Treasury chief unveils new infrastructure body after HS2 fiasco
The government has unveiled plans for a single infrastructure body to solve the “cycle of under-investment and instability” that has gripped the sector for more than a decade.
In a speech at construction firm Skanska’s national headquarters, Treasury chief Darren Jones announced the new National Infrastructure and Service Transformation Authority (NISTA), which will look to fix systemic issues impacting the roll-out of a string of nationally significant projects.
“This new body will get a grip on the delays to infrastructure delivery that have plagued our global reputation with investors,” he said.
“It will restore the confidence of businesses to invest and help break the cycle of low growth.”
NISTA will bring oversight of strategy and delivery under “one roof” the government said, supporting the delivery of its ten-year infrastructure strategy and improving private sector confidence in the UK.
Two bodies, the National Infrastructure Commission (NIC) and the Infrastructure Projects Authority (IPA), had previously advised the government on infrastructure delivery.
The news comes amid growing backlash over Britain’s inability to complete major infrastructure schemes without significant cost overruns and years of delay.
The most high profile issues have been seen in the delivery of High Speed Two (HS2), the cost of which has spiralled out of control to over £65bn in recent years.
Last year, former Prime Minister Rishi Sunak axed the entire northern section of the route to Manchester, to the outrage of a number of key industry figures and politicians.
Other projects under the spotlight include the £9bn Lower Thames Crossing near Dartford, and Hinkley Point C power station, which has seen costs soar from £20bn to £42bn.
Investor confidence shaken
Jones warned that investor confidence had been shaken by the instability of the last decade, with statistics showing the UK has historically ranked lowest among the G7 for investment.
Infrastructure is the “very lifeblood” of the country’s economy, he added, noting the benefits of increased connection to the rest of the world, better opportunities for working people and talent creation.
The National Infrastructure Commission will also publish a seperate report into the issues impacting UK infrastructure, which is expected to point to a “debilitating lack of strategic clarity” as a route cause.
Jones has previously said the NIC was not “taken seriously” under the previous Conservative adminsitration.