Understanding business leaders’ priorities for a renewed industrial strategy, and undertaking new economic analysis to assess the potential impact of improving the UK’s performance in key areas.
The UK faces a persistent infrastructure deficit that is constraining economic growth and placing increasing pressure on public services. As recent OBR (Office for Budget Responsibility) forecasts and OECD (Organisation for Economic Cooperation and Development) comparisons highlight, the UK continues to invest materially less than many of its international peers – resulting in slower productivity growth and reduced economic resilience. At the same time, fiscal rules place hard limits on the expansion of public capital spending in the near term.
In response, PwC has engaged with over 50 stakeholders across public and private sectors to explore the potential for a renewed model of private finance in UK infrastructure. Our market engagement sought to understand both the barriers and opportunities for a new generation of Public Private Partnerships (PPPs), grounded in the lessons of the past and aligned with today’s delivery realities.
We believe the time is right to expand and accelerate UK infrastructure investment through a targeted new PPP model that can leverage both private sector expertise and balance sheets to align government spending with the economic benefits new infrastructure assets can deliver. Expanding and accelerating infrastructure investment across the UK is critical to unlocking increased inclusive growth.
While the experience of PFI (Private Finance Initiative) has created caution on both sides of the market—reflected, for example, in the limited role of UK contractors in recent Welsh Mutual Investment Model (MIM) projects—there is also clear evidence that risk transfer, high asset quality, and on-time, on-budget delivery have been achieved and can be again.
Ahead of the infrastructure strategy our report sets out 4 foundations that can enable the creation of true Infrastructure Partnerships for Growth (IPFGs) that unlock investment, accelerate delivery, and drive long-term economic and public service transformation.
To discuss the report findings, please reach out to one of our contacts below or your usual PwC contact.
Transforming infrastructure investment: A private finance perspective
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