The UK’s Infrastructure Strategy: What it means for investing in Kent and Medway

The UK’s Infrastructure Strategy: What it means for investing in Kent and Medway

The UK Government has published its long-awaited plan for infrastructure investment over the next decade across the country with the Lower Thames Crossing among the key projects highlighted.

The 10-year strategy has been produced by HM Treasury and the newly formed National Infrastructure and Service Transformation Authority.

So, what will it mean for Kent and Medway? We’ve gone through the document to explain some of the key points as well as pulling out some key takeaways for businesses looking to invest or grow in the region.

What does the infrastructure strategy set out to do?

The new strategy sets out a long-term plan for how the government will invest billions of pounds on UK infrastructure over 10 years and ensure that any funding is spent effectively and efficiently,

Ministers say it will provide the certainty and stability needed to attract investment, boost UK supply chains and jobs, and take a joined-up view to improve planning and delivery across all types of infrastructure.

It will be backed by at least £725 billion of government funding covering both economic (road, rail, digital and clean energy projects, for example) and social infrastructure such as schools, courts, prisons and hospitals.

How will it improve inward investment?

The government says its 10-year infrastructure strategy will encourage inward investment by providing a long-term vision that gives investors the confidence and certainty they need to commit funding to projects, create job opportunities and boost living standards for people nationwide.

It will also form part of wider government policy, including long-term capital budgets, an updated Industrial Strategy and a commitment to invest in skills and training.

How will the strategy help to unlock growth?

The infrastructure strategy aims to boost growth including investment in transport and digital connectivity, laying the foundations for new housing development, improving resilience (including flood defences) and transforming the UK into a ‘global clean energy superpower.’

As the gateway county to Europe, handling over a third of UK trade through the Channel Ports and particular strengths in Life Sciences, the Creative Industries and Agri-food the strategy provides the potential for the region to add capacity, increase innovation, attract investment and create more jobs.

What does the strategy say about the importance of the Lower Thames Crossing in Kent to the UK economy?

The Chancellor has approved £590 million to start work on the Lower Thames Crossing, a new road that will connect Kent and Essex through a tunnel beneath the River Thames. This is in addition to £250 million of public money already invested by the Treasury.

The document states: “Projects like the Lower Thames Crossing are vital for improving links between the Midlands, the North and key ports in the South East, and for improving the resilience of the overall road network.”

Work is now being undertaken with the private sector to “…design a long-term funding model which delivers value for money for the taxpayer.”

How will the strategy encourage private investment?

The government says it will work with the private sector to harness the potential for private finance, supporting increased investment in regulated sectors and leveraging private finance in other sectors. Mechanisms, the strategy says, will be developed to enable private finance to reach infrastructure projects. This will include exploring a new form of Public Private Partnerships (PPPs).

Other initiatives include a new National Housing Bank, part of Homes England, that will offer a range of finance products including new products for SME builders, equity investments and partnership working.

How is the government changing the way it considers projects from across the UK?

The government is changing its approach to project delivery and appraisal with HM Treasury introducing ‘place-based’ business cases to bring together the different projects that are needed to achieve the objectives of areas such as Kent and Medway. This is aimed at making sure that central government areas of crossover in projects such as housing and transport.

What does the infrastructure strategy say about defence spending?

The Government has set an ambition to spend 3% of GDP on defence by 2034, a plan that has the potential to benefit the successful cluster of manufacturers and suppliers located in Kent and Medway. Priorities include investment in R&D and innovations including a £100 million Defence AI investment fund and the establishment of UK Defence Innovation, with an initial budget of £400 million.

What about the prospects for a new generation of nuclear power at Dungeness in Kent?

The government says nuclear will continue to play an important role in the UK’s future energy system by providing predictable low-carbon power.

Dungeness is among the candidates for a Small Modular Reactor (SMR) with an announcement on the site of the first SMR expected later this year. The infrastructure strategy suggests scaling up SMRs will offer ‘significant industrial, export and strategic relationship potential.’

What about the prospects for low carbon hydrogen?

The government has committed over £500 million for hydrogen infrastructure to enable the development of the first regional hydrogen transport and storage network, which will connect producers with end users – such as power and industry for the first time.

Production from renewable technologies in the UK increased 7% in 2024 to a record 144.7 TWH, and a record share of 50.8% of electricity generation. Projects underway including the NeuConnect Interconnector (that will land on the Isle of Grain) and the work of the Kemsley Industrial Cluster in Kent and Medway are already increasing the UK’s energy resilience in the transition to Net Zero.

What is the National Infrastructure and Service Transformation Authority?
The National Infrastructure and Service Transformation Authority (NISTA) brings together two existing organisations – the National Infrastructure Commission and the Infrastructure and Projects Authority. It was formed earlier this year. NISTA advises ministers on major projects and infrastructure, including questions related to time, design and budget. It will oversee delivery of the infrastructure strategy with progress reports every two years.

What is the NISTA Infrastructure Pipeline?

The NISTA Infrastructure Pipeline is a list of infrastructure and construction projects being progressed and planned over a 10-year period, giving information about each investment with details of its schedule, status and anticipated spend. A new digital portal will launch in July 2025 that will provide details of publicly funded and financed economic and major social infrastructure projects.

The purpose of the pipeline is to enable the construction supply chain to plan with greater confidence, strengthening market capacity and speeding up infrastructure delivery. It will demonstrate opportunities for private investment in UK infrastructure, including those located in Kent and Medway with the data offering useful insights for future skills and labour, helping to enhance productivity across different sectors.

Want to know more about investing in Kent and Medway? Download our 2025 Investment Prospectus.

Download our 2025 Investment Prospectus.