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Title page

Contents

ABBREVIATIONS AND ACRONYNMS 5

PREFACE 6

EXECUTIVE SUMMARY 7

I. TRENDS IN PUBLIC INVESTMENT 12

A. Public Investment and Stock of Capital 12

B. Provision and Composition of Public Investment 13

II. EFFICIENCY OF PUBLIC INVESTMENT IN THE UNITED KINGDOM 15

III. PUBLIC INVESTMENT MANAGEMENT INSTITUTIONS 17

A. The PIMA Framework 17

B. Overall Assessment 19

C. Investment Planning 20

D. Investment Allocation 40

E. Investment Implementation 51

F. Cross Cutting Issues 67

Annex 1. PIMA Action Plan 72

Annex 2. Detailed UK PIMA Scores 74

Annex 3. PIMA Questionnaire 75

Table 1. United Kingdom: Summary Assessment 10

Table 2. United Kingdom: Summary Recommendations 11

Table 3.1. Major Changes to UK's Fiscal Rules, 1998−2021 23

Table 3.2. Devolved Powers in Northern Ireland, Scotland, and Wales 28

Table 3.3. United Kingdom: Local Government Capital Expenditure 28

Table 3.4. CDEL and Multi-year Programme Settlements 42

Table 3.5. Summary of Information Available in PESA Reports 44

Table 3.6. Implementation of NAO Recommendations from Public Investment-Related Reports 64

Table 3.7. United Kingdom: Devolution of Competence for Economic Infrastructure 68

Figure 1. PIMA Results for the UK on Design/Effectiveness Compared with Peers 9

Figure 1.1. Public Investment and Capital Stock in the UK 12

Figure 1.2. Public Capital and Public Private Partnerships 13

Figure 1.3. Public Investment at the Regional Level 14

Figure 1.4. Composition of Public Investment (2019) 15

Figure 2.1. Global Measures of Public Infrastructure Access 15

Figure 2.2. Global Measures of Perceived Quality of Infrastructure 16

Figure 2.3. Relative Perceived Quality of Transport and Communication Infrastructure 16

Figure 2.4. The Efficiency Gap-Hybrid Indicator 17

Figure 3.1. PIMA Framework 18

Figure 3.2. PIMA Scores for the United Kingdom 19

Figure 3.3. Debt Sustainability and Affordability 21

Figure 3.4. Trends in Public Sector Gross Investment 24

Figure 3.5. Business Case Development Framework 31

Figure 3.6. Rate of Publication of In-Scope Tender Notices 52

Figure 3.7. UK Project Delivery Career Pathways 70

Boxes

Box 3.1. The National Infrastructure Commission and National Infrastructure Strategy 25

Box 3.2. Levelling Up 25

Box 3.3. Scope of Infrastructure Plans 26

Box 3.4. The Government Major Projects Portfolio 31

Box 3.5. Management of Existing PPP (PFI) Contracts in the UK 35

Box 3.6. Types of Private Involvement in Infrastructure in the UK 36

Box 3.7. Securing Private Investment and Private Funding in Infrastructure Provision 37

Box 3.8. Spending Reviews and Budget Process 41

Box 3.9. Incentivizing Maintenance of Public Assets 47

Box 3.10. The Treasury Approvals Process 49

Box 3.11. National Infrastructure Pipelines 49

Box 3.12. Market-led Proposals 50

Box 3.13. Infrastructure and Construction Pipeline and Modern Methods of Construction 54

Box 3.14. The Construction Sector Playbook 55

Box 3.15. GMPP Quarterly Reporting 58

Box 3.16. Government Functional Standard for Project Delivery 59

Box 3.17. The Government Project Delivery Profession 61

Box 3.18. Red/Amber/Green Status and Project Adjustment 62

Box 3.19. International Examples of Major Project Challenge Models 63

Box 3.20. Improving Asset Information to Help Public and Private Sector Planning 65