Industry leaders call on regulators to look beyond price controls to build back better
The CBI has called for regulators to “expand their toolkit beyond price controls”. The business group said: “The use of price controls can lead to underinvestment given their short-term nature. Regulators must explore better complementary alternatives to deliver the transformative investment required.”
That was one of 13 recommendations contained in a new CBI report, Investing in infrastructure: sourcing the finance to build back better. The report pointed out: “Infrastructure is a key enabler of economic growth, and in the aftermath of Covi 19, it will play an important role in the UK’s economic recovery.” This includes through creating jobs, attracting investment and as an ‘economic multiplier’, with CBI research showing that for every £1 spent on construction activity, £2.92 is created in wider value to the economy.
Other recommendations in the report included: the creation of an infrastructure bank after the Brexit transition period as part of a larger investment institution to support the UK’s economic recovery; greater operational independence for the National Infrastructure Commission and Infrastructure Projects Authority so they can hold government to account on infrastructure delivery; and regulators to have specific regard to deliver the National Infrastructure Strategy including progression to net zero emissions targets.