HS2: Why the UK Needs to rethink infrastructure delivery policy

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Ariel view of HS2 - UK infrastructure policy
©Teamjackson | iStock

Delays to HS2 damage the UK’s reputation for delivering major projects at a time when we need a robust, long-term approach to UK infrastructure policy, argues Stephen Marcos Jones, chief executive of the Association for Consultancy & Engineering and the Environment Industries Commission

At the Association for Consultancy & Engineering, we champion infrastructure and the built environment in the UK.

Therefore, the image of this vital industry in a global context is of great importance to us – and our member firms, who employ more than 60,000 people in the UK and 250,000 worldwide.

It is of great concern to the ACE that progress towards major infrastructure objectives has “stuttered further, just as the need for acceleration has heightened”, to borrow a phrase used by our friends at the National Infrastructure Commission (NIC).

We fully agree with the commission’s call for the UK government to develop stronger staying power and focus on fewer, bigger, better-targeted initiatives to deliver the infrastructure needed to meet long-term goals for economic growth and a lower carbon economy.

The NIC has released a report on UK’s infrastructure policy and developments

The commission’s annual Infrastructure Progress Review highlights positive progress towards nationwide coverage of gigabit broadband by 2030 and continued growth in renewable electricity, both of which, it notes, have enjoyed a relatively stable policy environment.

However, there have been “negligible advances in improving the energy efficiency of UK homes, the installation of low carbon heating solutions or securing a sustainable balance of water supply and demand,” which have been subject to a more short-term and changeable approach in recent years.

Flimsy infrastructure policy harms the UK’s prospects

The UK needs a confident, robust and non-partisan approach to infrastructure policy because infrastructure is central to a green and prosperous UK recovery.

Further delays and a lack of long-term strategy and commitment to major infrastructure projects result in uncertainty throughout the industry.

This damages confidence in the UK’s economic and social recovery.

At the ACE, we support the NIC’s call for greater clarity for industry from the government, as well as the devolution of funding and decision-making to local areas.

Additionally, some of the recommendations in the NIC’s report mirror the asks of our 2023 Policy Manifesto, specifically in relation to post-project appraisal and reviewing lessons learnt as well as the importance of proposals to speed up National Significant Infrastructure Projects.

The recent disappointing announcement from transport secretary Mark Harper that parts of the HS2 line between Birmingham, Crewe and Manchester will be “rephased” by two years, taken as a result of inflationary pressures, represents an absolute false economy.

It is a prime example of the issues the NIC and we at the ACE are trying to address as we call for the government and policymakers in the infrastructure sector to have a major rethink about how these projects are formed and promoted to the public.

Increased costs, lost benefits

Of course, we understand that large-scale infrastructure projects like HS2 are naturally subject to market fluctuations and plans are always subject to changes at different stages.

But long experience of postponement of major infrastructure projects tells us there will be an inevitable increase in overall costs, as well as an overall loss of benefits – including addressing regional disparities across the UK.

It is of great concern to members of the ACE, that as the HS2 project is being viewed on a global stage, what the rest of the world thinks about our ability to deliver major infrastructure projects is impaired by this major setback.

Having to announce such a delay could hamper industry confidence and cause reputational damage to the UK.

Our members contribute more than £15bn to the UK economy and over £570bn globally each year, and we simply cannot afford to risk such reputational damage.

Better value, connectivity and wellbeing

In our 2023 policy manifesto, we recognise that current and future governments face a huge challenge when deciding how to invest in transport while simultaneously working to decarbonise it and ensure the delivery of better value.

ACE’s Transport & Mobility Advocacy Group, made up of a variety of large and small consultant engineering businesses, also recognised better transport systems lead to better businesses, connectivity and even better health and wellbeing – and are key to unlocking other ambitions for the country, from regional development to levelling up.

We have publicly called for the Integrated Rail plan to be delivered in full – including HS2 – to realise significant economic and social benefits.

It is now vital to get all the key players around the table, and talking about how we can deliver the much-needed and transformational HS2 project as quickly and efficiently as possible to reap all the great benefits it has the potential to bring.

Rethinking infrastructure delivery and policy

ACE has long called for greater collaboration between those working in the transport policy space.

We specifically recommend reforming ways of working within the Department for Transport to deliver an integrated approach to transport nationwide, bringing together policy specialists from across the sector.

The rise in inflation is a global problem, so how does the industry allow for that or deal with that on an ongoing basis?

The answers can only be found by increasing collaborative approaches to these issues, and where HS2 is concerned, we should use the time we now have to reflect on good practice and plan to make the next phase even better and more efficient.

There needs to be a much longer-term view of how we plan the nation’s infrastructure and a shared understanding across all political parties if we are to make progress when it comes to our major infrastructure objectives and the long-term prosperity these have the potential to bring.

The more HS2 and other significant infrastructure projects get delayed, the more we are hampering the recovery of Britain’s economy and the levelling up agenda.

Stephen Marcos Jones - infrastructure delivery policy
Stephen Marcos Jones

Stephen Marcos Jones
Chief executive
Association for Consultancy & Engineering

Tel: +44 (0)20 7222 6557
www.acenet.co.uk
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