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.
Stephen Phipson, the chief executive of Make UK, said: “Following years of underinvestment, this new government now needs to be bold on its infrastructure investment and realise the productivity improvements of doing so.
“At the top of this agenda must be repairing our roads, with British manufacturers wanting to see an immediate focus on A roads and motorways. To help make this happen, manufacturers want to see more local decision-making and support for local authorities to speed up planning processes.
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“Increased investment in local bus networks to connect out-of-town areas would also give more young people the chance to work in the well-paid manufacturing sector, while long-term rail projects are desperately needed to make more east-west connections to truly deliver an equal share of opportunities around the whole of the UK.”
A Department for Transport spokesperson said: “We are aware of the poor state of our local roads and are committed to tackling this head on.
“We are committing to renewing the road network, including by helping local authorities to fix up to 1m more potholes a year.”