5 ways the UK government can rebuild trust in its ability to deliver infrastructure

Investment in the UK’s infrastructure needs to rise massively after decades of under-spending.

The government wants to attract more private finance to help meet challenges like net zero.

The ICE’s new report on paying for Britain’s infrastructure, which is part of the Next Steps programme, explores how it can achieve that.

We spoke to a range of experts. One of their key messages was that new finance models aren’t the answer.

There’s no shortage of private money interested in infrastructure. But investors see the UK as a risky bet.

They’re concerned about policy reversals, regulatory constraints and delayed or cancelled projects.

The public also lack confidence that it will get the infrastructure it needs on time and in budget, according to polling commissioned by the ICE.

To rebuild trust, the government needs to fix the fundamentals of infrastructure planning and work with investors and the supply chain to show they can deliver.

The ICE’s new report highlights five ways it can do that:

1. Be clear about its infrastructure investment plans

The government has put infrastructure at the centre of its plan for growth.

But it needs to clarify its investment plans. In particular, which sectors are priorities for investment and how it wants to split public and private financing between them.

The 10-year national infrastructure strategy should help. But it cannot just be a high-level list of objectives, targets, and projects.

It needs to enable decisions about priorities and what’s achievable.

It must embrace partnerships by enabling investors, supply chain companies, businesses and individuals to develop local and market-driven solutions.

And it must be underpinned by a stable, prioritised pipeline of credible projects.

2. De-risk projects to boost delivery

A strategic vision is no good if investors, the supply chain and the public don’t think the government can deliver it.

Nor can the UK’s infrastructure needs be met through more spending alone. The government and the construction supply chain must deliver infrastructure faster and cheaper.

The UK isn’t alone in struggling to deliver infrastructure efficiently. But it’s among the worst performers among similar countries.

Skills, planning reform and digital uptake are key challenges. The government and the supply chain need to work together to address them.

More early-stage project work and less political interference once projects are launched can also reduce risk – making project more attractive to private investors.

The new National Infrastructure and Service Transformation Authority (NISTA) is an opportunity to address some of these issues.

3. Strengthen commercial capability across government

There’s no one-size-fits-all infrastructure investment model. Expertise is needed across a range of approaches being used in different sectors.

However, projects may not be getting the right advice on which model to use.

And key commercial skills, like contract management, procurement and negotiation, are too thinly spread across government.

Stronger Green Book guidance could help ensure all options are considered.

But the government needs to prioritise and invest in recruitment and training so departments are ready to deliver its 10-year national infrastructure strategy.

4. Ensure public and private investment are complementary

Investors need to know how the government intends to split public and private finance.

To maximise the benefits of that investment, they need to complement each other.

That means using the limited amount of public investment available – and bodies like the National Wealth Fund – to crowd-in private sector investment.

For example, public investment may have little use in sectors where the private sector is well-established.

But it can help make riskier, innovative sectors needed for the net zero transition more attractive to private investors.

Regulation also needs to become more dynamic, flexible and drive long-term investment in critical infrastructure.

The government’s power isn’t just financial. It can also convene, collaborate and build partnerships with the private sector.

5. Engage the public too

The public ultimately fund new infrastructure through taxes, utility bills or user charges.

That means the government will need public support to deliver its 10-year infrastructure strategy and to increase private investment in infrastructure.

But almost two-thirds of people (63%) felt that information about major infrastructure projects is poorly communicated to them, in polling conducted by Opinium for this project.

People associate the private sector with more innovation and efficiency than the public sector. But they are wary about excessive profits and pricing people out of services.

The good news is people recognise the wider benefits infrastructure can deliver – like economic growth, more reliable public services and better connectivity.

And they want to hear more about those projects – why they’re being built, who’s paying and what it will cost them individually.

They also want more transparency and accountability for infrastructure delivery.

The government should engage people more about how infrastructure investment meets their needs and be clear about the benefits of private sector involvement, as well as the trade-offs.

Read the full report