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, according to the 2017 CBI/AECOM Infrastructure Survey.

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 £500 billion 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. The 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.”

“With continuing uncertainty over Brexit, it’s all the more important the Government delivers quality infrastructure as a key pillar of a modern and effective Industrial Strategy, from excellent quality gateways to the world to a funding framework that gives investors the sustained confidence they need.”

Richard Robinson, Chief Executive – Civil Infrastructure, Europe, Middle East, India and Africa, at AECOM, said:

“Given the strong correlation between infrastructure investment and economic growth, it is hardly surprising that when infrastructure decisions are delayed, it is UK business that feels the pain. Indeed, the overriding message from business and the public in this year’s survey is clear: more needs to be done to raise confidence and up the pace in which infrastructure is delivered. Now is the time to provide clarity around infrastructure investment and accelerate action.

“Transformational infrastructure necessitates bold decisions and strong vision. The next five years present a huge opportunity for the Government to set in train a lasting legacy for future generations. The link between transport and long-term plans for other vital infrastructure such as energy, water, waste and housing must also be considered. A clear vision for integration will be essential to accommodate the UK’s projected population growth and maintain economic prosperity.”

With close to two thirds of businesses (62%) not confident that the UK’s competitiveness will increase by 2030 because of its infrastructure, skills shortages have come to the fore as a critical area. As the UK leaves the European Union, firms see access to skills and talent from the EU as the top priority for digital, energy and aviation in building a new relationship (48%, 43% and 42% respectively).

Over half of firms (51%) see new free trade opportunities with non-EU countries as positive. However, with infrastructure accounting for nearly half (47%) of European Investment Bank investments in the UK, there is very little confidence firms will receive similar funding post-Brexit .