Transport failures ‘tarnish UK’s business reputation’
Employers are warning that the Government’s failure to improve the transport system is ‘tarnishing’ UK’s reputation as place to do business.
The Confederation of British Industry (CBI) published a report today, which shows that the UK’s transport is being outperformed by the US, France, Germany, Italy and the Netherlands.
The CBI’s report highlighted that 85 per cent of senior business people made their investment decisions based on the quality of transport systems. At the same time 70 per cent of senior business people believed that the UK’s transport system is poor.
John Cridland, CBI Deputy Director-General, commented: ‘The legacy of under investment in transport by successive governments is well known, but transport has been a thorn in the side of the UK economy for too long. The existing system has been pushed to breaking point.’
The CBI praised the UK’s international air and sea links, but warned that capacity was reaching breaking point and planned improvements are being held up by a slow decision-making process.
The report warns that UK road users are much more likely to experience road congestion than their European partners. Nineteen per cent of UK drivers experience congestion on a routine basis, compared with seven per cent in France and four per cent in Germany.
The CBI argued that road congestion is costing business £20 billion a year. Employers also point out that businesses moving freight by road in the UK face higher direct costs than European competitors – more than twice as much as firms in the Netherlands.
Mr Cridland added: ‘If the government does not invest in the UK transport system, international companies will not invest in the UK. Ministers must ensure money is spent wisely, implementing projects that deliver real improvements on budget and on time.’
However, the CBI accepted that the UK’s record on transport safety was as good or if not better than its European competitors. Employers praised the fact that fewer people are killed on the roads than in the five competitor counties featured in the report. The UK’s rail accident rate was found to be in line with the safest networks in Europe.
