Skip to content
Type
Infrastructure blog

The government wants to build a better UK — but does it have the foundations?

Date
14 January 2025

Are better times just around the corner? Policy Fellow Jonathan Moore asks how the UK can deliver infrastructure more effectively.

The government wants to build a better UK — but does it have the foundations?
Infrastructure plays a key role in delivering the UK government's missions. Image credit: Shutterstock

When it comes to infrastructure, the new government has nailed its colours firmly to the mast.

Its ambitious policy programme, announced last summer, includes 10 bills related to infrastructure. And investment in new infrastructure will be a key part of its mission to deliver economic growth.

But what should this look like?

Investment alone isn’t enough. To deliver infrastructure that’s effective and impactful, the government will need to invest strategically.

The arrival of NISTA

In October, the Treasury announced plans for a new National Infrastructure and Service Transformation Authority (NISTA).

Due to be operational by spring, the body will combine the functions of the National Infrastructure Commission (NIC) and the Infrastructure and Projects Authority (IPA).

The government recognises the significant contribution both bodies have made: the NIC in identifying the UK’s infrastructure needs, and the IPA’s expertise in its delivery.

But it believes that bringing the two organisations together will lead to better outcomes.

NISTA will work with the industry to develop and implement the government’s 10-year infrastructure strategy and improve the delivery of infrastructure across the country.

The Green Book

It’s expected that a large and important part of NISTA’s initial work will involve making the strategic case for new infrastructure.

That is no small challenge, and one that comes with many complexities to address.

However, it will find assistance from HM Treasury’s ‘Green Book’.

This document provides guidance on options for appraisal and evaluation. This includes costs, benefits, and alternative options for delivering policy objectives.

A key part of the Green Book’s extensive and comprehensive guidance is its five-case model.

By using this model, decision-makers can assess the strategic, economic, commercial, financial, and management sides of publicly funded projects and programmes in a consistent way.

A clear line of sight

Combined, these five dimensions provide a clear line of sight towards a completed project or programme that contributes to the intended policy outcomes.

On its face, this appears a logical and objective approach. However, the cases aren’t always equal.

Often, the strategic case is the weakest of the five dimensions being considered.

Why should that be?

Outcomes over outputs

Firstly, while all the dimensions have their own complexities, the economic, commercial, financial, and management elements focus on inputs and outputs.

As a result, these dimensions are often easier to quantify and understand.

On the other hand, the strategic dimension focuses on outcomes.

Outcomes aren’t always easy or obvious to assess.

They can be vague, poorly defined, or result in unintended policy conflicts that create ‘wicked’ problems.

A proper analysis requires a deep understanding of the issues and a clear vision of potential solutions.

These solutions must then be coordinated across a wide range of policy areas, rather than in isolation.

Example: the EV transition

Electric vehicle (EV) infrastructure needs to be part of a wider package of measures. Image credit: Shutterstock
Electric vehicle (EV) infrastructure needs to be part of a wider package of measures. Image credit: Shutterstock

Policies encouraging the transition to zero-emission vehicles offer a good example.

Increasing the network of reliable electric vehicle (EV) charging points should encourage EV uptake and reduce the number of petrol and diesel vehicles on our roads.

Fewer petrol and diesel vehicles will mean lower transport emissions and better outcomes for the environment.

However, simply replacing petrol and diesel will have no impact on another road transport problem – congestion.

Carbon reduction is just one of the outcomes that transport policy needs to consider, alongside economic growth, public health, and more.

To be truly effective, EV infrastructure should be part of a wider package of measures that spans multiple policy areas.

The pitfalls of short-termism

Another, deeper problem in developing infrastructure programmes is short-termism.

With parliamentary cycles of five years, no government can guarantee it will be in office after the next election.

And while the main parties might agree on what infrastructure we need and why, there’ll be less common ground on how to deliver it. Each new government will want to do things differently.

This results in fragmented, stop/go delivery that leads to uncertainty and undermines confidence in the minds of potential private sector investors.

The way ahead

The government’s 10-year national infrastructure strategy will arrive in June.

This is a welcome commitment and the right place to start.

Only by identifying the infrastructure the country needs can the government realise its ambitions: for clean energy, economic growth, better living standards, and more.

After all, when building a house, you start with the foundations – not the roof.


In case you missed it

  • Jonathan Moore, Policy Fellow at the ICE