New report adds to calls for Government to get moving on new PPPs
A leading think tank, The Future Governance Forum (FGF), has called for greater urgency from Government in getting new public-private partnerships off the ground, warning that continued uncertainty risks investment, jobs and expertise going elsewhere.
A new report from FGF adds to a growing consensus that the Government needs to move faster if it is serious about bringing private investment back into UK social infrastructure.
The report argues that the UK needs a credible pipeline of projects to give infrastructure investors the confidence to build up their capabilities here. Without that certainty, it warns, investors may increasingly look to other international markets.
As the report puts it:
“The lack of a sizeable, credible pipeline, which would give investors strong conviction on building up their UK capabilities, has left many doubting whether the UK should be a priority market.”
It goes on to warn that the consequences are wider than simply losing capital, with “jobs and training opportunities going elsewhere”, and calls for “a clear, unequivocal signal” that projects will proceed at pace.
That message closely reflects what the Association of Infrastructure Investors in Public Private Partnerships (AIIP) has been hearing from its members.
Neighbourhood Health Centres: now is the time to deliver
The most immediate opportunity is the Government's Neighbourhood Health Centre programme.
The Government has committed to delivering 250 Neighbourhood Health Centres by 2036, including 120 by 2030. The first 27 centres are being delivered through investment in existing buildings, but the wider programme includes new-build centres for which PPPs are expected to play an important role.
The direction of travel is clear. What investors now need is delivery.
FGF's report is particularly timely because it argues that although PPPs have returned to the Government's infrastructure “toolkit”, significant institutional reservations remain within parts of Whitehall.
Whatever the reasons for those reservations, the practical question now is how quickly Government can turn its stated policy into projects.
AIIP has previously set out 35 recommendations for a modernised PPP model, drawing on the lessons of previous UK schemes and international experience. These include greater transparency, simpler contracts and performance regimes, and independent certification to strengthen oversight and quality.
Investors are ready. Government now needs to provide a clear pipeline and the certainty necessary for them to commit resources to delivering it.
Learning from Australia
We also welcome FGF's focus on what Britain can learn from countries where PPPs have continued to evolve.
Australia provides an important example.
Earlier this year, AIIP highlighted Australia's “precinct model”, which takes a more integrated approach to infrastructure rather than procuring individual buildings in isolation. In healthcare, that can mean considering hospitals, community health facilities, transport, housing and commercial development as part of a wider place-based programme.
From debate to delivery
Britain has an opportunity to draw on private capital and expertise to deliver the modern health infrastructure communities need. AIIP members stand ready to invest and deliver.
The challenge now is speed. The Government has opened the door to new PPPs. It needs to get projects moving through it.