Member Article

Businesses want government to walk the walk on infrastructure

Businesses in the North are sick of government talking the talk on infrastructure and want action, a survey from KPMG and the CBI suggests.

Over 500 businesses were asked for their opinion and 65% believe the that government policies will have no tangible impact, or even a negative one.

Energy has overtaken transport since 2012 as the biggest future concern for businesses, with major concerns about security and cost.

The ‘Connect More’ report highlights uncertainties in infrastructure planning in the UK, including the future funding of the road network, aviation capacity and clarity over the costs of HS2.

The CBI’s John Huddleston said: “Quality infrastructure is vital for boosting exports, unlocking business investment across the north east, and supporting our leading firms – an essential element of a meaningful industrial strategy.

“I know that ministers share our 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.

“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.”

Northern businesses view direct flights to emerging markets as key to their success – China (53%), India (44%), Brazil (26%), Russia (18%), though place less importance on this than the average UK business.

The CBI is calling for five practical steps to be taken in the next 18 months to boost immediate construction, while also setting the groundwork for longer-term decisions:

  • Boost investment by introducing capital allowances for the construction of infrastructure projects at the Autumn Statement.
  • Complete all feasibility studies for road and rail projects outlined in the Spending Review and commit to detailed plans for delivery, while starting the debate on longer-term road reform by conducting an audit of the state of the road network and its costs to operate.
  • Enshrine the Energy Bill into legislation and bring forward secondary legislation to provide businesses with the certainty they need to invest in our future energy supply.
  • Commit to implement the findings of the Airports Commission in party manifestos.
  • Collaborate with industry on a long-term plan for digital infrastructure, enabling businesses to make use of a wide range of technologies.

This was posted in Bdaily's Members' News section by Tom Keighley .

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