Craig Owen, Head of Public Affairs attended the Liberal Democrats’ conference in Brighton, joining their Business Day and speaking with fellow attendees and Liberal Democrat leaders about one of the biggest challenges facing the UK economy: how do we turn ambition for growth into investment and delivery?
One message ran through the day like a golden thread: business needs certainty to invest. That means a stable policy environment, an effective planning system and, crucially, infrastructure that keeps pace with the needs of a growing economy.
For the British Chambers of Commerce, this is a key priority. As a place-based network, we see first-hand how physical and digital infrastructure can unlock growth – and how inadequate transport, connectivity and capacity can hold local economies back.
We have consistently advocated for airport expansion, HS2, local rail investment and new road capacity where it is needed to tackle congestion. In our Budget submission, we are calling on Government to deliver its 10-Year Infrastructure Strategy on time and in full, alongside recruiting 800 additional planners to help get projects moving.
Our fiscal devolution report, published today, calls for decision-making to be faster and more predictable, while maintaining appropriate scrutiny. Integrated local settlements and investment funds can give local leaders greater certainty, but we also need national consistency where projects cross boundaries. The Liberal Democrats’ proposal for a Department for Growth, bringing together responsibility for growth strategy and strategic national infrastructure, is an interesting contribution to that debate.
We also need to think differently about the relationship between infrastructure and the places that host it. Local leaders should have a genuine financial stake in the growth they enable – creating a fiscal feedback loop. Giving fiscally mature local authorities greater ability to borrow for capital investment, retain some of the additional revenues generated by growth, and explore tools such as development corporations and local bonds could help.
Then there are the supply chain opportunities. Businesses located close to major infrastructure projects should be able to benefit from them. Too often, local SMEs face barriers to entering major project supply chains. Getting this right would allow infrastructure investment to create a much wider economic dividend – get in touch if you want to discuss how the British Chambers of Commerce is tackling this.
Finally, there is the question of finance. Constrained public finances and higher borrowing costs mean we need to make better use of both public and private capital. The Liberal Democrats’ position on the National Wealth Fund – including taking a higher-risk position where necessary to crowd in private investment and working more closely with local authorities – is a good contribution to this conversation.
Get in touch if you’re interested in joining the conversation on infrastructure.