A new report from TheCityUK and Freshfields has set out how the UK can mobilise private capital at scale to address a £345bn infrastructure funding gap and support long-term economic growth.

The paper highlights that while the UK remains an attractive destination for investment, stronger action is needed to compete globally and secure funding for major projects through to 2040.

It identifies regulatory certainty, faster decision-making and reliable revenue models as key to attracting long-term investors.

Miles Celic, Chief Executive Officer of TheCityUK, said, “The UK has bold ambitions for infrastructure and a strong track record in financing major projects, but private capital can move anywhere, and red tape can strangle progress.

“To bring in private capital at scale, the UK needs stable, predictable rules; quicker and simpler routes through regulation and planning; and revenue and risk-sharing models that investors can rely on over the long term.”

The report argues that the UK must build on its strengths as a global financial and legal hub – to both attract inward investment and export infrastructure financing expertise to international markets.

Jenny McIvor, partner at Freshfields, added: “Private capital is ready to play a much larger role in delivering the UK’s infrastructure ambitions, but investment at scale depends on clarity, consistency and confidence.

“By strengthening regulatory certainty, accelerating decision making and deploying proven commercial models, the UK can unlock long term capital for critical projects while reinforcing its position as a global centre of excellence for complex infrastructure financing.”

Key recommendations include clearer regulatory frameworks, consistent government support and stronger alignment between industrial, trade and infrastructure strategies to boost investor confidence and delivery.