Nearly three fifths (58%) of firms are not confident that energy infrastructure will improve, according to according to the 2017 CBI/AECOM Infrastructure Survey.
Setting out a post-2020 power sector investment framework is the top energy priority for the Government, with 98% of firms citing this as critical or important, followed by supporting greater innovation (90%), the Survey finds.
Almost half (49%) of energy providers are dissatisfied with the delivery and policy environment, a rise from last year’s Survey (42%).
All energy providers surveyed (100%) said the Government needs to set out a plan to provide a clear and long-term framework for energy policy – firms will therefore welcome the Government’s recent Clean Growth Strategy.
Despite the Government’s strong commitment to improving the UK’s infrastructure, both business and the public are concerned about the pace of delivery and a record number of firms are dissatisfied with the state of infrastructure in their region, the 2017 CBI/AECOM Infrastructure Survey has revealed.
“Despite the backdrop of Brexit and political uncertainty, we have certainly seen some welcome progress this year, but it is essential that we don’t rest on our laurels. The focus now must remain on progressing the UK’s ambitious infrastructure pipeline.”
With the UK currently ranking 27th in the world for the quality of its infrastructure, nearly all (96%) of the 727 businesses surveyed see infrastructure as important (of which 55% view it as critical) to the Government’s agenda.
From the Clean Growth Strategy and the £500bn infrastructure pipeline to its decision to build a new runway at Heathrow and press ahead with the A303 tunnel, the Government has made clear its commitment to British infrastructure.
However, only one in five firms is satisfied with the pace of delivery (20%) and almost three quarters (74%) doubt infrastructure will improve over this Parliament. This lack of confidence is attributed primarily to policy inconsistency (+94% of firms) & political risk (+86%). The digital sector is the exception, however, where 59% of firms are confident of improvements.
For the first time, this year’s Survey included the public’s views on infrastructure. Their opinions closely mirror those of companies, as only 26% of the public believe delivery is satisfactory and 76% doubt any improvement will occur this Parliament.
Firms’ dissatisfaction with infrastructure in their region has increased – over half (54%) are dissatisfied (or very dissatisfied), an 8 percentage point increase on last year’s Survey.
Carolyn Fairbairn, CBI director-general, said: “We’ve seen a real commitment from the Government on infrastructure over the last year, from decisions on Heathrow and the A303 to pledges to scale up the supply of housing and clean energy.
“But our survey shows this is not translating into optimism about future improvements among both firms and the public, who are united in their concern about the pace of delivery for new projects. We’ve now reached crunch time for the UK’s infrastructure.”
Richard Robinson, Chief Executive – Civil Infrastructure, Europe, Middle East, India and Africa, at AECOM, said: “Despite the backdrop of Brexit and political uncertainty, we have certainly seen some welcome progress this year, but it is essential that we don’t rest on our laurels. The focus now must remain on progressing the UK’s ambitious infrastructure pipeline.
“Schemes such as the third runway at Heathrow, Crossrail 2 and the Northern Powerhouse programme are world-class projects that provide bright beacons of British success and innovation and are vital to the country’s ability to compete on a global stage.
“However, if we are to grasp the opportunity to make major progress on infrastructure, the issue must remain high on the government’s agenda, underpinning a modern industrial strategy.”
