Rachel Reeves has been warned by Britain’s biggest manufacturers that her autumn budget must address a decade of decline in national infrastructure that is damaging economic growth.
More than half of manufacturers surveyed by the industry group Make UK said that the country’s national road infrastructure had deteriorated in the last 10 years, making it slower and more expensive to build and export British products.
The survey of 390 firms by the trade body, which represents 20,000 industrial businesses across the UK, found that three-quarters thought good road networks were important to supply chains, while more than half disagreed with Rishi Sunak’s decision to scrap the northern leg of HS2.
The report before the chancellor’s 30 October budget said the poor quality of Britain’s roads had resulted in increased logistics costs, causing difficulties for labour mobility and accessing skills.
The research revealed wide regional divisions in infrastructure quality, with businesses in the north of England more critical of the roads than anywhere else in the UK.
As many as 57% of businesses disagreed with the former prime minister’s decision to axe the northern leg of HS2, rising to 61% in the north of England.
However, the study found there had been improvements in digital infrastructure over the past decade, after investment by the previous government in 5G connectivity and other new technologies.
Late last month, the chancellor announced cuts to some infrastructure projects – including roads, railways and hospitals – after unearthing a £22bn “hole” in the public finances that she claims was left by the Conservatives.
But Make UK said the chancellor urgently needed to commit to long-term infrastructure projects to ensure the UK is attractive for international businesses and investors.