What you need to know about Labour’s plans for planning, transport, energy, and more.
First published on 26 July 2024; updated 28 November 2024
Since winning the UK general election on 5 July, the Labour party has been busy.
The State Opening of Parliament saw 40 new bills, a quarter of which concerned infrastructure – including legislation on planning, transport, energy, and devolution.
Here’s everything we know so far about the new government’s plans for infrastructure.
Taking the brakes off planning
The Planning and Infrastructure Bill will reform the local planning system.
It will speed up planning by:
- Streamlining the nationally significant infrastructure projects (NSIP) regime.
- Reforming compulsory purchase rules to unlock more land for development.
- Modernising planning committees and boosting capacity in local planning authorities.
- Reviewing national policy statements every five years.
The government has also published a draft update of the National Planning Policy Framework (NPPF).
The government acknowledges the inevitable trade-offs between development and nature recovery. In a letter to environmental organisations, it promised to “find the right balance between nature conservation and development”.
The bill will likely apply to England and Wales, with some measures possibly extending to Scotland.
The ICE’s view
The UK’s planning system is woefully inefficient.
Only 1% of local planning authorities process most applications within the required 13-week timeframe.
Between 2012 and 2021, the average consenting time for NSIPs rose from 2.6 to 4.2 years.
The bill recognises the key role infrastructure plays in the UK’s growth and sustainability, and commitments to planning reform are very welcome.
Read more: Does England’s national networks planning guidance already need an update?
Public spending overhaul
On 30 October, chancellor Rachel Reeves set out the government’s spending plans in the 2024 Autumn Budget.
The budget promised “an end to short-termism" and placed a heavy emphasis on infrastructure investment, as well as devolution, energy, and flood resilience.
Read more: Five takeaways from the UK’s Autumn Budget
The chancellor has also committed to a multi-year spending review.
The UK Treasury uses spending reviews to allocate trillions of pounds of public money over periods of one or more years. The last spending review took place in 2021.
The spending review will conclude in spring 2025. Alongside the review, the Treasury will publish:
- A 10-year national infrastructure strategy, which will outline its plans for transport, energy, and housing, as well as social infrastructure.
- A 10-year industrial strategy to attract investment in growth-driving sectors such as clean energy and digital technology. The government published the draft strategy for consultation on 17 October.
The chancellor committed to conducting spending reviews every two years, rather than on an ad hoc basis. Subsequent reviews will cover three-year periods or longer.
The measures were part of the chancellor’s response to an audit of Treasury finances, which Reeves claimed uncovered a £22 billion overspend.
To save a total of £13.5 billion over the next two years, the chancellor also axed several infrastructure projects, including the Stonehenge Tunnel.
Pension ‘mega funds’ to increase infrastructure investment
On 14 November, the chancellor announced a plan to merge the UK’s 86 council pension schemes into a handful of ‘pension mega funds’.
Copying the approach taken in Australia and Canada, the chancellor aims to generate better returns for savers and boost investment in critical infrastructure.
The government argued that larger funds can take advantage of their size to invest in higher-risk assets with more growth potential. It estimates that the change could unlock around £80 billion for infrastructure and business investment.
The ICE’s view
The ICE has long called for more strategic clarity on infrastructure spending. Whatever priorities the government decides on, the infrastructure industry needs clarity to deliver them.
The chancellor’s announcements of a multi-year spending review, and further commitment to regular multi-year reviews, are therefore welcome.
It’s crucial that the government now follows through with a national infrastructure strategy, setting out a vision in line with the National Infrastructure Commission’s latest recommendations.
Read more: How smarter infrastructure spending could mean better value for the UK government.
Special measures for failing water companies
Labour has promised a clampdown on water companies that fail to meet water quality goals.
A first step on the path to wider reform, the Water (Special Measures) Bill will:
- Introduce a new code of conduct for water companies.
- Give Ofwat powers to ban bonuses, bring criminal charges against lawbreaking bosses, and impose automatic fines on companies that fail to meet environmental standards.
- Require companies to monitor sewage outlets in real time and share data with Ofwat for independent scrutiny.
The bill was introduced to the House of Lords on 5 September 2024. Most of its measures will apply to England and Wales.
The UK and Welsh governments have also launched "the largest review of the sector since privatisation”.
Announced on 23 October, the Independent Water Commission will investigate both the industry and the organisations responsible for regulating it.
In August, following an investigation into illegal sewage spills, Ofwat proposed £168 million in fines for Northumbrian Water, Thames Water, and Yorkshire Water.
The government has said that future legislation will “fundamentally transform” the water industry and improve the UK’s waterways.
The ICE’s view
The UK’s water and wastewater infrastructure will face enormous challenges in the coming decades.
Here are the facts:
- The UK uses 14 billion litres of water per day and will need 4 billion more by 2050.
- The UK’s thousands of kilometres of Victorian-era sewers struggle to keep up with modern demand.
- Public trust in water companies is at its lowest level in 13 years.
- Sewage spills into rivers and seas have caused widespread anger. In 2022, there were an average of 825 overflows per day – over 300,000 in total.
- Only one in five UK waterways are in, or nearing, good ecological condition.
The ICE has called for stronger regulation, longer-term planning, and better testing and assessment of nature-based solutions.
Great British Energy
The Great British Energy Bill will establish a new, publicly owned company to develop and manage clean energy projects across the UK.
The company will work in partnership with the private sector to produce, store, and distribute clean energy. £8.3 billion investment over the coming Parliament will give the UK public a stake in the country’s energy security.
The government introduced the bill on 25 July. The bill will apply UK-wide, with Great British Energy headquartered in Scotland.
The UK government will work with the Northern Ireland Executive – who have devolved control over energy policy – to implement the legislation.
The government aims to double onshore wind, triple solar power, and quadruple offshore wind by 2030. It’s already taken steps to speed up the clean energy transition, including:
- Banning new licenses for North Sea oil and gas drilling.
- Greenlighting three major solar power projects in the East of England.
- Ending an effective ban on onshore windfarms.
On 22 October 2024, the UK, Scottish, and Welsh governments jointly commissioned the National Energy System Operator (NESO) to produce a strategic spatial energy plan for Britain.
The ICE has called for a spatial energy plan to set out what infrastructure the UK needs to deliver, where, and when.
New powers for the Crown Estate
Great British Energy’s first major partnership will be with the Crown Estate, which manages £16 billion of land and seabed around England, Wales, and Northern Ireland.
The Crown Estate manages one of the world’s largest floating wind leasing programmes in the Celtic Sea.
The partnership will deliver an estimated 20–30 GW of new offshore wind at lease stage by 2030 – enough to power almost 20 million homes.
A Crown Estate Bill will extend the estate’s investment and borrowing capabilities and allow it to adopt digital technologies to streamline its work.
Home heating and energy efficiency
Labour’s pre-election manifesto also pledged to improve energy efficiency in UK homes.
A Warm Homes Plan will invest £6.6 billion in grants and low-interest loans over the next five years to insulate homes, install solar panels and low-carbon heating, and more.
Private landlords will also need to ensure that rented homes meet minimum energy efficiency standards by 2030.
The ICE’s view
The UK has made great progress with clean energy.
In 2022, it became the first major economy to halve greenhouse gas emissions from 1990 levels, driven largely by decarbonising energy.
Renewables now account for over 40% of the UK’s electricity. But the task ahead is still enormous – and renewable energy projects, particularly offshore wind, have slowed in recent years.
The National Engineering Policy Centre (NEPC) is urging the government to make electricity decarbonisation a ‘national mission’.
The private sector alone is highly unlikely to deliver the investment needed. A public energy company, in combination with market reform, could empower a quicker, cheaper transition.
The UK also needs new transmission infrastructure to get clean energy to the communities that need it. This requires public buy-in.
Indeed, public choice will play a fundamental role in meeting the UK’s net zero ambitions.
Investment alone isn’t enough. The new government will need to compelling vision to the UK public. With household finances strained, people need to trust that net zero is happening for them, not to them.
The future of UK transport
A long-term strategy for transport
On 28 November, transport secretary Louise Haigh announced plans for an Integrated National Transport Strategy for England.
England is the only UK nation without a dedicated transport strategy – something the ICE has challenged. The proposals will create a “single national vision” for how all kinds of transport, including active travel, work together to meet local and national needs.
To support the strategy, the Department for Transport (DfT) will reform how it appraises projects, prioritising outcomes such as employment, education, and health.
The department has also appointed an expert panel to make recommendations about its current and future capital spending.
DfT will develop the strategy over the next year, following a public call for evidence.
Connectivity in the North of England
The government has carried forward the High Speed Rail (Crewe – Manchester) Bill from the previous Parliament.
It isn’t reversing the previous government’s decision to cancel the flagship project’s northern leg. Rather, it plans to ‘repurpose’ the bill to improve east-to-west connectivity in the North of England.
This includes powers for rail infrastructure in the Manchester area, including new stations at Manchester Piccadilly and Manchester Airport.
Public rail to become the default
The Passenger Railway Services (Public Ownership) Bill will make public sector operators the default option for UK rail networks.
When existing contracts end – or if private operators fail to meet service commitments – they will return to public ownership.
Great British Railways
A Railways Bill will merge passenger services and network management into a single public body.
The previous government announced plans to form Great British Railways in 2023, though legislation got no further than the draft stage. Labour has resurrected the plans as part of their wider reform programme.
Great British Rail will:
- Have a legal duty to support and grow the use of rail freight.
- Reform the ticketing system to improve services and grow passenger numbers across the whole network.
- Operate under the scrutiny of a new watchdog, the Passenger Services Authority.
While legislation to formally establish the body progresses through Parliament, a ‘shadow’ Great British Rail will begin building connections with key industry bodies and delivering improvements immediately.
The bill will apply across the whole UK, though devolved bodies, such as Merseytravel and Transport for London, will retain their existing powers. Light rail and tram services will also be exempt.
New powers for local bus services
On 9 September, the government announced it would allow all local transport authorities in England to run their own bus services.
These powers were previously limited to mayoral combined authorities.
The Buses Bill will also reverse a ban on setting up new publicly owned bus companies, make bus funding more flexible, and improve bus services for communities that don't pursue public control.
The ICE’s view
Rail is an integral part of the UK’s transport network.
Rapid, reliable connections between rural and urban areas is crucial for economic growth, bringing customers closer to markets and job opportunities.
Better services will also reduce the number of car journeys, reducing traffic congestion and emissions.
So, rail reform is a strong start. But the UK needs an integrated strategy that considers how multiple transport modes can best meet people’s needs.
The ICE therefore welcomes the transport secretary’s vision-led approach to transport planning.
The secretary’s proposals align well with the Institution’s recommendation for a national transport strategy based on clearly defined outcomes.
The opportunity for local leaders to engage with the strategy’s development is also welcome. Local knowledge is what makes the difference between transport that improves lives, and transport that doesn’t.
Alongside a UK-wide strategic network (UKNet), as recommended by the 2021 Union Connectivity Review, this strategy could help the country’s networks adapt to modern needs.
Other bills and pledges of note
Net zero
At the COP29 climate conference in Baku, the prime minister announced his intention to strengthen the UK’s decarbonisation goals.
Member states are due to submit their national climate plans – Nationally Determined Contributions, or NDCs – in 2025. The UK aims to reduce all greenhouse gas emissions by at least 81% from 1990 to 2035.
The previous NDC, submitted in 2021, set a target of 68%. The new figure aligns with the latest recommendations from the UK’s Climate Change Committee (CCC).
The British Infrastructure Taskforce
Alongside measures to streamline planning, the government has launched a British Infrastructure Taskforce to boost infrastructure investment in the UK.
Comprising business leaders and infrastructure policy experts, the taskforce will explore policy options for building business confidence and unlocking private investment.
The taskforce’s first meeting took place on Friday 18 October 2024.
Scaling up investment in carbon capture
On 4 October, the prime minister, chancellor, and energy secretary announced funding for two carbon capture clusters at Teesside and Merseyside.
Carbon capture, use, and storage (CCUS) technologies capture carbon dioxide emissions and store them permanently to prevent them from entering the atmosphere.
The government said that the £22 billion funding over 25 years will attract private investment, create jobs, and accelerate the UK’s net zero transition.
The commitment is a positive step. But the ICE has warned that the UK shouldn’t over-rely on unproven technology to reach its 2050 target.
Other measures – such as changing public behaviour and decarbonising the electricity grid – are more achievable and impactful.
The Procurement Act 2023
The government has delayed implementation of the Procurement Act 2023 to February 2025 to give the government time to draft a National Procurement Policy Statement.
The Act seeks to simplify public procurement processes and give a greater share of public sector supply opportunities to SMEs. It received royal assent in October 2023.
The Digital Information and Smart Data Bill
Among many customer-focused measures, this bill will introduce a National Underground Assets Register (NUAR).
A digital map of the country’s subterranean cables and pipes, this resource will provide standardised, secure data to engineers and other professionals who install and maintain these assets.
The bill formalises work already underway on the NUAR, which should be fully operational in Northern Ireland, England, and Wales by the end of 2025.
The National Wealth Fund Bill
Another UK-wide bill, this legislation will create a new institution, the National Wealth Fund, to invest £7.3 billion in key economic infrastructure and clean energy projects.
This investment will aim to attract an additional £21.9 billion in private funding.
In a policy paper published on 14 October, the Treasury recommended that “an existing public finance institution” manage and deploy the fund.
It identified the UK Infrastructure Bank (UKIB) as the best fit.
From 14 October, the UKIB began formally operating as the National Wealth Fund. The fund will build on the UKIB’s “existing capabilities and capitalisation” to deliver “immediate impact”.
The Budget Responsibility Bill
This bill will ensure additional checks and measures stop the current and future UK governments from making significant tax or spending changes without first commissioning impact analysis.
The government introduced the bill on 18 July. Read the full text and explanatory notes at bills.parliament.uk.
This will apply across the whole UK.
The National Infrastructure and Service Transformation Authority
In its election manifesto, Labour revealed its intention to merge the National Infrastructure Commission (NIC) and Infrastructure and Projects Authority (IPA) into a ‘new, powerful’ body – the National Infrastructure and Service Transformation Authority (NISTA).
Darren Jones MP, Chief Secretary to the Treasury, confirmed the government’s plans for NISTA in a speech on 11 October 2024.
The IPA supports the delivery of major infrastructure in the UK. The NIC, meanwhile, provides advice on the government’s infrastructure priorities and progress.
The Treasury oversees both, though NIC has more independence.
Merging the two will consolidate responsibility for strategic planning and delivery into a single body at the heart of British government.
Through the merger, the government aims to “better support the delivery of major capital projects”.
Merging the IPA into the new body does offer the opportunity to strengthen its role and mandate best practice across government.
However, the ICE has warned that this should not compromise the NIC’s independence.
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