Perspectives

The Times (by Samuel Watling and Matilda Davies https://lnkd.in/eAfsnSfz) article highlights how political dynamics in the UK vs. Europe can impact infrastructure project costs. Unlike Europe’s steady project continuity, the UK’s two-party system leads to fragmented long-term planning, dramatically affecting our ability to deliver crucial national infrastructure projects.

As discussed in numerous industry webinars, seminars, and conference breakout sessions, a potential solution could lie in the UK's £2.5 trillion pension industry, if we can work out an effective way to steer pension assets towards infrastructure projects whilst maintaining value for money for Schemes and individuals.

1. Long-term Investment: Pension funds align with infrastructure projects' extended timelines, promising steady capital flows into the future.

2. Cost Efficiency: Pension funds could negotiate favourable terms, promoting cost containment and efficiency, a narrative that can gain traction across the political spectrum.

3. Expertise & Governance: Establishing robust governance structures will ensure effective management of investments. A conducive regulatory framework, endorsed by a broad political consensus, could facilitate pension fund investments in infrastructure, fostering a climate of long-term planning beyond short-term political considerations.

4. Public-Private Partnerships (PPPs): Although much maligned historically, PPPs can pool resources for efficient project execution, with political endorsement, surely an area that we can apply "lessons learned".

5. Capacity Building: Fostering expertise within pension funds to manage infrastructure investments is essential. Consolidation could play a significant role, and bringing in external specialists and learning from European models could be pivotal.

6. Political Consensus: Building a cross-party consensus on a long-term infrastructure development agenda, inspired by successful European models, could mitigate some of the impacts of the existing UK system. Establishing a dedicated infrastructure commission with cross-party representation might help sustain long-term planning.

7. Community Engagement: Adopting a more community-centric approach in planning, akin to some European models, could address local concerns effectively, reducing the planning hold-ups often seen in the UK.

By adopting a more collaborative and long-term-focused approach, and strategically integrating pension assets, the UK could redefine its infrastructure development narrative. This not only promises better cost-efficiency but also aligns with our often-stated aspirations of delivering growth and higher productivity, a big boost for UK society at large.

Very hard to achieve? Certainly; anything worthwhile always is.