InfrastructureShoring up U.K. infrastructure essential to country's welfare

The Business Infrastructure Commission, an independent group of key business and industry leaders chaired by David Begg, yesterday published its report “Tackling the Infrastructure Puzzle.” The report sets out a number of recommendations for improving the U.K.’s congested infrastructure.

The United Kingdom suffers from some of the most congested infrastructure in the developed world and a failure to invest in these will have serious impacts upon the country’s long-term economic future. Improvements to transport, energy, and ICT infrastructure could increase GDP by an additional 0.7 percent.

The report urges the government to rise to the challenge and focus on the five pieces of the infrastructure puzzle, to create a strong infrastructure framework which will benefit the U.K. economy for years to come. They include a detailed long-term infrastructure strategy, procurement reform, and improvements to the planning system for major projects. These must go hand in hand with attracting private finance, and ensuring we have the right skills to deliver national and regional infrastructure projects.

Professor David Begg, chairman of the Business Infrastructure Commission, said:

The U.K. has one of the most heavily used infrastructure networks in the developed world. This is why it is critical to encourage further investment so that U.K. infrastructure is fit for the future. By infrastructure, we mean transport, energy supply, and digital communications networks – the backbone of business and our economic health.

Increased levels of investment from both Government and critically from the private sector must also be matched by a long-term infrastructure strategy. This has to include a focus on how we develop a skilled workforce to deliver these projects, an overhaul of how we procure and build new publicly funded infrastructure, and a planning system that is fit for purpose. For example, there are savings of £2-3 billion annually to be found through more efficient procurement.

Our ability to move goods and services around the country, and doing business online, is crucial to our economic vitality, particularly in stimulating regional economies. Without investment and a long-term infrastructure strategy, our economy may be hindered by networks that cannot support its growth.

The five pieces of the Infrastructure puzzle:

1. Long-term Planning
   • Complete a 10-40 year National Infrastructure Plan as a matter of urgency giving confidence to investors, providers and users.
   • Drive implementation of the National Infrastructure Plan through a strong, independent and empowered Infrastructure U.K.
2. Procurement Reform
   • Task the Cabinet Secretary to complete a review of infrastructure procurement capacity in Government to drive down complexity, inflexibility, over-specification and unnecessary costs.
   • Revise Green Book appraisal processes to privilege innovation in infrastructure procurement while retaining a focus on whole life-cycle costs.
3. Planning Reform
   • Subject Ministerial decisions on nationally significant infrastructure projects to Parliamentary scrutiny where a Minister’s decision goes against a positive recommendation from the Major Infrastructure Planning Unit.
   • Encourage the cost effective use of Planning Performance Agreements (PPAs) to secure local authority engagement and speed up the planning process for some major infrastructure projects.
4. Attracting Private Finance
   • Extend the Regulated Asset Base model to additional infrastructure sectors and networks in need of long-term investment.
   • Enable the pensions and insurance industry to increase levels of investment in infrastructure by introducing a stable and regulatory framework and appropriate incentives.
5. Skills provision
   • Develop a responsive skills strategy for infrastructure and incentivise colleges and businesses to deliver the skills required to build national and regional infrastructure projects.
   • Simplify bureaucracy surrounding apprenticeship schemes to make it quicker, easier and more cost effective for infrastructure providers to take on apprentices.