Government “dysfunction” and the planning system means that the UK lacks attractive infrastructure projects, a major investor has said.
Australia-based IFM Investors, which is one of the biggest shareholders in Manchester Airports Group and the owner of the M6 toll road, said that while it owns a wide range of assets in the UK, it has cooled on making further significant investments in new infrastructure owing to the high levels of uncertainty caused by government dysfunction and inefficient planning processes.
Chief strategy officer Luba Nikulina blamed a “very slow and inefficient” planning system in the UK, which made it difficult to get new projects off the ground and then adhere to timelines and budgets.
Nimbyism has also become an impediment for infrastructure development despite the potential benefits to the UK economy, Nikulina said, pointing to barriers to building new rail links to airports that would increase the transportation of goods outside of London.
“The biggest concern is uncertainty, which is not great for long-term capital,” she said, adding that turnover in certain government departments meant “policymaking is highly uncertain as a result”.
