UK’s ‘political instability’ and ‘unattractive regulatory regime’ raise concerns over infrastructure investment

The UK is becoming a less attractive destination for infrastructure investor funding, according to a regular survey published by the Global Infrastructure Investor Association (GIIA).
The GIIA’s regular ‘Pulse’ survey said investment was becoming more difficult, with its investor members “more concerned about the environment for raising funds and debt than at any other time in the study’s three-year history”. But it highlighted the UK as of particu;ar concern. The Q2 2023 report said the US, Canada and large parts of northern Europe are emerging as the most desirable investment destinations, “whilst the likes of the
UK, France and Italy find themselves some way behind”. It said that “In the UK in particular, respondents continue to cite an ‘unattractive regulatory regime’ and ‘political instability’ as considerably bigger brakes on investment compared to the rest of Europe and the Americas.” It added that, “Investor sentiment towards the UK remains inconsistent. Whilst the value of Sterling is lowering asset values for overseas buyers, the UK’s political and regulatory environment is seen as challenging”.
That concern would affect investment across all sectors of infrastructure, from renewables to water companies to transport projects, and the report said, “With the investment landscape so uncertain, policymakers must be proactive in encouraging private sector investment”. That includes, “Streamlining regulatory processes, improving project pipelines and providing long-term, stable frameworks” which would will all help secure the private investment needed.