Plan sets out how £725bn will be spent on infrastructure over next decade

The built environment has warmly welcomed the government’s 10-year infrastructure strategy, which sets out ambitions to spend £725bn over the next decade.

Published yesterday, the strategy will include £9bn for critical maintenance in the 2025/26 financial year, rising in subsequent years.

Roughly £6bn a year will be spent on health to make hospitals safer and improve working conditions, with RAAC concrete to be eliminate and facilities modernised.

Investment in school and college maintenance will stand at almost £3bn annually by 2034/35, rising from £2.4bn in 2025/26.

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Source: HM Treasury/Flickr

Chancellor Rachel Reeves (middle) and education secretary Bridget Phillipson visiting a school scheme in Kent yesterday

Meanwhile, while justice will receive at least £600m each year from 2026/27 to 2034/35 to improve the safety and security of prisons and enhance court facilities, rising from £500m in 2025/26.

The 10-year strategy, which is set to be updated every two years, also confirmed a number of planned investments that were announced earlier this week.

These include £1bn for maintenance on key transport infrastructure, including crumbling bridges, flyovers and crossings, £590m to start work on the Lower Thames Crossing and £16bn of investment in homes through a new housing bank.

Announcing the strategy in Parliament yesterday, chief secretary to the Treasury Darren Jones said: “From the development of the railways to the 2012 Olympic Games, we have a proud history in Britain of innovating, developing and building this high quality infrastructure but the reality is that we have now fallen behind many of our international competitors.

“Too many investors now question our intentions and our capabilities. When we say we will build something, they will often ask if we will and if we can. That is because for too long, the party opposite cut capital investment.

“They promised major projects one minute and then abandoned them the next and they left the public estate to crumble for 14 long years, from the roads we drive on to the schools we send our children to, wasted money, time and effort, declining productivity and wages and stagnant growth, and an increasing belief that politics can’t change things for the better.”

Reacting to the strategy, RIBA president Muyiwa Oki said: “If we want to build places that are not only fit for now, but also for the future, taking a strategic approach to infrastructure delivery is vital.

“Neglecting to ensure that developments are well-connected, with access to social and digital infrastructure, amenities, and green spaces can have adverse effects on people’s lives.

“Conversely, we know that investing in well-planned places can bring multiple benefits that make lasting contributions to communities, including improved health outcomes and economic growth. So today’s funding commitments, and the focus on place-based approaches, are very welcome.

“Architects are vital to ensuring that these projects – from schools and healthcare facilities to train stations – are high-quality, energy efficient and well-designed. We are ready to help the Government deliver on its growth ambitions.”

Institution of Civil Engineers director of policy and external affairs Sam Gould said the strategy would provide long term clarity, pointing to the strategy’s focus on place-based planning, the announcement of £10bn a year to maintain existing infrastructure and backing for public private partnerships as highlights of the document.

But he urged ministers to provide more detail on how new private finance models would work and how infrastructure would meet the challenge of climate change.

“There is a big job to do, but the strategy lays good foundations,” he said.

Royal Institution of Chartered Surveyors chief executive Justin Young said the strategy “sets the country on a considerably clearer path and represents a significant shift in how the Government approaches infrastructure and industrial capacity”. 

He added: “Importantly, it seeks to unlock development across the country while promoting sustainability and energy efficiency. Ongoing skills and labour shortages stifle construction projects and investment in skills for new professionals and upskilling for industry veterans is another promising development. 

“Confidence is critical for the construction industry, and this strategy sets a powerful message of intent to meet the challenges of the next 10 years.”

Huw Jones, executive director, civil engineering at BAM UK & Ireland, said the strategy was a “vital step toward unlocking long-term investment and delivering real value for UK society”.

“For too long, infrastructure planning has been constrained by short-term political cycles. This strategy marks a turning point. A stable, coordinated pipeline - underpinned by a £725 billion investment commitment - gives the industry confidence to invest in skills, innovation, and productivity - ultimately driving economic growth and supporting the Government’s strategic goals. Even a 1% increase in productivity across major projects can deliver significant gains to UK GDP, and this strategy gives us the platform to achieve that.”

Turner & Townsend UK managing director for infrastructure James Corrigan welcomed the government’s commitment to exploring new public private partnerships but called for ministers to go further.

“It’s promising to hear the government restate its commitment to working with industry to explore public-private partnerships to help bridge the funding gap. However, in parts, the language remains cautious.  

“To deliver the government’s big ambitions surrounding its missions, we need to see thorough consideration of where public-private partnerships can play a bigger role.”

Costain chief executive Alex Vaughan said the strategy marks a “crucial step towards ending the short-termism that has held our sector back”.

“It offers the long-term certainty the industry needs to drive both the predictability and productivity of delivery, and to invest in the skills needed to build the infrastructure of tomorrow.”

Vaughan called for a cabinet-level minister to “keep the strategy on course”, adding:  “Infrastructure isn’t optional, it’s the foundation of creating a sustainable future, and a more prosperous, resilient and decarbonised UK”.