Ministers Face Infrastructure Cuts
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major capital spending cutsGuardian
•Treasury asking ministers to draw up billions of pounds of infrastructure cuts
76% Informative
Ministers are being asked to model cuts to their investment plans of up to 10% of annual capital spending as part of this month ’s spending review.
The demands would mean big projects such as hospital improvements, road building and defence projects being slowed down or stopped altogether as the government looks for ways to repair what they say is a 22bn black hole in the public finances.
Mel Stride , the shadow work and pensions secretary, said: “If the government comes forward with plans to cut vital productivity-boosting investment then that is a cause for real concern. “The fiscal rules are deliberately focused on a five-year horizon to avoid making sudden cuts of this kind. We should be finding ways to increase capital funding, not reduce it.”.
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