CBI/KPMG urge transport infrastructure spending

BUSINESSES in the North believe key infrastructure investments are not happening quickly enough and want to see urgent action from the Government, a survey says.
 
Research from business lobby group CBI and KPMG identifies transport infrastructure as the area of greatest concern for bosses surveyed during June and July.

The ‘Better connected, better business’ report reveals that transport infrastructure is of particular concern to businesses in the North.

While more than three quarters (77%)of bosses in London are satisfied with their domestic infrastructure links, just 44% in the North West and North East, and 41% of those in the West and East Midlands, are happy with the quality of their UK connections.
 
The local road network seems to be a particular problem for firms in the North, with 79% of respondents saying infrastructure had deteriorated over the past five years (versus 63% for all of the UK).

Richard Threlfall, KPMG’s head of Infrastructure said: “Actions speak louder than words, is the clear message of this year’s CBI/KPMG infrastructure survey.

“Business confidence in our infrastructure appears to be ebbing away, particularly in the North. A hundred years ago our northern cities were economic powerhouses, and they can be again, but they need the infrastructure to support that growth, for example, good domestic transport links, which are so critical for business.”

Nationally, the findings reveal about two-thirds of businesses believe the UK’s energy and water infrastructure is unlikely to get any better because of uncertainty about the policy framework. But companies are more positive about the UK’s digital infrastructure, with most seeing improvements both in the last and the next five years.

Damian Waters, CBI North West Director said: “Cementing an economic recovery requires growth across the UK. Northern cities have huge potential but poor transport links, particularly between urban areas, act as a brake on their development. Projects like the Northern Hub can help businesses to grow, and we need an urgent focus on delivering them to realise this potential.

“The Government has shown it gets how important infrastructure is to the economy. It has put the framework in place but needs to show it can deliver on the ground.

“Whether it’s aviation capacity, electricity markets or funding our roads, the Government needs to take some big decisions which will have a major, lasting impact on inward investment and businesses’ ability to compete overseas.”

Mr Waters also pointed to IPPR research which shows transport spending per is £134 per head in the North West compared to £2731 per head in London and £792 per head in the South East.