Bosses unite to call for government to stick to £725bn spending plan 

A host of industry leaders have signed an open letter to the new prime minister telling the new arrival at Number 10 not to rip up its 10 year infrastructure plan.

There are growing worries that the £725bn plan announced last summer will be watered down and raided for money to be spent in other areas such as defence.

Signatories include Kier chief executive Stuart Togwell, Balfour Beatty boss Philip Hoare, Mace Construction executive chairman Mark Reynolds, Aecom chief for Europe Richard Whitehead and T&T boss Vince Clancy.

roads

Source: Shutterstock

Several road building jobs have been cancelled in recent weeks and there are growing worries the £725bn infrastructure plan will be pared back to find money for increased defence spending

The letter says: “Now is not the time to rip up plans and go back to square one. The infrastructure systems we build today will still serve society for decades, perhaps even centuries, from now.

“We have the knowledge to deliver the transformational infrastructure the UK needs. What we require now is the political consistency to see it through.”

Several road jobs have been cancelled in the past few weeks and there are worries that the Defence Investment Plan (DIP) launched by the prime minister last month will be partly funded by changes to roads and energy capital projects.

Prime minister Keir Starmer said the DIP will be “funded by reallocating spending from across government departments – reallocating capital budgets by one penny in every pound whilst still maintaining public investment at the highest sustained levels since the 1970s”.

“It means departments making better use of assets like underused land and it means those departments with the largest capital budgets contributing more,” he said.

Departments already told to find savings include the Department for Transport which has been asked to find up to £700m from roads funding while the Department for Energy Security and Net Zero has been asked to find £2bn in savings.

The letter in full and those who have signed it

Infrastructure investment is key to meeting many of the UK’s challenges.

It helps create jobs, connects people to employment and education, boosts regional prosperity, helps enhance our environment, and will improve energy security and affordability. It is also critical that the UK’s infrastructure is adapted for our changing climate.

Investing in social and economic infrastructure also helps grow our economy.

Evidence consistently shows infrastructure investment can deliver strong, long-term benefits that significantly exceed the initial cost. Take the Elizabeth Line – one government estimate said it provided a £42bn boost to the economy, a significant return on the £19bn investment.

But infrastructure relies on many things: time, confidence, and stability.

Ongoing political uncertainty poses a risk to delivery and, soon, we will welcome our seventh prime minister in ten years.

As leaders from across the built environment, we urge the new prime minister to re-commit to current infrastructure plans, and speed up reforms designed to accelerate project delivery.

The 10-Year Infrastructure Strategy, just a year old, gives industry and investors alike the certainty they long asked for.

Alongside the Infrastructure Pipeline, it provides a long-term view of £725bn worth of projects and programmes over the coming decade.

But the real achievement of the strategy is its unifying vision. It offers a clear picture of how to plan, prioritise, and deliver infrastructure that policymakers and industry support.

Now is not the time to rip up plans and go back to square one. The sector will support the incoming government, but we need to stay focused on turning strategy into delivery: executing existing plans, building capacity, and fulfilling planned regulatory reforms.

The infrastructure systems we build today will still serve society for decades, perhaps even centuries, from now.

We have the knowledge to deliver the transformational infrastructure the UK needs. What we require now is the political consistency to see it through.

Dr Janet Young CBE, director general, Institution of Civil Engineers

Milda Manomaityte, chief executive, Association for Consultancy (ACE Group)

Richard Whitehead, chief executive - Europe and India, AECOM

Heather Polinsky, global CEO, Arcadis NV

Chris Ball, president, United Kingdom and Ireland, AtkinsRealis

Darren James, CEO, Aureos

Philip Hoare, group chief executive, Balfour Beatty

Suzannah Nichol OBE, chief executive, Build UK

Dr Victoria Hills, chief executive, Chartered Institute of Building

Sue Percy CBE, chief executive, Chartered Institution of Highways and Transportation

Ben Goodwin, director of policy and public affairs, Civil Engineering Contractors Association

Rain Newton-Smith, CEO, Confederation of British Industry

Alex Vaughan, chief executive officer, Costain

Ed Almond, chief executive and secretary, Institution of Engineering and Technology

Jo Passingham, interim chief executive, Institution of Mechanical Engineers

Richard Sanderson, executive vice president and general manager, Europe and UK, Jacobs

Stuart Togwell, chief executive, Kier Group

Mark Reynolds CBE, executive chairman, Mace Construct and co-chair, Construction Leadership Council

James Harris, executive chair, Mott MacDonald

Neil Sansbury, managing director, Ramboll UK & Ireland

John Wilkinson, COO UK and Ireland, Royal BAM Group

Dr Valerie Vaughan-Dick MBE, chief executive officer, Royal Institute of British Architects

Justin Young, chief executive officer, Royal Institution of Chartered Surveyors

Rachel Fisher, chief executive, Royal Town Planning Institute

Katy Dowding, president and CEO, Skanska UK

Vincent Clancy, chief executive officer, Turner & Townsend

Paul Reilly, president and managing director, WSP UK&I