Leaders express fears over lack of transport spending

Responses from 568 business leaders during June and July identified transport infrastructure as the area of greatest concern, according to a new CBI/KPMG survey.

Nearly all company chiefs said they think the planning system is a barrier to delivering new infrastructure and as many as 48 per cent believe Government changes to the system will make no difference.

Nearly half of the 568 business leaders surveyed (45 per cent) said inter-city rail connections have improved over the last five years and around two-thirds (64 per cent) believe the proposed HS2 London to Birmingham high-speed rail line will help them expand their companies.

As many as 65 per cent are concerned about the local road network, blaming congestion and lack of investment for the perceived decline.

Four-fifths of bosses (82 per cent) said that the UK’s digital network has improved in the past five years and a similar proportion (79 per cent) believe that it will continue to improve.

On balance, firms rate the UK’s mobile broadband networks as below average when judged on speed and breadth of coverage.

The Government has recently introduced a UK Guarantees scheme intended to underpin big infrastructure projects.

The scheme was welcomed by the CBI and KPMG, but both organisations said more needs to be done.

CBI director-general John Cridland said: “The Government has shown it gets how important infrastructure is to the economy. It has put the framework in place but needs to show it can deliver on the ground.

“The new UK Guarantees are seen as positive by businesses but firms fear initiative overload and are becoming impatient with delivery, leaving many companies still sceptical about the overall impact on investment.”

KPMG UK infrastructure head Richard Threlfall said business confidence in infrastructure appears to be ebbing away.

“The key issue is how quickly can recent policy announcements translate into investment on the ground.

“We’ve seen real improvements in our digital infrastructure but there’s continuing uncertainty over energy and transport investment. Everyone understands that the Government is constrained financially, but the right government interventions will encourage the private sector to invest.”