Learning lessons from best practice in private financing can help deliver the UK ‘infrastructure revolution’.
Infrastructure in the UK needs to be not only maintained, but also significantly upgraded if we are to meet our net zero obligations and Levelling Up ambitions. This will require significant levels of investment from you, businesses.
Whilst the government has committed in its National Infrastructure Strategy to spending around 1.2% of GDP on infrastructure, this level of spending will not alone deliver the ‘infrastructure revolution’ the UK requires. You have suggested that the availability of private capital for infrastructure generally remains high, but there is difficulty in attracting attention of lenders.
This difficulty consists of:
- Current regulatory frameworks
- Political uncertainty following the end of PFI/PF2
- Lack of clarity around the National Infrastructure Pipeline
- Low clarity about funding models.
Despite these challenges, you have expressed appetite to explore how more private finance could be applied to a range of infrastructure projects. This paper brings together this thinking by outlining current examples of best practice in infras