CBI boss John Cridland calls for government to prioritise infrastrusture in the forthcoming comprehensive spending review

The CBI will warn the government today that it is repeating past mistakes by neglecting infrastructure investment in its comprehensive spending review.

A statement from the Confederation of British Industry revealed the content of a speech to be made by John Cridland, the CBI鈥檚 deputy director-general, to businesses in the East of England today.

In the speech Cridland will say that the UK already lags well behind its competitors in its spending on infrastructure, such as roads and rail. He will also point out that, in the years when government spending rose between 2000 and 2007, the UK鈥檚 investment in transport was the lowest of all OECD countries.

Cridland will comment on the chancellor鈥檚 decision to adopt significant cuts in future spending already set out by the previous government and to reduce in-year infrastructure spending by 拢2bn. This will include 拢400m on transport, and bring public sector capital spend down to 1.1% of GDP by 2014-15.

Cridland will say: 鈥淎n apparent saving today means spending more tomorrow, and fails to recognise the direct and indirect benefits that quality infrastructure can bring in the near term. Analysis shows that the 鈥榤ultiplier effect鈥� of investment in infrastructure is much greater than in other sectors. The economic case for targeted new infrastructure remains robust.鈥�

Looking ahead to the forthcoming CSR, where the government will set out in detail how it plans to take action to reduce the budget deficit, he will say: 鈥淲e accept the need for cuts, and we鈥檇 expect any special pleading to be given the short shrift it deserves. There needs to be a robust case for spending of any sort, and especially in the current fiscal climate. But just as we鈥檙e absolutely sure about the need to reduce the deficit, there鈥檚 also a certainty that failing to prioritise infrastructure spending in the CSR would be short-sighted in the extreme.

鈥淭he UK鈥檚 infrastructure is poor by international standards and is a serious barrier to greater efficiency and to economic growth. Put simply, balancing the Government鈥檚 books is going to need improved infrastructure, and doing it on the cheap would be a false economy. Infrastructure investment can contribute to the urgent task of reducing the deficit if there is a relentless drive for more value for money in the way it is delivered, as is being demonstrated by Crossrail.鈥�

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