Wired-GOV Newswire (news from other organisations)
|Printable version||E-mail this to a friend|
CBI/AECOM: UK's infrastructure on the up, but now it's all about delivery
UK's infrastructure on the up, but now it's all about delivery - CBI/AECOM
Almost half of firms (44%) believe the UK’s infrastructure has improved over the past five years, but only a quarter (27%) think it will pick up in the next five years, and two thirds (64%) suspect it will hamper the country’s international competitiveness in the coming decades, according to the 2016 CBI/AECOM Infrastructure Survey.
Delivery of key projects already in the pipeline emerged as the top priority among the 728 firms surveyed. Delivery of £38 billion of investment in the rail network through Control Period 5 (99% of respondents), and £15 billion of investment in the UK’s motorways and A-roads through the Road Investment Strategy (97% of respondents) rank highly, as does delivery of a new runway in the South East (85%) & HS2 (80%).
The Government’s recent track record has encouraged firms. Infrastructure has become a core part of the country’s long-term economic agenda since 2010, and 42% of firms see the policies undertaken since the start of the 2015 Parliament – like the creation of Transport for the North – as positive steps.
However, confidence that overall infrastructure will improve in the coming five years has fallen 16 percentage points since the 2015 Survey (from 43% to 27%). A significant majority of firms are not optimistic that infrastructure in aviation (74%), energy (73%) and roads (69%) will improve, with only digital bucking the trend (59% of companies expect improvements in this area). Moreover, the majority (64%) of firms feel the UK is unlikely to be more internationally competitive in 2050 than it is now, and 46% are dissatisfied with the current state of their local infrastructure.
To secure delivery of the most important projects, Britain’s biggest business group, and the global infrastructure services firm, AECOM, want to see the Government reaffirm spending plans and press ahead with implementing policy decisions to ensure projects are delivered in full over the course of this Parliament.
Carolyn Fairbairn, CBI Director-General, said:
“Infrastructure is a key driver of productivity and living standards. Day in, day out, Britain’s businesses rely on our roads, railways and runways to move their goods, services and people up and down the country. Firms give the Government a good report card on infrastructure, and are pleased with its commitment in recent years to put infrastructure at the heart of its long-term economic agenda.
“But announcements and commitments are one thing. Seeing tarmac, tracks, and super-fast internet cables being laid is another. It isn’t right that nearly one in two firms are dissatisfied with their region’s infrastructure, or that confidence in the future is running low, especially when it comes to delivery, the key piece of the infrastructure puzzle.
“So, our message is a simple one: at the end of the day, delivery is what matters. It’s great the Government is taking the decisions for our long-term future prosperity, like giving the green light to the new runway at Heathrow, Hinkley Point and improving digital connections. Businesses also need clear, deliverable timetables for action on major national projects – like Control Period 5 and the Road Investment Strategy – in order for them to act as magnets for investment, growth and jobs.
“If we don’t get spades in the ground on existing plans, it’s clear we could put a major dent in the competitiveness of British business – and the UK itself. This is something we cannot afford to do, especially during this period of uncertainty as the UK leaves the EU. Firms are ready and willing to work with the Government to develop the skills and capacity to deliver on plans.”
Richard Robinson, Chief Executive – Civil Infrastructure, Europe, Middle East, India and Africa, at AECOM, said:
“As the UK plans for post-Brexit scenarios, the role of infrastructure is more vital than ever. Competing more directly on the global stage requires strong foundations to secure the nation’s international standing.
“Developing truly world-class national infrastructure is therefore of paramount importance. It will enable British industry to innovate, expand and flourish, strengthening the UK’s reputation as a good place to do business. High-profile, transformational projects such as HS2, Hinkley and Heathrow are vital but must not be prioritised to the detriment of the Highways England and Network Rail schemes that keep our country running.
“At a time of uncertainty, clarity around infrastructure investment and delivery will boost business confidence. The UK has a long history of successful major infrastructure projects, leading the world in creating innovative new delivery models. Schemes such as Crossrail and Tideway are beacons of best practice around the globe.
“Fortunately the UK has moved on from the era of under-investment in infrastructure. Since the start of this decade we have seen a revitalised commitment to infrastructure investment and its transformative power. The focus now must be on delivery.”
Sector by sector
- Nearly every business surveyed (96%) says more reliable and robust digital connections – for fixed-line and mobile networks – is critical or important
- Three quarters of firms (75%) see the UK’s digital networks as having improved in the last five years, with over half (59%) expecting them to improve further still in the next five years
- But, a third of businesses (32%) say their current fixed-line broadband doesn’t meet their needs, and one in five SMEs report they don’t have the best connection available to them.
As a key driver of productivity and regional growth, digital infrastructure is critical to firms up and down the country. The CBI would like the Government to prioritise the roll out of quality, business-dedicated broadband, alongside consumer broadband.
- Just over a quarter of businesses (27%) expect aviation connectivity to improve over this Parliament. The devolved nations are more positive, with 61% of firms in Scotland and Wales anticipating better connectivity
- However, 73% of firms are not confident that a new runway in the South East will be built. Almost half of all firms (46%) expect to lose business if the UK doesn’t increase its flights with emerging markets, rising to 88% for multinational firms
- 70% of firms see faster road and rail access to the UK’s airports as critical or important, and 59% think the same about more resilient airport infrastructure.
- Nearly three quarters of firms (74%) – and four fifths of manufacturers (81%) – see improved security of energy supply as a critical or important long-term goal for their future operations
- This is followed closely (71%) by the need for greater investment in energy efficiency
- 66% of respondents are confident about security of supply for the rest of this Parliament, but only 27% feel the Government will take steps to improve the longer-term outlook
- 59% of infrastructure providers in the energy sector are dissatisfied with the Government’s energy policy framework to boost investment
- Over four fifths of businesses (83%) aren’t confident in the UK’s ability to meet the requirements of the Paris Climate Change Agreement (COP21).
- The ability to work on the go is vital for firms, with 75% saying their top rail infrastructure priority is better digital connectivity, such as WiFi and 3G or 4G, on board trains
- But over half (59%) of businesses believe rail infrastructure won’t improve over the course of this Parliament
- Turning to Control Period 5, half (50%) of all respondents are dissatisfied with the delivery of the programme so far. 74% of infrastructure providers working in the rail sector are not confident that Network Rail can deliver the rest of CP5, whilst only 32% of them believe the industry has the capacity to do so.
- Nearly all firms (97%) see deliver of the Road Investment Strategy (RIS) as important to the UK’s future economic growth. But almost three quarters of infrastructure providers (71%) aren’t confident that Highways England has the capacity to deliver the RIS, whilst 56% believe industry also lacks the capacity
- With RIS 2 already being developed, 75% of businesses see integrating the road network with other forms of transport – such as rail, ports and airports – as critical or important
- 73% of companies see tackling congestion as critical or important to the future operation of their business.
Regional and Devolved Nation Perspective
- For a list of the top three projects for each region of the UK, please see pages 40 – 41 in the 2016 CBI/AECOM Infrastructure Survey
- Only a quarter of respondents (26%) from regions and devolved nations are satisfied with the quality of their infrastructure, and close to half (46%) are dissatisfied.
- 40% of London firms are satisfied with their infrastructure. 36% of Scottish firms, 28% of Yorkshire and Humber firms, 21% of North East firms, 15% of Northern Irish firms, and only 8% of Welsh firms feel the same way. This falls to 5% among firms in the West Midlands
- Firms’ concerns about infrastructure vary by region.
- Connectivity is most critical for North West firms (70%)
- Capacity is most critical for London firms (60%)
- Resilience is most critical for Welsh firms (51%)
- Cost is most critical for Northern Irish firms (40%)
- Almost half of firms (47%) believe devolution will improve infrastructure in their region. However, this is a 14 percentage point decline on the 2015 Survey (61%), indicating a fall in confidence.
- Businesses in the Northern Powerhouse are the most positive, such as the North West (76%), Yorkshire and Humber (73%) and the North East (63%)
- Companies in the devolved nations are less optimistic, with Scotland (36%) and Wales (31%) below the national average
- The most critical barriers to improving local infrastructure in the regions and devolved nations are a lack of central government appetite for investment (38%), a lack of a clear strategic plan for the region (38%) and a lack of local leadership (37%)
Environment for delivery
Planning and delivery:
- Infrastructure providers are positive about the impact of current policies on the UK’s infrastructure, with the aviation sector being the most positive (54%) and the energy sector the least upbeat (32%)
- But two in five infrastructure providers (40%) are dissatisfied with the current business environment for delivery
- 68% of firms believe that setting out a long-term plan is a critical function of the National Infrastructure Commission. 54% believe that it is critical the UK’s infrastructure is more joined up.
- Close to nine in ten infrastructure providers (86%) are concerned that current skills shortages will hamper the UK’s ability to deliver its current infrastructure pipeline. Digital providers are the most concerned (91%)
- Meanwhile, 79% of infrastructure providers are engaged in apprenticeship training, but this drops to 40% among SMEs
- The impact of the Apprenticeship Levy on the sector remains unclear, with over half of infrastructure providers (53%) anticipating it leading to more apprenticeship places, but a third (30%) reporting they will have to cut back non-apprenticeship training.
- Only a quarter of infrastructure providers (26%) are satisfied with the current access to finance or funding
- Infrastructure users are willing to look at alternatives to government funding, with over half of all firms (59%) open to greater private financing models for the road and rail networks and 54% happy to move to wider use of a user pays model.
Latest News from
Wired-GOV Newswire (news from other organisations)
LGA - Councils respond to £1.2 billion local roads funding allocations for 2017/1817/01/2017 16:40:00
Cllr Martin Tett, Transport spokesman at the LGA, responds to the announcement on how £1.2 billion in roads funding to councils will be allocated in 2017/18.
Unicef - Number of unaccompanied children arriving by sea to Italy doubles in 201617/01/2017 15:40:00
Urgent Home Office action needed as just three unaccompanied children were transferred from italy to the uk last year
LGA responds to PAC report on Syrian Vulnerable Persons Resettlement Programme17/01/2017 14:40:00
Cllr David Simmonds, Chairman of the LGA's Asylum, Migration and Refugee Task Group, responds to the House of Commons Committee of Public Accounts report into the Syrian Vulnerable Persons Resettlement programme.
The Patients Association launches report on patients’ poor experiences with the Parliamentary Health Service Ombudsman17/01/2017 13:40:00
On Thursday, January 12, 2017, the Patients Association released a report on the Parliamentary Health Service Ombudsman (PHSO). The report reveals that a significant number of patients and family members who submit complaints to the PHSO feel that they receive a poor quality service.