Transport cuts 'threat to recovery'

According to new figures, 83 per cent of businesses in the region say they are suffering from a lack of transport capacity, above the national average of 80 per cent and higher than any neighbouring region including the North-East and North-West.

The survey, carried out by the Yorkshire and Humber Chambers of Commerce, also revealed strong support for a high speed rail network, 90 per cent of respondents supporting the idea and calling for the "depoliticisation" of infrastructure planning to ensure big energy and transport schemes are not bogged down in the UK's bureaucratic planning system.

The president of the chambers, Richard Wightman, said: "This survey reveals that the costs to business of current transport inadequacies are high and rising.

"Companies are losing man hours and face higher operating costs.

"Inadequate infrastructure is a big a risk to the recovery and as every business moves goods and people, it is at the frontline of supporting business through the recession."

The survey, of 481 businesses, recommended that transport investment for Yorkshire and the Humber is prioritised so the region gets a fairer share.

It found that 90 per cent of companies believe major schemes take too long to deliver, especially with funding cuts likely, 72 per cent think the design and implementation of big infrastructure schemes is too bureaucratic and 62 per cent said decisions on major schemes should be depoliticised.

The report also recommends the region is put at the centre of UK energy industry and its supply chain for clean coal, wind and wave energy.

Mr Wightman said: "Our region has fantastic transport links – the M1 and M62, East Coast and Midland main lines, three airports and the Humber ports.

"The problem is that these links do not have the capacity to meet our business needs today and we have consistently had a poor deal on transport funding.

"We need a long term, credible and funded infrastructure plan for our great region. Investment in infrastructure is a top business priority. Cutting transport budgets today cuts economic growth tomorrow."

The report found that key road and rail projects linking the region's main cities, ports and airports are at risk.

Capital spending on transport is being cut by 600m in 2011, overall capital spending is projected to be halved in the next five years and Yorkshire has consistently suffered amongst the lowest transport spending in the country.

The 2007-8 Treasury Public Expenditure Statistical Analyses for transport spending showed that for 213 invested per head in Yorkshire, 783 was invested in London. It was also revealed that 1,283 per head was spent in the North West between 2003-4 and 2007-8 compared with 997 in Yorkshire.

The director general of the British Chambers of Commerce, David Frost, said: "This survey suggests that the UK's infrastructure networks are still failing to meet business needs, with serious economic consequences.

"Companies across the country are reporting reduced productivity, a difficulty in attracting or retaining staff, and problems in the delivery of goods and services as a result of poor infrastructure.

"For decades successive governments have failed to adequately address business concerns.

"Politicians from all parties would be wise to take note of the strength of business feeling on infrastructure issues, especially with a General Election around the corner."