Improving Infrastructure Funding and Delivery - Pragmatix Advisory

This report, commissioned by the County Councils Network (CCN) and produced by Pragmatix Advisory, examines how England’s system for funding and delivering local infrastructure is falling short of current and future needs.

It highlights the scale of underinvestment in local infrastructure, the limitations of developer contributions, and the absence of strategic planning in the system.  

The report argues that sustainable growth, levelling up and net zero ambitions cannot be met without long‑term, coordinated and locally flexible approaches to infrastructure investment, with county and unitary authorities playing a central strategic role.  

Key findings from the report include:

• The UK has consistently underinvested in infrastructure compared with similar countries, with infrastructure capital falling relative to GDP over recent decades.
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• Developer contributions account for only a relatively small but important share of infrastructure funding. Infrastructure funding is highly uneven geographically, with significantly lower receipts in the Midlands, North and rural county areas.
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• Community Infrastructure Levy take‑up is patchy, particularly outside the South of England. In two‑tier areas, county councils struggle to access CIL and Section 106 funding despite being responsible for much of the strategic infrastructure.  
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Recommendations for government include:

• Re-introduce strategic planning at county or sub‑regional level.
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• Develop long‑term, fully costed infrastructure strategies aligned with housing growth.
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• Retain Section 106 for site‑specific infrastructure, alongside a levy for cumulative needs.
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• Devolve stable, multi‑year infrastructure budgets to county areas. Reduce risk through financial guarantees, insurance mechanisms and fiscal devolution.