A 10-year infrastructure strategy pledging at least £725 billion in long-term funding has been unveiled by the government in a move designed to reverse decades of neglect across the UK’s public sector buildings and lay the foundation for sustained economic growth.

The plan, announced  by the chancellor of the exchequer Rachel Reeves, promises a sweeping overhaul of how major infrastructure projects are planned and delivered. It allocates at least £9 billion annually to the maintenance and renewal of the health, education and justice estates, rising to over £10 billion per year by 2034–35.

BACKLOG AND DISREPAIR

The strategy seeks to address what ministers described as a soaring maintenance backlog that has left schools, hospitals and courts in disrepair. It will prioritise the elimination of safety risks such as RAAC concrete in NHS buildings, while creating better working environments for staff and improving services for patients, pupils and the public.

“Infrastructure is crucial to unlocking growth across the country, but for too long investment has been squeezed,” said Reeves.

“Crumbling public buildings are a sign of the decay that has seeped into our everyday lives because of a total failure to plan and invest.

“We’re not just fixing buildings – we’re enhancing public services, improving lives and creating the conditions for sustainable economic growth in communities throughout the UK.”

BREAKING THE CYCLE

The strategy forms part of the government’s wider Plan for Change and is underpinned by a shift in policy towards long-term planning and preventative maintenance, aimed at breaking the cycle of emergency repairs and short-term fixes that has typified public sector capital spending.

Becky Wood, chief executive officer of the newly established National Infrastructure and Service Transformation Authority (NISTA), said: “Strategic preventative maintenance based on longer-term plans is a more effective approach than making decisions in the absence of certainty about the future – and will ensure our vital public services remain resilient and fit for purpose.”

The health estate is set to receive more than £6 billion per year to modernise hospitals and reduce risks, with the goal of enabling earlier diagnoses and better patient outcomes.

Investment in schools and colleges will rise to almost £3 billion annually, aimed at transforming learning environments and improving educational attainment.

The justice estate will benefit from at least £600 million each year to upgrade prisons and courts, enhancing safety and access to justice.

STAKEHOLDER APPROVAL

The strategy has been broadly welcomed by infrastructure stakeholders. Keith Lawson, executive vice president at Jacobs, said the plan marked “a testament to the government’s commitment to driving economic growth, empowering communities, and providing market certainty”.

He added that Jacobs looked forward to working with government to deliver projects that would have “lasting positive impacts across the UK”.

Tracy Blackwell, chief executive of Pension Insurance Corporation, praised the new clarity and ambition of the strategy, noting its potential to attract long-term investment and promote social value.

“The government’s wider efforts on planning reform, transparent delivery bodies, and reducing the regulatory burden will supplement this new strategy – offering a much more investable environment across the UK,” she said.

The Royal Institute of British Architects also welcomed the funding commitments. 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.

“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.”

TRANSPORT MAINTENANCE

In addition to health, education and justice, the strategy also includes £1 billion for maintenance of key transport infrastructure such as bridges and flyovers, £590 million to initiate the Lower Thames Crossing, and £16 billion of new investment to support the construction of over 500,000 new homes.

The Treasury said the long-term funding certainty would enable the public sector and industry to plan further ahead, supporting the development of British supply chains and creating job opportunities across the country. NISTA will oversee delivery, working with devolved administrations to ensure a coordinated approach across the UK.