Infrastructure networks form the backbone of a modern economy and are a major determinant of growth and productivity. The UK has extensive and sophisticated infrastructure that has been developed over hundreds of years. However, historically the UK's approach to the development of these networks has been fragmented and reactive. Investment has not kept up with the needs of a growing population and opportunities to maximise infrastructure's potential as a system of networks have not been exploited. Most importantly, the UK has never before had a clear long term plan for maintaining and improving its infrastructure. To remain globally competitive, the UK needs to address these failures and develop an infrastructure capable of supporting a dynamic, modern economy.
This National Infrastructure Plan sets out a new strategy for meeting the infrastructure needs of the UK economy. There are three elements to this strategy.
First, the Government will plan for the medium term and across sectors. The National Infrastructure Plan brings together the first ever comprehensive cross-sectoral analysis of the UK's infrastructure networks and sets out a clear pipeline of over 500 infrastructure projects. Delivering these projects will ensure that the overall performance of the UK's infrastructure is maintained and improved over time. They will also address the areas where the UK's infrastructure lags the best performers in the world, while achieving best value for taxpayers and users.
Second, to mobilise the finance required to deliver these projects, the National Infrastructure Plan sets out a new approach to coordinating public and private investment in UK infrastructure. The Government committed at the 2010 Spending Review to prioritise public capital investment towards infrastructure that supports growth. Funded through further reductions in current spending, the Government is now announcing additional investment in infrastructure at the 2011 Autumn Statement. In addition, the Government will use all the tools at its disposal to facilitate the private investment that will finance the majority of the UK's infrastructure. This includes bringing in new investors into UK infrastructure; introducing new sources of revenue such as tolling; allowing local authorities more flexibility in the way they use local receipts to fund major infrastructure in specific circumstances; and being willing to consider guarantees against specific risks that the market cannot bear.
Third, the Government will take an active role in ensuring the infrastructure in the Plan is delivered efficiently and on time, with priority given to those projects most critical for economic growth. A new Cabinet Committee, chaired by the Chief Secretary to the Treasury, will provide leadership to this work. It will ensure that all parts of Government play their part in tackling planning and regulatory delays and addressing key commercial and policy issues. The Government is also reforming the planning and consenting systems to tackle one of the largest sources of cost and delay in infrastructure delivery and taking forward the recommendations of the Infrastructure Cost Review, which found opportunities to realise savings of £20 to £30 billion over the next decade.