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Businesses Demand UK Infrastructure Investment but Praise Broadband Quality

Posted: 09th Sep, 2011 By: MarkJ
ukcbi uk logoThe Confederation of British Industry (CBI), a lobbying organisation for businesses, has called upon the UK government to help boost investment in the country's "ageing infrastructure" after a new KPMG survey of 477 businesses found that 58% rated the nation's infrastructure as being "worse than other EU countries". Surprisingly there was one exception to the generally negative tone, broadband access.

The UK's digital infrastructure (internet access etc.) appeared to do a better job than expected, with 73% of firms claiming to have seen an improvement in broadband ISP networks and services since 2006. Sadly this doesn't change the fact that only 26% saw the UK as a "favourable destination" for infrastructure investment.

The 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.

We need ministerial decisions that get spades in the ground and people working now. There are large amounts of business capital waiting to be unlocked if the Government achieves a step-change on transport, for example with the introduction of road tolls. Capital investment must return to pre-recession levels at the earliest opportunity."

The governments Broadband Delivery UK (BDUK) office is currently spending £530m (could rise to £830m by 2017) to help 90% of "people in each local authority area" gain access to a superfast (25Mbps+) broadband service by 2015; but the last 10% will have to make do with a minimum of 2Mbps. Many industry commentators believe that more money will be needed.

Meanwhile the CBI has moved to establish a new Infrastructure Board of "leading CEOs and Chairmen," which will be tasked with the production of a "compelling new framework for the speedy delivery of resilient, smarter infrastructure, which will help restore the UK’s competitive edge in the years ahead."

The recent 2010 World Economic Forum Global Competitiveness Report ranked the UK a lowly 33rd for quality of infrastructure, alongside Slovenia and behind Tunisia (you know, the country that just went through a revolution). By contrast France and Germany both made it into the Top 10.
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