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Government confirms £22 billion construction spend

The government has announced plans to invest £22 billion into UK construction projects over the next three years

Speaking today at a procurement conference, Cabinet Office minister Francis Maude revealed plans to spend billions of government money over the next three years on schools, hospitals, courts and prisons.

He said: ‘The Government’s Construction Strategy is reducing costs by up to 20 per cent by reforming the way we procure construction projects across all sectors. However, we are still investing billions of pounds annually; with the same money we will procure more schools, hospitals, courts and prisons. Despite an incredibly difficult economic climate we are investing in and prioritizing our construction industry.

‘The Government and the construction industry have a shared obligation to cut waste and find new and better ways of doing business. This is especially important when we are talking about creating first class, modern, fully functioning public service delivery buildings like hospitals and schools.’

The government will publish a projects pipeline this autumn to allow the construction industry to better plan and prepare for upcoming projects and has announced details of a new Government Construction Board chaired by Paul Morrell.

Readers' comments (1)

  • Kevan Shaw

    Why do I think that they want to make 20% saving by cutting out design fees altogether rather than push the bounds of intelligent design and cut back on contractor's mark up and profit?

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