Greater Manchester Mayor Andy Burnham is reportedly exploring an innovative proposal to significantly increase UK infrastructure spending, particularly in the North, without breaching the government's current fiscal rules. The plan, put forward by renowned economist Jim O'Neill, suggests the creation of an independent body tasked with rigorously assessing and prioritising new infrastructure projects across the country.
The core idea behind O'Neill's proposal is that an impartial, expert body could provide objective evaluations of potential infrastructure investments. This independent assessment would not only ensure that projects offer genuine long-term economic benefits but could also help de-risk them for private sector investors. By offering a clear, non-political stamp of approval, the body could attract a greater flow of private capital into vital infrastructure, thereby supplementing public funds without adding to the national debt in the same way direct government borrowing would.
Such a mechanism could address a long-standing challenge in UK infrastructure development: the stop-start nature of many projects due to political cycles and often perceived short-term funding constraints. An independent body could foster a more consistent, long-term approach, focusing on projects that deliver the greatest economic and social returns over decades, rather than just within a parliamentary term. This could be particularly beneficial for large-scale, transformative projects, such as those related to transport, energy, and digital connectivity, which often require sustained investment over many years.
Jim O'Neill, a former Treasury minister and architect of the 'Northern Powerhouse' concept, has long advocated for greater investment outside of London and the South East. His proposal comes at a time when many regions are calling for enhanced infrastructure to drive economic growth and productivity. The Greater Manchester Mayor's interest signals a potential willingness to embrace new, creative financial models to deliver on these ambitions, especially for projects that can demonstrate strong business cases and clear public benefit.
The implications of such a body extend beyond just funding. It could also lead to more efficient project selection, better value for money, and a more strategic national infrastructure plan. By separating project assessment from direct political influence, there is potential for greater transparency and accountability in how billions of pounds of investment are allocated. This approach could ultimately foster greater confidence among both domestic and international investors looking to contribute to the UK's long-term economic development.