potato, with many projects becoming embroiled in complex and unresolved legal disputes. The strategy document makes clear that PPP will be considered in limited circumstances, with a decision by the Autumn Budget. Perhaps in times of fiscal constraint “needs must” has become the mantra within government.
Sector leaders, however, may be disappointed that there are few new projects in the statement, which largely builds on announcements in the Treasury’s recent Spending Review. Details of the funding pipeline that will be so fundamental to establishing certainty and stability will not be published until July.
What comes through clearly is a focus on process and delivery; less prominent is the strategic direction for industry. With the Industrial Strategy due for publication in the coming weeks, the sector may be hoping that this will provide the final piece of the puzzle.
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To find out how we can support you with further insight and analysis about the potential opportunities for your business in the Infrastructure Strategy and the forthcoming industrial strategy, visit our Labour Directorate here or get in touch.
