Massive investment is needed in the UK’s economic infrastructure but fiscal conditions mean that much of this will need to be met by the private sector. The Government needs to ensure that appropriate and efficient investment is undertaken - and to create conditions that will attract private sector funding. Success or failure will affect us all.
Much of the debate has focussed on the potential use of a Regulated Asset Base (RAB) model as a means of attracting cheap private sector funding. But we think the debate needs to be broader. It needs to recognise the key role played by the Government - and how this makes it crucial to focus on the “wrapper” (i.e. the regulatory and contractual framework) around any “RAB”. It is also important to ensure that appropriate investments are undertaken at an efficient overall cost. This is not just about low cost financing.
In this short webcast, we consider the benefits of such an approach and the relative merits of other models such as PPPs and public spending rounds. Drawing on our experience of assignments such as High Speed 1, the key to success - and some might say our future economic prosperity - lies in the development of collaborative solutions which draw on the best from different sectors.