The UK stands at an inflection point. After years of sluggish growth, strained public finances, and mounting demands on our essential services, the government faces an unenviable task: delivering world-class infrastructure and public services in a climate of fiscal constraint.
The answer lies not in retreating from ambition, but in reimagining how that ambition is financed and delivered. That is where a new approach to public-private partnerships (PPPs) comes in.
The scale of the UK’s infrastructure challenge, exacerbated by the Conservatives’ moratorium on private finance initiatives (PFI) in 2018, cannot be met by the public sector alone. Whether it is upgrading our transport networks, ensuring resilient energy supply, modernising hospitals and schools, or expanding digital connectivity, the investment required runs into the hundreds of billions. Mobilising private capital and expertise is essential to facilitating 21st century public services and unlocking the growth we urgently need.
The National Audit Office’s most recent review confirmed that PPP projects are “usually delivered on-time and on-budget”. They spread risk fairly, provide predictability for investors, and deliver better value for taxpayers. They also ensure maintenance budgets are protected for the long-term, safe from the cuts of future Chancellors.
There is also an important strategic dimension. The government’s industrial strategy will succeed or fail on our ability to create the infrastructure backbone those industries require. From green power generation to research campuses, from new laboratories to low-carbon transport, these projects demand both speed and scale.
We need only look at the life sciences sector to see what is possible. The UK’s landmark partnership with Moderna to establish a vaccine manufacturing and R&D facility is not just an investment in health security—it is an investment in jobs, skills, and industrial capacity.
This model of collaboration between government and business is precisely what will anchor Britain as a global hub for innovation. Life science campuses in key towns and cities could provide healthcare hubs to transform hospitals and create new community health centres.
That is why the Association of Infrastructure Investors in Public Private Partnerships (AIIP), that I chair, has been making the case for a renewed framework for collaboration. The UK was once a pioneer of PPP. Now, ironically, we are lagging behind. Australia, Canada, and New Zealand continue to use evolved partnership models to build hospitals, schools, prisons, and other infrastructure.
Of course, the private sector must also be candid. Past PPP models were not perfect. Government set up PFI contracts that were overly complex, with hundreds of performance measures that created unnecessary bureaucracy for all parties. At the AIIP, we want to see new models that deliver more transparently, with independent oversight of contracts, clearer allocation of risk, and clear benefits for taxpayers.
There is a broader democratic dividend too. Citizens want reliable public services, modern infrastructure, and the confidence that Britain is investing for the long term. In an era of scepticism about institutions, and the spectre of Reform, delivery of a renewed public realm is the best antidote.
If we fail to adapt, investors will look elsewhere. Already, some are warning they may deploy capital in other jurisdictions where there is more clarity and fewer disputes. Britain cannot afford to squander this opportunity.
This article first appeared in The UK’s mRNA opportunity: Growth, resilience, leadership, a New Statesman report, funded by Moderna. Participants were not paid for their involvement, all views and opinions are their own and have not been influenced by Moderna.
Date of preparation: October 2025
Material number: UK-MRNA-2500106
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