Britain is paying significantly more than its international peers to build infrastructure, from high-speed rail to tram schemes, according to new charts published by the Centre for Policy Studies (CPS). The right-leaning thinktank released a breakdown on Thursday (October 1) of eight factors driving up building costs in the UK, arguing that the problem is not just how much the country invests, but how little is delivered for the money spent on roads, rail and bridges.
Planning delays and environmental red tape
The CPS found that infrastructure costs have risen due to a lengthy and expensive planning process. The average time to secure planning permission increased from 2.6 years in 2012 to 4.2 years in 2021, according to the report. The number of pages assessing environmental impacts has also surged, from under 400 for the Jubilee Line extension in the 1990s to 18,000 for a 3.3-mile railway line to Portishead.
Legal challenges from judicial reviews have risen from one per year between 2008 and 2018 to four per year from 2019 to 2024. The report cites a National Highways estimate that a single challenge can add over £120 million to a project's cost. Spiralling costs, procurement not focused on value for money, red tape, a lack of technical expertise among civil servants and overly centralised decision-making are also highlighted as cost drivers.
HS2 and global comparisons
The thinktank said Britain's HS2 railway epitomises the crisis, with an estimated £102.7 billion price tag for 140 miles of track, making it "the world's most expensive high-speed railway". This compares to the £75 billion Spain spent building 2,500 miles of high-speed rail network. One chart shows Spain spent £28 million per mile, versus £734 million in Britain, far above schemes in Japan, Taiwan, China, Italy and Germany.
Tram schemes in the UK cost more than double the European average, while the CPS found a £21 billion third runway at Heathrow Airport will cost 10 to 70 times more than additional runways elsewhere.
Reform recommendations
Ben Hopkinson, Head of Housing and Infrastructure at the CPS, said: "Without reform, Britain will continue to spend vast sums on infrastructure while receiving comparatively little in return, and only that after significant delay." Writing on X, he added: "The good news is that every one of these is a policy choice, which can be reversed."
Shadow Transport Secretary Richard Holden said: "Sky-high infrastructure costs have plagued Britain’s transport system for far too long, leaving taxpayers paying more while getting less and less. Fifty years ago, Britain faced a similar malaise and the CPS developed many of the ideas that turned Britain around. This report is in that same tradition and is a vital contribution to the mission that Conservatives under Kemi Badenoch have today to get Britain moving and working again."
The report calls for "comprehensive reform", including giving metro mayors the power to approve projects, "rebalancing" environmental regulations and streamlining the planning process. Mr Hopkinson said doing so would unlock benefits, including better public transport, more roads and increased capacity at airports.
