The government has unveiled plans to invest £725bn over the next decade in improvements to the UK’s infrastructure, including energy, transport, water and digital connectivity.

Chief treasury secretary Darren Jones said the plan was needed to counteract “years of erratic decisions” from the previous government that has left the UK’s productivity falling behind countries such as France, Germany and the US.

The package aims to ensure that taxpayer funds spent on infrastructure continue to rise “at least in line with inflation” and includes some previously announced policies such as the introduction of more nuclear energy in the form of small modular reactors and funding to support the upcoming Lower Thames Crossing.

The primary focus of the announcement was on building up to 35 new hospitals, as well as boosts to education and justice, but most infrastructure areas were included in some shape or form, even if some were policies that have been previously announced. 

Water companies will be obliged to quadruple investment in new infrastructure over the next five years, including developing nine new reservoirs.

As well as nuclear, the government confirmed that the newly created GB Energy will oversee the creation of the UK’s first regional hydrogen transport network, alongside boosts to electric vehicle charging infrastructure.

Meanwhile, efforts to further the proliferation of gigabit broadband across the country will continue, including updates to make broadband and mobile infrastructure sharing easier between companies, and a flexible permitting system that should ease the installation of street works for installing fibre in the premises.

A 10-year, £7.9bn flood defence programme to protect hundreds of thousands of homes will be implemented in a bid to control damage from rising sea levels and unpredictable coastal weather brought about by climate change.

The broader plan will be guided by a new body – the National Infrastructure and Service Transformation Authority (NISTA) – that will oversee the spending and timeline for various projects. It also wants to attract significant private investment from pension funds and other capital providers that are able to make major multi-year deals.

“Our goal is to prove to investors that the United Kingdom is not just one of many countries seeking investment, but a country that you can believe in,” Jones added. “A country with a government that will roll up its sleeves to make it easier to build, with a clear long-term strategy that gives confidence and certainty in our Plan for Change.

“This strategy is the starting point, not the end. This strategy is backed up by higher, longer-term public-sector capital investment and an updated approach on the role of private capital in partnering with government to deliver. And our online dynamic infrastructure pipeline will give investors and businesses a confident operational view of the opportunities ahead of us, and a reason to invest here in the United Kingdom.”

Sam Gould, Institution of Civil Engineers director of policy, said: “The commitments to publish a credible pipeline and review the strategy, and report on progress every two years, indicates the appetite for delivery.

“However, to sustain progress, the sector will need more information on private finance models, and more detail is needed on how the UK’s infrastructure will meet the demands of our changing climate.

“In between now and 2027, NISTA must focus on implementing this strategy and providing the detail needed on these points.”