Balfour Beatty’s updated Infrastructure 2050 policy document has stated that leaving the European Union (EU) will impact infrastructure investment and delivery in the medium to long term.
Balfour Beatty’s latest update to its Infrastructure 2050 policy document – first published in 2010 – has set out the company’s concerns over Brexit.
The firm said it expects that at a minimum private investment will slow while the exit from the EU is negotiated, but the long-term prospects are “unclear”. This could lead to major infrastructure projects being delayed, according to the report.
“Given the long lead times for major infrastructure projects, this risks delaying some of the key planned projects,” noted the report.
The report has cautioned that when the UK leaves the European Investment Bank it will lose investment in major infrastructure projects, creating a shortfall that the Treasury is unlikely to be able to meet in the short and medium term.
However, the report also noted that current low interest rates make it an ideal time for the Treasury to borrow money, and that the Brexit may allow the economy to shift away from reliance on financial services.