Budget: Further capital spending cuts spared
Chancellor George Osborne is expected to hold back from any further capital spending cutbacks in today’s budget after axing £11 billion worth of projects last week
According to the Financial Times, the Conservatives does intend to cut capital spending further than Labour had planned, despite wide ranging efforts to tame the UK’s £155 billion deficit.
A raft of projects including Building Schools for the Future (BSF) and Hospital PFI contracts could be saved as the Chancellor agrees to cease his axe wielding, though 118 school contracts signed since 1 January remain on hold.
Departmental cuts in May bagged a £6 billion public spending reduction for the government resulting in with knock-on loses for CABE of £1.1 million and £4.8 million for English Heritage.
But further public spending reductions are unlikely. Last week’s 24 axed projects - which includes Stonehenge Visitor Centre and the new BFI – helped plug a £8 billion black hole of money that didn’t exist.
By the end of its term the government will spend, at most, £50 billion less than Labour had planned. The remaining BSF project is valued at £55 billion.