Delivering the UK’s growth and infrastructure agenda

With mounting pressure on public finances, the UK government faces a pivotal question: where should limited resources be focused to deliver sustainable national growth?

Defence, the NHS, housing and infrastructure all demand funding, but it is perhaps infrastructure projects that enable the delivery of housing that holds the key to unlocking broader economic prosperity.

To meet the urgent demand for new homes, the UK needs more than just policy announcements;  it needs a robust, long-term strategy for building infrastructure that supports thriving communities. Roads, rail, utilities and digital networks must all be in place before or alongside housing developments, not after. A strong, consistent supply chain and long-term thinking are vital.

The government’s recently announced 10-year infrastructure plan, targeting a dramatic increase in annual spending from around £55 billion to £380 billion, marks a significant shift in ambition. But with rising costs, economic instability and continuing supply chain challenges, delivery will be complex. Public funds alone will not be enough.

Historically, private finance has played a role in UK infrastructure through the Private Finance Initiative (PFI). Yet PFI has become politically toxic, often criticised for poor value and misaligned risk-sharing. To succeed now, collaboration with private investors must be reimagined. The key lies in properly assessing and allocating risk, and ensuring that returns are commensurate with that risk. Investors need confidence – not just in returns, but in stable policy, clear timeframes and credible delivery models.

This means learning from past missteps. Projects like HS2, while strategically important, are being delivered through fragmented local authority partnerships ill-equipped to manage the scale and complexity involved. Thirty local councils are tasked with delivery without sufficient expertise, resulting in budget overruns and missed deadlines. For future projects, central government must take a stronger coordinating role while investing in local capability.

A one-size-fits-all approach will not work across the UK. Infrastructure needs in the South East differ vastly from those in the North of England or rural Wales. The 10-year strategy must be responsive to regional challenges while maintaining national coherence. That includes providing clarity on funding mechanisms and timetables to help unlock both public and private sector participation.

Property developers will be watching closely. Infrastructure enables housing. Without it, the government’s housebuilding targets will remain out of reach. What’s needed is not just capital, but commitment – long-term, cross-sector collaboration that shares risk fairly and delivers results efficiently.

As the UK looks to attract institutional investors and private equity back into infrastructure, the message must be clear: the mistakes of the past won’t be repeated. With the right structures in place with clear returns, managed risks and policy certainty, infrastructure investment can once again be a credible route to national growth.

Our real estate team can help you navigate complexity and seize opportunity. From structuring your next deal to securing funding and ensuring tax efficiency, we’re here to support your growth. Contact our team today.