Report part 1 - 'Infrastructure, energy and construction'
Future Cities Forum's 'Infrastructure 2025' discussion hosted at DLA Piper LLP in the City of London, covered the topics of the place-based approach to new infrastructure, investment in airports, water resources strategy for England, the challenges of water supply for energy-hungry new data centres and giga-factories, the role of NISTA which is bringing together the NIC and the IPA, and how best to use new transport investment in the north of England.
The contributors included Karl FitzGerald, Director at the Infrastructure & Projects Authority, Henri Murison, Chief Executive at the Northern Powerhouse Partnership, Daniel Johns, Managing Director of Water Resources East, and Charles Crawford, Director at LDA Design.
Karl was asked about the deliverability of the just-announced third runway at London Heathrow Airport. Karl said:
'We see the plans for the third runway at Heathrow as part of the UK government's ambition for growth and the ambitions for Luton Airport are also part of that. In terms of delivery, there are serious challenges around planning and the environment with the third runway. What will perplex NISTA is the deliverability of supply chains. There are now quite a number of projects in the infrastructure area trying to get going at the same time. The development of airports is being discussed and the water reservoirs in the east of England are in the offing, so there is a significant ramping up on the construction sector, which we need to keep a close eye on.
'There is value in these announcements and headlines in trying to make the UK look investable. A lot of people want the government to fail but I know there is optimism among those working in the infrastructure sector for these projects. However, we do have a dearth of professionals to carry them out. NISTA will have an increased capacity of system to deliver. There are many projects which NISTA will be delivering around digital for example that are not physical projects. The scope has yet to be finalised but it will be quite broad. Yes, departments need to be held to account but the formation of NISTA signals a massive machinery change, it is seismic really.
At Future Cities Forum's previous infrastructure discussion in April 2024, Karl stated his concerns around the reform of the planning system. He was asked to reflect on his previous comments and whether he had changed his mind in reference to the UK government's wish to cut planning red tape. He said:
'I think I said I was against 'meddling and tinkering' which I still believe is profoundly unhelpful and induces delay. By doing this what signals are we sending out? I don't think it is helpful to downplay the planning system because it takes away confidence in the system and loses investments. It does have its challenges and it has been a cheap cop out to blame the system if those applying to it have failed to prepare properly. We should be looking at the planning system and where you can make the right changes. If changes avoid restricting peoples' rights and can also help start to move the system now at a decent pace, I am all for reforming it.'
Henri Murison, CEO of the Northern Powerhouse Partnership was asked to comment on the UK government's announcement about the re-opening of Doncaster Sheffield Airport. He said:
'The Doncaster Sheffield Airport is infrastructure that already exists. The original plan from Peel was to build new assets such as giga-factories. It was going to be demolished but now it's just a case of 'changing the light bulbs' and opening the doors again - it is not a new asset at all, and a subsidiary of Munich Airport is going to run it. However it frames one of the infrastructure issues about the north of England. It is only down the road from Leeds Bradford Airport which does similar things. The public sector also bought Tees Valley Airport when Ben Houchen was Mayor, but there will be a very long (fifty years and more) payback period on the investment in that airport.
'What the new government needs to grasp is that investing in railway lines to connect northern cities efficiently will do a lot more for the economy than putting money into regional airports that are only there because the rail infrastructure is so poor. What is going to build the economy is a direct railway line from Sheffield to the long haul hub of Manchester airport.'.
Henri was asked whether the region still felt left in the 'desert' after the withdrawal of the northern leg of HS2. He responded:
'The government is in fact deploying a lot of money on rail in the north including the £11bn Trans-Pennine route upgrade linking York and Manchester. This is a mega project for Network Rail. The next phase needs to be the new line from Bradford to Huddersfield, and perhaps a new line from Manchester Airport through to Manchester Piccadilly and across the Pennines. The last government did not cancel the whole HS2 project. The issue though is how long will it take to consent the work. It could be a long wait and we need to look at the NIC's 10 year infrastructure review which it has been preparing.
'The role of east-west connectivity is important. East West Rail is a good project as it unlocks housing but the Cambridge economy is smaller than Middlesborough, although there is growth potential. The possibility of creating an alternative centre of growth, which Jim O'Neill on the Northern Growth Commission was advocating, as a counter-weight to the south east and London, will require investment. If you don't invest in infrastructure for growth in the north, then the government will still be paying subsidies for unemployment and ill health in northern cities like Bradford.
'In a report that we produced with Cambridge Ahead and Business London - as part of the Growing Together Alliance which I chair - we made a compelling case for boosting the economic links between regions. Taking the foot off the pedal while pushing forward the science agenda for the OxCam Arc makes sense, but it's not a zero sum game for the rest of the country.
I am positive that the government's industrial and infrastructure strategy will outline a coherent proposal for the north of England's economy. Since we have changed the fiscal rules, there is the head space and financial headroom for major capital projects in the north, and I would argue that this needs to happen to enable increased productivity, if London and the south-east is not to continue to subsidise the north in the UK's unbalanced economy.'
Moving on in the discussion to discuss the future for water infrastructure, Daniel Johns, Managing Director of Water Resources East, was asked about the government's Regional Water Resources Plan to 2050 and the pressure from house building. He commented:
'WRE is an independent planning authority set up by government, one of five to cover the whole of England and the Welsh Borders to create a long term plan and framework on water use and provision to take account of climate change, environmental needs, as well as growth in housing and business needs. This plan, published a year ago, has included three strategic new reservoirs, four desalination plants and lots of transfers from water resource zones , along with lots more water efficiency for both domestic and business users. It's been a positive story.
'There is a challenge on the housing front, about where housing will come through and when, but also on the commercial side. No-one has any statutory responsibility as to whether there is sufficient water for new giga-factories, data centres and food and drink manufacturing plants. There is lots more on-shoring post-Brexit, with lots of water-intensive businesses setting up in the east of England, which is great, but it was not predicted.
Daniel was asked whether enough time had been devoted to consulting with communities on these major projects. He responded:
'There has been lots of public support for reservoir projects , as they are community assets with potential for sailing clubs, walking and biking trails and so on. There are few centres for community life in eastern England so these reservoir projects are very welcome. The biodiversity will be excellent.
He was also asked whether house builders would be able to ignore biodiversity, now that planning is to be speeded up? Daniel replied:
'On the house building planning side you do have to be responsible on water use, especially in Cambridge where you have to meet tighter standards. We are expecting an announcement on a consultation from the MHCLG shortly on making new houses and homes more water efficient.'
Charles Crawford Director at LDA Design has been working on the two east of England reservoir projects and commented:
'Looking at the Fens reservoir, and picking up what Alister Kratt from LDA Design has said at the Future Cities Forum Cambridge event last September, I want to stress the importance of the place-based approach. The project will deliver wider benefits than that of the pure infrastructure. The great scale of the project is difficult to grasp. The reservoir will have an area of five square kilometres, supplying 87 million litres of water everyday which is enough for 250,000 homes.
'The Fens reservoir is a 50/50 partnership between Cambridge Water, serving the city of Cambridge and Anglian Water serving a wide region from the Humber to the Thames. The supply objectives are supporting human needs and also the development aspirations in the region, while taking pressure off the chalk aquifers which have been running dry. There is also a need to deal with climate change, by making the region more water efficient and resilient. The Fens project will come on stream in 2036 - it is the biggest earth moving we have had in the UK, and that element will take five years.'
LDA Design has been describing these important projects:
'Emerging designs by LDA Design and Fereday Pollard for new reservoirs in north Cambridgeshire and in south Lincolnshire have been released by Anglian Water and Cambridge Water, in support of engagement with local communities.
'The East of England is facing growing challenges to water supply from both population growth in the region and a changing climate. Projections from the Met Office show that the East of England will become hotter and drier in summer, and wetter in winter, meaning that there is a pressing need to store winter water to cope with summer droughts.
'Unless bold action is taken, the demand for water will outstrip the available supply within the next decade, making the reservoir projects vital for the continued growth and prosperity of the region.
'The proposed new reservoirs are planned to help secure water supply and strengthen resilience to drought, while also protecting the environment by enabling a reduction in the amount of water taken from environmentally sensitive rivers and underground aquifers.
'Masterplanned by LDA Design and Fereday Pollard, the reservoirs in the Fens and Lincolnshire are also designed to deliver a wide range of benefits for biodiversity, recreation, and health and wellbeing. They apply the National Infrastructure Commission’s good design principles. Clare Donnelly, Director at Fereday Pollard, says the aim is to deliver positive outcomes for climate, people and places, and the emerging designs reflect feedback from the surrounding communities.
'The reservoir in the Fens proposed by Anglian Water and Cambridge Water is near to the market towns of Chatteris and March and set within the distinctive fenland landscape. It is designed to hold about 55 million cubic metres of water and could serve up to 250,000 homes a year.
'All landscapes evolve, but the Fens had a dramatic transition when the wetlands were drained in the 17th century for arable farming. The bold and distinctive design of the reservoir is inspired by ammonite fossils found below the site during excavation, and dating from a time when the land was under the North Sea.
'The sculpted embankments and landforms, built from the soil excavated to create the reservoir, will create a rich and unique setting where people, nature and water come together. The design could provide opportunities for recreation both on the water and land, including the potential for new walking, cycling and horse-riding routes with connections to neighbouring communities, and an internal lagoon for water sports and other visitor facilities.
'Calmer and quieter spaces wrap around the edges providing extensive wetlands and interconnected habitats and areas for flood storage, reminiscent of the historic landscape of marshes and waterways.
'Anglian Water has also shared emerging designs for a second reservoir in Lincolnshire, south-east of Sleaford and nestled between historic fen-edge settlements of Helpringham, Scredington and Swaton.
This reservoir could provide a secure water supply for up to half a million homes a year. It is a similar scale to the Fens reservoir and designed to again hold 55 million cubic metres of water.
'The design will sit sensitively in the landscape, using a naturalistic form organised around a central peninsula. The shape is designed to blend with shallow ridges in the landscape, marking the transition between the limestone uplands to the west and the flat fenlands to the east.'
Future Cities Forum was grateful for all the insight from contributors to our infrastructure forum this month. Part two of our report will be published shortly - with contributions from the National Energy System Operator, (NESO), Transport for London, Quinbrook Infrastructure Partners, Network Rail Property, Grimshaw, HOK and DLA Piper.
Image below: courtesy of LDA Design, showing proposed Fens Reservoir with amenities
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