Opinion

With elections ahead infrastructure has to hold the investment line

This year will be about making the case for continued long-term investment in infrastructure against a background of growth and a resurgent UK economy as the political parties write their manifestos. Maintaining focus on the government’s ongoing infrastructure project delivery plan will be critical. 

2014 also marks a gearing up in the political calendar with the vote on Scottish independence and European elections moving us towards the 2015 General Election. Both of these events will be viewed as referenda and will give indications to industry on the landscape ahead in differing ways.

With the Scottish independence vote, whether the result is for full independence or the much vaunted ‘Devo max’, further powers will be heading to Holyrood from September. These are likely to see the Scottish government take greater control of tax and borrowing powers which could mean an increase in its ability to bring private investment to Scotland and deliver more projects more quickly.

The SNP government has placed important emphasis on capital, construction and infrastructure and this has the potential to be positive for firms in the Scottish infrastructure arena. Although a vote of independence appears unlikely, given the recent polls, it could necessitate administrative changes for firms as alterations to business registration, etc are enacted. This is something that should be watched very closely.

The European elections will act as a dry run for the parties campaign machines as well as being the first real test of their manifesto messages.  The headlines will inevitably be about UKIP and messages of conflict around the UK’s involvement with Europe.  Further detail however will be given to parties economic messages including those around infrastructure and the priority that will be given to it. 

Over the past four years serious work has gone into making infrastructure and construction a central plank of the parties economic plans. And it is unlikely that this will fall off the radar. ACE, together with its partners in CECA, CPA and ICE in the Infrastructure Alliance and NIPSEF (the government-industry infrastructure forum that I co-chair with Treasury chief secretary Danny Alexander MP) will not take this for granted. We will continue to push the infrastructure message to all parties to help shape the thinking that goes into their 2015 general election manifestos.

However as the minds of ministers and shadow teams turn to the election ahead the potential to let the baton drop and for delays to occur in the delivery of infrastructure grows.

The government has outlined its three core flagship projects - HS2, the Thames Tideway and Hinkley Point C - which demonstrates its commitment to infrastructure. Industry must continue to work with the government to ensure that these projects remain on plan, to budget, and delivery on time.

And this may be the biggest challenge for industry to tackle in 2014 and beyond into the general election. Our aim has to be to help the government achieve its plans and maintain cross party agreement on the importance of infrastructure including the forward spending announced by the chief secretary in June last year. And if we can do that, this could be a great year for our industry.

Nelson Ogunshakin is the chief executive of the Association of Consultancy and Engineering