Supercharging infrastructure investment is vital to UK's future: Beckie Hart

At the launch in Leeds last week, the Commission called for an ambitious approach to policy development and a commitment to investment of around £30bn per year from the public sector into the mid 2030’s.

This would need to be matched by up to £50bn per year of private investment over this same period.

While the report demonstrates notable strides, we have made in infrastructure investment in the last five years, it is clear that the current pace and scale of delivery is insufficient to meet the challenges the economy faces this decade, from our net zero targets to ambitions on enhancing digital and transport connectivity.

Major public transport upgrades in the UK’s most congested cities have the potential to both unlock growth and reduce road emissions. Delivery of the now cancelled northern leg of the HS2 network would have connected 8 of the nation’s 10 biggest cities, creating jobs, opportunity and prosperity throughout the country.

Furthermore, it would have helped take 2.5 million lorries worth of freight off the road network

The government’s commitment to invest in a new Network North programme of transport projects promises much needed infrastructure improvements. But a ‘start from scratch’ approach risks leaving those businesses in a holding pattern of poor connectivity and low productivity whilst those projects are scoped, prepped and finally delivered and we are really keen to see these projects get started not just talked about.

Upgrading the UK’s energy infrastructure is central to the Commission’s report. This is essential if we are to achieve a net-zero economy by 2050. The review calls for people on lower incomes to have heat pumps installed for free, to make water meters compulsory for households and businesses, improving recycling rates and upgrading insulation at a cost of about £3.2bn a year.

Ahead of the Autumn Statement in November, the CBI is further asking government to implement a more agile and responsive approach to delivering connectivity of energy projects into the national grid network. Not only will this provide more certainty and confidence for firms but will drive vital economic opportunities, create jobs and ultimately will help to bring down energy costs for householders as we transition away from fossil fuels onto cheaper low carbon electricity.

Attracting investment to the UK in the face of global competition is critical to UK infrastructure. According to the Commission private investment needs to increase from around £30 to £40bn over the last decade to £40 to £50bn in the 2030s and 2040s. The CBI is clear that policy stability and certainty around the delivery of major infrastructure including planning reform can provide the long-term confidence and clarity that investors seek.

Significant public and private infrastructure investment will drive sustainable growth, build a more productive and greener economy benefitting businesses and households alike.

However, we need government to work alongside business to achieve this.

Beckie Hart is CBI regional director for Yorkshire and Humber