UK ministers have this week laid out a sweeping, multibillion pound plan to grow, restructure, and scrutinise public infrastructure spending over the next 10 years. Released on Wednesday, the 10 Year Infrastructure Strategy will, according to the Treasury and National Infrastructure and Service Transformation Authority, be “core to delivering the government’s growth mission to boost living standards in every part of the UK.” The scheme targets job creation, community support, accessibility, and growing the UK’s housing stock, as well as funding public services.
“Certainty and confidence” for procurement
Karen Carter, director of national delivery at procurement specialist Pagabo, said: “One of the biggest talking points for the built environment of late has been the need for certainty and confidence – and the publication of the 10-year UK Infrastructure Strategy today certainly does a lot to support both of these.”
She added: “Labour’s promise to ‘Get Britain Building’ is now underpinned by this strategy and billions of funding covering new schemes, maintenance and upgrades, decarbonisation and improving energy and transport networks just to name a few. Combined with the interactive portal launching in July, this should provide the industry with the levels of confidence and certainty it’s been craving. Perhaps even more importantly, these announcements should foster certainty and confidence in the private sector too, enabling more private sector partnerships and funding to accelerate delivery.”
Social value and SMEs
There is clear focus on social good through public procurement in the strategy. Chief secretary to the Treasury, Darren Jones, announced this morning that the scheme would see the Government spend a minimum of £725bn over 10 years in an effort to bolster the quality and efficacy of the country’s infrastructure and achieve a “national renewal”.
Jones told the press that the Treasury planned to spend £6 billion per year on repairing hospitals in England. The Government will also put an additional £3 billion towards repairs and maintenance on schools and colleges in England. £600 million will be spent on courts and prisons in England and Wales. The strategy also aims to fund building improvements to improve safety in hospitals and security in prisons.
However, the investment in NHS facilities may not be adequate to account for the organisation’s significant maintenance backlog. The backlock refers to the estimated cost of bringing NHS estates or buildings back to a minimum expected standard. The amount has more than doubled in real terms between 2015/16 (£6.4 billion) and 2023/24 (£13.8 billion), with the fastest growth in the highest risk category (urgent repairs to prevent catastrophic failure or disruption to clinical services).
Since 2021/22, the backlog has grown by £2.1 billion, according to the Health Foundation. Over the same period, investment to reduce the backlog fell by £707m in real terms, contributing to this growth.
The strategy also includes £1 billion allocated to repairing roads, bridges and flyovers throughout the UK, as well as £590 million to start work on the Lower Thames Crossing project. The Government will put approximately £16 billion towards the construction of half a million new homes through a new publicly owned National Housing Bank.
Welcome news for procurement
“There’s also a clear goal to create the maximum social value possible with a place-based approach and better social infrastructure – delivering not just homes and buildings, but bringing together travel networks, education, healthcare, homes, public realm and cultural offerings places that truly work for their communities,” added Carter.
“We welcome the news there will be further consultation on procurement reforms to ‘better support social value and SMEs’ – showing that government understands just how powerful procurement can be in unlocking social value. The right processes and early engagement are key – and with renewed certainty and confidence, the built environment can bring together the partnerships needed to make this strategy a reality.”