CBI: this government cut capital spending too sharply
CBI: “There is now growing recognition that this government cut capital spending too sharply upon coming into office in 2010, reducing construction activity at a time when the UK badly needed investment and setting back the construction pipeline for years to come.” Its latest infrastructure survey also reveals a growing lack of business confidence over the delivery of new energy infrastructure:
Some 95% of firms say they are now concerned about the costs of energy, while 90% report they are concerned about security of supply. Much of this investment is hanging on the passage of the Energy Bill.
Clearly, energy infrastructure investment is vital, as the TUC will discuss at its national conference, Green Growth: No Turning Back, on 21 October (free). And it’s not as if the government has not been warned. In 2012, Energy UK reported that “key stakeholders across the sector emphasise their view that the attractiveness of the UK investment framework has worsened notably compared to 2010. This is resulting in many potential commitments being deferred, or being declined altogether. The investment momentum built up to 2012 is highly likely to diminish.”
The UK is ranked 28th for quality of infrastructure in 2013-15, and investment rates lag behind our competitors.
Similarly, the CBI now comments that “the UK remains in an investment hiatus, creating concerns among firms for which energy prices are critical to their future competitiveness.”