The service sector – are we underserviced in the South West?

  • Peter has been a member of SWIP since its formation in 2017 and was chair from 2020 to February 2023. He has over 45 years’ experience in senior roles for consulting firms.

The South West’s professional service sector is brimming with talent and ambition, yet concerns linger about whether the region is receiving sufficient investment to address its infrastructure needs.

Following the 2025 Spending Review, which prioritised regional growth and infrastructure with £113 billion of capital investment, this article examines how the South West compares to other regions, and explores the opportunities for its service sector to drive progress in transport, water management, and decarbonisation.

Looking at the evidence

The South West is undoubtedly a major economic player on the national stage. It represents nearly £6 billion of the UK’s GDP, attracts nearly 20 million tourists every year and is home to some of the most important strategic hubs in the country. Regional gateways such as Bristol Port and Bristol Airport represent nearly £3 billion in GDP alone, while the South West is also home to a thriving nuclear sector, the future Agratas gigafactory in Somerset and the Plymouth Naval base.

Despite this, there is no getting away from the fact that compared to regions like the West Midlands and the North East, the South West consistently receives less total funding, particularly for large-scale infrastructure and urban regeneration projects.

For example, transport funding has often prioritised regions with higher population density such as the West Midlands, while the North East and Yorkshire secured £15.6 billion for city-region transport at June’s Spending Review. In contrast, the South West has made more modest strides with a £752 million transport funding allocation at the Review for the West of England, alongside £13.5 million in bus grants. While this is a step forward, the South West’s per-passenger journey funding remains substantially lower than that of the North East or West Midlands.

Meanwhile, the West Midlands, North East, and Yorkshire have attracted greater public funding for innovation hubs, green energy transitions, and high-growth sectors like advanced manufacturing and hydrogen.

This ongoing disparity raises an important question: When will the South West get its fair share?

Momentum is building

The South West is home to some of the UK’s most exciting infrastructure opportunities – spanning clean energy, transport connectivity, water resilience and net zero innovation.

Take the Portishead Rail Line, for example, which has now been confirmed as part of the MetroWest programme. This long-anticipated project, a major win for the region, is set to:

  • Reduce travel time: The restored line will provide a direct train service from Portishead to Bristol Temple Meads, reducing travel time for commuters and visitors.
  • Aid economic growth: Reopening this line will bring millions of pounds to the local economy, in turn benefitting businesses in the region. For example, it’s set to unlock an estimated £43 million in economic growth every year.
  • Improve public transport and connectivity: The project is set to connect more than 50,000 people to the rail network, offering an efficient and sustainable alternative to car travel – with expected train journeys of just 23 minutes. The line will connect Portishead and Pill to the rail network, providing better access to facilities, services and opportunities in the wider region.

Energy and environment at the forefront

With the Government’s clear focus on energy security and decarbonisation, the South West offers significant potential for clean energy leadership – thanks to assets such as:

  • Major generation sites such as Hinkley Point C
  • Opportunities in offshore wind, marine energy and grid upgrades
  • Environmental restoration projects tied to biodiversity net gain and water quality.

Professional services firms in the region are already supporting these areas through innovative design, planning, stakeholder engagement, and delivery assurance – helping to ensure that each investment delivers both infrastructure outcomes and wider environmental value.

A skilled sector ready to deliver

The South West is home to a skilled, forward-thinking professional services sector that’s already helping deliver some of the UK’s most important infrastructure priorities. From engineers and planners to project managers and environmental experts – the region brings such a powerful mix of talent that can shape the future of sustainable development.

Within the region, these professionals know the local landscape and understand how to navigate complex projects – whether that’s building climate resilience into new designs, or making developments deliver real social value.

As our national infrastructure system evolves, the professional service sector is vital in turning these ambitions into results. With the right support, they can go further and deliver more powerful projects for the region and beyond.

Policy evolution presents new opportunities

Government-led planning reforms are generating significant positive momentum. Proposed changes to the infrastructure planning process through the Planning and Infrastructure Bill are designed to streamline approvals and accelerate project delivery, creating new opportunities for collaboration between public and private sectors.

These reforms, combined with a heightened focus on skills development, regional economic resilience, and climate adaptation, are creating a strong alignment between the South West’s local capabilities and national priorities, in turn forging a stronger alliance between political priorities and local talent.

A constructive, forward-looking outlook

Across the region, there’s a strong sense of opportunity. Professional service firms are engaged, optimistic, and ready to partner with government and industry alike to help drive regional outcomes – whether in housing, transport, water or clean growth.

Of course, continued collaboration is key. Clear timelines, consistent investment signals, and ongoing engagement between departments, agencies, and regional delivery partners will help maintain momentum and ensure that the South West continues to contribute to the UK infrastructure goals.

By focusing on priorities like ongoing engagement and strengthening investment skills, SWIP can play a vital role in ensuring the South West remains a key contributor to the UK’s infrastructure goals.

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