A record number of firms are dissatisfied with the state of infrastructure in their region, according to the 2017 CBI/AECOM Infrastructure Survey.
Nearly all (96%) of the 727 businesses surveyed see infrastructure as important to the government’s agenda, but only one in five firms is satisfied with the pace of infrastructure delivery and almost three quarters (74%) doubt infrastructure will improve over this Parliament. This lack of confidence is attributed primarily to policy inconsistency (+94% of firms) & political risk (+86%). The digital sector is the exception, however, where 59% of firms are confident of improvements.
For the first time, this year’s survey included the public’s views on infrastructure. Their opinions closely mirror those of companies, as only 26% of the public believe delivery is satisfactory and 76% doubt any improvement will occur during this parliament.
Carolyn Fairbairn, CBI’s director-general, said: “Our message is as clear as it is simple – this is no time for discussion and delays, it’s time for delivery. This needs to be heard not just by Westminster, but by local and devolved governments, as making progress on smaller, local projects is just as important as the bigger projects. Firms will not be forgiving if this focus slips.
“With continuing uncertainty over Brexit, it’s all the more important the Government delivers quality infrastructure as a key pillar of a modern and effective Industrial Strategy, from excellent quality gateways to the world to a funding framework that gives investors the sustained confidence they need. It is a vital lever for spreading prosperity across the whole of the UK.
Richard Robinson, Aecom’s chief executive for civil infrastructure EMEIA, at AECOM, said: “Transformational infrastructure necessitates bold decisions and strong vision. The next five years present a huge opportunity for the Government to set in train a lasting legacy for future generations. The link between transport and long-term plans for other vital infrastructure such as energy, water, waste and housing must also be considered. A clear vision for integration will be essential to accommodate the UK’s projected population growth and maintain economic prosperity.”
With close to two thirds of businesses (62%) not confident that the UK’s competitiveness will increase by 2030 because of its infrastructure, skills shortages have come to the fore as a critical area. Indeed, as the UK leaves the European Union, firms see access to skills and talent from the EU as the top priority for digital, energy and aviation in building a new relationship (48%, 43% and 42% respectively).
Encouragingly, over half of firms (51%) see new free trade opportunities with non-EU countries as positive. Meanwhile, 45% of companies think that improvements in rail and road access to ports and airports are critical for the UK to capitalise on a new trading future. However, with infrastructure accounting for nearly half (47%) of European Investment Bank investments in the UK, there is very little confidence firms will receive similar funding post-Brexit – for example, 71% of firms aren’t confident the roads sector will receive the funding it needs in future.
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