Forum responds to the Chancellor’s Autumn Statement on regional infrastructure investment

30 November 2011

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Phil Orford, Chief Executive of the not-for-profit small business body the Forum of Private Business, has responded to the regional infrastructure proposals in yesterday's Autumn Statement from the Chancellor, George Osborne.

"In order to compete in the modern world Britain must have a state-of-the-art, joined up infrastructure system that's fit for purpose. If the projects announced in the Autumn Statement can help the UK compete in the future, and at the same help the economy change up a gear, they must be welcomed.

"All the evidence points to infrastructure investment being important for growth in depressed times, and looking ahead to the future it will mean the private sector is better placed to drive the economy into more prosperous times, particularly with an eye on emerging markets. The UK does not want to get left behind, and improving the quality of our infrastructure is certainly key to increasing the competitiveness of UK business.

"Major rail improvements and road building schemes are all good for businesses, particularly at a time when construction output is on the wane.

"However, exactly how soon the major projects announced by the Government take to get up and running will be all important. These projects need to start immediately if SMEs are able to take advantage of them. They all sound good on paper but it's no help to anyone if the money isn't there until years down the line.

"In the north west, Greater Manchester in particularly seems to have fared well with regards the infrastructure projects. The most significant for the region is the electrification of the trans-pennine route between Leeds and Manchester, which in reality should benefit both areas either side of the Pennines, and will be a major boost for businesses.

"Journey times should be cut by at least half an hour between the two cities, but obviously there will be benefits for passengers going further, such as Liverpool and destinations in the east of the country that sit at either end of the same track. This should hopefully encourage firms to cast their business net wider and begin trading further afield.

"Improving road links to Manchester Airport via a new section of dual carriageway from the A6 south of Stockport will be a huge boost to business in these areas too. It will take pressure off other arterial routes currently choked by heavy traffic, such as the A34 and M60, and attract investors at the Manchester Airport Enterprise Zone.

"Elsewhere in Greater Manchester there's Rochdale's Transport Interchange, and the development of the Manchester Cross City Bus. These projects will all help make the Greater Manchester region an attractive hub for firms to do business.

"The managed scheme to widen the M6 between Manchester and Birmingham by allowing drivers to use the hard shoulder during busy periods is also welcome news. The M6 is one of the busiest roads in Europe, and anything that speeds up travel on this congested section is a good thing.

"Free flowing traffic uses less fuel and therefore an efficient road network means lower transport bills for small business. No doubt hauliers will particularly welcome this development.

"Elsewhere in the north west region there will be spending for the Mersey Gateway, specifically the second crossing over the River Mersey. This will provide an economic boost for both Widnes and Runcorn, although it's shame this will be a toll bridge.

"The Forum hopes the crossing prices are kept sensible - until yesterday the Humber Bridge's toll was £20.30 for the largest of HGVs and £3 for cars. Clearly those kinds of costs would be prohibitive for business."

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