Last week, the government released their Infrastructure Strategy, one of the first in the flurry of plans set to affect our industry over the next few weeks.
The government has framed this as a transformative strategy aimed at renewing the UK’s infrastructure and reversing over a decade of decline. The plan is backed by at least £725 billion of government funding for infrastructure over the next decade.
The flagship pledge for health is the guarantee of up to £24 billion of investment into the New Hospital Programme, with an additional over £5 billion for extra capacity for NHS diagnostics and procedures from 2026-27 to 2029-30.
The government will also renew UKHSA’s high-containment laboratory infrastructure to help prepare the UK for future health incidents, handle biosecurity threats and contribute to the government’s national security objectives. Further details on this approach will be revealed shortly, the government has pledged.
A decision on whether to pursue Public Private Partnerships to deliver critical parts of health infrastructure are set to be delayed until the Autumn Budget. This will be considered where there is a revenue stream, appropriate risk-transfer and where value for money for taxpayers is achievable.
The Oxford and Cambridge corridor will benefit from announcements in the strategy — an area the government is targeting to kickstart their growth ambitions. Promised £2.5 billion rail investments to enable better connections between the two cities are maintained and the first AI growth zone will be located in the region. These zones are designed to bringing together
industry, academia and local government to attract private investment.
The government signalled their determination to provide more targeted, strategic investments through existing institutions. As such, a new Strategic Public Investment Forum will be established, bringing together senior leaders from the likes of UK Export Finance, the British Business Bank, and the National Wealth Fund, to achieve this goal.
