The Government has today announced the launch of the National Infrastructure and Service Transformation Authority (NISTA), saying it “ushers in a new era for UK infrastructure delivery.”

Announcing the launch, HM Treasury said it is merging existing bodies to get a grip on delays to infrastructure delivery. NISTA will bring together the National Infrastructure Commission (NIC) and the Infrastructure and Projects Authority (IPA).

The Government said that bringing the two bodies together into one will accelerate the delivery of major government projects by overcoming barriers and providing expertise on private finance, alongside developing and implementing the 10-year infrastructure strategy.

Officially launching today, NISTA will look to fix the foundations of the UK infrastructure system by bringing strategy and delivery under one roof, addressing what are described as “the systemic delivery challenges that have stunted growth for decades.”

Over recent years uncertainty about infrastructure plans and policy and poor delivery has inhibited investment in programmes and supply chains, pushing up end costs for consumers.

Analysis from the Construction Leadership Council of 20,000 projects has found those with the best planning at the start of a project, had 20 per cent lower costs and were delivered up to 15 per cent faster.

The 2024 National Infrastructure Commission report on cost drivers of infrastructure projects in the UK found that a lack of a long-term strategic vision and plan for infrastructure was a root cause of higher costs. NISTA and the 10 Year Infrastructure Strategy will set the long-term plan needed to address many of these issues.

Alongside this, today the government has also published the Teal book, the definitive guide for successful project delivery in government, which is set to transform how government projects are planned, managed, and delivered.

Darren Jones, Chief Secretary to the Treasury commented:

“NISTA will get a grip on the delays to infrastructure delivery that for too long have plagued our global reputation with investors. Today we are ushering in a new era for infrastructure delivery, restoring the confidence of businesses to invest and driving a decade of national renewal, powering growth across the country, and delivering on our Plan for Change.

“Today’s launch of NISTA is part of a three-pronged approach to addressing the fundamental constraints to infrastructure investment, sitting alongside the 10-year infrastructure strategy, which sets out a long-term plan for the country’s infrastructure, and the new Planning and Infrastructure Bill to unblock planning constraints.”

It follows last week’s Spring Statement, where the OBR concluded that the government’s landmark planning reforms will result in UK housebuilding reaching its highest level in over 40 years, bringing the UK one step closer to its Plan for Change mission to build 1.5 million homes.

The economy will be 0.2% larger in 2029-30 because of the reforms – worth around £6.8 billion in today’s money – growing to 0.4% over the next ten years. This represents the biggest positive growth effect it has ever forecasted for a policy that comes at zero-cost to taxpayers. The reforms will secure over 170,000 new homes for hard working families and leave borrowing £3.4 billion lower in 2029-30.

In priority areas like the Oxford Cambridge Growth Corridor, NISTA will support a strategic approach to planning for infrastructure, growth and the environment, necessary to deliver the significant economic benefits that infrastructure investment can unlock.

NISTA is currently being led by Jean-Christophe Gray, who will act as interim chief executive until the permanent Chief Executive of NISTA is appointed, this will be announced shortly.

Today, the Chief Secretary has also appointed the National Infrastructure Commission’ Commissioners to form an Advisory Council for NISTA to support the implementation of the government’s 10-year infrastructure strategy and delivery of NISTA’s objectives.

A memorandum of understanding between HM Treasury and the Cabinet Office will be published shortly, which will govern the relationship between the new unit and the departments.