news 5
Infrastructure could undermine recovery
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 CBI/KPMG report reveals.
The national survey of 526 business leaders 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; with only a third of businesses (35%) believing that they will make a difference on the ground.
The report, Connect More, highlights the importance of infrastructure to sustainable UK growth, yet with many outstanding issues such as the future funding of the road network and aviation capacity, businesses expect things to get worse over the next five years.
Regionally, half of business leaders in the South East felt that the
local road network would not improve in the next five years, and almost half of businesses (48%) felt that international air links had deteriorated in the past five years, with one in three expecting international air links to worsen still over the next five years.
Overall, one in five businesses surveyed in the South East region felt that government policies will have absolutely no impact on infrastructure investment in the UK over the next five years.
Paul Gresham, senior partner for KPMG in the South East, said: “Investment in infrastructure is key to the UK’s economic strategy, and absolutely vital to the vast South East region, particularly in helping to boost exports, and supporting our leading firms. There is a lot of talk about investing in local infrastructure, but sadly, there remain very few signs of action, particularly around key programmes such as the Lower Thames Crossing and A27
Chichester Bypass. If the region is to continue to grow, it is so important that we get the investment we need for a modern transport system fit for the future.
“Most vitally, any decision on the future of aviation capacity is absolutely critical now in order to help to secure our economic prosperity, not just locally, but for the UK economy as well.”
Malcolm Hyde, CBI South East regional director, said: “Quality infrastructure is vital for unlocking business investment across the South East.
“I know that ministers share our enthusiasm for progress, but the Government has talked the talk on infrastructure for the past 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.”
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.
Executive Meeting Rooms Hire per hour for up to 10 people
20.13
per hour for up to 10 people
• Free car parking • Free WiFi • Arrival Tea & Coffee included • Catering options available from a choice menu • VGA cable to link laptop to in-built plasma screen
Royal Berkshire Conference Centre, Madejski Stadium, Reading, Berkshire, RG2 0FL
Tel 0118 968 1333 Fax 0118 968 1334 Email
rbcc.events@compass-group.co.uk Hot Boxes cannot be pre-booked. Operate Monday-Friday, 8.00am – 5.30pm, subject to availability and venue discretion. Payment required on departure.
THE BUSINESS MAGAZINE – THAMES VALLEY – OCTOBER 2013
www.businessmag.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72