One 12 months on: what the UK’s 10-Year Infrastructure Plan means for buyers
by Philip Kent CEO, Member of the Investment Committee
It’s simply over a 12 months for the reason that UK Government printed its 10-Year Infrastructure Strategy in June 2025, promising £725 billion of public funding. Twelve months on, the early equipment is in place, however the tempo of supply must be quicker.
What’s really occurred in 12 months one
- NISTA is up and working. The National Infrastructure and Service Transformation Authority (the physique created to unify utilities technique and supply) marked its first anniversary in April 2026. It has since streamlined its oversight of main authorities tasks and continued to construct out its remit.
- The Infrastructure Pipeline has grown. NISTA’s digital pipeline – a public, twice-yearly-updated database of main utilities tasks – launched in July 2025 and was refreshed in March 2026 with new workforce and abilities forecasting. It now tracks 734 tasks value roughly £718 billion over the subsequent decade*.
- PPP is shifting, slowly. Euston Station, cited within the authentic technique as a possible Public-Private Partnerships (PPP) pilot (a financing mannequin the place the private and non-private sectors share a long-term contract to construct and run an asset), has progressed to market engagement: the Department for Transport started sourcing a supply companion in early 2026, with a young for a five-year, roughly £300 million engineering and design contract anticipated to observe**. The funding mannequin for the station itself, nonetheless, continues to be not finalised.
- NISTA’s personal evaluation is measured. In its first Major Projects Annual Report, NISTA describes 12 months one as spent “turning our mandate into sensible modifications”. It has made progress, nevertheless it has been framed as foundational somewhat than transformative.
The pace-versus-ambition hole, one 12 months in
At the time of the UK’s 10-Year Infrastructure Strategy publication, Gravis CEO Phil Kent welcomed the path of journey however cautioned on execution:
“There’s a mismatch between ambition and tempo… it would take time earlier than new fashions akin to PPP are totally established and new tasks are being procured. Supply chains that beforehand supported PPP will have to be recreated, and development companions are extra risk-averse as we speak.”
That warning has confirmed well-founded. Euston’s PPP is in place, however a 12 months has handed between the technique’s publication and the beginning of formal market engagement, and the funding construction continues to be being labored out.
What this implies for buyers
GCP Infrastructure Investments Limited
- GCP’s loans are sometimes secured towards contracted, UK public-sector-backed money flows, with partial inflation safety in-built. GCP has now paid a dividend for over 15 consecutive years, with a 7.0p per share goal maintained for the 12 months to 30 September 2026.
- The low cost to NAV has narrowed to c14%***, down from 28% a 12 months in the past, because the Company has executed a capital allocation coverage of asset disposals, buybacks and debt discount.
- The narrower low cost means the dividend yield now sits round 8.3%***, nonetheless properly above the Bank of England base fee, which has fallen from 4.25% a 12 months in the past to three.75% as at September 2026.
- The narrowing low cost has resulted in a 20.2% share worth complete return / 3.05% NAV complete return 12 months up to now****.
TM Gravis UK Infrastructure Income Fund
- An open-ended fund investing throughout UK-listed utilities together with power, transport, digital utilities and utilities. It goals to supply a daily revenue, capital preservation and inflation safety.
- Trailing 12-month yield stood at 6.28% as at 31 August 2026**** for the C Income share class.
- The Fund has delivered a return of just about 15% in 2026**** thus far, helped by portfolio-wide M&A exercise prompting a re-rating of listed utilities names.
- A big weighting to asset placement firms and REITs buying and selling at a reduction to NAV means potential capital development if valuations proceed to shut that hole, which is identical dynamic driving GCP’s personal re-rating.
The takeaway for 12 months two
The first 12 months of the 10-Year Infrastructure Strategy delivered the scaffolding: NISTA, a reside undertaking pipeline, an energetic (if slow-moving) PPP pilot at Euston. What it hasn’t but delivered is tempo. For buyers, that’s not a cause to attend. GCP’s narrowing low cost and the broader sector’s re-rating recommend sentiment is already turning, whereas inflation-linked, public-sector-backed revenue stays enticing with base charges decrease.
**Source : https://www.find-tender.service.gov.uk/Notice/066382-2025
***Source : The Financial Times, 14 September 2026. Data offered by LSEG.
****Source: Gravis, as at 31 August 2026.
Important data
This article is issued by Gravis Advisory Limited (the “Investment Manager” or “GAL”)), and Gravis Capital Management Limited (the “Investment Adviser“ or “GCM”) and is for data functions solely. Both GAL and GCM are authorised and controlled by the Financial Conduct Authority and their registered workplace tackle is 24 Savile Row, London, United Kingdom, W1S 2ES.
TM Gravis UK Infrastructure Income Fund is a sub-fund of TM Gravis Funds ICVC, which is a UK UCITS scheme and an umbrella firm for the needs of the OEIC Regulations. The Authorised Fund Manager of TM Gravis Funds ICVC is Thesis Unit Trust Management Limited (TUTMAN), Exchange Building, St John’s Street, Chichester, West Sussex, PO19 1UP. TUTMAN is authorised and controlled by the Financial Conduct Authority. GAL is the asset placement supervisor of the Fund.
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