The infrastructure opportunity we’re overlooking: Smarter asset use

The headlines following the autumn statement tend to focus on new investment commitments, such as plans for at least three new towns to support the ambition of delivering 1.5 million homes. Yet the UK already owns £2.7 trillion in assets, including £190bn in property, plant and equipment. The real opportunity for UK plc lies in optimising what we have, not simply building more.

This year’s Budget signalled a shift towards smarter asset management in the public sector, with a £1bn efficiency target to be achieved by 2030. A strategic asset review will be completed before 2027 to think creatively by exploring monetisation and asset disposal where appropriate.

This marks a move towards asset stewardship and offers a significant sustainability benefit. Built environment professionals know that the most sustainable solution is often not to build at all.

Between 2019-20 and 2023-24, the NHS recorded an average of 5,400 clinical service incidents annually due to property and infrastructure failures

Asset management matters because of the scale of expenditure involved. In January, the National Audit Office (NAO) reported that properties across the Ministry of Defence, schools and the NHS face maintenance backlogs exceeding £10bn each. Rationalising and disposing of assets could reduce these costs.

Fragmented estates lead to inefficient facilities management and poor value for money. Ageing infrastructure also affects service delivery: between 2019-20 and 2023-24, the NHS recorded an average of 5,400 clinical service incidents annually due to property and infrastructure failures.

So, what does a renewed focus on assets mean in practice, and how can it succeed?

Better data for better decisions

The NAO found in January 2025 that the Government Property Agency may have underestimated remediation costs because data on property condition is incomplete and outdated. Effective asset strategies depend on accurate information about location, condition and utilisation.

Consistent terminology and a clear system for describing asset condition are essential, rather than generating large volumes of condition surveys that require manual interpretation. This is a clear use case for application of agentic AI to a dataset.

Align assets with business strategy

Assets deliver the outputs needed to achieve organisational outcomes and benefits. Decisions on their use must be informed by a clear strategic vision.

HMRC’s recent estate transformation consolidated space into a smaller, greener footprint aligned with long-term objectives. This enabled better planning for lifecycle replacement and was recognised by the NAO as best practice.

Strong leadership is required across public and private sectors to define strategic goals and ensure assets support them.

Apply joined-up thinking

Permitted development rights (PDR) introduced after the financial crisis allowed surplus office space to be converted into housing. Similar approaches could repurpose assets to meet new demands, but PDR offers lessons for changes in asset uses.

Because full planning was not required, councils could not enforce contributions to social housing or infrastructure, and quality issues were widely reported. Repurposing assets must take a cross-system approach to avoid creating new problems.

Foster public-private collaboration

Last week’s Budget referenced private finance in delivering public infrastructure. Regulated Asset Base financing for the Lower Thames Crossing is well known, as is the plan to release land held for HS2. A new commitment to use public-private partnerships for NHS neighbourhood health centres signals a broader role for private capital.

Town centre revitalisation strategies which combine council offices with retail units show how shared use can unlock value. Collaboration on funding, utilisation and disposal will create further opportunities.

In summary, infrastructure is not only about new construction. It is about stewardship and management of the assets we already have. The strategic asset review offers a chance to rethink how public assets are managed and invites the industry to take a new focus on optimising what already exists.

Done well, this can improve public services and unlock investment without defaulting to new builds, and encourage sustainable thinking across the sector.

Holly Davis is a partner and leader within KPMG UK’s major projects advisory practice. This article is written in a personal capacity