Background to the report

The government has identified investment in new infrastructure as central to its mission to grow the economy, and has indicated that it plans to work in partnership with the private sector to deliver this investment. The Infrastructure and Projects Authority’s (IPA) latest National Infrastructure and Construction Pipeline, published in February 2024, identified around £1 trillion of potential capital investment over the coming decades.

Jump to downloads

Private finance has been an important source of finance for public sector investments in economic and social infrastructure. There is a wide range of private financing models including the extensively used Private Finance Initiative (PFI). Sources of private finance for the initial capital investment include institutional investors (such as banks and pension funds) provided in the form of debt and equity or related financial instruments.

Scope of the report

As the government establishes its 10-year strategy for infrastructure investment, we set out lessons most relevant for government to consider, drawn from over 140 National Audit Office publications with relevance to the use of private finance for infrastructure. Our report contains 12 key considerations for decision-makers grouped under three headings.

  • Creating the right conditions to support investor and public confidence.
  • Making the right decisions at policy and project levels.
  • Adopting a commercial strategy to deliver successful outcomes.

Our report aims to support members of parliament, decision-makers across government and their advisers as they develop plans for new infrastructure and establish their preferred financing and funding models.

Downloads

Publication details

Related work