Treasury announces new infrastructure delivery body to ‘get a grip’ on delays

National Infrastructure and Service Transformation Authority (NISTA) will bring together independent functions on infrastructure strategy and delivery more closely – which Jones said will be vital if the Labour-led Government is to deliver its pledges on public services, economic growth and the energy transition.

NISTA will support the development and execution of the UK Government’s forthcoming ten-year industrial strategy.

The initial strategy whitepaper will be published alongside Chancellor Rachel Reeves’ Autumn Statement later this month. A full strategy is then expected in early 2025, following consultations with bodies such as trade unions and industry bodies.

The UK has not comprehensively updated its industrial strategy in more than five years. As such, it was not developed with the 2050 net-zero target in mind.

Jones said the new body will be tasked with “addressing the systemic delivery challenges that have stunted growth for decades”.

A “debilitating lack of strategic clarity” is the root of the challenge, he added. Without policy certainty or agile responses to emerging challenges, he explained, investor confidence has wavered.

The UK has historically ranked lowest among the G7 for infrastructure investment, alongside the lowest public capital stock in the G7, 15% below its average.

The announcement of the NISTA comes ahead of the International Investor Summit in London next week. Hosted by the UK Government, the Summit will convene up to 300 decision-makers from across the world. It is expected that several large businesses will announce investment in UK-based projects, with firms in attendance set to include Google, Wayve and Octopus Energy.

“The event will provide an opportunity for the government to establish enduring partnerships with businesses to boost investment in the UK and to give investors the certainty and confidence they need to drive growth,” the Government said in a statement.

National Infrastructure Commission findings

Also today (10 October), the National Infrastructure Commission (NIC) has set out a series of actions that could result in large infrastructure projects being delivered in a more rapid and cost-effective manner.

These actions address four key shared challenges:

• A lack of clear strategic direction from policymakers, compounded by short-term public spending settlements
• Inefficient consenting, compliance and related processes
• Supply chain constraints
• Issues relating to client and sponsor involvement

If all points in the report are analysed, the NIC estimates, major infrastructure projects could cut their outturn costs by 10-25%.

It bears highlighting that delivery times for nationally significant infrastructure projects increased by 65% between 2012 and 2022.

“Where these outturn cost reductions can be made, now is the time to make them,” the NIC’s report states.

“For several decades, sectors such as transport, water and energy transmission and distribution have operated as mature systems maintaining a steady state and managing incremental growth. But, as the Second National Infrastructure Assessment highlighted, to deliver net-zero, support economic growth, and support resilience to a changing climate, a much greater level of change is now required.”

The Commission this week confirmed the extension of Sir John Armitt’s role as Chair, taking into account the need for “stability and expertise” as the UK Government develops and launches the new industrial strategy.

Armitt has served as NIC chair since 2018. He is also senior vice president at the Institution of Civil Engineers, with more than three decades of experience in senior roles across rail and construction.