10 year Infrastructure Strategy Working Paper - AIIP initial response
The AIIP welcomes the focus this Government is putting on growth and, as a major part of that, a recognition that long term planning for a pipeline of critical infrastructure is essential for the country. Recent political rhetoric, most notably the Chancellor’s speech vowing to ‘go further and faster on economic growth’, is also encouraging in this regard. This needs to be a cross-government approach that takes a new direction, rooted in value for money to the taxpayer and planned and delivered in accordance with need.
A successful plan will help to overcome the British problem of the failure to provide a stable policy environment and clear strategic direction. Certainty in the ambition and the pipeline will enable the smoothing of investment and capacity over the 10 year-horizon,avoiding peaks and troughs of investment that drive up cost. Public support relies on value for money and a clear need, and the 10-year plan can lay the ground for realistic expectations on the challenge for modernising and improving the country’s infrastructure.
All parts of the public and private sector have experienced significant challenges in the current planning application process. This government has indicated a strong willingness to amend the current rules to ensure they are fit for purpose and allow the building of the critical infrastructure that essential services depend upon.
The AIIP strongly welcomes bringing together economic, social and housing infrastructure in one place within the 10 year plan; this is a very important step. The National Infrastructure and Service Transformation Authority (NISTA), the new body that merges the functions of the NIC and the IPA, is a good step to bring coherence to the government framework. We also firmly agree that the structure of accountability to both HM Treasury and Cabinet Office, but sitting in Treasury and with political accountability to the Chief Secretary to the Treasury, is the right one. The Treasury has to take the lead in backing investment from the public and the private sector in infrastructure.
It is encouraging that one of the 3 objectives is to ensure social infrastructure can support public services including hospitals and healthcare facilities, schools and colleges and prisons.
The AIIP would urge that NISTA is given responsibility to research and propose frameworks for new public-private partnerships. NISTA’s inception is an opportunity to revisit the issue of a future pipeline of social infrastructure with a modernised partnership between public and private sectors that draws on the best evidence from around the world.
The strategy is an opportunity to consider the role of private investment and infrastructure-related regulation to provide both investors and the public with greater clarity on government approaches. The ultimate objective has to be a pipeline that will convey long term priorities in infrastructure, based primarily on need, informing an investment programme that can meet that ambition.
