It is widely recognised that the challenge of getting national infrastructure projects up and running isn’t down to a lack of available capital. Rather, the limitations are found where either the projects themselves have viability gaps making them insufficiently investable, the financial aspects of the project are not tailored to the right investors or capital pools or are simply not presented to investors in ways investors can readily understand and appraise. In particular, smaller projects outside of major cities can often require support to identify sources of available capital and present their business case in a way that can attract institutional investment.
We have long called for a ‘national investment broker’ to provide more effective coordination between national and regional government efforts to attract investment and provide potential investors with a clear picture of the UK’s offering. We were therefore very pleased to see the announcement in the government’s Infrastructure Plan to create a Strategic Investment Opportunities Unit (SIOU) within the Office for Investment which will deliver this concept.
The SIOU has the potential to play a crucial role in transforming the UK's investment landscape. By partnering with key stakeholders, including mayors, government departments, and public organisations, it will help identify, shape, and support strategic projects that have the potential to draw in private capital investment. To ensure that investment opportunities are effectively aligned with investor demand and better communicated to relevant institutional investors, the unit will leverage private sector expertise.
There are two key drivers behind the SIOU. The first is to simplify the process of connecting investment with projects by standardising processes and information to create a national ‘one stop shop’ for investors to review opportunities. The second, is to build capacity within government, especially in the increasingly critical combined authorities, to equip them to package and present major projects in a way that most effectively appeals to the needs of investors and those whose money they look after.
The creation of the SIOU and the role it will play within the Office for Investment is a testament to the power of collaboration between industry and government. It is designed to bridge the gap between available capital and investable projects, ensuring that the UK's infrastructure and growth opportunities are effectively matched with the right investors. Sharing expertise and creativity will be key to its success and we know from our members that the industry stands ready to play its part in this project through knowledge sharing and partnership.
This new approach will not only enhance the UK's investment landscape but also contribute to the broader goal of driving economic growth and creating jobs across the country. Over the coming months we will be working with partners in government to drive this initiative forward using the expertise of our industry to help policymakers create the growth and investment we all need in every part of the UK.
