Comment
National Infrastructure Strategy: The start of a long road, but at least we have the map
It’s been a long time coming but the Government has now unveiled its vision to deliver an “infrastructure revolution” in the form of the National Infrastructure Strategy (NIS). Significantly (and rather astonishingly), it is the first of its kind.
The NIS is brimming with positivity and bold rhetoric with some big numbers that jump off the page – £100 billion total 2021-22 investment committed to aid the recovery in the Spending Review, including £27 billion set aside to deliver economic infrastructure in 2021-22. It is a clear statement of intent from a Government determined to deliver on its ambition to level up the UK.
On initial inspection, there is a lot to digest. Whilst some of it is new, such as the Infrastructure Bank and the National Infrastructure Planning Reform Programme, much of it relates to initiatives that have previously been announced, such as Project Speed, the Ten Point Plan for a Green Industrial Revolution and the design principles set out by the National Infrastructure Commission (NIC), which are now endorsed by the NIS.
Helpfully however, what the NIS does do, is bring all of these individual component parts together in an attempt to create one clear and cohesive strategy for the UK. Here are a number of overarching observations:
1. A first and this is only the beginning…
The publication of the NIS is in response to a clear recognition that investment in infrastructure is long overdue. It is also in recognition that infrastructure is crucial to economic but societal growth and cohesion; it is the glue which knits the UK, its regions and its cities together. A clear, cohesive and long term strategy to infrastructure is critical to delivery and in this respect, the actual publication of is something to be celebrated in itself and shouldn’t be overlooked.
However, with any strategy, long term commitment and review is necessary for success. It is encouraging to read that the NIS is only the first step of a twelve month process to deliver fifteen separate papers on key areas of infrastructure policy to advance further development. This will include a National Strategy for Disabled People, which hopes to make the UK’s future infrastructure fully inclusive, not just accessible. Another welcome first.
These documents, we hope, will provide the absolute clarity required to allow all component parts of the infrastructure industry, from developers to consultants and everyone in-between, to come together with a clear set of guidelines to allow us to deliver this vision. Let’s see what the next 12 months brings.
The Government is committed to update the NIS every five years in response to future National Infrastructure Assessments. We have seen over the last 12 months that the world in which we operate can change in a very short space of time. It is encouraging to see this review process is embedded in the strategy so the industry can adapt and be ready to respond quickly to any future change.
2. A continual commitment to invest
Alongside a long term strategy, the Government has appeared to acknowledge that ‘stop-start’ public investment has been one of the long-term issues that has held back the delivery of UK infrastructure. It is pleasing to read that the Government will maintain the National Infrastructure Commission’s fiscal remit at a minimum of 1-1.2% of GDP, with a commitment to both review this next year with the stated intention to increase, rather than decrease, future infrastructure investment.
The introduction of a new Infrastructure Bank, which will operate UK-wide, which will support investment in projects and programmes across the whole of the UK and will be able to lend to local and mayoral authorities for key regional infrastructure projects, will greatly assist sustained investment and also only improve the financial conditions for the private sector to invest in infrastructure across all sectors.
3. Policy certainty in some areas, others kicked down the road
Alongside financial commitment, the NIS also sets out a clear commitment to deliver certainty in some areas of Government policy. It reaffirms the path to tackling the climate emergency; the commitment to off-shore wind and hydrogen; and boosting local economies. This provides long term certainty in terms of strategic policy direction and investment from which the private sector can draw confidence. Some details however, such as broader energy policy and our position on nuclear, are still to be set out. We await the Energy White Paper in due course.
4. Fairer, faster, greener
The Government’s rhetoric from previous announcements weigh heavily through the NIS, including ‘levelling up’ and ‘building back better’. But we have further additions to the rhetoric - building back better but also fairer, faster, greener.
The green wrap around the NIS is not surprising given the significant threat of climate emergency. Nor is further deregulation. Through Project Speed, the Government is seeking to address longstanding challenges such as complex planning processes, slow decision-making, and low productivity in the construction sector. From a planning perspective, the Government returns to planning regulatory reform in the NIS. While the NSIP regime escaped the clutches of the Planning White Paper, the NIS proposes some refinements and improvements to improve its efficiency and effectiveness as well proposals to ensure all forms of large infrastructure is ‘beautiful’ through embedding good design. For some social infrastructure – such as schools, hospitals, and prisons, the NIS confirms further consultation increasing permitted development rights and introducing a faster planning application process to ensure prompt decision making for these type of developments.
So all in all, much to digest but we welcome the first national, comprehensive strategy to ensure the delivery of UK infrastructure – big and small. We will be providing further thoughts on the NIS and its implications over the coming weeks.
30 November 2020