Feeds:
Posts
Comments

Posts Tagged ‘infrastructure’

The latest survey of the UK’s business community by lobby group the CBI and accountants KPMG makes gloomy reading. “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, aviation capacity and clarity over the costs of HS2, businesses expect things to get worse over the next five years,” the CBI says.

The CBI/KPMG survey of 526 business leaders found that dissatisfaction with domestic transport has jumped from 28% in 2011 (when the first survey was carried out) to a fairly depressing 49% in 2013. “With relatively few projects underway on the ground and no action on long-term road reform, there is widespread expectation that local roads and motorways will deteriorate over the next five years,” it says.

“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,” John Cridland, CBI director-general said at the report’s launch. “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 therefore calling on the Government “to 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”.

The need for a comprehensive delivery plan for new transport infrastructure, rather than a ‘shopping list’ of individual schemes, was emphasised by one of the country’s biggest insurance companies, Aviva. Speaking to The Daily Telegraph, Paul Abberley, the company’s head of investments, noted that less than £1bn of Aviva’s £230bn fund is currently invested in UK infrastructure. And the reason for this? “The absence of a proper pipeline of projects,” apparently. “If you look at the National Infrastructure Plan, is that an actionable plan or just a list of stuff we need?” Abberley asked rhetorically.

One small crumb of comfort for the Government’s transport department is that, despite all of the above, transport isn’t the business community’ biggest headache at the moment, with energy having overtaken transport since 2012 as the biggest future concern for businesses.

Advertisements

Read Full Post »

It is you and I who are going to have to stump up the hundreds of billions of pounds needed over the next decade or so to meet the UK’s Infrastructure deficit.

Who says so? Vince Cable. Answering questions at today’s Investing in Infrastructure 2012 conference, the Secretary of State for Business, Innovation and Skills indicated that either the money will come from extra charges to users and/or general taxation.

In reality there was little else Mr Cable could say, as clearly there is no magic wand to be waved to conjure up the money. The private sector might arrange the financing of the big ticket projects but it will be us as individuals who foot the final bill.

The scale of the work to be done is mammoth. The Policy Exchange think tank says £500 billion – some £50 billion per year – will be needed by 2020 (see table below) and the Government’s own National Infrastructure Plan highlights £200 billion of potential investment over the next five years.

Source: Delivery a 21st Century Infrastructure for Britain, Policy Exchange.

Note: the Policy Exchange believes the £434 billion figure to be conservative and the true number likely to be closer to £500 billion

 

 

Normal
0

false
false
false

EN-GB
X-NONE
X-NONE

MicrosoftInternetExplorer4

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:””;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin-top:0cm;
mso-para-margin-right:0cm;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0cm;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:”Times New Roman”;
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:”Times New Roman”;
mso-bidi-theme-font:minor-bidi;}

So finally we’ve heard it from the horse’s mouth.

 

It is you and I who are going to stump up the hundreds of billions of pounds needed over the next decade or so to meet the UK’s Infrastructure deficit.

 

Who says so? Vince Cable. Speaking at today’s Investing in Infrastructure 2012 conference, the Secretary of State for Business, Innovation and Skills indicated that either the money will come from extra charges to users and/or general taxation.

 

In reality there was little else Mr Cable could say, as clearly there is no magic wand to be waved to conjure up the money. The private sector might arrange the financing of the bit ticket projects but it will be us as individuals who foot the bill.

 

The scale of the work to be done is mammoth. The Policy Exchange think tank says £500 billion will be needed by 2020 and the Government’s own National Infrastructure Plan highlights £200 billion of potential investment over the next five years.

Read Full Post »

%d bloggers like this: