Government urged to attract investors for ‘ageing’ UK infrastructure

News Article - 15 September 2011
Category: Business

The Government must try harder to attract fresh investment for the nation's ageing infrastructure, according to the Confederation of British Industry (CBI).

Swift investment is required across Britain's road and rail networks and its digital, waste and energy sectors to ensure the country remains internationally competitive whilst encouraging economic growth.

The lobbying group conducted a survey in partnership with KPMG in which 58 per cent of 477 businesses rated the UK's infrastructure worse than surrounding EU countries in terms of quality, reliability and value for money.

CBI director-general, John Cridland, said: "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."

A couple of months ago the Federation of Small Businesses (FSB) indicated that SMEs should be given greater help to receive finance and grow to accelerate the nation's economic recovery.

Results from the FSB's 'Voice of Small Business' survey in June show that in the last year, a fifth of FSB members approached banks for credit and of those, a third (33 percent) had been refused. That's an equivalent of 320,000 small businesses not receiving the credit they need to expand.

John Walker, FSB national chairman, said: "Experience shows that demand for credit is at its highest when the economy starts to enter a recovery period. Our survey work is indicating that businesses are starting to think about expanding or buying new machinery and it is really disappointing firms are having to abandon these plans because of the banks refusing to lend.

"The Office for Budget Responsibility (OBR) is forecasting that business investment will help to strengthen the recovery. This will not happen unless the banks work with businesses to ensure they can get the finance they so greatly need. If this does not happen we risk the recovery remaining in a stagnant position and never fully recovering."

Article keywords: CBI, UK infrastructure investment, economic growth, KPMG, FSB, SME, Voice of Small Business, OBR

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