Government ushers in new era for UK infrastructure delivery
Government delivers on manifesto commitment to reduce red tape – merging existing bodies to get a grip on delays to infrastructure delivery.
- Infrastructure strategy and delivery brought together under one roof to support delivery of roads, railways, schools and hospitals, key to delivering on our Plan for Change to deliver the 1.5 million homes this country needs.
- Government also publishes the Teal book, the definitive guide for project delivery in government.
Roads, railways, schools and hospitals will be delivered more efficiently as this government “gets a grip” on vital infrastructure delays and goes further and faster to kickstart economic growth and improve the lives of working people across the country.
Bringing together two bodies into one, the National Infrastructure and Service Transformation Authority (NISTA) will accelerate the delivery of major government projects – supporting delivery of our roads, railways, schools and hospitals - by overcoming barriers and providing expertise on private finance, alongside developing and implementing the 10-year infrastructure strategy.
NISTA – launching today - will look to fix the foundations of our infrastructure system by bringing strategy and delivery under one roof, addressing the systemic delivery challenges that have stunted growth for decades.
Transforming the way we plan for and deliver major projects is essential to the government’s number one mission to grow the economy and is key to delivering on our Plan for Change to deliver the 1.5 million homes this country needs, making Britain a clean energy super-power and improving public services.
Over recent years uncertainty about infrastructure plans and policy and poor delivery has inhibited investment in programmes and supply chains, pushing up end costs for consumers.
Analysis from the Construction Leadership Council of 20,000 projects has found those with the best planning at the start of a project, had 20 per cent lower costs and were delivered up to 15 per cent faster.
The 2024 National Infrastructure Commission report on cost drivers of infrastructure projects in the UK found that a lack of a long-term strategic vision and plan for infrastructure was a root cause of higher costs. NISTA and the 10 Year Infrastructure Strategy will set the long-term plan needed to address many of these issues.
Alongside this, today the government has published the Teal book, the definitive guide for successful project delivery in government, which is set to transform how government projects are planned, managed, and delivered, benefitting hard-working people.
Darren Jones, Chief Secretary to the Treasury said:
NISTA will get a grip on the delays to infrastructure delivery that for too long have plagued our global reputation with investors. Today we are ushering in a new era for infrastructure delivery, restoring the confidence of businesses to invest and driving a decade of national renewal, powering growth across the country, and delivering on our Plan for Change.
Today’s launch of NISTA is part of a three-pronged approach to addressing the fundamental constraints to infrastructure investment, sitting alongside the 10-year infrastructure strategy, which sets out a long-term plan for the country’s infrastructure, and the new Planning and Infrastructure Bill to unblock planning constraints.
It follows last week’s Spring Statement, where the OBR concluded that the government’s landmark planning reforms will result in UK housebuilding reaching its highest level in over 40 years, bringing the UK one step closer to its Plan for Change mission to build 1.5 million homes.
The economy will be 0.2% larger in 2029-30 because of the reforms – worth around £6.8 billion in today’s money – growing to 0.4% over the next ten years. This represents the biggest positive growth effect it has ever forecasted for a policy that comes at zero-cost to taxpayers. The reforms will secure over 170,000 new homes for hard working families and leave borrowing £3.4 billion lower in 2029-30.
In priority areas like the Oxford Cambridge Growth Corridor, NISTA will support a strategic approach to planning for infrastructure, growth and the environment, necessary to deliver the significant economic benefits that infrastructure investment can unlock.
More information
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NISTA is currently being led by Jean-Christophe Gray, who will act as interim chief executive until the permanent Chief Executive of NISTA is appointed, this will be announced shortly.
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A dedicated news article has been published on projectdelivery.gov.uk detailing the launch of The Teal Book.
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This article offers comprehensive insights into how The Teal Book is designed to enhance project delivery, fostering greater efficiency and productivity in alignment with the government’s Plan for Change. It highlights The Teal Book’s guidance and best practices, supporting continuous professional development, streamlined planning and delivery, risk-based control measures, and the enhancement of performance across government projects.
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For further information and to access The Teal Book, please refer to the full article at https://projectdelivery.gov.uk/government-project-delivery-launches-the-teal-book
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Today, the Chief Secretary has also appointed the National Infrastructure Commission’ Commissioners to form an Advisory Council for NISTA to support the implementation of the government’s 10-year infrastructure strategy and delivery of NISTA’s objectives.
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A memorandum of understanding between HM Treasury and the Cabinet Office will be published shortly, which will govern the relationship between the new unit and the departments.
Sam Gould, the ICE’s director of policy and external affairs said:
The government’s decision to combine the NIC and the IPA in a new body with end-to-end responsibility for infrastructure is a huge opportunity. There’s wide acceptance that the UK needs infrastructure to meet its economic, environmental, and societal ambitions. It has faced recent delivery challenges, and NISTA has an opportunity to bridge the gap between strategic needs and delivering infrastructure that will benefit the public.
Ahead of the 10-Year Infrastructure Strategy, NISTA has a short window to set out how it is going to approach these tasks. The right expertise to plan and successfully deliver infrastructure existed in the NIC and the IPA, now the focus needs to be on getting the job done.
Energy UK’s Deputy Director, Policy (Systems), Charles Wood:
NISTA’s establishment, alongside the Planning and Infrastructure Bill, offers an opportunity to streamline the strategic delivery of utility infrastructure across the UK. The UK is rapidly moving toward a cleaner energy future, requiring both public and private investment, developed supply chains, skilled workers, and a holistic strategy for delivery. We hope NISTA can support this goal and continue the work of the National Infrastructure Commission, retaining the independent expertise gathered and enabling a more coordinated and cost-effective approach to infrastructure delivery.
The government must use everything at its disposal to help deliver the energy transition at pace, continuing the coordinated decarbonisation of the power system while increasing a similar effort across the heating, transport, and industrial sectors. This will boost investment in the UK’s clean energy sector, support the connection of new demand like data centres, heat networks, and rapid electric vehicle charging - and enable cost-effective infrastructure that delivers for consumers now and in the future.
Richard Whitehead, AECOM CEO for Europe and India, said:
AECOM welcomes the launch of the National Infrastructure and Service Transformation Authority. This new body further demonstrates the government’s commitment to accelerating the delivery of essential infrastructure and marks a significant step forward in addressing long-standing infrastructure challenges in the UK.
We are pleased to see the government taking strong political leadership by integrating infrastructure strategy and policy. In addition, a stable infrastructure pipeline, insulated from political cycles, is vital for attracting private finance, maintaining long-term certainty, and ensuring the efficient delivery of major projects.
This announcement, alongside the recent streamlining of regulatory processes and reforms to the planning system, lays the foundation for growth, instils investor confidence, and advances the government’s 10-year infrastructure strategy. We look forward to engaging with the NISTA leadership.