Wanted: a Secretary of State for Infrastructure

After some neglect, the UK is ramping up investment in its economic infrastructure. A Minister for Infrastructure should now lead the charge, writes Alexander Jan.

George Osborne's 2013 budget, which aims to trim department spending to support infrastructure projects, is encouraging – to a degree. We're surrounded by economic stagnation, and there's general consensus that Britain will not be able to compete internationally without major investment in its economic infrastructure.

The Government's own National Infrastructure Plan notes that:

…many power stations are ageing, road congestion is a growing concern, train punctuality in the UK is worse than in other parts of Europe and in the longer term there will be an airport capacity challenge in the South East of England.

Few readers could disagree with this. And without action it is going to get worse. Energy analysts darkly talk of power outages if the country's generating capacity is not renewed, official forecasts point to big increases in congestion on the road network. As the UK's population grows and economic confidence (and growth) finally return, airports risk once again reaching bursting point. Even Crossrail, the new east to west rail link being carved out under London, will need supplementing with a second scheme and possibly others.

The £3bn which George Osborne recently announced for housing and other infrastructure projects is only the tip of a £400bn iceberg. Power, telecommunications, transport, waste and water are queuing up for this investment. But in an age of austerity and with a long term desire to reduce the size of the state's take of national income, the Government hopes that pension funds, banks and other private investors will stump up more than two thirds of requirements. That would be a remarkable triumph of hope over experience.

The reality is that successive governments have shifted spending away from capital formation. At the same time, private investment in fixed assets has decreased. Taken together, UK investment in property, plant and equipment has lagged behind our competitors since the late 1990s. Amongst them, infrastructure investment averaged 3.5 per cent of GDP over the last decade. The Organisation for Economic Co-operation and Development (OECD) notes that British infrastructure investment was as low as 2.5 per cent of GDP in the same period. More worryingly, analysis by Arup (using data from the Institute for Fiscal Studies) shows that UK public investment has actually fallen in real terms from around £52bn in 2009/10 to an expected £24.6bn in 2012/13. Further declines are forecast to the end of this parliament. This fiscal reality sits uncomfortably with Treasury aspirations.

Few commentators or ministers question the need for increased infrastructure investment. Billions of pounds are looking for infrastructure opportunities, we are told. But somehow they are failing to fully connect. Britain is a preferred destination for international capital. It has tried and tested investment models (think water), a stable legal system, low political risk and lots of infrastructure expertise. All this raises the question as to whether the UK's machinery of government is right. The National Infrastructure Plan itself can provide only so many clues about the Government's overarching investment strategy. Some would argue it reflects the UK's department-centric approach to major project planning. Changing that requires more than a plan.

Government is moving in the direction of improving leadership around infrastructure. Infrastructure UK, a Treasury body, provides some long-term focus on the UK's infrastructure priorities. The Chancellor has announced a set of initiatives to enhance Whitehall's capacity to support private investment across the infrastructure sphere. Guarantees and co-lending and equity investment by the state, are intended to accelerate projects that developers are struggling to finance or where commercial lending appetite falls short. To orchestrate funding and development, the Chancellor has focused the work of the incoming Commercial Secretary to the Treasury on infrastructure development. The Treasury may now appear more "joined up". But are the departments of state?

A Department for Infrastructure should be created. This super ministry would provide more than leadership for spending departments. It could consolidate infrastructure resources and talent spread thinly through the rest of Whitehall. It would give the Prime Minister a mechanism for knocking heads together and ensuring delivery. It could oversee the development of effective frameworks including reforms already in train, to bring in private sector investment to boost growth and competiveness across the countries and city regions of the UK. It could be the agent for delivering a big part of Lord Heseltine's forty billion pound "challenge" fund. It could provide a strong delivery partner for the all-powerful Treasury. With firm delivery objectives that would not be lost in departments' business plans, its minister would be high profile. It would be a potent department of state that senior politicians and civil servants would fight over. There would be a real sense of urgency to get things done and join them up with local government.

This new department of state could be modelled on those found in other Commonwealth countries. Australia integrates infrastructure leadership with its transport ministry. Their Department of Infrastructure and Transport adopts a national strategic function, advising regional governments. It coordinates construction timing and investment decisions under a cabinet-level minister. In Canada which has an enviable track record on securing private sector investment, there is a Minister of Transport, Infrastructure and Communities.

As leading UK economist Dieter Helm has pointed out, Britain is in knots over infrastructure. A Department for Infrastructure might just help slice through them.

The Crossrail shaft in Farringdon. Photograph: Getty Images

Alexander Jan is a consultant at Arup.

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Harriet Harman: “Theresa May is a woman, but she is no sister”

The former deputy leader of the Labour Party urged women to unite across the divided party.

The day-long women's conference is usually the friendliest place at Labour party conference. Not only does it have a creche and a very clear emphasis on accessibility, but everybody who attends starts from a place of fundamental agreement before the sessions have even begun. For that reason, it's often ignored by political hacks in search of a juicy splits story (especially since it takes place on Saturday, before the "real" conference action really gets underway). But with the party divided and the abuse of women on and off social media a big concern, there was a lot to say.

This year, kick off was delayed because of the announcement of Jeremy Corbyn's victory in the leadership election. The cheer for the renewed leader in the packed women's conference hall was far bigger than that in the main hall, although not everybody was clapping. After a sombre tribute to the murdered Labour MP and former chair of the Labour Women's Network Jo Cox, Harriet Harman took to the stage.

As a long-time campaigner for women's rights, veteran MP and former deputy leader of the Labour Party, Harman is always popular with women's conference - even if her position on the current leadership and her status as a former Blairite minister places her out of sync with some of the audience. Rather than merely introducing the first speaker as the agenda suggested, Harman took the opportunity to make a coded dig at Corbyn by doing a little opposition of her own.

"Theresa May is a woman, but she is no sister," she declared, going on to describe the way that May, as shadow spokesperson for women and equalities under William Hague, had been a "drag anchor" on Harman's own efforts to enact pro-women reforms while Labour were in government. The Thatcher comparison for May is ubiquitous already, but Harman made it specific, saying that like Thatcher, Theresa May is a woman prime minister who is no friend to women.

Harman then turned her attention to internal Labour party affairs, reassuring the assembled women that a divided party didn't have to mean that no advances could be made. She gestured towards the turmoil in Labour in the 1980s, saying that "no matter what positions women were taking elsewhere in the party, we worked together for progress". Her intervention chimes with the recent moves by high profile former frontbenchers like Chuka Umunna and Yvette Cooper to seek select committee positions, and Andy Burnham's campaign to become mayor of Greater Manchester.

Harman's message to women's conference was clear: the time for opposition to Corbyn is over now - we have to live with this leadership, but we can't let the equalities legacy of the Blair years be subsumed in the meantime. She ended by saying that "we have many leaders in the Labour party," pointing to Jess Phillips, the chair of the women's PLP, and Angela Rayner, shadow minister for education, women and equalities. Like Burnham, Cooper et al, Harman has clearly decided that Corbyn can't be unseated, so ways must be found to work around him.

Rayner followed Harman onto the stage. As one of Corbyn's shadow ministerial team, Rayner is far from in agreement with Harman on everything, and rather than speak about any specific policy aims, she addressed women's conference on the subject of her personal journey to the front bench. She described how her mother was "born on the largest council estate in Europe and was one of twelve children" and "never felt loved and didn’t know how to love, because hugs, cuddles and any signs of affection just wasn’t the norm". She went on to say "mum won't mind me saying this - to this day she cannot read and write". Her mother was in the audience, attending her first Labour conference.

As a former care worker who became a mother herself when she was just 16, Rayner is a rarity at the top of Labour politics. She told the Guardian in 2012 that she is used to being underestimated because of her youth, her gender and her northern accent: "I'm a pretty young woman, lots of red hair, and everyone expects me to be stupid when I walk into a meeting for the first time. I'm not stupid and most people know that now, but I still like to be underestimated because it gives me an edge. It gives me a bit of stealth."

The mass shadow cabinet resignations in June propelled Rayner to the top sooner than an MP only elected in 2015 might have expected, and she has yet to really prove her mettle on the grind of parliamentary opposition and policy detail. But if Labour is ever to win back the seats in the north where Ukip and Brexit are now strong, it's the likes of Rayner that will do it. As Harriet Harman herself shows, the women and equalities brief is a good place to start - for even in turbulent, divided times for Labour, women's conference is still a place where people can find common ground.

Caroline Crampton is assistant editor of the New Statesman.