Economic success dependent on radical change to UK infrastructure and public investment for cities

Peter Constantine, Regional Senior Director at Bilfinger GVA in Cardiff

The UK‘s shortfall in productivity can be solved by greater devolution, public services reform and locally led investment in infrastructure, according to two new reports unveiled at the Connected Cities Summit at the QE2 Centre in London on Friday 11 September 2015.

The Core Cities and Bilfinger GVA co-hosted the conference, attended and presented by City leaders, Mayors, business leaders and key decision makers, to launch the two new reports. Each responds to the Comprehensive Spending Review (CSR) by setting out the critical requirements from both a regional business and public sector perspective.

The Severn Powerhouse region was strongly supported by Bristol’s Mayor George Ferguson, a speaker at the Summit, who called for greater connectivity between Bristol and Cardiff.

Peter Constantine, Regional Senior Director at Bilfinger GVA in Cardiff, and a delegate at the summit, comments, “A 30 minute journey time between Bristol and Cardiff was highlighted by Mayor Ferguson as an example of how improved connectivity between our cities can open up greater economic opportunities. A more flexible labour force makes employment easier.

“All infrastructure connections are critical,” he continues, “and as the development of Grade A office space across Cardiff creates opportunities for further development, so connections between our cities need to be developed alongside.

“With the electrification of the rail line from London through to Bristol and South Wales, together with the recently announced plans for the re-routing of the M4, the faster journey time between our cities can become a clear reality.

“Together with improved connectivity, Mayor Ferguson also called for investment in housing, a call echoed across all the core cities.”

Mayor Ferguson said, “I am a strong believer in creating a good environment. Good, liveable places equals a better economy and more resilient cities – people are attracted to good places. Investment in housing is crucial.”

Bilfinger GVA’s report, entitled ‘UK Infrastructure: unlocking UK cities and Commercial Property’ calls for major changes to the way infrastructure, from broadband to roads, is funded and delivered, and outlines how investment in information and communication technology is a major driving force behind increased productivity.

The summit examined the evidence that whilst the UK is increasing its focus on improving travel, there is a risk that digital infrastructure remains neglected. Of the major infrastructure projects currently identified by the Treasury, the £1.8 billion cost of improving digital connectivity only accounts for 1.5% of total expenditure, compared to £91.5 billion on rail (75.8%).

Core Cities UK launched a new prospectus entitled ‘Unlocking the Power of Place’ calling for a joined up, ‘place-based’ multi-year approach to the Comprehensive Spending Review – the Government’s spending plans for this Parliament – so UK investment can be deployed in the best way possible to drive growth, rebalance the economy and contribute to sustainable deficit reduction across the UK’s biggest cities.

Peter Constantine continues, “Bilfinger GVA was pleased to be able to present our views alongside regional city and private sector business leaders to identify where the investment priorities sit for infrastructure; what approach to the allocation of public resources regional cities need from Government to realise these projects and their potential; what differences these could make to the regional and national economy; and what opportunities and challenges lie ahead for UK and overseas investors and developers.”

Sir Richard Leese, Core Cities Chair concluded: “Economic growth is important but we should not pursue growth for growth’s sake. We need to make sure more people share in future prosperity, reducing inequality and the burden it places on the state. Our cities have a proud track record of working with partners across the private sector. But it’s time to fully realise their potential and give cities a greater role in building the new infrastructure our nation so badly needs.”