06/01/2025
The State of Infrastructure in 2025
A year to build better communities.
2025 will see Keir Starmer’s government turn from ‘fixing the foundations’ to delivering on their missions.
They have ambitions to grow the economy, create good jobs, and raise living standards in every part of the country. One of the key ways they plan to deliver that is by investing in infrastructure: the buildings, spaces and services that build economies and communities.
This is a big opportunity. Parts of the country have been held back by underinvestment, outdated planning systems and centralised decision-making. Social infrastructure, like libraries, parks, community health centres and social clubs, has too often been overlooked. But the government’s new direction gives reason to be hopeful.
A national strategy for social infrastructure
The government is currently preparing a new infrastructure strategy covering the next decade. It will sit alongside a new national industrial strategy and be supported by the Planning and Infrastructure Bill. Local areas will be key partners in local growth plans that link into this wider national vision.
We now know this strategy, unlike all those before it (and there are many), will include social infrastructure. We’re hoping to see this government demonstrate its commitment to communities, health, and homes with a strategy that drives investment in place.
The upcoming Planning and Infrastructure Bill: an opportunity to do things right
The Planning and Infrastructure Bill is expected to be introduced to Parliament soon. Government briefings tell us it will tackle long-standing problems in the planning system: delays, under-resourcing, and lack of coordination across local areas.
As we discussed in our response to the King’s Speech, the Bill has strong ambitions and the opportunity to meet them. It won’t be easy, and delivery will be key. Since the abolition of regional spatial strategies in 2010, planning has lacked the coordination it needs. The result is poor alignment between housing and infrastructure, stalled developments, and missed opportunities to invest in social fabric to deliver economic growth.
We expect the Bill to shift power and funding away from Whitehall and towards towns, cities and regions. More combined authorities are being given devolved powers, and new areas will get a say in shaping their future. This is a chance to support more local decision-making, backed by real investment.
Addressing long-term inequality
The UK’s economic divides are deep and longstanding. Former industrial areas like parts of the Midlands, the North, Wales and Scotland still face the legacy of job losses and disinvestment. Many communities have seen rising poverty, falling life expectancy and fewer decent job opportunities.
Even within wealthier places, there are stark gaps. Often, just a few streets separate areas of high deprivation from those doing well. And where public spaces and services have disappeared, challenges get harder.
One of the government’s goals is to help all parts of the country grow. With limited funding and few levers of change, we’ll continue making our case that starting with place by using the new fiscal rules on capital to build better homes and communities will kick-start growth where we need it most.
Resilience starts with communities
Recent shocks have shown how vulnerable our economies and communities are. Places with active local institutions and public spaces have been better able to recover and rebuild.
That’s why the CFPI is pushing for social infrastructure to be treated as essential to this. Investment in youth services, green spaces, community centres and local health facilities can have wide-ranging benefits. From improving wellbeing and boosting participation, to supporting local jobs and reducing inequality.
Changing how we invest: ‘Crowding in’
To achieve its goals with a small pot, the government will take up the opportunities of public-private partnerships. We’re pleased to hear this. The reflex from the challenges of PFI should never have been to reduce opportunities to invest. Instead, we expect to see community benefit agreements, progressive procurement and vehicles that match up private money with public priorities.
The now National Wealth Fund has more power and capital to deliver projects for social value. This could open the door to investment in places and projects that were previously overlooked by private finance. ‘Crowding in’ is a chance to bring private money where we need it, for the outcomes we want.
What the CFPI will be doing in 2025
This year, the CFPI will be working with our partners to:
- Push for public and private investment in social and community infrastructure in every region
- Support local and combined authorities to deliver inclusive, locally led growth
- Make the case for partnership funding models to rebuild our public spaces
- Promote co-ops, social enterprises and community ownership as tools for local resilience
- Help shape how infrastructure strategies work in areas that need them most
Decisions made now will shape our towns and cities for decades. It’s up to us to make sure they will lead to healthier, fairer and more resilient places for everyone.