0203 026 3870
Newsom Consulting
Delivering Leadership Talent
Newsom ConsultingNewsom Consulting
  • Sectors
    • Rail
    • Aviation
    • Highways
    • Power & Utilities
    • Buildings
    • Defence
    • Major Projects
    • Transport Operators
    • International
  • Our Services
    • Executive Search
    • Talent Mapping
    • Leadership Assessment
    • Outplacement
  • Opportunities
  • Testimonials
  • Insights
    • Blogs
    • Reports & Guides
  • About Us
    • Our Team
    • Diversity & Inclusion
  • Contact Us
  • Sectors
    • Rail
    • Aviation
    • Highways
    • Power & Utilities
    • Buildings
    • Defence
    • Major Projects
    • Transport Operators
    • International
  • Our Services
    • Executive Search
    • Talent Mapping
    • Leadership Assessment
    • Outplacement
  • Opportunities
  • Testimonials
  • Insights
    • Blogs
    • Reports & Guides
  • About Us
    • Our Team
    • Diversity & Inclusion
  • Contact Us

Election 2017 – What impact will it have on UK Transport & Infrastructure?

election 2017

So for the fourth summer in a row, the UK is gearing up for a major public vote.

After the Scottish independence referendum in 2014, the general election in 2015 and the EU vote last summer, our political landscape is again at the mercy of the ballot boxes.

For the transport and infrastructure sector, it’s all very frustrating. Yet again big decisions are on hold – and we don’t know how much upheaval there could be to come. We could have our third prime minister in under 12 months (admittedly not likely – May is 1/10 to remain at No.10), and even if the Conservatives remain in power there could be a significant cabinet reshuffle. Grayling could well be moved out of transport.

Ahead of decision day on 8 June, what do we know about the two main parties’ policies and how they would affect the infrastructure sector?


Rail

Labour has promised to bring rail operating companies back into public ownership, saying it will do this “as franchises expire or, in other cases, with franchise reviews or break clauses”. Clearly this would be bad news for the existing private operating companies, and it would also have a knock-on effect on train builders, as investment in rolling stock would probably fall. Wages for senior roles in a fully nationalised rail sector would likely decline over time and talented people could be lost to other sectors.

Jeremy Corbyn’s party does explicitly promise to build Crossrail 2, though; something that is strangely missing from the Tory manifesto. The route connecting Surrey and Hertfordshire, via central London, was given support by the Conservatives at the last election just two years ago, and business leaders have this year been vocal in calling for government approval of the project.


Roads

The Conservative party, which is overseeing the current £15bn Roads Investment Strategy, promises to “continue to develop the strategic road network”. It says it will add lanes on motorways, fix pinch points and improve key routes.

This is in contrast to the rhetoric in the Labour manifesto, which is more about freeing up space on the existing network: “We will ensure new rolling stock is publicly owned and will encourage expansion of public freight services in a publicly owned railway that will leave our roads freer of traffic and our air cleaner.” Labour does promise to “refocus” the roads building programme, “connecting our communities, feeding public transport hubs and realising untapped economic potential”.


Aviation

While the Tories use their manifesto to maintain support for the third runway at Heathrow, which was backed by Theresa May last autumn, Labour is more circumspect, saying that it “recognises the need for additional airport capacity in the South East” and “welcomes the work done by the Airports Commission”. Perhaps this is just an attempt to curry favour in west London but it won’t impress Heathrow.


Water

While there is no direct mention of the water supply industry in the Conservative manifesto, Labour makes a staggering promise to “replace our dysfunctional water system with a network of regional publicly-owned water companies”. This is an un-costed policy in their manifesto.

How do they intend to do this? Thames Water, just one of the firms currently supplying UK homes from its privately-owned infrastructure, was sold for £8bn more than a decade ago, and was recently valued at around £5.2bn. How is Labour going to afford to buy all these assets? And how would it then find cash to invest in capital projects?


Energy

The UK needs greater energy security, so where is it going to come from? The Tories are anti large-scale onshore wind in England but back schemes on remote Scottish islands and pledge to “maintain our position as a global leader in offshore wind”. Shale gas also gets a boost from Theresa May’s party, with a pledge to mimic the “revolution” brought about by the resource in the US.

Labour says outright that it will support further nuclear projects, something that appears to be missing from the Conservative document. Jeremy Corbyn’s party also promises investment – in low-carbon gas and renewable electricity production.

However, Labour’s pledge to “transition to a publicly owned, decentralised energy system” appears to be almost impossible to enact without some incredible borrowing. To buy National Grid and the distribution network operating companies, along with all the privately owned power stations and other infrastructure, would cost well over £100bn.


Employment

Whoever wins the election, and whatever their policies, one thing seems certain – the UK will need more skills fast to keep up with demand for infrastructure projects. Brexit will not help here, and some uncertainty remains on how each party would meet this challenge.

Labour promises to create a new migration system “based on our economic needs, balancing controls and existing entitlements”; the Tories promise to “make the immigration system work” for those sectors with skills shortages.

The Conservatives also plan to double the immigration skills charge to £2,000 per year, something that won’t help tackle trades shortages but that will perhaps be grudgingly accepted as another tax on business.

Far harder to make work would be the Labour party’s 20:1 ratio – earmarked for the public sector and those bidding to work for it – whereby a chief executive could only earn 20 times the salary of his or her lowest-paid employee.

This could leave Balfour Beatty, whose chief executive Leo Quinn was appointed on a basic salary of £800,000 per year, having to pay every single member of site staff across the UK at least £40,000 if it wants to work on High Speed 2 or any other major scheme.

The Conservatives may have failed to commit to some major schemes in their manifesto, but many of Labour’s promises look extremely difficult to deliver on without a bottomless pot of gold.

If you can’t wait for whoever is elected to wave a magic wand and solve the shortage of senior talent in the transport and infrastructure sector, then click HERE to arrange a call with us. We promise to give you straight answers and sound, real-world advice.

By Jim Newsom30th May 2017

Author: Jim Newsom

Jim Newsom leads our work in construction and infrastructure having worked in executive search since 1998, recruiting for both public and private sector companies in infrastructure, transport, engineering and construction. Prior to forming Newsom Consulting, Jim spent 11 years working for the one of the UK’s largest independently owned executive recruiters and then two years at a boutique search firm. Jim is a graduate in civil engineering from Liverpool University.

Post navigation

PreviousPrevious post:Compensation and Benefits – Trends in Transport & Infrastructure 2017NextNext post:Movers and Shakers in Transport & Infrastructure – the headlines from May 2017

Related posts

Movers and Shakers in Transport & Infrastructure – The Headlines from December 2021
7th January 2022
Movers and Shakers in Transport & Infrastructure – The Headlines from October 2021
1st November 2021
Movers and Shakers in Transport & Infrastructure – The Headlines from September 2021
11th October 2021
Movers and Shakers in Transport & Infrastructure – The Headlines from August 2021
6th September 2021
Movers and Shakers in Transport & Infrastructure – The Headlines from July 2021
5th August 2021
Movers and Shakers in Transport & Infrastructure – The Headlines from June 2021
7th July 2021

To recieve our weekly blogs please fill in your details below:

Recent Posts
  • UK Major Projects Pipeline Update – May 2022
    17th May 2022
  • 3 lessons learnt from Crossrail for future Major Projects
    9th May 2022
  • Movers and Shakers in Transport & Infrastructure – The Headlines from April 2022
    3rd May 2022
Testimonials

UK Power Network Services recently partnered with Newsom Consulting to recruit a key strategic appointment. They provided us with a targeted candidate search and shortlist of candidates from which we were able to make a successful appointment. Throughout the engagement there was senior involvement from Newsom Consulting and they demonstrated deep knowledge of the sector and market. They were patient, thorough and professional throughout the search.

 

Ian Smyth, Director of UK Power Networks Services

We recently worked with Newsom Consulting to recruit a key Director position for our UK leadership team. They understood our requirements well, spending time to come and meet with us so they could fully understand our needs. The longlist and shortlist reports were good and very user friendly. Assessment of candidates was accurate and we were presented with a good diverse selection of candidates with different backgrounds. The quality of candidates was first class and we were able to appoint a high-calibre candidate. The process was thorough and good value for money.

Managing Director, STRABAG UK

Since taking over as the CEO of Crossrail I have put a lot of effort into establishing the right leadership team to complete the project. Newsom Consulting have been a great partner in this work. Together we have worked to assemble a great new team  with the right energy and capability for one of the worlds most complex projects.

Jim and team are a real pleasure to work with; responsive and sensitive to our unique circumstances.

CEO, Crossrail
Newsom Consulting
  • Contact Us
  • Privacy Policy
Footer Menu

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

Newsom Consulting
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.