Inside Infrastructure: Bridging the infrastructure funding gap

Freshfields and TheCityUK publish paper on attracting private capital to deliver the UK infrastructure strategy and exporting innovative financing solutions 

On 23 April, at TheCityUK International Conference 2026 held in London, a new report prepared by Freshfields and TheCityUK was launched, illuminating the need to attract private capital for the UK's ambitious infrastructure agenda. The paper (full report available here and summary here) analyses the vital role of private capital in the delivery of infrastructure to address the significant funding shortfall, highlights key obstacles faced by investors, and provides actionable recommendations for the UK government to attract investment.

The UK Government's 10 Year Infrastructure Strategy, published in June 2025, adopts a pro-business vision, yet faces a substantial challenge: an estimated £345 billion in private capital is required over the coming decade to meet the £1.7 trillion – £1.96 trillion infrastructure funding goals through to 2040. 

To bridge this funding gap, the paper recommends government focus on four key areas:

• Delivering stable and predictable regulatory frameworks for major projects, which minimise unnecessary complexity and are developed early so investors know what they are ‘buying into’;
• Continuing targeted strategic government support to unlock nationally significant projects;
• Ensuring predictable long-term revenue streams, hedged against inflation; and
• Providing clearer ministerial responsibility and accountability for infrastructure and major project delivery.

Beyond domestic investment, the report highlights the unique opportunity for the UK to export its world-class expertise in structuring and deploying private capital for infrastructure globally. By ensuring that the government’s industrial, trade and infrastructure strategies are mutually reinforcing, and establishing joint public-private working groups to tailor Team UK pitches for individual markets and major global projects, the UK can enhance its standing as a leader in global infrastructure. 

Freshfields is proud to have delivered this crucial work with TheCityUK, which underscores the firm's deep commitment to and expertise in the infrastructure sector. This follows our recent advice to EDF on the completion of the Sizewell C nuclear project capital raise, an investment model which allowed a broader scope of investors to support nuclear (detailed further here). The insights from the report are invaluable for policymakers and private sector stakeholders alike as we collectively strive to transform ambition into tangible, transformative progress in infrastructure development.