Businesses fear under-delivery on infrastructure
BUSINESSES are concerned that two years of positive Government infrastructure policy announcements will not translate into delivery on the ground and could undermine the return to sustainable growth, a new report has claimed.
In a survey of 526 business leaders, the CBI/KPMG report shows an improving UK infrastructure investment environment, but finds that two out of three firms (65%) believe that government policies will have no tangible impact, or even a negative one. Only a third of businesses (35%) believe that such schemes will make a difference on the ground.
The report, Connect More, highlights the importance of infrastructure to sustainable UK growth. However, it concludes that with many outstanding issues such as the future funding of the road network, aviation capacity and the escalating costs of HS2, firms are only expecting things to get worse over the next five years.
Damian Waters, CBI North West regional director, said: “The faltering speed of delivery on infrastructure creates a worrying sense that politicians lack the political will to tackle some of the major issues head-on.
“We can’t afford any further delay. The Coalition must show strong leadership and prove that the UK can deliver on a small number of projects over the next 18 months and reach a much-needed consensus on bigger issues such as aviation and roads reform.”
Jonathan Hurst, chairman of KPMG in the North, said: “The state of our regional infrastructure in the North is not a theoretical debate. It is about bottom line profitability and international competitiveness.
“It is about transport networks that get supplies in and products delivered on time; an energy supply that is dependable at lowest cost and digital networks that offer fast connectivity anytime, anywhere.
“Sadly, the business verdict remains that our infrastructure is simply not up to scratch. It is disappointing to hear businesses across the North report once again a sense of more rhetoric than action. Of particular concern is growing dissatisfaction with links between our regions, and the 79% of respondents who believe our local road network has continued to deteriorate over the last five years.
“Rail fares no better, with 54% anticipating inter-city rail will decline over the next five years, underlining the importance of the timely delivery of the Northern Hub and the electrification of the Transpennine route.”
said: “Quality infrastructure is vital for boosting exports, unlocking business investment across the UK, and supporting our leading firms – an essential element of a meaningful industrial strategy.
“I know that ministers share my enthusiasm for progress, but Government has talked the talk on infrastructure for the last two years with too few signs of action.
“The faltering speed of delivery on infrastructure creates a worrying sense that politicians lack the political will to tackle some of the major issues head-on.”
He said the economy could not afford any further delay and the coalition had to show strong leadership and prove that the UK could deliver on a small number of projects over the next 18 months and reach a consensus on bigger issues such as aviation and roads reform.
