Confidence in ongoing improvements to the UK’s infrastructure has taken a major fall in the last year, along with industry’s faith in devolution, according to a major new survey.
The annual CBI/AECOM Infrastructure survey, which saw almost 730 firms reply this year, found that belief among firms that overall infrastructure will improve in the next five years has fallen 16 percentage points since 2015 - from 43% to 27%.
There were signs the business sector felt the UK had made at least partial improvements recently, with 44% of firms stating that the UK’s infrastructure has improved over the past five years.
However 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.
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.
Carolyn Fairbairn, CBI Director-General, said: ‘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.
'[But] 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.’
A significant majority are not optimistic about aviation (74%) or roads (69%) infrastructure, with only digital infrastructure prompting a majority of respondents (59%) to say they expected improvements.
On top of this 86% of infrastructure providers are concerned that skills shortages will affect the UK’s ability to deliver the current pipeline of projects.
And while almost half of firms (47%) felt devolution will improve infrastructure in their region, this is a 14 percentage point decline on the 2015.
The most critical barriers to local infrastructure improvements were cited as a lack of central appetite for investment (38%), a lack of clear strategic plan for the region (38%) and a lack of local leadership (37%).
Reactions to the issue of local infrastructure showed a strong sense of London bias from Government.
Infrastructure across the regions:
- 40% of London firms were satisfied
- 36% in Scotland
- 28% in Yorkshire and Humber
- 21% in the North East
- 15% in Northern Irish
- 8% of Welsh firms
- 5% of 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%)
Two fifths (42%) of firms saw policies undertaken since the start of the current Parliament, such as the creation of Transport for the North, as positive steps
Richard Robinson, chief executive – Civil Infrastructure, Europe, Middle East, India and Africa, at AECOM, said: ‘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.
‘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.’
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