CBI: Infrastructure investment best way to generate growth

Published by Max Salsbury for 24dash.com in Central Government and also in Finance

A new report from the CBI recommends that potential investors in infrastructure should be given an “offer they can’t refuse”.

In its new report, 'An offer they shouldn’t refuse: attracting investment to UK infrastructure', the CBI has recognised that securing up to £250 billion of investment to repair the UK’s creaking infrastructure will be tough, and has identified four transformational changes which could make a real difference. They are:

• Targeting specific projects to enhance their credit rating and make them more attractive to investors
• Pooling pension funds beyond the Pension Infrastructure Platform (PIP) and building up in-house skills
• Commercialising the public sector’s approach to infrastructure and creating a single, attractive shop window for would-be investors
• Ensuring Solvency II doesn’t act as a barrier to private investment

John Cridland, CBI Director-General, said: “Infrastructure spending offers the UK the elusive growth boost we are all seeking. Business has been disappointed that we haven’t made more headway in the past six months, and hopes that this report will act as a catalyst.

“As this report makes clear, if we want to see the billions of pounds needed to upgrade our ageing infrastructure and secure jobs and growth for the long-term, the Government must make smarter use of limited public finances. By underpinning and lifting the credit rating of certain infrastructure assets, it can make them less risky and more attractive to investors.”