CBI and Browne Jacobson launch PPP framework

The Confederation of British Industry (CBI) and UK law firm Browne Jacobson have issued a groundbreaking report that calls for significant reform of the public-private partnership (PPP) framework in the UK. Titled Pipeline to Progress: Making UK Infrastructure Investable and presented at the UK Real Estate Investment and Infrastructure Forum (UKREiiF) in Leeds, the report warns that without decisive reform, the UK risks falling behind other countries in attracting private investment for essential social and economic infrastructure such as schools, hospitals, and transport systems.

This report outlines a comprehensive strategy built around six foundational pillars: establishing a standardised national legal framework, ensuring proportionate risk allocation, promoting auditable social value, creating flexible financial structures, enhancing governance and accountability, and establishing a clear delivery pipeline through mayoral and combined authorities. It also features over 20 specific recommendations aimed at key government bodies, with timelines for implementation spanning three months to two years.

The UK Government has ambitious plans to initiate 1.5 million new homes and 150 significant infrastructure projects. However, constrained public funding makes it unfeasible for these goals to be realised without robust private sector support. Craig Elder, Partner in public procurement at Browne Jacobson, emphasised that “this report is resolutely forward-looking.” He added, “It focuses on practical approaches that can be implemented now to set out a legal and contractual framework that enables public and private sector collaboration when tackling the UK's infrastructure deficit.”

The report advocates for a new legal architecture governing PPPs, drawing from the experiences of over 60 businesses involved in the CBI's Infrastructure Working Group. It proposes updating how PPPs are viewed, suggesting a shift towards outcome-focused models that emphasise measurable social value and support broader regional development.

Among its recommendations, the report argues for a central PPP delivery body, akin to Ireland's National Development Finance Agency, which could enhance transparency—a key issue in previous PPP applications such as the private finance initiative. Rain Newton-Smith, Chief Executive of the CBI, remarked, “The UK stands at an important moment for infrastructure,” stressing that the critical challenge lies in converting ambitious plans into deliverable projects.

Overall, Pipeline to Progress presents a timely call to action, aiming to reposition the UK's infrastructure delivery model to attract the necessary investment to meet its ambitious goals. The full report can be accessed at www.brownejacobson.com/insights/making-uk-infrastructure-investable.