4 November 2016

  |  CBI Updates Team

News

CBI/AECOM Infrastructure Survey – A clear and consistent strategy is crucial to deliver long term energy investment

Now in its 6th year, the CBI’s Infrastructure Survey, supported by AECOM, provides an overview of business sentiment towards the UK’s infrastructure delivery. On energy, the clear message is one of delivering a long-term strategy for investment.  

CBI/AECOM Infrastructure Survey – A clear and consistent strategy is crucial to deliver long term energy investment

This year’s survey affirms the critical role that infrastructure plays in making the UK an attractive place to do business, and in helping firms boost productivity. The report reveals that almost half of firms (44%) believe the UK’s infrastructure has improved over the past five years, and 42% of firms are positive about the policies undertaken since the start of the 2015 Parliament. However, only a quarter (27%) think this progress will continue in the next five years, while two thirds (64%) suspect it will hamper the country’s international competitiveness in the coming decades. 


Looking specifically at the energy sector, the survey highlights the importance of developing a long-term strategy in order to deliver much needed investment. Three quarters of respondents cited improved security of energy supply as ‘critical’ or ‘important’ for the future of their business. However, while 66% of respondents are confident regarding security of supply for the rest of this parliament, just 27% feel that the UK will take steps now to improve the longer term outlook. 


Energy costs are also a priority, with two thirds of firms seeing decreased costs as either ‘critical’ or ‘important’, rising to 73% when looking specifically at manufacturers. Perhaps unsurprisingly therefore, investment in energy efficiency is also seen as a key issue, with 27% of firms viewing this as a critical long-term goal. 


The survey also underlines business’ concerns that current policies will not deliver the much needed investment in our energy system, with 59% of infrastructure providers in the energy sector either ‘dissatisfied’ or ‘very dissatisfied’ with the government’s current energy policy framework. A further 83% of businesses are not confident that the UK will meet the Paris Climate Change Agreement, highlighting the need for the government to come forward with a clear and credible plan that works for all businesses.


You can read the full survey here.


For more information, please contact Samir Nanji