A group of business leaders including representatives of Atkins, Vinci, Turner & Townsend and Skanska have urged chancellor George Osborne to make a commitment to increase infrastructure investment by the end of this Parliament.
The group wrote to Osborne calling for the government to restore infrastructure investment to pre-recession levels, as crucial infrastructure spend was set to fall around 15% a year triggering a cut of nearly 50% by 2014/15.
“Given the state of public finances, an increase in public investment should seek to maximise leverage of private sector balance sheets,” the letter said. “Projects with income associated, such as tolled roads and bridges should be particularly encouraged and we would welcome the Treasury developing new public-private finance models to replace and improve on the PFI.”
The group, led by think tank London First, also asked for an adjustment to personal taxes and for the chancellor to stand firm on simplifying regulatory processes and resisting additional regulation from Brussels.