GIIA's reaction to the Chancellor’s Autumn Statement on the UK’s economic outlook
GIIA CEO Jon Phillips welcomes the announcement of measures on which we have lobbied the government over recent months and urges further action to address investors' concerns
Jon Phillips, Chief Executive of the Global Infrastructure Investor Association, said:
“The Chancellor has correctly identified the need for changes to economic regulation, tax incentives and planning timelines as key steps that will encourage global investors to begin reassessing their currently hesitant outlook towards the UK market.
“It is crucial that reforms to economic regulation and planning are made urgently if we are to unlock the vital investment needed to meet future infrastructure needs.
“We welcome the permanent extension of the full expensing regime, which will boost investment in crucial infrastructure projects across the country.
“We are pleased the Chancellor has accepted Lord Harrington’s recommendations on increasing foreign direct investment, which will send the right signals to international investors.”
A lack of policy clarity and unattractive regulation are the two key factors in a major decline in the UK’s attractiveness to infrastructure investors, according to our Infrastructure Pulse survey of GIIA members published this week. Compared to other modern, industrialised countries across the European Union and north America, the UK has fallen to bottom of the list in terms of investor appeal.
The National Infrastructure Commission warned last month in its five-year assessment of the country’s infrastructure that private investors will need to finance more than half the UK’s modernisation needs over the next 20 years, if the government’s net zero goals are to be achieved.