CBI: Government must act to attract new investment
Sep 09 2011
The government must act now to attract vital new investment into the UK’s ageing infrastructure, says the Confederation of British Industry (CBI).
Swift investment across Britain’s road and rail networks, digital, waste and energy would ensure the country remains internationally competitive and would kick-start UK growth, the lobbying group says.
The organisation’s survey of 477 businesses, conducted in partnership with KPMG, shows that 58 per cent rate the UK’s infrastructure worse than other EU countries, when judged on quality, value for money and reliability.
Just 26 per cent of companies see the UK as a favourable destination for infrastructure investment.
Last year’s World Economic Forum Global Competitiveness Report placed the UK 33rd for quality of infrastructure, alongside Slovenia and behind Tunisia and Cyprus, while competitors France and Germany both made the top ten.
The CBI is calling for swift action to help secure critical business investment and urges the government to raise its capital investment to pre-recession levels as soon as possible.
CBI director-general John Cridland says, ‘This survey paints a disturbing picture. Firms across the country say that the infrastructure they depend on every working day is just not good enough and is stifling growth. High quality infrastructure swings boardroom decisions when companies are looking where to invest, and pays dividends in terms of future jobs and growth.
“The UK is still a long way down the international infrastructure league table and languishes behind key competitors. So, if we are serious about boosting exports - especially in emerging markets - and achieving sustainable growth, the government must put infrastructure investment firmly at the top of its agenda.’
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