UK Government Launches Ambitious Ten-Year Infrastructure Strategy – perspectives for housing and other social infrastructure

Following the recent Spending Review and related announcements, the UK Government has now provided a landmark ten-year Infrastructure Strategy (called ‘IS25’ in this article). IS25 is intended to provide greater clarity, consistency, and strategic foresight when it comes to policy and to deliver, in practice, a revitalising of the country’s infrastructure. 

IS25’s plan spans more than one term of Government and adopts a more holistic and integrated approach to infrastructure than has been attempted by previous administrations. With more place-based coherence, IS25 recognises 'social infrastructure' as being equally vital, placing it alongside more traditional economic infrastructure and those projects that are deemed to be ‘nationally significant’ like major new railways and roads. 

Specifically, IS25 states that “Social infrastructure is not, however, limited to health, education and justice, and the government recognises the importance of wider infrastructure – from cultural assets, such as museums, libraries and theatres that create long-lasting impacts on living standards by shaping our communities, to defence infrastructure and asylum accommodation which is crucial for national security.” 

What’s in the Strategy?

£725bn

At the heart of IS25 is a major financial commitment, by way of a minimum of £725 billion in public investment over the next ten years. This funding will finance projects from transport and energy to digital connectivity, water systems, and public services (i.e. social infrastructure) like education, healthcare, and housing. Investment will be made through a five-year capital allocation programme, reviewed biennially to ensure it remains responsive to changing priorities. Whilst commendable in scope, in some instances the strategy is pulling together previous announcements and expanding and reinforcing existing commitments rather than offering new programmes of investment. There is though recognition of the importance of maintenance, not just delivery of infrastructure, with a promise to increase funding for maintenance and repair of health, education and justice infrastructure to £10bn by 2034/35 (up from £9bn in 2025/26).

Private Sector Involvement via PPPs

Government acknowledges that private capital is critical to unlock additional investment, and so IS25 promotes the use of Public-Private Partnerships (PPPs) for sectors where there is a revenue stream, appropriate risk transfer and value for money can be secured. IS25 does not confirm exactly what model(s) will be utilised, but stakeholders are actively working with the Treasury to ensure that the PPP platform(s) which do emerge are effective and sustainable, at the same time as enhancing any ‘de-risking’ offering when it comes to finding the best solution to infrastructure delivery. It is likely that this work will build on lessons learned from current projects/models, including the Mutual Investment Model (MIM), currently being employed in Wales and which is being welcomed in a number of sectors. It seems clear that whilst there is no plan to provide a new programme of PFI (Private Finance Initiative) or PF2, future PPPs are to use lessons learned from those PFI projects in action and those expiring (some 50% over the next decade).

Strategic Spatial Planning for Balanced Growth

In a further example of joined up thinking, IS25 sits very firmly within the Government’s overall agendas including those targeting robust economic growth, increased housing delivery (and the 1.5 billion new homes target) and the drive for net zero/decarbonisation. As such, IS25 introduces a new national spatial planning framework, complemented by regional development plans. These plans will align infrastructure delivery with housing, employment, and transport needs, reflecting local economic goals and also empower Mayoral Strategic Authorities to lead on regional implementation. Flood defence deserves a mention here, especially when it comes to the context of protecting existing communities and planning for new ones. IS25 promises a £7.9 billion 10-year pipeline of capital investment to maintain existing and invest in new flood defences, nature-based solutions and property level resilience measures. This investment is forecast to benefit 840,000 properties by 2035-36.

NISTA’s role

Housed within the Treasury, National Infrastructure and Service Transformation Authority (NISTA) has been formed by merging the functions of the National Infrastructure Commission and the Infrastructure Projects Authority and will be responsible for overseeing delivery with powers to recommend a project. Many who have been awaiting the strategy will be keen to see the launch of a new digital infrastructure pipeline portal in July 2025. This interactive tool will offer real-time insights into upcoming projects, helping investors and suppliers align their strategies with future opportunities hopefully inspiring investor confidence. These two aspects underpin a wider theme of transparency within IS25. 

More to come…

IS25 spotlights the need for all parties to make real strides towards delivering housing and other infrastructure in a way that also makes room for addressing the nature, climate and health crises. All of which is laudable in principle but, one suspects, for local authorities also echoes the complexity of responding to the homelessness and temporary accommodation crises – both in the context of financial resource and in terms of sufficient expertise and numbers on the ground needed to deliver on the opportunities which the Spending Review 2025 and IS25 are intended to usher in. Local Authorities will therefore be encouraged to embrace the push towards private sector partnership and collaboration in responding to national priorities and when delivering on their key statutory objectives for the communities which they serve.

Taken with the other recent significant announcements, IS25 represents the Government’s strong vision for how housing and infrastructure is to be planned, invested in and delivered, with active roles for both the public and private sector at national, regional and local levels. Recognition at the top, of the interconnectivity of all the elements and their interdependencies, is important to foundational success. Bolt on a clear plan, new public investment alongside a pipeline and there is a lot to be optimistic about with opportunities to be seized. Next for the pipeline announcements…