Business leaders are demanding government action to replace worn out infrastructure in order to fire up economic growth.

British Chambers of Commerce boss Shevaun Haviland says cancelled projects, cost over-runs and a moribund planning system are holding the country back.

In a new report the BBC calls for improved road and rail capacity, regional transport projects and more grid connectivity.

Its demands on the UK Government will raise questions about how the Scottish government is tackling these issues and how far it will go towards working with the UK government on major transport, energy and planning issues.

The BCC advises that the Infrastructure and Planning Bill, which is due to be put before the UK Parliament, must have the interests of business at its heart. It calls for Government to introduce long-term policy stability to help restore business confidence that was hit by the cancellation of the latter stages of HS2. 

BCC research revealed that two-thirds (66%) of business leaders say their views aren’t taken into account when it comes to local infrastructure decisions – on everything from digital to road improvements. This rises sharply to more than eight in ten (81%) when it comes to national infrastructure decisions. 

Ms Haviland, director general, said: “The story of large-scale infrastructure development in the UK has travelled a rocky road over the past few decades. 

“The perception remains that projects either end up getting cancelled, massively overrun or cost ten times the original asking price. 

“The shadow of HS2 hangs heavy over the debate as businesses no longer feel they can take government announcements at face value. 

“Firms find it hard to plan for their own future investment if they fear the rug will be pulled from under them halfway through delivery. 

“The problems lie in the lack of a national cohesive strategy, a moribund planning system, coupled with an over-zealous legal approach and a dearth of skilled labour. 

“If the Government’s plans to power economic growth through a new era of construction are to be realised, then these are the issues that must be fixed. 

“It has already taken some positive steps in this direction. The recommendations in this report set out what needs to happen next. We must rebalance our approach to infrastructure and give businesses the confidence they need to align their investment plans. 

“These are the reforms that our planners, engineers and the business community have been waiting on for decades. In an increasingly competitive global economy, they cannot afford to wait any longer.”