Unsupported browser

For a better experience please update your browser to its latest version.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Budget: Further capital spending cuts spared

  • Comment

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.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.

Related Jobs

AJ Jobs