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Sir Keir Starmer plans to use private finance to strengthen Britain’s infrastructure if a Labour government comes to power as part of a 10-year strategy to be drawn up within his first year in power. I I learned.
Industry sources said the party has set out plans to increase private sector funding and streamline the planning system for nationally significant infrastructure projects (NSIPs).
The NSIP is a massive infrastructure project that will include building large-scale housing, power stations, roads, railways and hospitals. Labour has already announced plans to build four new towns to provide 1.5 million homes, and in April it unveiled plans to invest £1.8 billion in Britain’s ports.
After consulting with industry leaders, Labor hopes its policies will boost economic growth and encourage businesses to invest in major infrastructure projects that have been delayed by red tape in recent years.
The Labour leader plans to campaign on the theme of “fixing a broken Britain” and said “nothing seems to work anymore” in a speech after Chancellor Rishi Sunak announced a general election in the summer.
“After 14 years of Conservative government, it just seems like nothing is working anymore – public services are collapsing, ambulances aren’t coming, rising mortgage rates are squeezing families, anti-social behaviour is rampant in high streets – the list goes on,” he said.
According to industry insiders I Labour has been discussing possible reforms with industry leaders since January, with shadow ministers convinced that building Britain’s infrastructure with the backing of big business could drive economic growth even under strict spending curbs.
But Labour’s infrastructure plans were still under consideration when Mr Sunak suddenly called for the election, and although the party was due to set out its policies in the first week of July, advisers have been told that not everything being discussed will make it into the manifesto.
The plan also includes a commitment to launch a 10-year strategy within Labour’s first year of government, outlining long-term goals for the nation’s infrastructure, focusing on areas such as net zero and emerging technologies.
It could also include relaxing planning rules for what are deemed infrastructure projects of national importance, as well as giving metropolitan mayors more planning powers to streamline approvals for critical infrastructure.
The Conservatives will also claim to be committed to improving Britain’s infrastructure.
Last April, the government announced its own plans to fast-track the NSIP.
In his foreword to the document, then Levelling Up Minister Michael Gove wrote: “Investment in infrastructure is needed to improve energy security, reach net zero and deliver the transport connectivity, water and waste management facilities this country needs.”
“We need to create the right planning system that can deliver this, putting communities and the environment at the heart of decision-making.”
The government set out the NSIP strategy in 2020, with then-Prime Minister Boris Johnson saying: “Roads, rails and fibre optic cables bind us together as one country, but the fabric of our land is starting to creak”.
He added that the plans would be underpinned by “hundreds of billions of pounds of public and private investment”.
And in July last year Chancellor Rishi Sunak claimed the Government was on track to meet its manifesto commitment to build one million new homes this parliament.
Construction companies and contractors have given a cautious welcome to Labour’s plans, I They will need to see more information before making a decision.
“The long-term pipeline outlook is good and will be welcomed by the industry. It sounds good, but the information we’ve been given so far is very vague. The mystery is in the details.”
“Will it provide the flexibility needed for certain projects, for example in the energy sector?”
One potentially controversial move is the increased use of private finance for large investment projects.
One industry insider said: I Labour plans to “reset” the relationship between the private and public sectors in the existing PFI (Private Finance Initiative) portfolio, and use existing quasi-government agencies to help connect investors with development opportunities in the UK.
Reports this year that schools were being prevented from mowing their lawns due to exorbitant PFI contracts awarded under the previous Labour government have raised some scepticism about the return of PFI to major projects.
One of Labour’s infrastructure plans was announced at the UK Property Investment and Infrastructure Forum on Wednesday, where Shadow Chancellor of the Treasury Darren Jones outlined Labour’s plans to merge the National Infrastructure Board and the Infrastructure Projects Agency into a single body called NISTA to combat “inertia” in infrastructure development, reporting directly to the Treasury and Cabinet Office.
Several industry players said I This was the “exact opposite” of what they expected Labour to announce.
One industry source said the plan was “madness” because the industry has been calling for greater independence in decisions on big projects, not increased involvement from politicians.
They said: “We find this announcement a bit odd given what we were expecting. We would have liked to see an independent body like the OBR, with independent hands over the nation’s infrastructure to prevent someone like Mr Sunak coming in and ruining over a decade of planning.”
Labour sources stressed that the policy had been announced with the support of bosses from major companies, including Skanska and Jacobs.
“If Labor wants to do something big and bold, give projects more certainty, but unless they’re pretty thorough with their reforms it’s not going to help anything. All projects will still be subject to judicial review.”
Angela Rayner MP, Labour’s shadow housing minister, said: “Big housebuilding and strategic planning are at the heart of Labour’s first steps to secure economic growth across the UK.”
“Labour will fast-track our plans to build 1.5 million homes, protect the dream of homeownership and deliver the biggest affordable housing increase in a generation.”
What is NSIP?
Nationally significant infrastructure projects (NSIPs) are large-scale projects that are so large and important that they require government permission.
Instead of applying for planning permission from the local authority, these projects will need to apply for a Development Permit Order (DCO) through the Planning Inspectorate.
The Planning Inspectorate will report to the Secretary of State responsible for the project, who will decide whether to grant consent.
Past examples of NSIP include:
- Hinkley Point C Power Station – In 2010, the government announced that it was considering Hinkley Point, Somerset, as the site for a new nuclear power station. The planning process for the station was considered under the NSIP scheme. The project is currently under construction and is due to be completed by 2031.
- Swansea Bay Tidal Lagoon The British government approved plans to build a tidal lagoon power station in Swansea Bay in 2015, but withdrew support in 2018, citing concerns about its cost-effectiveness.
- Thames Tideway Tunnel Plans for a 16-mile supersewer linking Acton in west London and Hackney in east London were announced in 2016. Construction is due to be completed in 2024, with the line set to open in 2025.
- North Doncaster Railway Code The North Doncaster Rail Cord, also known as Shaftholme Viaduct, is a large freight line that would allow freight trains to reach power stations in the Aire Valley without using the East Coast Main Line. Plans were first announced in 2011 and the cordon was completed in 2014.