Browne Jacobson comments on the government's 10 year infrastructure strategy

Commenting on the government’s 10-year infrastructure strategy, Craig Elder, Government and Infrastructure Partner at law firm Browne Jacobson said:

“This is significant for the industry; since PFI was abolished in 2018, there hasn’t been a nationwide model for private investment in public infrastructure. The report highlights the importance of matching private capital to the right models and opportunities to complement public investment. The strategy is clear that neither PFI nor PF2 (previous public private partnership, known as PPP, models) will be reintroduced.

“But it does stress that lessons have been learned from these earlier programmes, lessons which would be reflected in any new models. Some of benefits of PPP cited by the strategy are introduction of private sector discipline, and reduction in delivery risk – but only in very carefully targeted projects. As a result, the government will consider PPP where there is a revenue stream from the project, or in limited other cases such as health infrastructure and green energy.

“More details of any new models will be made clear in the Autumn, and it is striking that the government has been careful not to close the door on private finance. If the right models can be formulated, learning lessons from previous programmes, a new wave of PPP could play a significant part in the government’s objective to get the UK building again.”