Politicians are compromising British progress by failing to tackle the difficult decisions on long-term infrastructure, the CBI has warned.
The business lobby group said progress had been marred by a “two steps forward and three steps back” approach for far too long. An overwhelming majority – 96% – of business leaders surveyed by the CBI said political uncertainty was discouraging investment.
The UK’s infrastructure network is internationally weak, lagging behind North America, the EU, and Australasia according to respondents to the CBI/URS infrastructure survey: 61% of business leaders consider infrastructure in other EU countries to be better than the UK’s - an increase from 59% in 2011.
Katja Hall, CBI deputy director-general, said there was a need for politicians to make decisions on infrastructure that extend beyond the five-year electoral cycle.
“Politicians are too often seen as ducking the big, politically difficult questions looming large on businesses’ risk register, like runway capacity and long-term road funding, rather than grasping the nettle.
“We’re at a crossroads. The next government must build on the successful policies of this parliament, but we also need to see bold thinking and a renewal of the politics of infrastructure, finding a new way to agree upon and then consistently deliver the improvements we’ll need over the next fifty years – not just the next five.”
Hall said that the majority of businesses backed the creation of an independent body to assess Britain’s long-term infrastructure needs, lifting the political barriers to progress. “That 99% of firms think this would have helped the government make a more compelling case for HS2 demonstrates the powerful role a more independent voice could play,” she said.
Optimism about the outlook was weak, with 77% of those surveyed predicting Britain’s motorways will stay the same or get worse in the next five years. Meanwhile 46% of firms in London said that the UK’s indecision on new runway capacity was already impacting investment decisions.
In a separate report, the manufacturing trade body EEF urged the government to “finish the job” on Britain’s roads by boosting investment in the UK’s crumbling network.
EEF members felt the quality of Britain’s infrastructure was declining rather than improving.
“Roads are the backbone of the economy and the glue that holds the rest of the transport network together, with four-fifths of manufacturers saying they are critical to their business operations,” said Terry Scuoler, EEF chief executive.
“The message from manufacturers to the chancellor for the remainder of this parliament is clear, complete the job on vital roads, energy and broadband projects. As far as industry is concerned these are far more important than redirecting planning resources to new aspirational projects.”
