Partner Article

Investment desperately needed in UK Infrastructure

Businesses are calling for the government to act now to attract new investment in UK infrastructure, or risk falling even further behind its European counterparts.

In a new CBI survey, 58 percent of businesses rated UK infrastructure as worse than other EU countries, while only 26 percent believed the UK was a good place to invest.

Last year the UK was placed a dismal 33rd on the World Economic Forum Global Competitiveness Report, falling behind both Tunisia and Cyprus. However, both France and Germany made the top ten.

While the governments own National Infrastructure Plan acknowledges that £200 billion of investment is needed in UK infrastructure in the next year, 70 percent of this is expected to come from the private sector.

This news will come as a further blow to businesses in the North East, many of whom are already feeling the North South divide widening in the wake of the recession.

Richard Threlfall, KPMG’s Northern based UK Head of Infrastructure, Building and Construction said: “An important issues for the region is national and international links, both for freight and business travel.

“We need to look at the road, rail and local transport networks that connect the region’s economic centres and our ports and airports.”

The CBI is now calling for ministers to take swift action to get people working, by introducing changes to transport and returning capital investment to pre-recession levels.

John Cridland, CBI Director-General commented: “This survey paints a disturbing picture. Firms across the country say that the infrastructure they depend on every working day is just not good enough and is stifling growth.

“High quality infrastructure swings boardroom decisions when companies are looking to invest, and pays dividends in terms of future jobs and growth.”

The Growth Review and the UK Infrastructure Plans are due in the Autumn, and many businesses will undoubtedly be hoping for a clearer government strategy to encourage growth.

This was posted in Bdaily's Members' News section by Ruth Mitchell .