Chancellor Rachel Reeves is exploring ways to draw private investment to speed up the creation of new towns across England. She has started discussions with major UK banks and funds on using public-private partnerships to build supporting infrastructure, as an alternative to the earlier private finance initiative model. Officials have asked the British Infrastructure Taskforce to prepare a study on how extensive private contracts for homes and facilities could aid these projects. The approach is likely to face resistance from some Labour MPs who opposed similar funding methods for hospitals and schools. Many investors remain cautious after the 2018 collapse of Carillion amid cost overruns. Seven locations have been proposed, including Thamesmead in south London, Tempsford in Bedfordshire, and regeneration areas in Leeds and Manchester. Plans for a site in Enfield appear stalled after the local council indicated refusal. Progress has been slowed by planning limits, material costs and labour shortages. So far the partnership model has covered only local health centres and energy efficiency work. Reeves has pointed to the Thames Tideway tunnel and Sizewell C as examples of regulated asset base financing, recently extended to roads. A Treasury statement stressed that the old private finance model is not returning and highlighted the chance to build new communities while supporting growth through private contributions. New accounting rules allow officials to consider lifetime project returns, reducing immediate budget pressure. Last year the Treasury outlined at least £725 billion in infrastructure spending over a decade, including £16 billion for housing. The Lower Thames Crossing still requires over £6 billion in private funds, with no backer confirmed yet.
