Partner James Heath sheds light on the 10 Year Infrastructure Strategy

Tell us about your previous experience

I’ve spent the last eight years working on infrastructure policy in the UK government. The second part was as Chief Executive of the National Infrastructure Commission (now part of NISTA), advising HM Treasury on economic infrastructure policy across the energy, water, transport, digital, flooding and waste sectors. The work of the NIC provided a key building block for the government’s recently published 10 year infrastructure strategy. The first part involved developing government's strategy for the deployment of gigabit broadband, which – alongside Ofcom’s regulatory framework – helped to re-shape the telecoms market and expand network coverage from around 5% to over 80% in six years. Probably the single most challenging task was developing with the National Cyber Security Centre (NCSC) a new approach to the security and resilience of the UK’s telecoms networks and supply chains, balancing economic and geopolitical forces. Before government, I worked at the BBC leading media and digital policy and was project director for the last Charter Review process.

With the 10 Year Infrastructure Strategy now out, what things should clients focus on?

The infrastructure strategy is a serious, comprehensive and long-term document. You can read my reflections on it here. But it’s definitely not the final word on infrastructure policy. ‘What’ the UK’s economic infrastructure priorities are is now (largely) clear, but ‘how’ they will be delivered requires stronger definition. As government works at pace to fill in the gaps and implement the infrastructure strategy, there are opportunities for investors and businesses to shape policy, funding models and delivery, including:

• Government’s approach to economic regulation and infrastructure policy across sectors.
• The infrastructure financing toolkit that will be used to attract private capital.
• The design of the private finance mechanisms for Lower Thames Crossing and Euston station specifically, so they achieve value for money for taxpayers and investability.
• Identify further opportunities to use Public Private Partnership (PPP) models for user-funded economic infrastructure,
• And access the increased capacity of the National Wealth Fund to support capital-intensive projects through equity, loans and guarantees.

NISTA will want to develop strong relationships with the private sector. Effectiveness of engagement will depend on investors and companies coming to the table with workable proposals that bridge policy and commercial priorities.

How do you support clients at Flint?

I support infrastructure clients across a range of public policy issues. I work with infrastructure investors, operators and the supply chain across all economic infrastructure sectors (energy, water, transport, waste and digital). At Flint, we span the UK and global markets, with offices across Europe and APAC. We offer a range of services covering politics, policy, regulation and economics. But so much of what we do is about being able to bring these things together for clients, as they are almost always intertwined when it comes to solving business problems or seizing opportunities. We work with some of the world’s largest funds – pension, private equity, infrastructure, and sovereign wealth – supporting them with investment strategy, pre-deal policy and regulatory due diligence, managing risk, and engaging with policy-makers and regulators. 

Would you recommend business engage with government? And if so, what are your top tips to do so.

Yes. There is a big infrastructure gap between the assets we have today and those we need to drive economic growth, net zero and resilience. The only credible route to closing this gap is sustained private sector investment and innovation. How can smart policy and regulation incentivise investment for the long-term? And how can we build infrastructure faster and cheaper? The answer to these questions lies in close dialogue between government and those who invest in, build and operate infrastructure. Having sat on both sides of the table, my tips for effective policy engagement include:

• Build relationships before you need to call on them. And know who the decision-makers really are, the pressure points on the decisions and what arguments work with different parts of government.
• Show don’t tell – assemble the evidence, analysis and proof points that will persuade people that are not necessarily sympathetic to your arguments. We do a lot of work helping infrastructure investors tell a positive story about the impact of their investments to secure commercial outcomes.
• Put yourself in government’s shoes - understand what policy-makers care about and frame your arguments and policy ‘asks’ so, as far as possible, they align. And make sure any policy recommendations are both practical and politically actionable.

With extensive experience shaping policy and commercial decisions across infrastructure sectors, Flint is on hand to support you. We’d be happy to discuss how we can tailor our services to meet your specific needs. Get in touch with us to learn more.