A new survey of UK business has revealed that two in three firms believe further cuts in transport infrastructure investment will damage their prospects over the next three years. Currently, inefficiencies in the road network costs each UK businesses an average of £59,000 per year and inefficiencies in the rail network cost an average of £44,000 each per year. This means the combined annual cost to business of inefficient transport infrastructure could run to over 100 billion pounds.
The survey, carried out on behalf of the Association for Consultancy and Engineering (ACE) and the Civil Engineering Contractors Association (CECA), showed that 77% of firms questioned believe they need access to effective and efficient transport links to grow over the coming three years. With the government depending on the private sector to deliver growth and employment as part of the recovery from recession, the results send a clear signal ahead of the Comprehensive Spending Review in October – transport infrastructure plays a vital role in business productivity.
Commenting on the survey results, Rosemary Beales, Director of CECA said: “These results make it clear that if the private sector is to lead our economic recovery in the years ahead, businesses need better support from our transport infrastructure network.
“We understand that tackling the deficit and reducing government debt is vital and we do not expect transport infrastructure to be spared in the CSR. However, it is very important that Ministers understand the role that transport infrastructure plays in supporting productivity and growth. Carefully handled cuts can promote efficiencies, but should be balanced with targeted, strategic investment that aims to actively reduce the burdens on business.”
Nelson Ogunshakin, ACE Chief Executive, said: “This sets out the challenge for government in the Comprehensive Spending Review. Focused investment can promote the productivity and growth the UK needs. Maintaining key elements of programmes such as the Highways Agency’s Managed Motorways programme and looking carefully before cutting Network Rail’s budget could help reduce the burden of ineffective and inefficient road and rail networks. The warning for government in this set of results is, that without investment, problems in transport infrastructure will hold back the recovery. Congested roads and clogged railways are increasing business costs now and, if left unaddressed, those costs will do nothing but increase at a time when the UK economy needs businesses to grow and invest.”
-ENDS-
Contact:
CECA - Phil Morgan 020 7340 0453/07971 475240
ACE – Gavin Pearson 020 7202 0255
Notes to Editors
To read the report, please click here
Further key facts from the survey include:
- 50% of businesses in the UK feel that inefficiencies in the rail network result in lost business
- 66% said inefficiencies in the road network result in lost business
- 59% said problems on the rail network increase their operating costs
- 81% said road congestion increases their operating costs
- 48% said problems on the rail network limits productivity and 45% said it limits business growth
- 65% of businesses said congestion on the road network limits productivity and 53% said it limits business growth
- 84% of companies believe government should address congestion on the motorway network and 72% want to see action on mainline rail capacity as a priorities for investment
The survey was carried for ACE and CECA by David Burton Associates Limited
01306 887515
www.davidburtonassociates.com
More information about the Civil Engineering Contractors Association can be found at www.ceca.co.uk