Infrastructure investment levels declined in nearly half of all local authorities between 2018-2022 - new report

• Purposeful Finance Commission says a huge decline in approval times for housing and infrastructure projects is due to an increased regulatory burden 
• Regulatory approach to implementation of the Building Safety Act adds up to 18 months to development timelines, compounding existing problems 
• New investment heatmap showcases which local areas have succeeded in attracting infrastructure investment

Almost half of local authorities (46%) across the UK saw a decline in infrastructure investment between 2018 and 2022, according to a new report published today. By 2022, these communities were receiving 16% less investment than they were in 2018. The underlying reasons are complicated, but include:

The findings are published as part of a new report by the Purposeful Finance Commission (PFC), chaired by Pension Insurance Corporation, and which includes Igloo Regeneration and Wates, as well as an Advisory Board of combined authorities, the Royal Town Planning Institute, and others with a major interest in this area.

Tracy Blackwell, CEO of Pension Insurance Corporation plc and Chair of the Purposeful Finance Commission, said: “Where the regulators have a critical role to play, such as in resident safety, there is no excuse for them to be under-resourced and effectively put a break on critical infrastructure and housing projects. There is also considerable work to do to fully understand where their work can be better focused. At the moment, the regulatory burden is strangling growth and I’m delighted the PFC is focusing on how regulation can better align with the Government’s growth mission and drive investment into the economy.”

Other key findings of the report, which includes an Investment Heatmap, include:

• according to the latest publicly available data, between 2018 and 2022, the level of private and public infrastructure investment rose by just 7% per head of population, compared to 37% between 2012 and 2016
• in 24 of the past 30 years, the UK has ranked at the bottom of the G7 league for infrastructure investment, meaning underinvestment of almost £2 trillion in the UK’s infrastructure
• the regions most in need of infrastructure investment—such as parts of the North, Wales, and the South West—are also those hit hardest by cuts to local authority planning budgets
• labour shortages and regulatory hurdles, especially in the construction sector, are intensifying challenges, causing delays and increasing project costs.

Commission quotes:

Stephen Beechey, Group Public Sector Director, Wates
“This report confirms what we at Wates have been highlighting to Government for some time – delays to infrastructure caused by planning and a lack of resources can add significant costs to projects, increasing costs to the taxpayer and making some schemes unviable. Efficiencies can be made by removing blockages in the system and ensuring industry has a long-term pipeline, reinforced by available funding, to ensure we as an industry can ensure we have the capability, resources and skills needed to deliver the vital social infrastructure our country needs.

“We look forward to continuing to play our part by supporting the Government’s ongoing 10 Year Infrastructure Strategy and the launch of the new delivery body NISTA which will be vital in driving those changes so we can all play our part in the long-term economic growth of the UK.”

John Long, Director, Igloo Regeneration
“The original sustainable developer, Igloo has been delivering regenerative development around the UK for over two decades. With the backing of our new parent, Places for People, we want to do more, and faster. Therefore we have been keen to support the work of the Purposeful Finance Commission to identify and break down the barriers which, in aggregate, make it unnecessarily cumbersome to get on and deploy our capital and skills to deliver the homes and communities our nation urgently needs.”

Advisory board quotes:

John Wilkinson, Director, Western Gateway
“I welcome this contribution to the important debate about investment in the UK’s regions. Research done by the Western Gateway shows the area’s potential for growth and how underfunded it is compared to other areas of the UK. Infrastructure investment is critical to improving our area’s connectivity and delivering green energy supplies, which will contribute to meeting the UK’s future tripling of demand for electricity, vital to enabling the country to hit its net zero targets. Investing in green energy infrastructure is particularly important for growth and a great opportunity for the Western Gateway to help secure UK energy security and net zero through its unique natural assets such as Celtic Sea, Severn Estuary and nuclear/hydrogen.”

Joshua Hawkins, Head of Global & Investment, Midlands Engine
“The Midlands is a powerhouse for UK growth, but the current infrastructure and investment landscape is holding back our full potential. The findings of this report reinforce what we regularly hear from businesses and local authorities - planning bottlenecks and regulatory barriers are stalling much-needed development. We must ensure that regulations support growth and that local authorities have the right resources to deliver key infrastructure. Unlocking investment is critical to delivering place-based regeneration and securing long-term economic prosperity for the UK.”

-ends-

Notes to Editors

About the Purposeful Finance Commission:
The PFC is an independent organisation chaired by Pension Insurance Corporation which includes Igloo Regeneration and Wates. The Commission is advised by the Greater Manchester Combined Authority, South Yorkshire Mayoral Combined Authority, Midlands Engine, Western Gateway, The Royal Town Planning Institute, Impact Investing Institute, and The Good Economy. It brings together local government leaders, investors, and experts to address the challenges of unlocking long-term private investment and driving regional regeneration.

For further information please contact:

WPI Strategy for PFC Report findings: 
pfc@wpi-strategy.com
Jake Pennington 07840 663802
Nick Faith 07960 996233

Apella Advisors for interviews:
PIC@apellaadvisors.com
Arne Wysny 07818 497469