Time running out to build the infrastructure the country needs, government advisors warn

The National Infrastructure Commission (NIC), the government’s official advisory body on infrastructure, said that there were “significant deficiencies” in critical areas around the UK.

These include an under-investment in regional transport and too many homes at risk of flooding.

Sir John Armitt, the commission chairman, said that the next five years will be critical for the UK, with any failure to go further and faster leading to lower economic growth and missed climate targets.

In an annual review of progress, the advisory body conceded that the Government had faced several years of disruption from shocks such as the pandemic and the energy crisis.

But, it said that now this period is over, the Government will need to increase public investment in infrastructure and boost private investment – which in a globally competitive market requires stable policy to attract investors, the commission argued.

It has warned public funding will need to reach around £30 billion a year over the coming decades, from around £20 billion a year in the past decade, while private investment will need to rise to around £50 billion a year.

Sir John said: “A window remains to ensure that practical delivery plans are in place, backed up by the necessary public and private funding, to help achieve economic and environmental goals that will improve life for British households.

“But the window is closing, at least if we don’t want to delay those benefits and compound the disruption of recent years.”

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said “There is a strong case for using Northern Powerhouse Rail as the answer to much-needed connectivity improvements. Evidence shows a high number of journeys across the Pennines despite slow and unreliable services in the corridor.”

On flooding, the commission warned current funding is not being strategically directed, with no long-term targets to measure progress against.

Flood risk is worsening due to poor planning for new development and “unmanaged” growth in hard surfacing that stops water draining away.

Capacity and connectivity north of Birmingham “cannot be materially improved” without further infrastructure investment, the report added.

It also called for devolution to be expanded to give all local authorities with responsibility for local transport five-year funding settlements to enable more stable planning for road maintenance and other priorities

Sam Richards, founder of pro-growth campaign group Britain Remade, said: "The latest report from the government’s own infrastructure advisers shows that, despite some progress being made, whoever wins the next election will need to deliver a major step change in infrastructure deployment to boost growth and cut carbon.”