Report estimates £258 billion infrastructure spending gap ahead of UK pipeline update

The UK’s infrastructure pipeline could require substantially more public investment over the next decade than is currently planned, according to new analysis by the Public Private Partnership Commission (PPPC)⁽¹⁾.

In a new report, the PPPC estimates that an additional £258 billion of public investment could be required over the next ten years, assuming the same public-private funding split as the present pipeline.

The pipeline is managed by the National Infrastructure and Service Transformation Authority (NISTA) and currently comprises 734 projects worth approximately £718 billion over a decade.

The PPPC, led by former National Infrastructure Commission chair Sir John Armitt, estimated that total spending would need to be around two-thirds higher to meet the infrastructure requirements set out in the NIC’s 2023 National Infrastructure Assessment.

Dr David Crosthwaite, chief economist at BCIS, cautioned against placing too much emphasis on the headline figure but said the report highlights the potential constraints on the government’s ability to deliver planned infrastructure within existing budgets.

‘The substantial rise in gilt yields has squeezed the government’s fiscal headroom,’ he added. ‘At the same time, construction costs are very unlikely to fall in the near term, particularly given emerging supply pressures from the conflict in the Middle East and changes to domestic trade policy.

‘This could mean the government has less money to spend on projects that will cost them more to build. Planning and politically driven delays would compound the problem.’

The PPPC report was published ahead of the next update to the national infrastructure pipeline, due in September. The pipeline is intended to be updated every six months, although the latest edition was published in March 2026, later than originally expected.

Since then, geopolitical developments, domestic trade policy and government borrowing costs have all shifted. Dr Crosthwaite said these factors may affect infrastructure delivery costs beyond what was expected when NISTA published the revised pipeline.

The extent of any impact will also depend on how conditions continue to evolve, including conflict in the Middle East and future monetary policy decisions.

Dr Crosthwaite also raised concerns about supplier confidence and the industry’s capacity to deliver pipeline projects.

‘Recent BCIS industry panel insights suggest that while activity in some infrastructure sub-sectors, like water, is strong, suppliers remain uncertain over the pipeline and potential for competing spending priorities to divert funds elsewhere,’ he said.

‘With the Budget around the corner, the government must avoid stop-start funding decisions and provide upfront clarity on its infrastructure commitments as a new administration. Suppliers need the confidence to commit resources and capacity, particularly when they may have attractive opportunities elsewhere.

‘The same logic applies to private investors. The UK is competing for international capital, and investors will weigh opportunities here against those in overseas markets that may offer a more attractive investment environment, including fewer regulatory barriers.’

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^{(1) Bradshaw Advisory – PPPC REPORT: UK needs to unlock private finance to fill infrastructure gap  - here}