The UK Government published its long awaited 10 year infrastructure strategy on 19 June 2025 ("strategy").
It represents a single, joined-up plan covering economic infrastructure (transport, energy, water, waste, digital and flood risk management) with social infrastructure (hospitals, schools and colleges, and prisons and courts), and is to be overseen by the National Infrastructure and Service Transformation Authority (NISTA). It is designed to drive economic growth, improve regional connectivity, transition to a clean energy future, and enhance the quality of life for citizens.
In light of decades of underinvestment on capital spending on infrastructure, a 10-year plan for investment backed by £725 billion of Government funding is welcome, as is the funding commitment in priority areas, such as dedicated maintenance budgets for health, education and justice estates, a new 10-year flood defence programme, investment in housing, hospitals and the NHS estate, roads, rail, clean energy and digital connectivity.
However, funding alone will not solve the ongoing challenges in how UK infrastructure projects are planned and delivered and the strategy makes a significant shift towards a more coordinated approach to the planning and delivery of infrastructure projects to rectify some of the mistakes of the past - you only need to think of HS2. Around three key "pillars" it sets out to: reform institutions (such as agencies and regulators); provide certainty, confidence and stability through long-term funding/a pipeline of projects; and remove barriers to delivery.
The strategy also recognises the need to use private investment in its growth mission, the need to unlock growth across the regions and sets out the UK's bold ambition to become a clean energy superpower, deliver high quality social infrastructure and improve the environment.
This document is split into six parts and aims to provide key takeaways from each of the chapters of the strategy.
On the face of it, the strategy seems ambitious. However, with all strategies; the devil will be in the detail. Whilst it sets out a compelling vision, it is notably light on the mechanisms that will turn ambition into reality/delivery. For example, the commitment to a "long-term pipeline' is welcome but we have to await the launch of NISTA's new digital infrastructure pipeline (due July 2025) to see the list of forthcoming infrastructure projects, and questions remain about how these will all be funded, prioritised, and integrated across Government departments and then the regions. Equally, while the strategy acknowledges the use of private finance in healthcare infrastructure, it stops short of articulating what the next generation of private finance models will look like – we have to wait for the Autumn budget.
So, whilst the strategy is a welcome step to improving the UK's infrastructure and delivering economic, social and environmental benefits, it is a case of 'watch this space' whilst we wait for a clear, detailed roadmap for implementation to see whether it can deliver in practice on its ambition.
Here are the takeaways from the strategy:
A new approach to infrastructure to drive growth
At the heart of the strategy is the Government's new approach to infrastructure development aimed at driving economic growth across three key pillars: reforming institutions, providing certainty and removing barriers:
Reforming institutions and the approach to delivery
- Role of the National Service Transformation Authority (NISTA): NISTA - a joint unit of HM Treasury and Cabinet Office and recently created following the merger of the National Infrastructure Commission and Infrastructure Projects Authority - has been given a central role in the implementation of the strategy (including overseeing refreshes in line with future spending reviews). It is responsible for identifying and coordinating infrastructure needs and growth opportunities (both social and economic), supporting Government departments to deliver major projects and infrastructure in line with best practice and ensuring effective project delivery. It will also provide advice on private financing of major projects.
It is not clear from the strategy how NISTA will operate in practice. However, what is clear is that NISTA is pivotal to the success of the Government's commitment to improve how the UK plans and delivers infrastructure. It has a big task ahead of it.
- Reforms of the Green Book: A simplified, shortened and updated version of the Green Book - the Government's guidance on assessing the costs, benefits and risks of different options to achieve Government objectives – is to be published at the start of 2026. This was a headline in the Spending Review and so it's not new. However, the Green Book reforms to project delivery and appraisal, particularly the introduction of "place-based business cases, which bring together different projects that are needed to achieve the objectives of a particular place", like transport and housing, provide opportunities for a much more coherent infrastructure investment and local growth.
- Reforming the Government's Major Projects Portfolio (GMPP): NISTA will also play a role in providing oversight and support on the delivery of the GMPP – a collection of the UK Government's largest, most complex, riskiest and strategically important projects. This includes the so-called 'mega projects', such as HS2 and Sizewell C. Due to the scale and complexity of these projects - typically requiring over 10 years to complete, costing over £10 billion and involving multiple Government departments and stakeholders – the Government has set out a new approach to the funding and governance of these projects to try and improve their success, their governance arrangements and rectify some of the past failings.
Providing certainty, confidence, and stability
- Long-term funding certainty: A key component of the Government's drive for 'certainty, confidence and stability' in infrastructure planning and delivery is the intention to set multi-year capital funding budgets for many projects and programmes beyond 5 years and in some cases (for the health, education and justice estate) up to ten years ahead. These budgets will be reviewed and updated every two years.
The lack of long-term funding certainty has always been a blocker for Government departments trying to plan and prioritise spend on infrastructure and a disincentive for investors and suppliers, who lacked confidence in the Government's commitment to deliver on projects past the 5-year planning cycle. With areas of historical underinvestment stifled by short term spending plans, the long term funding certainty will undoubtedly be received with a huge collective sigh of relief.
- NISTA Infrastructure Pipeline: The strategy does not set out a list of forthcoming infrastructure projects. Instead, NISTA is expected to launch a new digital online Infrastructure Pipeline in July 2025, which will list the largest and most strategic infrastructure and construction projects and programmes being progressed and planned over the next decade. This is promised to be more than 'just a list of projects' – it will give information about project cost, schedule, type of financing models (public and private), location and procurement route, and will be updated every 6 months.
Projects included on the pipeline will cover those infrastructure and construction projects with a total cost (capital and maintenance) of £25 million or more for economic infrastructure (including transport, utilities and energy), £15 million or more for social infrastructure (such as education and health) and programmes of smaller projects that do not meet the thresholds. It is a case of 'watch this space' whilst we wait for the Infrastructure Pipeline to be released and for further details to be published.
Removing barriers to delivery of infrastructure projects
- National Infrastructure spatial digital tool: The strategy sets out the Government's spatial approach to planning infrastructure – in support of place-based infrastructure investment decisions aimed at "joining up across different sectors and geographies to address both national and local needs" (e.g. housing, energy and transport). Key to the success of spatial planning is the development, by NISTA, of a new national infrastructure spatial tool (to complement the Government's Land Use Framework due to be published later this year) aimed at consolidating strategies, data and modelling into a single platform for infrastructure planning.
- Planning Reforms: The strategy also seeks to remove blockers in the planning consent process through the Planning and Infrastructure Bill, which will fast-track 150 planning decisions on major infrastructure projects by end of this Parliament.
- Procurement Reform: This section is somewhat muted and understandably so. The strategy promises a more consistent approach to the construction sector and compliance with the Construction Playbook but without giving any detail as to how this will be achieved or what the current challenges in complying with the playbook are.
It also promises a more consistent approach to procurement and to "reform our approach to public procurement – making it simpler, more commercial". This sounds like a surprising statement perhaps after the last 4 years of considerable upheaval to public procurement law in the UK – one might ask "are we not done yet reforming public procurement?" Obviously not as the Government notified of its intent to launch a consultation on further reforms to the Procurement Act 2023 to ensure public contracts create high quality jobs and boost skills in the communities that most need them. This consultation was published on 26 June 2025 and proposes a number of measures to assist SMEs and local growth. Public bodies will need to create three year spend targets for investment in SMEs; at least one award criteria in every procurement must test contribution to job creation (with at least 10% given to social value criteria as a whole) and at least one KPI in every contract over £5m must then test delivery of this metric. There will be enhanced ability to exclude suppliers from bidding if they do not demonstrate payment of invoices to their supply chain within 30 days. Finally, they are proposing that before procuring any contract over £5m, the public body undertakes a "make or buy" assessment i.e. whether to in-source or outsource.
Much of this is tinkering with PPNs and guidance we already have and the age old problem arises, given procurement rules must apply to all suppliers equally, do rules designed to actually benefit SMEs actually make bidding more difficult for them?
Encouraging private investment
The strategy acknowledges that to deliver its ambitious programme will require significant increases in private investment, and identifies three key areas where Government is taking action: supporting the supply of private capital into the UK infrastructure market; matching these varied sources of capital to investment opportunities; and, ensuring a supply of projects to create demand:
Increasing the supply of private capital
- Institutional capital/insurers: In particular this relates to unlocking institutional capital, with the strategy referring to the Mansion House Accord, signed in May 2025 by 17 of the UK’s largest defined contribution pension schemes to confirm their commitment to investing 10% of their funds in private markets. Half of that - over £25 billion - is earmarked for investment into the UK economy.
The strategy also acknowledges the role which insurers will continue to play – pointing in particular to the reform of Solvency II increasing insurers’ incentives to invest in infrastructure assets, and the Prudential Regulation Authority's current consultation on the Matching Adjustment Investment Accelerator, to speed up the pace at which life insurers can invest.
- Further unlocking capital for growth: Key areas of focus identified by the strategy for unlocking other private capital are:
- Regulation for growth and investment - the Government's Regulation Action Plan sets out proposals to ensure that the regulatory environment will support growth and investment, with further detail to be included in the forthcoming Industrial Strategy’s Financial Services Sector Plan and the Financial Services Growth & Competitiveness strategy.
- Exploring ways to improve the capital efficiency of infrastructure investments – acknowledging the potential to unlock private capital invested in existing assets at (e.g. the 'secondary market' which developed for operational Private Finance Initiative schemes) the strategy confirms that the Government will work industry to explore if there is a further role for the Government in facilitating that.
Matching capital with opportunities
- Leveraging private capital into infrastructure that supports growth: The Government expects capital availability to increase further over the next decade, and for that capital to be available from a range of investors with a range of investment needs and preferences (e.g. between debt and equity). The strategy acknowledges that investors will in turn need to see a clear pipeline of investible infrastructure opportunities, and reaffirms the Government's commitment to creating the right conditions for the effective deployment of private capital to sign-posted opportunities.
- Utilising institutions: The strategy refers to a range of public financial institutions which the Government is developing to be able to put public money to work in a way that ‘crowds in’ private capital, including:
- The National Wealth Fund – which supports the Government’s growth and clean energy mission and has over £27 billion to invest. The NWF also supports regional and local Government with commercial and financial advice, and is expanding its role to provide early-stage development support to help places develop viable projects and build investment pipelines. The NWF is due to publish a strategic plan later in 2025.
- Great British Energy – which will develop, build and operate clean energy projects across the UK, including by working closely with and complement the NWF’s financing activities.
- Homes England - which is the Government’s housing and regeneration agency. The Government is establishing the National Housing Bank to operate as a subsidiary of Homes England and capitalised with £16 billion of new finance which the strategy says is to enable Homes England to offer a broader range of development finance products to SME housebuilders, and more flexible equity products to support more complex development schemes.
- The British Business Bank – which supports smaller businesses (such as emerging technologies that have the potential to support infrastructure development) to get the capital they need by making direct investment into companies and providing debt, guarantees and loans through commercial partners.
- Reforming economic regulation to encourage proactive infrastructure investment: The strategy acknowledges that on the one hand in some regulated sectors consumer outcomes have not been met and investment has lagged behind need, and on the other hand investment at a scale not previously seen is going to be required during the next decade to meet priorities in economically regulated sectors - in particular energy, digital and water. The strategy affirms the Government's commitment to overhauling the regulatory system to ensure it protects consumers and supports growth – with the Regulation Action Plan cited as the first stage in an ongoing programme of reform, and regulation of utilities specifically highlighted as a priority – and acknowledges the critical role for the Government to provide strategic direction to help regulators do their job and set a coherent approach (such as the forthcoming Independent Water Commission final report on the water sector).
- Signposting towards investible opportunities in the UK infrastructure sector: The strategy points to the expanded Office for Investment (OfI) and its now more sophisticated business development teams who will work closely with stakeholders to shape and develop projects. The OfI's new Strategic Investment Opportunities unit is described as having been established to partner with public organisations "to identify, shape and deliver on strategic projects and programmes with significant scope for private capital and investor interest" and possessing "convening power to unblock delivery issues". The unit will also work closely with NISTA to identify priority infrastructure projects with investment potential and promote these opportunities to relevant investors.
Creating demand for capital
- Deploying private finance to projects: The strategy recognises that there are already a variety of models available for delivering private capital to projects and that matching the right model to the right project is vital to ensuring the project benefits from effective risk sharing, innovation, etc. Reference is made to the Regulated Asset Base model which has been adopted primarily in regulated infrastructure sectors (such as water, energy and transportation) and allows the regulated entity to recover its investment costs plus a profit return through customer charges. It is being adopted to deliver a range of new infrastructure, including the Thames Tideway Tunnel and Sizewell C, and is reported to be under serious consideration for the Lower Thames Crossing.
- Public Private Partnerships: The Public Private Partnership (PPP) model is a long-term contract between a private sector party and a public sector body where private finance is employed to design, build and then maintain over the long-term (circa 25 being typical) a public asset. The provision of the private finance is compensated for by annual payments from the public sector body either directly from taxpayers or through consumer charges (for example, tolls or fares).
The strategy recognises that the UK was a pioneer for PPPs, launching first the Private Finance Initiative (PFI) and then Private Finance 2 (PF2) to deliver over 700 infrastructure projects. However, acknowledging the criticisms which a number of PFI and PF2 such projects have attracted over the years, the strategy also states very clearly that the Government will not be reintroducing PFI or PF2 as such.
Instead the strategy identifies two broad categories where the Government will consider again using PPPs - and with an explicit nod to the Welsh Government's Mutual Investment Model (MIM) as an example of a recent successful PPP model…and therefore a clear signpost to the Government's thinking for its preferred model? Firstly, for projects where there is a revenue stream, appropriate risk-transfer can be achieved, and value for money for taxpayers can be secured – with the financing for the redevelopment of Euston Station being cited as an example. Secondly, for (i) certain types of primary and community health infrastructure; and (ii) taxpayer-funded public estate decarbonisation projects such as the installation of solar PV, battery storage and low carbon heating solutions.
The former, being comparatively specific, has attracted much attention from industry - both public and private. For example, the 10 Year NHS Plan says it aims to build on the “successful” NHS LIFT (Local Improvement Finance Trust) model to deliver the new neighbourhood facilities. Community health partnerships has also urged the Government to consider the LIFT model as a blueprint for the future in its recently published Transforming Neighbourhood Health.
The LIFT model incorporated a strategic partnering element which was designed to allow a number of projects to be delivered by a strategic partner (with the private sector taking a majority stake in that vehicle but also including public sector investment and involvement) over a period of time and across a region. MIM has also been shown to lend itself to such a strategic partnering approach with its schools and colleges and programme. In addition, compared to previous models MIM has much further developed the focus on public-facing benefits and performance monitoring reporting obligations, and overall could be adapted for health infrastructure as well as other schemes.
Unlocking growth across the regions
- Unlocking city regions and high potential clusters: The strategy emphasises the economic benefits of improved transport infrastructure, such as reduced travel times, better employment prospects and increased economic density. Funding will support city regions like Greater Manchester and the West Midlands and growth corridors like Oxford-Cambridge. Transport policy is largely devolved, so the aspects of the strategy related to transport are largely relevant to England only but note that the strategy also covers rail infrastructure in Wales.
- Fixing the basics of the transport system: £24 billion of capital funding is allocated to National Highways and local authorities between 2026-2027 and 2029-2030 for motorways and local roads across the county, to address the backlog in road and rail maintenance. This includes fixing potholes and adapting infrastructure to climate change, with a view to ensuring long-term resilience and reliability of the roads network. What isn't clear from the strategy is how much of this capital funding will be allocated to local authorities for their local road schemes and how much will be allocated to National Highways to invest in the strategic road network.
- Transport investment to improve accessibility in cities: The strategy considers that urban transport underperformance restricts economic growth. To combat this, the Government plans to invest £15.6 billion by 2031-2032 for local transport investment in city regions via the Transport for City Region settlements. For example, to drive growth in the West Yorkshire region, the Government will be supporting creation of the West Yorkshire Mass Transit system with £2.1 billion of funding over 2027 to 2032. Transport for London will also receive £2.2 billion over the period from 2026 to 2030 for its capital renewals programme.
- Enhancing intercity road and rail connections: Projects like the Lower Thames Crossing and East West Rail aim to improve connectivity between economic hubs, ports and airports. These investments are intended to support trade, reduce congestion, improve resilience and unlock housing and industrial development.
On the road network, the Government intends to provide £590 million to progress works for Lower Thames Crossing and is considering bringing private sector finance into the project's long term funding model. For the wider strategic road network, the Government intends to publish a full list of projects for investment as part of development of the third Road Investment strategy.
On the rail network, over 2026 to 2032 the Government will be investing £35.5 billion, £2.5 billion of which will support delivery of East West Rail, enabling growth in the Oxford-Cambridge corridor. The Government will also invest £25.3 billion in delivery of HS2, £3.5 billion for the TransPennine Route Upgrade, at least £445 million for rail enhancement in Wales and £240 million to enhance Leeds station and progress the next stage of the Midlands rail hub. The Government is also due to announce further plans on Northern Powerhouse Rail in the coming weeks.
- Diversifying transport funding: Public investment formed the vast majority of total investment in transport infrastructure in 2023-2024. NISTA and the Department for Transport plan to explore how revenue streams can be diversified to reduce reliance on central Government grants and unlock more transport projects.
- Supporting growth through the ports sector: According to the strategy, our ports handle 95% of UK import and export tonnage and are vital for regional economies. The Government supports port expansion, having announced £55 million for expansion of the Port of Cromarty Firth in Scotland, for example. This will enable the manufacture of floating offshore wind turbines at scale – the Port of Cromarty Firth will be the first port in the UK to have this capability.
- Addressing constraints in the aviation sector: The Government has announced support for a third run way at Heathrow, as well as for other airport expansions, such as at Stansted and Luton, to enhance global competitiveness. The Climate Change Committee will be engaged on how aviation development can be consistent with net zero targets.
- Digital infrastructure for growth and innovation: The Government considers digital infrastructure to be an important factor in productivity and innovation. It is committed to expanding secure, sustainable data centres and supporting AI development to meet rising demand.
- Building sovereign compute capacity to support growth: £2 billion will be allocated to expand AI compute resources. The Government is also supporting the development of AI Growth Zones, which will be clusters of AI-focused data centres with enhanced access to energy and planning support. These zones will attract investment, support research and anchor high-value growth in regions like the Oxford-Cambridge corridor. The first AI Growth Zone is to be delivered in Culham, in the Oxford-Cambridge corridor.
- Upgrading telecoms networks and closing the digital divide: The Government supports commercial deployment of gigabit networks - old copper cables are currently being replaced with new gigabit capable connections throughout the UK. With 'Project Gigabit' the Government aims for 99% gigabit broadband coverage of UK premises by 2032. The Spending Review 2025 included £1.9 billion of Government funding for Building Digital UK to connect more homes and business to gigabit broadband.
- Improving mobile networks: The Government will target delivery of standalone 5G in all populated areas by 2030, to be delivered by commercial investment. Following the Competition and Market Authority's approval of the Vodafone and Three merger, the Government is reviewing the mobile market to ensure competition and innovation, with initial conclusions and next steps to be published by the end of 2025.
- Taking a ‘digital first’ approach to infrastructure: The Government intend for digital needs to be integrated into spatial planning and infrastructure design. Digital infrastructure initiatives are anticipated to include a £41 million investment for satellite connectivity on trains and additional support for 'digital twins' (virtual models of systems which mimic their physical counterparts in real time) to improve infrastructure efficiency.
- Infrastructure for research and development: Government research and development funding will rise to £22.6 billion annually by 2029–30. Investments are planned to include £750 million for a new supercomputer in Edinburgh and £1 billion for the Advanced Research and Invention Agency, supporting innovation in key growth sectors.
- Delivering more homes across the country: More detail on how the Government intends to increase housing supply, quality and affordability will be set out in the Government's Long Term Housing strategy later in 2025. The Spending Review 2025 set out the Government's commitment to build 1.5 million homes in England. The Government has also established a new National Housing Bank, with £16 billion new capacity as well as £6 billion of existing finance.
- Meeting demand for water and wastewater and waste management services: The Government acknowledges that major investment in water infrastructure is required, noting that in the past 30 years, no new reservoirs have been completed. According to the strategy, water companies are due to invest £5 billion over the next 5 years in new supply schemes. This will include 9 new reservoirs and 9 large-scale water transfer schemes, such as Fens Reservoir and Grafham Transfer scheme in Cambridge.
- Flood resilience and coastal erosion: The strategy states that the risk of flooding is estimated to affect approximately 6.3 million homes and business, 38% of roads and 37% of railways across the UK. By 2050, this is expected to rise to 8 million, 46% and 54% respectively. To combat this, in the near-term the Government intends to invest £4.2 billion over the next three years (20206 to 2029) to build and maintain flood defences. In the longer-term, the Government plans to invest £7.9 billion over 2026 to 2036 through a new 10-year floods investment programme, benefiting around 840,000 properties by 2035–36. The programme is due to launch in April 2026. It will be interesting to review the outcome of the Government's consultation on adopting a new, simpler approach to investment in flood defences which includes considering how regional mayors can support flood resilience and considering alternative sources of funding.
Becoming a clean energy superpower
- UK to be a clean energy superpower: The Government's mission is to make the UK a clean energy superpower by delivering a clean power system by 2030 then accelerating towards net zero for greenhouse gas emissions by 2050. Emissions in the power sector have already fallen by 78% since 1990 due to both a reduction in the use of coal and growth in deployment of renewable energy.
- Investment in UK produced energy: is a key theme of the strategy with the aim of providing lower costs, resilience and protection from fluctuation in overseas fuel markets. Great British Energy: a publicly owned clean energy company, will strategically develop, invest in and own clean energy projects across the UK and with Great British Energy – Nuclear will invest £8.3 billion over the Spending Review period on homegrown green power. DESNZ has set up the Clean Power 2030 Unit and established the independent National Energy System Operator (NESO) to support these ambitions.
- Electrification: is the primary route to decarbonisation. Electrified technologies can be far more efficient than fossil fuel with electricity demand set to at least double by 2050. Reducing reliance on fossil fuel imports also makes the UK more resilient to disruption on international markets. There will remain a role for gas and there is a commitment from the Government to support low carbon hydrogen production and carbon capture, usage and storage (CCUS) as decarbonisation options for gas users.
The industrial strategy published on 23 June 2025 contains plans to reduce electricity costs, accelerate grid connections and promote industrial decarbonisation. The industrial sector was the third largest contributor of greenhouse gases (14%) in 2023. Industrial energy prices are significantly higher in the UK when compared with Europe and North America which is a barrier to electrification in energy intensive industries.
- Growing the grid: To enable electrification, electricity networks must be expanded to transport the clean power to where it is needed with twice as much transmission infrastructure required by 2030 as has been built in the last decade. NESO has been commissioned to produce the Strategic Spatial Energy Plan due in 2026 to address this.
- Storage of electricity: is also vital to cover short term fluctuations in supply and demand and the Clean Power Action Plan sets an ambition of 23-27 GW of battery storage by 2030 (the capacity in 2024 was 4.5GW by comparison).
- Nuclear energy: will continue to have an important role with its ability to provide predictable low carbon energy with Hinkley Point C due to begin generating by 2031 and £14.2 billion of support for the development of Sizewell C. Rolls Royce SMR has been selected to partner with Great British Energy-Nuclear to begin one of Europe's first Small Modular Reactor (SMR) programmes which will provide a longer term solution as well as attracting export potential and applications for industry. £2.5 billion is also being invested in nuclear fusion. For those reactors coming to the end of their life there are opportunities for nuclear decommissioning and radioactive waste management which is led by the Nuclear Decommissioning Authority.
- Hydrogen and Carbon Capture: In harder to decarbonise sectors such as cement, investment in carbon capture and hydrogen technologies are key. Steps already having been taken on CCUS with major investment in CCUS clusters in the North East and North West announced by the Government in October 2024 and the new Acorn and Viking clusters being supported with development funding. £9.4 billion has been allocated to CCUS over the 2025 Spending Review period.
The strategy also supports the growth of low carbon hydrogen production. Funding has been allocated to the first round of green hydrogen projects and a shortlist prepared for the second round of funding. Climate Change Levy costs are to be removed from electricity used in electrolysis to produce hydrogen. £500 million has also been allocated to investment in hydrogen transport and storage to enable the development of the first regional hydrogen transport and storage network connecting producers with end users. It is hoped this will pave the way for larger hydrogen infrastructure.
- Decarbonising heat and buildings: Heating buildings accounted for about 22% of emissions in 2023 primarily due to the use of natural gas to heat homes. The Warm Homes Plan (£13.2 billion in total) will upgrade homes across England with energy efficiency measures, solar batteries and clean heat technology delivering both lower bills and warmer homes. This is being supported through a range of measures. There will be changes to planning legislation to make it easier to instal heat pumps, new minimum energy efficiency standards will be introduced for the private rented sector, an expansion on the technologies available for grant support and a promotion of the update of heat networks. UK manufacturing of heat pumps is also supported through the Heat Pump Investment Accelerator Competition. The Future Homes Standard aims to reduce carbon emissions in new homes by 70-80%. A consultation about the role of hydrogen in home heating is to be published later this year.
- Decarbonisation of the public estate: Much of the public estate is not energy efficient. The size of the estate also means it can be key for driving local renewable energy generation through heat networks and solar panels. The Government will explore where the use of PPPs and other private finance models can be used for public sector estate decarbonisation models.
- Decarbonisation the transport and waste sectors: Transport is the largest emitter of greenhouse gases at 36% (including maritime and international aviation) with road vehicles being the largest contributor. £2.6 billion has been committed to support decarbonisation as well as additional funding for research and development. New cars must be zero emission by 2035 with £1.4 billion supporting this transition. To support this public chargepoint provision also has to increase rapidly with 79,000 public charging devices currently available with the UK being on track to deliver 300,000 by 2030 and an estimated 550,000 by 2040. £400 million will be available to support these projects. Grid updates are needed for these chargepoints which can be a challenge in remote locations and are being addressed in partnership with industry.
Aviation and shipping are more tricky to decarbonise and the Advanced Fuels Fund (for research into sustainable aviation fuel) is being extended for the period of the Spending Review and funding for UK SHORE 2.0 to support maritime decarbonisation.
The waste sector contributes to 6% of UK emissions with the largest share coming from landfill (landfill tax will continue). Household recycling rates have stalled and the Government's Collection and Packaging Reforms seeks to address this.
- UK Workforce/Supply Chains: What is key is that the UK has the workforce and supply chains in place to support this ambition which will only be achievable if all stages of the energy production chain from generation, networking, delivery, storage and waste management are in place which will allow for the introduction of new technologies.
Delivering high quality social infrastructure
- Maintaining and renewing the social infrastructure estate: The strategy marks a decisive shift in how the UK Government intends to approach the delivery of social infrastructure, in particular, health, education, and justice estates over the next decade. The strategy acknowledges that “historic underinvestment and lack of strategic planning has left the health, education and justice estates with a substantial maintenance backlog” and sets out a plan to reverse this trend through smarter investment, better planning, and stronger partnerships. In Health, for example, this sees an annual investment of £6 billon over the next 10-years 'for maintenance and repair of the NHS estate with investment targeted to reduce the critical infrastructure risk and eradicate RAAC entirely.'
- Targeting new investment: The focus is not all on correcting the large maintenance backlogs in social infrastructure, the strategy also looks to the future and commits to rebuild new assets in order to deliver the much needed additional capacity required for schools, prisons and health (for example, to help meet the 18-week referral to treatment targets in emergency departments and the need for diagnostics and procedures). However, much of this focuses on projects that are already in progress, such as Hospitals built with RAAC or in wave 1 and 2 of the New Hospital Programme, so it is difficult to asses how much of the £24 billion committed to the New Hospital Programme is in fact new funding commitments. Further detail will help determine this.
- Digital first: A focus of the strategy is on cross-sector collaboration with a view to drive innovation and improvement in policies and approach to infrastructure. This new approach is evident in teams led by the Cabinet Office, NISTA and the Department for Science Innovation and Technology tasked with being 'digital first' and making better use of technology across social infrastructure, alongside AI alongside funding commitments for technology and digital transformation (e.g. up to £10 billion in the NHS by 2028/29.)
- Adapting the estate to align with modern, agile and reformed public services: A key example of this is the move in the NHS to shift care from hospitals to the community, which aligns with the 10-year NHS plan, which outlines the Government's commitment to establishing neighbourhood health centres in every community and new hubs for diagnostics and elective surgeries. Mirroring the 10-year NHS Plan, the strategy also indicates a move towards the re-use of Public Private Partnerships in the delivery of primary and community health infrastructure. No decision will be made unit the Autumn budget but is this Local Infrastructure Finance Trust (LIFT) 2.0 – building on the previous LIFT programme to develop modern, state-of-the-art primary care and community health facilities?
- Planning for social infrastructure: Importantly, the strategy also emphasises the role of social infrastructure in supporting broader economic and social goals. Stating “high quality public services are essential to a productive economy and thriving communities” and that investment in these assets must be seen not just as a cost, but as a catalyst for growth, inclusion, and resilience. This aligns with the strategy's whole-system approach, which integrates social infrastructure with housing, transport, and digital connectivity to create a more joined-up and sustainable places ideology.
- A roadmap to deliver better social infrastructure: The infrastructure sector (both public and private alike) have learned hard lessons from the past. To avoid repeating them, the Government must go beyond high-level commitments and provide a clear, detailed roadmap for implementation. This includes not only financial and regulatory frameworks, but also a cultural shift toward collaboration, long-term stewardship, and results based delivery. Without this, there is a real risk that social infrastructure will once again fall behind more commercially attractive sectors, despite its critical role in national renewal.
Improving the environment
- Delivering critical infrastructure while protecting the natural environment: A key component of the strategy is to drive nature recovery alongside economic growth. This is evidenced via the Government's commitment to invest £500 million over three years through the Nature Restoration Fund (NRF) (a pooled fund financed by nature restoration levy contributions from developers to fund larger nature projects), and a Marine Recovery Fund (planned for launch in late 2025) to offset the impacts of offshore wind farm developments.
Through these funds, the Government intends to enable infrastructure developers to meet some of their environmental obligations faster and at greater scale without comprising on its commitment to improve the environment. The NRF and MRF will run alongside the Biodiversity Net Gain (BNG) requirements, which mandates a 10% net gain in biodiversity when developing a site; BNG will be extended beyond projects consented under the Town and Country Planning Act 1990 to Nationally Significant Infrastructure Projects (from May 2026).
Much of the strategy reflects what is already in the Planning and Infrastructure Bill. However, once implemented, it will have significant implications for local authorities, developers and communities and will be key to accelerating improvements to the environment.
- Improving environmental regulation: The strategy draws on the independent Corry Review recommendations aimed at reforming Defra's regulatory framework - found to be ambiguous and inconsistent, particularly in the context of environmental enforcement - to better support both economic growth and environmental protection. It pledges to bring forward packages of reform (including legislation if necessary) that will address gaps in regulation, provide clearer outcomes for regulators and drive positive actions.
A focus on nature recovery as an essential component of sustainable growth through regulatory reform is a vital step towards an approach to infrastructure and development that delivers growth and nature recovery at scale. You just have to look at the Thames Basin Health Approach to see the success of a planning framework designed to balance the need for new housing developments with the need to protect the environment.
- Expanding the use of spatial planning: Similar to its approach to spatial planning for infrastructure, the strategy looks to expand on its use of spatial planning frameworks for the environment – a locally-led cross-boundary approach to nature recovery and development objectives in an area. Through the introduction of Local Nature Recovery Strategies (LNRS), Spatial Development Strategies and the publication of its new Land Use Framework (later in 2025), the Government aims to better manage competing demands between infrastructure and the environment. However, key to achieving this will be ensuring that these plans are not developed in isolation to truly ensure a joined-up approach to nature recovery and infrastructure development.
- The role of infrastructure in improving the environment: The investment in net zero, the water sector and the circular economy is seen as a way of delivering environmental benefits and improving resource efficiency in infrastructure. The strategy aims to integrate a circular economy into all aspects of infrastructure planning and delivery by designing, building and operating infrastructure in a way that minimises waste, maximise resources and promotes sustainability. It is to be backed up by a new Circular Economy strategy (due to be published in autumn 2025) outlining plans to reduce water and recirculate materials across high-impact sectors such as construction, textiles and plastics, together with recycling and packaging reforms.
- The role of nature-based solutions and green infrastructure: The strategy integrates green infrastructure and nature based solutions into infrastructure development. It gives weight to key commitments, such as the creation of green spaces in urban areas to improve the nature environment, the restoration of wetlands and forests, and the implementation of measures to reduce flood risk where it has committed to a new £7.9 billion 10-year capital investment programme.