Chancellor to raise extra £5bn for construction projects – again

 

This article was taken from Construction Enquirer – click the link to read the full article.

George Osborne is planning to squeeze Whitehall current spending budgets again to raise an extra £5bn for capital projects.

The Chancellor will demand departmental savings of 1% next year and 2% in 2014/15 to raise extra cash for construction projects.

At least £1bn of this has been earmarked to build an extra 100 new free schools and academies, but the move raises hope that there will be extra cash for housing as well as transport schemes.

Construction leaders will be sceptical about the “new” money following a similar announcement in last year’s Autumn Statement.

The Government has launched two national infrastructure plans since coming to power in 2010, but construction spending has fallen 11% from a year ago and is expected to drop more in 2013.