Merging the National Infrastructure Commission (NIC) and the Infrastructure and Projects Authority (IPA), the National Infrastructure and Service Transformation Authority (NISTA) was created earlier this year to improve the delivery of major infrastructure projects throughout the UK. The Government has since launched its 10-year infrastructure strategy and NISTA its infrastructure pipeline. In our latest insight, we provide some key information about these recent developments and consider what they mean for the construction sector and its partners.
The Basics: NISTA and its remit
NISTA sits within the HM Treasury and the Cabinet Office, and is subject to direct oversight by Ministers at the centre of Government. With a commitment to taking a more systemic approach to the delivery of major infrastructure projects in the UK, it is responsible for social infrastructure including schools and hospitals, economic infrastructure which includes water, energy, digital infrastructure and transport, and housing which is seen as a core driver of growth.
NISTA aims to ensure project deliverability and guide procurement excellence across the UK. More specifically, the Government has given it three core objectives: To develop and implement the government’s next infrastructure strategy, to unlock private investment in infrastructure and to streamline planning to speed up the consenting process for major projects.
The new body is headed up by CEO Becky Wood who oversaw major projects including Crossrail and Thames Link and, to ensure its independence and impartiality, it has a ‘council of independent advisors’ which is chaired by Sir John Armitt, a former Chair of the NIC.
The 10-year infrastructure strategy
Launched in June this year, the UK Government’s 10-year infrastructure strategy represents a fundamental change in how infrastructure projects are planned and delivered, and promises to invest £725-billion during the next decade.
Key elements of the strategy include:
- Ensuring social, economic and housing requirements fall under the remit of one national body for the first time
- Changes in procurement metrics with rigid cost-benefit thresholds removed and replaced with measurable outcomes that place an increased emphasis on social value and which are more in line with Construction Playbook. This will give contractors, manufacturers and merchants with strong social value credentials a distinct competitive advantage.
- The reintroduction of public-private finance initiatives to deliver the funding required to make the Government’s infrastructure strategy a reality
- A commitment to invest £725-billion in infrastructure during the next decade
- The launch of an Infrastructure Pipeline
From the perspective of Naylor, its clients and merchant partners it’s good to see that more than £42-billion of funding has already been allocated to transport with £24-billion of that to be spent on improving Britain’s road network; that nearly £8-billion has been set aside for much needed flood defences to protect 840,000 properties, and that nearly £17-billion of funding has been allocated to projects relating to clean energy and digital infrastructure.
With a 150-year track record, a product range which now includes high performance drainage, duct, storm and sewer solutions, and our flagship drainage system, ‘MetroDrain’ being again rated number one by National Highways, we feel particularly well placed to support the delivery of projects in these areas and we look forward to working in partnership with the industry to do so.
£725-billion of funding and the Infrastructure Pipeline
Without doubt the Government’s commitment to invest at least £725-billion during the next 10 years is one of the most significant investments in infrastructure ever made in the UK. The investment is split across seven core areas: Health, housing, education, transport, clean energy, flood defences and digital infrastructure. And to ensure full visibility regarding future projects, NISTA has now launched its Infrastructure Pipeline.
Launched on 18 July, the Infrastructure Pipeline comprises a live online tool and at the time of writing, outlines 775 projects which will receive £530-billion of funding.
It gives the construction sector sight of the major private and public sector projects (those valued over £25-million) which will take place during the next 10 years, something which has long been called for by bodies such as the Institute of Civil Engineers as well as a host of construction industry suppliers.
This enables manufacturers such as Naylor to more accurately predict future demand, to undertake long-term strategic planning and to invest in the technology, people and manufacturing capacity required to meet this demand and support project delivery.
Importantly the infrastructure pipeline also gives potential investors the long term visibility they need to invest, something which is critical in a country which has historically seen underinvestment in infrastructure with the UK being at the bottom of the G7 league table for infrastructure investment for the majority of the last 30 years.
A final word…
The creation of NISTA, the Government’s 10-year infrastructure strategy, the launch of the Infrastructure Pipeline and the allocation of billions of pounds of funding look set to have a significant impact on the construction industry and the delivery of infrastructure projects throughout the UK.
Supported by the forthcoming ‘Planning & Infrastructure Bill 2025’ which aims to reform the planning system, the recent changes have been widely welcomed by the construction sector and, although only time will tell if they are successful, our hope is that they will make it easier for our industry to deliver major infrastructure projects, unlock much needed investment, and ultimately ensure that Britain has the social, economic and housing infrastructure it requires to thrive in the decades to come.
Additional Information
- The National Infrastructure Strategy - https://assets.publishing.service.gov.uk/media/6853c5db99b009dcdcb73649/UK_Infrastructure_A_10_Year_Strategy_Web_Accessible.pdf
- The Infrastructure Pipeline – www. https://pipeline.nista.grid.civilservice.gov.uk/main
- NISTA and its remit: