Business sceptical on infrastructure reform

16 Sep 13
Two-thirds of businesses believe government infrastructure policy will not translate into action on the ground, according to a survey by the CBI and consultancy KPMG.

By Vivienne Russell | 16 September 2013

Two-thirds of businesses believe government infrastructure policy will not translate into action on the ground, according to a survey by the CBI and consultancy KPMG.

The poll of 526 business leaders found that two out of three (65%) firms believe infrastructure policies will have no tangible impact, or even a negative one. Unresolved issues such as the future funding of the road network and lack of clarity over the costs of the High Speed 2 rail scheme mean many firms expect things to get worse over the next five years.

CBI director general John Cridland said: ‘I know that ministers share my enthusiasm for progress, but government has talked the talk on infrastructure for the last two years with too few signs of action.

‘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.’

He urged action on a number of small projects over the next 18 months and called for a ‘much-needed consensus’ to be reached on bigger issues such as aviation and roads reform.

KPMG partner Richard Threlfall said: ‘It is disappointing to hear businesses report once again a sense of more rhetoric than action. Of particular concern is growing dissatisfaction with links between our regions, and the 73% of respondents who believe our local road network continues to deteriorate.

‘Overlaid on this is the fear amongst businesses that too many critical investment decisions are being pushed back to beyond the next election.’

The findings of the survey are collated in the CBI/KPMG report Connect more.

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