Infrastructure in the UK

Infrastructure refers to the physical systems and structures that support a society, economy and enterprises. It includes physical components like roads, bridges, railways, airports, and utilities (such as water supply, electricity, and telecommunications), which are often thought of as economic infrastructure. It also includes social infrastructure like schools, hospitals, and housing.

Better-quality infrastructure allows an economy to be more efficient, improving its productivity, and raising its long-term growth rate and living standards. It can also improve lives in other ways: less congestion may lead to increases in leisure or family time; improved air quality improves health.

The state of UK infrastructure

The National Infrastructure Commission (NIC) – the government’s independent infrastructure advisor – says that while UK economic infrastructure performs well in some areas there are significant deficiencies that are holding the UK back. For instance, it identifies under investment in transport systems in regional English cities and that no major water supply reservoirs have been built in England in the last 30 years.

There is a general acceptance that there has been under investment in UK infrastructure in recent decades. The NIC says investment will need to increase to fund the “significant changes” required to upgrade the country’s infrastructure.

Challenges for UK infrastructure

Economic infrastructure is slower and more costly to build in the UK than other major countries, according to the government. Sectors such as nuclear power stations, high speed rail and rail electrification have faced cost challenges.

There is evidence that the UK’s planning system delays infrastructure delivery and creates higher cost.

A lack of clear strategic direction and stable policy environment has made it difficult for construction firms to invest in areas that could make them more productive. Investment in UK infrastructure can be volatile, leading to inefficiencies.

There are concerns that the UK economy lacks the required skills to deliver an increase in infrastructure investment.

What is the government’s strategy?

Reforms targeting infrastructure are an important part of the government’s economic growth mission. By making it easier to build infrastructure the government hopes to improve public services and grow the economy through increased investment.

An infrastructure strategy

The government’s 10-year infrastructure strategy was published in June 2025. It covers both economic and social infrastructure, such as hospitals, schools and prisons. It sets out a plan for how infrastructure projects are planned and constructed.

The strategy says the government hopes to drive growth by reforming institutions (such as the National Infrastructure Service and Transformation Authority – see below), providing certainty and stability to attract investment and removing barriers to infrastructure.

The strategy explains how the government will:

• use a spatial approach to planning – which aims to take a coordinated look at infrastructure development across different areas and sectors, rather than treating each project or sector in isolation.
• encourage private investment – by using institutions (such as the National Wealth Fund) to match private capital to investment opportunities, evolving infrastructure financial models and reforming economic regulation of the water, energy and digital sectors.
• boost regional growth through transport and digital connectivity – including increasing maintenance of existing transport networks and improving transport within, and between, towns and cities. Transport projects include East-West Rail, TransPennine Route Upgrade and West Yorkshire Mass Transit system.
• provide the right conditions for new housing – including changing the National Planning Policy Framework (NPPF), funding a new 10-year Affordable Homes Programme and using the National Housing Bank to catalyse private investment.
• make the UK a clean energy superpower – including securing more offshore wind, onshore wind and solar generation though the contracts for difference scheme, investing in carbon capture, usage and storage, building new nuclear generation, decarbonising sectors and establishing Great British Energy.
• deliver high quality social infrastructure – including through better collaboration across government and long-term funding for specific programmes. Health, education and justice will be key sectors for investment.
• improve the environment – including through taking a strategic and spatial approach to the environment.

An infrastructure pipeline digital portal will be launched in July 2025. It will be regularly updated and will provide information on publicly funded and financed economic and major social infrastructure projects. The Infrastructure Pipeline will also include privately funded and financed schemes where the necessary information is available.

The government will report on the infrastructure strategy’s progress every two years. The National Infrastructure Service and Transformation Authority (NISTA) will oversee the implementation of the strategy.

Devolved administrations

The infrastructure strategy is UK-wide, although some infrastructure sectors (such as water and transport) are devolved policy areas. Many policy tools associated with infrastructure (planning and economic development) are also devolved. The devolved administrations also have their own infrastructure strategies.

Planning reforms for significant infrastructure projects

Major infrastructure projects relating to energy, transport, water and waste are classed as ‘nationally significant infrastructure projects’ (NSIPs) in England. They require development consent from the relevant Secretary of State. 

In the Planning and Infrastructure Bill 2024-2025 the government proposes reforms to the NSIP planning process in England including: changes to the consultation requirements for projects; a requirement for the government to regularly review the statements which guide decision making on projects; and, a revised procedure for legal challenge.

How much is invested in the UK, and where?

Infrastructure projects in the UK are funded by public funding, private funding or a mix of both.

There is no complete measure of total infrastructure investment that covers both government and private sector investment.

Market sector

UK market sector investment in infrastructure was estimated to be £13.8 billion in 2023 (in 2021 constant prices).  The majority of investment was in the energy (£4.6 billion) and mining and quarrying (£3.9 billion) industries.

In these estimates, infrastructure investment is defined as civil engineering work or specialised construction work covering economic infrastructure sectors. Social infrastructure is not included.

source: ONS. Infrastructure in the UK, investment and net stocks: July 2024

Government

Government spending on core economic infrastructure was estimated at £26.0 billion in 2022, which is 34% of total government investment and equivalent to 1% of GDP. The majority is on transport including roads, airports, harbours and railways.

Government infrastructure investment, as a % of GDP, was higher in 2022 and 2021 than in any year since records began in 2006.

source: ONS. Infrastructure in the UK, investment and net stocks: July 2024

The measure of infrastructure used for government infrastructure investment is wider than that used by the ONS for the market sector, so the figures presented here aren’t comparable with those of the market sector. The NIC uses a different measure of private sector infrastructure investment to compare with public sector investment. The NIC’s measure suggests private sector infrastructure investment is higher than public sector investment when measured in a similar way to public sector infrastructure investment.

Regional investment

There is no complete measure of infrastructure spending at the sub-UK level.

Based on the broader measure of public sector investment spending (capital spending), London receives the highest investment spending for both economic and non-economic areas, relative to population size. Public sector investment in railways (including London Underground) is particularly high in London.

source: HM Treasury. Country and regional analysis: 2024

London and Scotland received the highest level of private sector infrastructure construction in recent years, relative to the size of population. This includes public and privately funded construction work, but not construction work carried out by public sector bodies themselves (for example, National Rail).

source: ONS. Infrastructure in the UK, investment and net stocks: July 2024

Who are the UK’s infrastructure public bodies?

Infrastructure oversight

The Labour government has combined two existing infrastructure bodies – the National Infrastructure Commission (NIC) and the Infrastructure and Projects Authority – into one, the National Infrastructure Service and Transformation Authority (NISTA).

The NIC provides independent advice to the government on the UK’s future infrastructure needs.

The Infrastructure and Projects Authority supports the delivery of major projects in government. This includes transport projects, defence projects as well as IT transformation and digital projects and others.

Infrastructure finance

The National Wealth Fund (NWF) is an investment bank that provides finance to the private sector and local government for infrastructure projects. Its strategic objectives are to support regional and local economic growth and tackling climate change.

The government says the NWF will support its growth mission by:

• Investing in the growth-driving sectors in the Industrial Strategy.
• Investing in support of the Infrastructure Strategy.
• Investing to support strong foundations for economic security and resilience.
• Investing in city regions, high potential clusters, and Mayoral Strategic Authorities’ Local Growth Plan Priorities.
• Working collaboratively with the Scottish National Investment Bank, Development Bank of Wales, and the Northern Ireland Executive.

Planning inspectorate

Major infrastructure projects relating to energy, transport, water and waste are classed as ‘nationally significant infrastructure projects’ (NSIPs). They require development consent from the relevant Secretary of State.  This regime applies to England and to a limited extent Wales.

Applications for development consent are made to the Planning Inspectorate, which is an executive agency of the Ministry of Housing, Communities and Local Government (MHCLG). The Planning Inspectorate carries out examinations of development consent applications on behalf of the Secretary of State and submits a recommendation report to the Secretary of State.