During the 1980s and 1990s, it was clear that Britain's infrastructure was in desperate need of renewal. Schools, hospitals, roads, housing and public buildings had all suffered from years of under-investment, poor maintenance and declining capacity. Technologies were overtaking the suitability of the public estate and the functions that they needed to perform.

Without raising taxes beyond acceptable levels to invest in UK public services, successive governments faced the dilemma of running huge deficits, or risk failing public service and declining public support.