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Published: 05 January 2026
Mind the (Investment) Gap (PDF)
PDF report: Reimagining how the UK funds and delivers new capital projects.
In brief:
- Significant progress has been made in addressing the UK’s ‘investment gap’, via a combination of new government and private funding.
- Total investment needs are rising as the UK aims to increase defence spending to 3% of GDP by 2030 and 5% by 2035, driving major changes in public capital outlook.
- Unfunded projects have grown from 16% in 2024 to 41% in 2025, with the overall value of these projects through to 2040 increasing from £1.6tn to £1.7tn and nearly £2tn under a 5% defence spending scenario.
- Government funding will cover an estimated £1.1tn, leaving funding gaps of £583bn in a 3% and £817bn under a 5% scenario. This compares to a gap of £670bn in 2024’s version of this report.
- Closing this gap is challenging but achievable through a combination of technology adoption, better delivery models and alternative finance.