Infrastructure improvements to help deliver £5.5bn in North East, according to CBI report

Improvements in regional infrastructure will help boost productivity and give England’s regions the chance to improve links with international markets, according to a new CBI report.

‘Shaping Regional Infrastructure’, a report drawing on conversations with members of the business group, Unlocking Regional Growth and the 2016 CBI/AECOM Infrastructure Survey, shows that businesses want to see improvements to their infrastructure and connectivity.

The report found that business believe improving the links between regions will give them access to a wider labour market pool and better connections to supply chains.

Moreover, enhancements to regional airports are vital to connecting firms with new and existing international markets to which to export.

CBI analysis showed that if the North East’s productivity grew at the same pace as the region’s best performing area did between 2004 and 2014, the gain to its economy could be £5.5bn by 2024. Improvements to infrastructure could play an significant role in this.

In the North East, the report found that 60% of firms are dissatisfied with the state of their infrastructure and 63% believe further devolution would enhance it.

One of the main priorities for the region is improving access to international markets with better links between firms and Newcastle and Durham-Tees Valley Airport, as well as Teesport and the Port of Tyne.

In addition, another focus is inter-regional transport plans and links across the Northern Powerhouse - including Northern Powerhouse Rail and upgrades to the A66 and A69.

Sarah Glendinning, CBI North East director, said: “England’s infrastructure is the arteries and veins without which the country its economy and businesses function.

“But with 60% of North East firms dissatisfied with the state of our region’s roads, rails and ports, it’s vital the pace of taking action and delivering improvements is stepped up.

“Infrastructure is a key driver of productivity. By making it easier for staff to get to work and by better connecting companies to their customers, markets overseas and supply chains, we could do a great deal to lift England’s productivity.

“Moreover, ramping up trade with international partners – old, new and in all corners of the world – will be crucial to making a success of Brexit. This makes it doubly important to better connect firms to these markets, particularly through the Government’s commitment to a long-term aviation strategy and giving our regional airports a new lease of life.

“A strategic plan for delivery, tailored for each region, will also be needed for firms to feel devolution will truly make a difference when it comes to infrastructure.”

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