Labour has merged two infrastructure bodies into one to “get a grip” on the delivery of new roads, schools and hospitals to support the 1.5 million new homes it plans to build over the next five years.

The new National Infrastructure and Service Transformation Authority, “will accelerate the delivery of major government projects – supporting delivery of our roads, railways, schools and hospitals – by overcoming barriers and providing expertise on private finance,” said the Treasury, lead by Chancellor Rachel Reeves.

The government says that over recent years “uncertainty about infrastructure plans and policy and poor delivery has inhibited investment in programmes and supply chains, pushing up end costs for consumers”.

Projects that had the best planning at the start of the scheme had 20% lower costs and were delivered up to 15% faster, according to analysis of 20,000 projects by the Construction Leadership Council.

This new body, merges the National Infrastructure Commission and the Infrastructure and the Infrastructure and Projects Authority in a bid to deliver large projects at pace, led by interim chief executive Jean-Christophe Gray.

Chief secretary to the Treasury Darren Jones, says: “The National Infrastructure and Service Transformation Authority will get a grip on the delays to infrastructure delivery that for too long have plagued our global reputation with investors.”

The move comes after last week’s Spring Statement, when the Office for Budget Responsibility said that if the government is able to push through its planning reforms it will result in the highest level of housebuilding in over 40 years.

The economy will be 0.2% larger in 2029-30 if the reforms are secured — worth around £6.8bn in today’s money — growing to 0.4% over the next ten years, said the Office for Budget Responsibility.