Britain’s reluctance to invest in long-term infrastructure projects, driven by risk aversion and extended payback periods, has led to a decline in critical national infrastructure, according to recent research by Make UK.
Make UK’s latest report, titled “Infrastructure: Enabling Growth by Connecting People and Places,” highlights the concerns of manufacturers, with over half of respondents noting a significant deterioration in the country’s road infrastructure over the past decade. This decline has contributed to rising logistics costs and increasing challenges related to labor mobility and access to skilled workers.
Despite these concerns, the report also identifies positive developments, particularly in the area of digital infrastructure. Investments by previous governments in 5G connectivity and broader digital initiatives have been recognized as a success, enabling companies to confidently invest in digital technologies. This, in turn, has boosted productivity and created more high-quality, well-paying jobs across the nation.
The research examines perceptions of three key types of infrastructure—road, rail, and digital—over the past decade. It reveals a common sentiment among manufacturers that successive governments have prioritized cost over potential benefits when evaluating infrastructure projects. The success of digital infrastructure investments, however, serves as a testament to the transformative power of well-placed funding, providing a model for future government initiatives aimed at driving growth.
The study also uncovers regional disparities in infrastructure quality, with manufacturers in the North of England expressing the most dissatisfaction with road conditions. In the North West, a striking 68% of businesses reported that roads have worsened over the last ten years, compared to 43% in the North East. This discrepancy may be attributed to cities like Manchester focusing on public transport improvements at the expense of road investment.
Additionally, the report highlights the widespread disapproval of the decision to cancel the northern leg of HS2, with 57% of manufacturers disagreeing with the move. Unsurprisingly, this sentiment is strongest in the North of England, where 61% of businesses believe the cancellation was a mistake.
Stephen Phipson, CEO of Make UK, emphasized the need for bold action from the new government to address the consequences of years of underinvestment in infrastructure. “The government must prioritize repairing our roads, especially A roads and motorways, which are critical for the manufacturing sector. Manufacturers are also calling for greater local decision-making authority to expedite infrastructure projects, such as road repairs and the development of tram networks.”
Phipson also underscored the importance of improving local bus networks to better connect out-of-town areas, thus providing more opportunities for young people to access jobs in the manufacturing sector. He called for long-term rail projects to enhance east-west connectivity, ensuring a more equitable distribution of economic opportunities across the UK.
Policy Recommendations:
Commit to Long-Term Infrastructure Projects: Ensure the UK remains attractive for foreign direct investment (FDI) by prioritizing infrastructure development.
Empower Local Authorities: Accelerate infrastructure planning by granting more powers to local authorities and mayors, enabling faster implementation of projects such as tram networks and road repairs.
Enhance Funding Flexibility: Advance the Fair Funding Review’s proposals to increase local authorities’ retention of business rate receipts, allowing for more strategic, long-term investments in infrastructure.
Repair Road Networks: Focus on improving A roads and motorways to ensure manufacturers can efficiently access logistics and skilled labor.
Invest in Local Bus Networks: Expand and enhance bus services connecting out-of-town areas to manufacturing hubs, making the sector more accessible to young workers.
Develop Long-Term Rail Projects: Prioritize the creation of more east-west rail connections to distribute economic growth more evenly across the UK.
Integrate Rail Freight with Road Networks: Improve the connectivity between rail freight stations and road networks, making rail a more viable option for manufacturers.