New Government, New Infrastructure? Immediate thoughts post-election.

In a special episode of our Global Projects & Construction Group podcast, Laura Coates, and Robin Wood, both Partners in the Projects & Construction team, discuss what the Labour election victory means for infrastructure investment and development in the UK, and what changes could be on the cards for the months and years ahead.

Our two experts kick off with a high-level overview of Labour’s promises relating to infrastructure, including its plans for government oversight, strategy, and funding. They then spend time discussing energy strategy, healthcare, and which plans may prove attractive to international participants. Finally, they touch on how Labour is likely to evolve planning policy, plus housing, and transportation infrastructure. 

Can things only get better for infrastructure under a Labour government? Wood begins by praising Labour’s infrastructure rhetoric, particularly its plans for energy transition and manufacturing. Coates outlines the manifesto plans for oversight and funding, such as the creation of a National Infrastructure and Service Transformation Authority, an Industrial Strategy Council, and National Wealth Fund. Although, she notes there has been no mention of public private partnerships, “so we still await clarity on what a future model of private investment in public infrastructure may look like.”

On the topic of energy, Wood says: “it's really striking how much of the manifesto is given over to energy policy,” including several proposals aimed at transitioning from oil and gas to renewables. By way of contrast, Coates outlines the lack of clear policies related to healthcare infrastructure, despite the Labour manifesto describing the NHS as “in a state of disrepair”.

For international infrastructure firms, Wood sees “a fair amount which should be attractive,” not least the promise of tax, regulatory and political stability. He also believes industrial investors should be attracted to the focus on renewable energy and Labour’s industrial strategy: “steel manufacturing, and proposed encouragement for things like giga factories and data centers; they're all major projects which would involve very significant supply chains.”

Discussing the proposed update to national planning policy, Coates believes this is broadly promising for development, including house building. However, both guests have noted a lack of detail on transportation infrastructure, as policies such as Great British Railways and better road maintenance don’t appear to involve any significant development.

Summing up, Wood believes the “government will do what it can with the limited resources available to encourage private investment, probably focusing more on energy infrastructure than transport.” For Coates, there are “glimmers of hope… but as always, we'll wait and see whether manifesto promises turn into tangible change.”