How can the UK bring global investment back into its infrastructure?

Effective, sustainable government policy in infrastructure and investment must be informed by industry views and experience.

It’s critical that, in its pursuit of growth, the government listens to those who fund, design, build and operate our national infrastructure.

We recognise this within the All-Party Parliamentary Group for Infrastructure (APPGI).

We have put in place a series of high-level roundtable events to bring industry perspectives into policy advice and to create dialogue between industry experts and lawmakers.

How can the UK attract investment for its ambitious infrastructure plans?

On Monday, I hosted the first of these events, partnering with the Global Infrastructure Investor Association (GIIA).

We brought together diverse perspectives on the infrastructure sector, including the ICE, global investors, and fellow MPs and peers.

We explored how to make the UK an attractive destination for infrastructure investment.

Public perception

A recurring theme in our discussion was public perception of infrastructure delivery.

There’s a fixation with failure that the press and parliamentarians often have, despite the UK having some phenomenally successful infrastructure delivery over the past 20 years.

Role of public-private partnerships (PPPs)

It was clear from discussions that some notable failures, like the Tube Lines private finance initiative (PFI) and early hospital PFI projects, have understandably damaged confidence.

But rather than refining these models, we've largely abandoned PPPs altogether as a country.

This approach seems misguided to me. Other nations have learned from similar challenges, creating more accountable and effective frameworks for private investment in public infrastructure.

Meeting our ambitious infrastructure needs will require us to reconsider PPPs. We’ll need to draw on international best practices and invest in public sector commercial competence to ensure UK taxpayers get a good deal.

Mixed signals from the government

The roundtable also explored insights from the GIIA’s pulse survey, which captures views from over 150 global wealth managers, corporate investors and pension funds operating in the infrastructure market.

It’s clear that the UK offers numerous advantages, from our mature contracting and consulting supply chain to relative political certainty long-term. However, these strengths are undermined by inconsistent signals from the government.

For example, the government’s recent commitments in support of expanding Heathrow, Gatwick and Luton airport were tempered by the government also increasing airport business rates. This created what some investors described as a damaging contradiction.

The upcoming strategy will provide clarity

There are still promising signs. Market confidence is gradually improving.

The upcoming 10-year infrastructure strategy and pipeline, expected in June, represents an important step toward greater clarity.

With thoughtful policy decisions, the UK can reclaim its position as a premier global destination for infrastructure investment.

The APPGI is committed to helping make this happen.

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