How can the UK turn infrastructure pipe(line) dreams into reality?

Last year, the UK government announced plans for a huge increase in infrastructure investment to drive its long-term goals.

The 10-year infrastructure strategy (10YIS), a new industrial strategy, and a new infrastructure pipeline gave the industry a much-needed direction of travel.

The priority now is to translate those plans into delivering at pace and scale.

Success will depend on whether the UK’s infrastructure ecosystem can respond.

Tackling pinch points

Like many countries, the UK has struggled to deliver projects efficiently. Its domestic supply chains are underpowered after decades of stop-start infrastructure planning.

The focus of the ICE’s policy work has turned to fixing those challenges.

Our recent policy paper asked why major projects cost so much and take too long.

This Next Steps policy paper takes a broader view, exploring how government and industry can tackle the pinch points that hold back delivery.

Drawing on insight from stakeholders and our expert panel debate, it sets out six key messages:

1. Join up policymaking and delivery

It’s unclear how well the 10YIS, other relevant plans, and the bodies responsible for delivery are being joined up across government.

To improve coordination, our major projects paper recommended giving the chief secretary to the Treasury (CST) permanent responsibility for delivery of the 10YIS.

Transparency is also key to integrate planning and enable debates about trade-offs – something the 10YIS currently lacks.

The National Infrastructure and Service Transformation Authority (NISTA) will refresh the 10YIS in 2027, but other ways of tracking delivery remain unclear.

Something similar to the annual infrastructure progress reviews that the National Infrastructure Commission (NISTA’s predecessor) produced would enable more scrutiny and accountability. Barriers would be better understood and the government would have the ability to course correct.

2. Make the most of existing infrastructure

Investment in maintaining, adapting, upgrading and repurposing existing infrastructure needs to be a much higher priority.

It’s vital to protect the infrastructure systems the public relies on from growing risks like climate change.

Making the most of what we already have will also reduce pressure on the supply chain.

Yet, governments and industry often overlook the economic upsides of upgrading or improving existing infrastructure and the downsides of underperforming assets.

The ICE has previously recommended that the government review the economics of adaptation to understand the value it provides and incentivise investment.

3. Build long-term, collaborative relationships

Another benefit of more joined-up thinking about infrastructure should be more pipeline and policy stability – which the UK has lacked.

The longer-term outlook of the 10YIS and the new pipeline tool promise to address this. The absence of major changes to capital investment plans in the Autumn Budget also signalled a period of greater stability.

That creates a huge opportunity to build more collaborative, long-term relationships between contractors and suppliers.

There are good examples underway like the Great Grid Upgrade.

Stronger relationships can encourage investment in skills and equipment that make the UK’s supply chains more resilient.

They also reduce costs and inefficiencies associated with one-off purchases, annual bidding processes, and the UK’s fragmented supply chain.

4. Have a long-term plan for skills

A shortage of engineers is likely to be one of the greatest pinch points to delivering the UK’s infrastructure ambitions.

More stability could enable the government, Skills England, and the industry to take a longer-term approach to skills and workforce planning.

There’s a lot of positive work already underway that can be built on, like the Clean Energy Jobs Plan and Skills England’s assessment of priority skills to 2030.

But more is needed to establish a consistent talent pipeline aligned with long-term national infrastructure priorities.

Short-term options include making it easier for non-UK nationals to work in sectors with shortages and encouraging more experienced engineers to remain in or return to the workforce.

A long-term plan also needs to address some of the challenges in the education system and inspire more young people to pursue STEM subjects and careers.

5. Rationalise planning and consenting

The new Planning and Infrastructure Act is welcome, but legislation is only part of the answer to planning and consenting delays that hold up many critical projects.

More focus on ways of working and culture change can help achieve better outcomes.

The UK also needs a more rational system, which pays more attention to staff recruitment and retention, smarter use of digital technologies, and more effective leadership and relationship-building.

As above, more transparency about compliance decisions and trade-offs in a cost-constrained world could streamline processes.

But this doesn’t inevitably mean compromising health and safety, the environment, or public trust.

There’s also an onus on government, engineers, and other specialists to find smarter solutions, a priority for the Infrastructure Client Group’s Climate Task Group.

6. Have a clear, innovative approach to investment

While the UK has many advantages for attracting private investment, the scale of new infrastructure to be delivered could present a riskier prospect for investors.

More clarity is still needed on the funding models the government intends to use. It could use specific projects to test more innovative models of private finance.

The government may also need to consider more attractive rates of return and smarter risk-sharing to boost the UK’s potential.

A unique opportunity

These are significant challenges in the face of ambitious plans and timeframes.

But the UK now has a unique opportunity to think more strategically, not just about what infrastructure it builds, but also about how it delivers it.

Through 2026 and beyond, the ICE will continue to monitor progress and support the government and industry in seizing that opportunity.

Read the full policy paper