As the procurement landscape continues to evolve, the public sector remains an essential driver of growth, investment, and social change. With the government committing to £100bn in capital investment, there is a cautious optimism in the air—particularly for the healthcare, housing, and infrastructure sectors. However, while government support has been vocal, the precise direction of this funding remains in flux. The delayed 10-year Infrastructure Strategy, expected in June 2025, will likely provide some much needed clarity on how these long-term commitments will be met.
In a recent interview with Ben Walker, Partner at Gardiner and Theobald, he shared his insights into the future of public sub-sectors, highlighting emerging priorities, regional challenges, and the pivotal role of decarbonisation.
Do you feel the government is prioritising certain sectors this year?
The government’s focus on major infrastructure projects continues to be a central point of attention. Significant funding has been directed towards upgrading transport networks, such as the TransPennine Route and the continuation of HS2. These investments are vital for regional connectivity, which will enable broader economic growth.
However, it is housing that is receiving perhaps the most attention, with a commitment to deliver 1.5 million new homes by the next parliament. This includes £5bn for much needed affordable homes and an additional £3.4bn to help decarbonise homes and address fuel poverty. Following the publishing of the final inquiry report into the Grenfell Tower tragedy, the government has allocated a further £1bn in funding to speed up the remediation of dangerous cladding on buildings. These developments foster a sense of measured optimism, although the industry is still awaiting the detailed infrastructure strategy that will shape the coming years.
Are there particular regions in the UK that require more public sector funding, what specific challenges are these areas facing, and how can funding address these needs?
Several regions in the UK, particularly in the North East, North West, and parts of the Midlands, have faced historical underinvestment. This underinvestment has led to critical gaps in healthcare, housing, and infrastructure. However, the introduction of combined authorities and elected mayors has given local areas more control, enabling them to tailor solutions to their unique needs. This shift in decision-making powers offers a promising route to ensuring funding is spent where it is most required, rather than applying a blanket national approach.
Rural and coastal communities are also experiencing challenges, particularly in terms of access to healthcare and affordable housing. Additional funding in these areas will be vital to closing the equity gap and providing services where they are most needed.
What are your thoughts on the changes to the New Hospital Programme? How will these changes impact the future of healthcare facilities in the UK, and what should be the focus of future hospital infrastructure investments?
The New Hospital Programme (NHP) seeks to modernise and replace outdated hospital infrastructure. Due to funding constraints and industry capacity issues, the programme has been adjusted for a more staggered, feasible delivery timeline. The government’s decision to prioritise hospitals with high-risk materials such as RAAC, seven of which are set to begin construction in 2027–28, marks a critical step in addressing the NHS estate’s most pressing challenges.
The focus for future hospital infrastructure investments should go beyond just modernisation. Integrating digital technologies for smarter hospitals would improve both patient care and operational efficiency. Sustainability is also crucial here, with healthcare facilities becoming more energy-efficient to meet net-zero targets. The proposed standardisation of designs for new healthcare facilities will also ensure operational and cost efficiencies.
Last year saw a rise in decarbonisation efforts and the refurbishment of public sector estates. Is this trend continuing? How do you see this evolving, especially in hospitals or housing?
Decarbonisation remains a key focus for public sector estates as ambitious net-zero goals grow closer. For healthcare and housing sectors, the drive to refurbish and retrofit existing estates, rather than build new structures, is certainly intensifying. We have seen a clear shift in the higher education sector, where universities are opting to reduce their carbon footprint by refurbishing existing buildings, which is also more cost-effective amid declining student numbers.
This trend is expected to continue and accelerate, particularly in healthcare, where energy-efficient hospitals will be a necessity to meet stringent environmental targets. This is not just about reducing carbon emissions; it’s about ensuring long-term sustainability for public sector estates.
Looking ahead, what developments do you foresee in the UK’s highways and infrastructure?
It’s safe to say that sustainability and decarbonisation will remain a central theme as net zero targets grow closer. Societal behaviour towards sustainability is already changing gears, with nearly 20% of new cars sold in the UK in 2024 being electric. This could certainly suggest a future expansion of electric vehicle (EV) charging networks as we start to make way for a future of sustainable infrastructure. Furthermore, innovations in low-carbon materials, such as recycled asphalt, will be key in reducing the carbon footprint of our road networks.
However, road maintenance remains a significant challenge. The government’s recent £500m boost to tackle potholes and improve road conditions in 2025/26 is a positive step, yet the backlog in repairs remains substantial. Adequate funding is necessary to address this issue comprehensively, ensuring that the UK’s road infrastructure is both sustainable and fit for future demands.
What strategies or methods would you recommend for organisations to advocate successfully for better funding and resources?
As public sector organisations strive to secure funding and resources, advocacy and collaboration will be key. Public sector organisations must engage in public-private partnerships, demonstrate value for money, and present innovative solutions that align with policymakers’ priorities.
Regular dialogue with policymakers and participation in government consultations or parliamentary committees can ensure that public sector needs are heard and addressed promptly. Providing evidence through case studies and statistics will further strengthen their position.
Moreover, leveraging public support through awareness campaigns can also help drive policy change and secure necessary investments for the public sector.
Targeted strategies = long-term growth
As we approach a myriad of ambitious target dates set by the government, it is clear the trend towards decarbonising public sector estates will gather pace and remain a critical focus for capital investment. With large commitments in healthcare, housing, and infrastructure, the potential for positive change is significant. However, these efforts must be matched by strategic, targeted funding and a clear, long-term vision.
To ensure that these developments become a reality, continuous dialogue and collaboration between the public sector, the private sector and policymakers will be essential in driving social change and economic growth.
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