Following the UK government announcement of the merger of the National Infrastructure Commission and the Infrastructure and Projects Authority in 2024, the National Infrastructure and Service Transformation Authority (NISTA) has come into existence from 1 April 2025. NISTA is intended to play a pivotal role in reshaping how major infrastructure projects are planned, executed, and delivered across the UK. This initiative is a direct response to concerns about the rising costs, delays, and inefficiencies that have long plagued the UK's infrastructure sector.

Why NISTA?

In a report issued by the National Infrastructure Commission (NIC) in 2024, it was revealed that one of the primary causes of soaring costs in UK infrastructure projects is a "lack of clear strategic direction." This lack of cohesive leadership has led to common issues such as projects running over budget and missing deadlines. NISTA will bring together the functions of the NIC, which assesses the UK’s infrastructure needs and offers independent advice, and the Infrastructure and Projects Authority, which monitors the delivery of projects. By combining these responsibilities, NISTA will oversee the entire lifecycle of infrastructure projects from strategic planning to final execution.

NISTA’s creation is in line with the Government’s broader infrastructure strategy. The new authority will play a central role in delivering the UK’s ambitious 10-year national infrastructure strategy, set to be published in spring 2025. This strategy will cover a wide range of essential policy areas, including:

• Housing: Delivering 1.5 million new homes by the next general election in 2029.
• Education and Healthcare: Improving school buildings, constructing new facilities, and modernising hospitals.
• Clean Energy: Scaling up renewable energy generation capacity and supporting innovative green technologies like carbon capture and storage (CCUS) and green hydrogen.
• Transport and Connectivity: Investing in road and rail improvements, as well as electric vehicle charging infrastructure.
• Data and Technology: Facilitating the development of data centres to drive AI and business innovation.

While these goals are ambitious, the NIC warned that they are at risk of not being met unless systemic issues in infrastructure delivery are addressed. The NIC’s report pointed to critical drivers of project cost, including poor planning, lack of innovation, and failure to manage the project lifecycle effectively. In particular, the NIC emphasised the importance of getting the planning and scoping stages right to reduce costs and delays. Effective design, repeatability, and innovation could cut costs by 10-25%, offering significant savings over time.

Government commitment to infrastructure delivery

The establishment of NISTA is part of a broader government strategy to address these challenges. NISTA will oversee the development and implementation of the new infrastructure strategy, ensuring that projects are delivered more effectively and efficiently. Importantly, the UK government recognises that infrastructure development must involve both public funds and private sector investment. In this regard, the Treasury has made it clear that the private sector will play a crucial role in funding infrastructure, with the government committed to fostering a stronger partnership with businesses. This includes exploring funding opportunities such as the new National Wealth Fund, which aims to unlock investments from pension savings, potentially boosting pension pots by an average of £11,000.

Forging a path 

The government’s commitment to infrastructure reform, led by NISTA, signals a transformative shift in how the UK will manage its infrastructure needs in the years to come. By addressing the root causes of cost overruns, improving strategic direction, and fostering greater collaboration between the public and private sectors, the UK can unlock the potential of its infrastructure to support economic growth, climate resilience, and technological advancement.