Better strategic planning, more investment, and faster delivery are key to the government’s vision for infrastructure.
The government has announced its plans for a new National Infrastructure and Service Transformation Authority (NISTA).
In a speech to industry stakeholders, Darren Jones MP, the Chief Secretary to the Treasury, confirmed the move to boost oversight and delivery of the government’s infrastructure plans.
NISTA will combine the functions of the National Infrastructure Commission (NIC) and the Infrastructure and Projects Authority (IPA).
The need for change
The chief secretary praised the work of the NIC and IPA. But he said the change is needed to address past failures in infrastructure delivery.
The new body will aim to “bridge the gap between what we build and how we build it”.
To do so, it will have “a strong mandate” and be subject to direct oversight from ministers at the centre of government.
NISTA will be operational by spring 2025. Current NIC chair Sir John Armitt will extend his term during the transition period.
Infrastructure key to Labour’s growth mission
The chief secretary said economic growth is the government’s “defining mission”. And infrastructure is “a key engine” for achieving it.
But he acknowledged a new NIC report highlighting the high cost of delivering infrastructure in the UK.
The government will need to reduce that to fulfil its ambitions.
The rest of the speech set out its approach to improving strategic planning, investment and delivery:
1. A second National Infrastructure Strategy
The NIC’s report highlighted a lack of strategic clarity as one of the root causes behind high delivery costs.
The government will publish a 10-year national infrastructure strategy next spring, alongside the conclusion of its multi-year spending review.
The strategy will outline its plans for transport, energy and housing, as well as social infrastructure.
It will be co-ordinated across the whole of government and align with a “new, overlapping and long-term spending framework”.
NISTA will be involved in developing and implementing the strategy together with industry.
This should ensure that the second National Infrastructure Assessment is the focus over the current Parliament, as the ICE has previously called for.
2. Unlocking private investment
Much of the UK’s infrastructure needs will have to be funded by private sector investment.
The government is establishing a National Wealth Fund to catalyse this. The fund will be backed by £7.3 billion of public money with a target of drawing in three times as much in private finance.
The government also wants to combine pension funds to boost investment and returns.
It estimates pension pots could be boosted by £11,000 on average while unlocking £8 billion of new investment into the UK economy.
Also, a new industrial strategy will set out the government’s approach to key British sectors and industries.
The ICE will be exploring options for boosting private investment in infrastructure in a new Next Steps programme, launching soon.
3. Streamlining planning
The government is preparing a Planning and Infrastructure Bill to simplify and speed up the consenting process for major infrastructure projects.
It will also be reviewing national policy statements to ensure planning decisions align with wider policy objectives and reduce delays.
And it’s taking forward work with the energy industry and regulators to connect new renewable energy projects to the grid more quickly.
The deputy prime minister also has the power to step in on planning decisions where there’s a strong case for unlocking growth.
The ICE’s view
The government’s aim of reducing costs and speeding up infrastructure delivery is welcome and necessary.
The ICE has previously recommended strengthening the role of the NIC by putting it on a statutory footing.
There’s a risk that by merging the NIC and the IPA the new body will be less independent.
The value and expertise of the independent commissioners at the NIC are something that the government should seek to keep.
There’s growing evidence that when the NIC’s advice is followed, the UK makes progress on its long-term goals and the public sees the benefits of infrastructure investment.
Moving the IPA into this new body does create opportunities to strengthen some of its roles and mandate best practice across the government.
This could include following the Construction Playbook and attending the Major Projects Leadership Academy.
The ICE will continue to engage with government and other stakeholders on the development of NISTA and the next national infrastructure strategy.
In case you missed it
- Former HS2 minister Paul Maynard explores the need for a change in mindset to ensure the UK can complete major infrastructure projects.
- The ICE has been gathering key infrastructure takeaways from the party conferences including Labour, the Liberal Democrats and the Conservatives.
- The latest EBI Live session showed how engaging all stakeholders leads to better infrastructure decision-making in New Zealand.
