A major pensions firm has urged the government to curb the ability of activists and single‑issue groups to delay infrastructure projects by proposing a suite of reforms to speed up delivery of housing, energy and water schemes.
Pension Insurance Corporation (PIC) published a 28‑point report arguing that the UK’s longstanding underinvestment in infrastructure is partly caused by an “investable pipeline” shortage rather than a scarcity of capital. The firm, which manages long‑term liabilities for policyholders, said institutional investors are ready to put money into the sector but are frustrated by regulatory delays, planning bottlenecks and rising project costs.
One of the most controversial recommendations is that people or organisations from outside a local area who submit objections to planning applications should be charged a fee and that repeat objectors could face additional charges to deter what PIC describes as high and disproportionate costs imposed on projects. The report also suggests removing caps on cost recovery for environmental legal challenges and loosening certain legacy planning obligations, while retaining safeguards for “sensitive areas”.
PIC proposes a range of other measures to increase the supply of “investment‑ready” projects and attract private capital, including:
- Allowing developers to offer direct financial or other incentives to communities to secure support for developments, backed by local ballots to ensure transparency
- Establishing a fast‑track regulatory route that accepts approvals from designated international peer regulators to accelerate UK approvals in sectors such as nuclear and pharmaceuticals;
- Creating a central Pipeline Fund and a National Infrastructure and Service Transformation Authority (NISTA)‑style body to provide specialist planning support to local authorities;
- Expanding public‑private partnership (PPP) models and standardised project finance templates, and promoting modular designs to cut costs;
- Giving metro mayors and regional bodies greater powers to fast‑track regionally significant projects.
The report sets out immediate and strategic changes: short‑term steps intended to be enacted within current policy frameworks, alongside longer‑term institutional reforms such as a dedicated “growth” body in government to review regulations and budgets from a pro‑growth perspective.
PIC highlights several statistics to illustrate its concerns: the UK has not completed a new reservoir since 1992 despite population growth, electricity availability has fallen since 2005, and housebuilding is at a decade‑low. The company says delays in grid connections and planning are constraining developments such as data centres and housing, and cites outside estimates that resolving grid constraints could add up to £40bn a year in economic output.
The firm points to projects it is already backing , a Havant Thicket reservoir and the Haweswater Aqueduct , as examples of where institutional capital can be deployed, but it says many potential investments cannot proceed because projects are not ready for market.
Government has enacted a range of recent measures aimed at addressing planning and infrastructure constraints, including reforms to the Nationally Significant Infrastructure Project (NSIP) regime, a Planning Bill and the creation of a National Wealth Fund and National Housing Bank. PIC stated these steps are only a start and that deeper reform of regulatory incentives and the civil service is required.
The report calls for the machinery of government to be “recalibrated” to support growth and urges cross‑party consensus, arguing the problem is systemic and predates any single administration.
PIC chief investment officer Rob Groves said: “PIC has invested more than £14bn in UK housing and infrastructure, and this wealth of experience is the driving force behind these 28 recommendations.
“Institutional investors, like PIC, want to invest more in UK infrastructure and have plenty of available funding to do so. The challenge is that we are not presented with enough viable, investable projects domestically. We believe this can be addressed through the policy reforms outlined in this report.
“Our industry should invest hundreds of billions of pounds in UK housing and infrastructure over the next decade. This is a historic opportunity to address decades of underinvestment and start to turn things around this year and for decades to come.”
Infrastructure APPG chair and MP Mike Reader said: “Economic growth depends on our ability to deliver modern infrastructure at pace.
“That means government and industry working together. It’s welcome to see PIC bringing forward ideas to help get Britain building again and I would strongly encourage the wider private sector to do the same. We all have a part to play”
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Source: www.newcivilengineer.com
