It says ‘Exhibit
12 Transport infrastructure is a critical success factor in Wales Despite the
established connection between economic growth and infrastructure, Wales has a
growing infrastructure gap with England. Due to its geography, it is especially
important for businesses based in Wales to have access to modern roads, rail,
air and ICT infrastructure.
The Wales
Infrastructure Investment Plan (WIIP) must set a clear pipeline for
public-funded projects and unlock private sector investment in infrastructure.
The Welsh government must ensure it puts the policy framework in place to
support the prioritisation and delivery of nationally significant infrastructure.
The M4 relief road is one example of a project which has a ‘more than local’
dimension, due to the potential to significantly boost economic growth right
across south Wales. As a result, the WIIP must ensure these projects are fast-tracked
and prioritised at every stage of the devolved policymaking process. The CBI
believes the following key infrastructure should fall within the ‘nationally
significant’ category: M4 relief road, electrification of the Great Western Mainline
to Swansea, energy, next generation broadband and regionally important
infrastructure.
The
delivery of the M4 relief road remains the single most important infrastructure
project in Wales. Efficient roads remain a constant priority for business
across the whole of the UK. It is critical that the infrastructure is in place
to underpin business efficiency and competitiveness. The priority remains connecting
Wales with its key markets, as a result, that means east-west road links in
North and South Wales. Delivery of the relief road is vital if we are to
achieve the growth and jobs Wales urgently needs. CBI Wales will continue to
work with the Welsh government and the UK government to find a workable solution
as business is keen to play its part in delivering’
The report also sets out a number
of ways in which the impact of UK Government growth incentives can be
increased, including:
·
Reducing
the minimum bid threshold for the Regional Growth Fund to £500,000
·
Giving
preference to city or LEP bids that make funding available to SMEs.
·
Expanding
the geographic footprints of Enterprise Zones.
·
Reassessing
the size of Enterprise Zones and their business rate rebates, and include
increases in value, as well as stock, in the Business Rate Retention Scheme.
The Government should give LEPs
statutory status so they can take a lead role in shaping their local economies.
Although the report says 50% of businesses surveyed expect LEPs in their
current shape to have little or no impact on growth, 67% of business
respondents say that better financial resourcing would make LEPs more
successful. The CBI is calling for:
·
The
Government to make future LEP funding streams dependent on cross-LEP
collaboration.
·
Where
appropriate, the Government should work to ensure City Deals can be agreed over
the same geography as LEP areas.
·
The UK
has under-invested in infrastructure and is now ranked 24th in
the world for overall infrastructure quality.
Supporting private sector growth
will require a focus on connecting economic hubs to national and international
markets, particularly in the North, and relieving bottlenecks in UK networks in
and between cities. The Government must:
·
Bring
forward further Tax Incremental Financing (TIF 2) schemes in urban areas
outside the core cities, to allow more local authorities to borrow against
increased tax revenue generated by new infrastructure.
·
Where
appropriate, incentivise LEPs to work in partnership with one another to plan
for larger-than-local transport projects by providing additional funding and
further powers over transport planning.
The full
report is HERE
