Businesses face mounting economic uncertainty in light of the UK's fluid political situation, and as we head into 2020 with a new government in place, it is vitally important to outline what measures will enable this region to prosper now and into the future. In coming weeks, Business West will set out 5 key priorities to help improve the lot of businesses of all sizes to reignite the country’s stagnating economy, and the second of these priorities in focus is infrastructure.
Where are we now?
Last year, the UK was ranked 16th in the world for utility infrastructure by the World Economic Forum. We ranked 11th for transport infrastructure behind countries against which we compete, including France, Spain and the United States.
Only 34 per cent of businesses agree that the UK rail network is meeting their needs. Worse, 68 per cent feel that our road network has become less reliable over the last five years.
As a result of inadequate transport infrastructure, businesses are facing:
- increased travel costs and lost time
- restricted access to customers and increased costs of buying and selling products and services
While businesses are more likely to agree that UK digital infrastructure is meeting their needs compared to rail and road, only 53 per cent believe that mobile networks are more reliable than five years ago.
Businesses consider the level of public sector capital investment and the planning system - to be the biggest barriers to improved infrastructure.
Where do we need to be?
- Ranking top 10 in the world for both transport and utility infrastructure by 2025.
- Raising public investment in infrastructure to at least 1.4 per cent of GDP per year - exceeding the funding guideline of 1.2 per cent, recommended by the National Infrastructure Commission.
- Working together - government, businesses and communities – as we transition to net-zero greenhouse gas emissions by 2050.
Infrastructure connects people to jobs and businesses to markets both nationally and around the world. It is no coincidence that the best-performing economies are those ranked at the top for transport, energy and digital infrastructure.
High and sustained investment in infrastructure would send a strong message that the UK remains a great place to do business – particularly in light of the current political uncertainty.
Investment in new transport technologies, digital connectivity, a comprehensive energy strategy and major rail projects that take freight traffic off roads would also complement efforts to reach the net-zero emissions target.
How do we get there?
Priority actions for the next UK government in order to deliver the above:
- Deliver a high-speed rail network as soon as possible.
- Commit funding to bring local roads back up to scratch – quickly.
- Reform planning rules to support the deployment of 5G mobile signal infrastructure.
- Attract more private investment into public infrastructure by introducing a replacement for the Private Finance Initiative.
- Strengthen planning guidelines to protect land for business and employment.
- Commit to an energy strategy that helps us achieve this target, while maintaining affordable and reliable energy for businesses.
- Ensure more devolved decision-making on infrastructure schemes of regional importance.
- Provide a real say for businesses in local decision-making on infrastructure, not tick-box consultation.
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