Out-Law News 2 min. read

Independent Infrastructure Commission could 'change the landscape' of UK infrastructure, expert says


The creation of an independent National Infrastructure Commission with oversight of UK infrastructure investment policy could "change the landscape" of both the industry and the way that projects are delivered in the UK, an expert has said.

The UK's Labour Party set out the proposed remit of such a body (8-page / 121KB PDF), the creation of which was recommended by industry expert Sir John Armitt in 2013, at a conference yesterday. The new body would replace the UK Treasury's Infrastructure UK unit, and its priorities would include the provision of the infrastructure needed to guarantee 200,000 new homes per year by 2020.

Infrastructure planning and government affairs expert Robbie Owen of Pinsent Masons, the law firm behind Out-Law.com, advised the Armitt Review and drafted legislation which would create the National Infrastructure Commission. He said that the creation of this new body would "hold the government's feet to the fire" on vital infrastructure investment decisions.

"A lot of progress has been made since the downturn in hiking infrastructure up the political agenda, by both this government and the last," he said. "But this has been within the constraints of Whitehall where Infrastructure UK has no ultimate power over semi-autonomous government departments."

"The big decisions on infrastructure should of course be taken by our politicians, but it's simply unacceptable that governments carry on doing so without any real framework or proper process. Sir John's proposals will, at least, result in the UK properly planning for its infrastructure in a way that is properly founded and considered and with much better public involvement and debate than we currently have - involvement and debate that is crucial if important but controversial schemes such as HS2 are to command the widest possible support," he said.

Former Olympic Delivery Authority chair Sir John Armitt recommended the creation of a new National Infrastructure Commission with statutory independence as part of a review of long-term infrastructure planning in the UK, commissioned by the Labour Party in 2013. This body, which would be set up by an act of parliament, would set clear long-term priorities for UK infrastructure investment and would produce a National Infrastructure Assessment, to be presented to parliament for its approval, once every 10 years.

Infrastructure UK, the Treasury unit that deals with long-term infrastructure priorities and their funding, currently produces an annual National Infrastructure Plan (NIP). The NIP is the government's 'pipeline' of planned projects, including the 40 major infrastructure projects seen as its highest priority. Owen said that although this document was very useful, it was not a "plan" looking at the UK's infrastructure needs over "a 25-30 year horizon".

The draft "remit" document published for consultation by the Labour Party sets out 10 'national infrastructure goals' which would inform the commission's work. These include emphasis on scientific research, transport, telecommunications and decarbonised power, as well as a target to have five UK cities in the European top 20 for growth by 2045. The body would also be responsible for ensuring that the infrastructure, 'new towns' and urban extensions needed to provide 200,000 new homes a year by 2020 was in place, with a view to meeting national housing needs by 2025.

Shadow chancellor Ed Balls said that the legislation needed to set up the commission would be included in the next Queen's Speech should Labour win the General Election in June. The fact that a draft bill had already been published would ensure that the plans could be fast-tracked through parliament this year, he said.

"We will establish an independent National Infrastructure Commission to identify our long-term infrastructure needs, from energy to flood defences and transport. The commission will then ensure government comes up with credible plans to meet them – and hold ministers' feet to the fire to deliver those plans," he said.

A number of UK business bodies have already backed the proposals in the Armitt review, including the Confederation of British Industry (CBI) and EEF, the manufacturers' organisation.

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