PRE BUDGET REPORT: INVESTMENT IN OUR CRITICAL INFRASTRUCTURE IS VITAL, SAY ENGINEERS
8 December 2009: If the Government is serious about making a success of the future UK economy it must take steps to protect investment in our critical infrastructure, says the Institution of Civil Engineers (ICE) ahead of Wednesday’s Pre Budget Report.
The ICE, along with other bodies like the of Confederation of British Industry (CBI) and the British Chamber of Commerce (BCC) have warned over the past months, that cutting spending on our roads, railways and power stations in order to bring debt levels down, will hinder economic recovery.
ICE has been calling for the creation of a UK National Infrastructure Investment Bank to provide a predictable source of funding for vital infrastructure projects that will aid the transition to a low carbon economy and strengthen UK competitiveness - such as high speed rail and a new generation of power stations.
The concept of such a bank has gained support from a range of political figures, including Liberal Democrat deputy leader and shadow chancellor Vince Cable MP, former EU Transport Commissioner Neil Kinnock, Author/Economist Will Hutton and right-leaning think tank Policy Exchange.
ICE Director General, Tom Foulkes, said: “In the next decade we will need to make large scale investments in new and upgraded infrastructure to meet the goals held across the political spectrum, including the transition to a low carbon economy and improving energy security. It is vital that the Chancellor considers new, innovative ways to finance major projects, especially during a downturn when investment in infrastructure is severely cut back due to strain on the public purse.
“A National Infrastructure Investment Bank can offer a way of ensuring that adequate long term funding is available - on a continuous basis and at an acceptable cost. This is not about Government spending more money. It is about saving money in the long term and boosting future economic growth though investment in crucial infrastructure projects.
ICE also believes that such a bank would complement other initiatives in place such as the National Policy Statements for Infrastructure, the recently appointed Chief Construction Adviser and the creation of Infrastructure UK, the new body responsible for assessing the long term needs and priorities across all infrastructure networks.
Foulkes added: “We look forward to working with politicians, industry and economic experts, to develop ideas on exactly how this bank can work and ensure we get this right.”
Media contact:
Kate Ison, ICE Media Relations
t: 020 7665 2104, e: kate.ison@ice.org.uk
