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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The writer is director-general of the British Chambers of Commerce
This is a difficult time for British business, but the economy is not on its knees and decisive government action can still lift the gloom. The challenges we face are well understood. Rising employer costs, including the increase in national insurance contributions, are squeezing margins. Post-Brexit customs arrangements continue to create complexity for companies trading with the EU.
The British Chambers of Commerce quarterly economic survey — the largest poll of business sentiment since October’s Budget — found confidence at its lowest level since autumn 2022. Companies need ministers to provide a clear pathway to sustainable economic growth and one of the keys to this is investment in infrastructure. The evidence is clear: well-planned infrastructure projects not only create jobs, they also generate lasting economic benefits that hugely benefit regions and often the whole country.
Consider Northern Powerhouse Rail (NPR). This potentially transformative project — a modern railway between Liverpool, Manchester, Leeds and more — exemplifies the multiplying potential of infrastructure investment. The link will do more than simply connect these cities: it will serve as a powerful economic catalyst, injecting £118bn into the northern economy by 2050. Through increased capacity and reduced journey times, it will forge stronger business connections and expand labour markets, creating opportunities for millions.
But the benefits stretch further. NPR and other projects like it are a massive stimulus through the supply chains of any local economy. They support the obvious industries — construction, manufacturing and logistics — as well as retail, hospitality for visiting workers and tech support.
The returns on such investments are compelling. Take the Ely and Haughley junction improvements, which promise to deliver nearly £5 in economic benefits for every £1 invested — a return that would impress any business leader.
In aviation, Gatwick’s Northern Runway Project demonstrates how private investment can drive public benefit, with £2.2bn of private capital creating 14,000 new jobs and contributing £1bn annually to the local economy. The recent announcement by the chancellor of support for this project — alongside expansion at Luton and a third runway at Heathrow — are big promises and show a government unafraid to take difficult decisions to deliver growth.
We applaud this and welcome planned limits on spurious lawfare that allows vested interests to seemingly delay every proposal. Judicial review is too often a tool for the few to stand in the way of the interests of the many.
But the battle is far from won. The government must now deliver on its promises. Because it isn’t just transport projects affected right now. Every day wasted is another solar farm pushed back and another high-voltage undersea cable becoming that much more expensive.
Energy infrastructure is crucial to our economic future. The Sizewell C nuclear reactor represents more than just power generation. It embodies economic regeneration and a vote of confidence in the UK, 25,000 construction jobs and opportunities across the supply chain.
Economic growth and meeting net zero targets are not a zero-sum game. Strategic investment in energy infrastructure has the unique potential to benefit the entire country, while helping to meet our climate goals. In the long term, we will benefit from cheaper, more secure supplies — but only if we build capacity now.
Our international competitors are not standing still. To avoid being left behind, the UK needs streamlined planning processes and stable policy frameworks to encourage private investment. The business case is clear: strategic infrastructure investment is not an expense — it’s a downpayment on our collective future. There is no time to waste.