Autumn Statement – Osborne plans cuts to fund development

CHANCELLOR George Osborne is widely expected to announced budget cuts across government departments to fund infrastructure projects in today’s Autumn Statement.

The Chancellor is under intense pressure to spend money on ‘shovel ready’ development schemes that will help to kick-start economic growth.

And it is likely he will announce a spending squeeze in Westminster to fund new schools and transport schemes.

It is understood most government departments will be asked to save an extra 1% next year and a further 2% the following year.

This could release £5bn to be spent on capital projects.

Business leaders have consistently urged the Chancellor to find the cash to back investment projects to stimulate economic growth.

A report by the Ernst & Young ITEM Club warned that cuts to capital spending have been too deep, damaging the recovery of the construction sector.

It argued that Osborne should use today’s Autumn Statement to commit to an additional £7bn of capital spending in each of the next two years which could add 0.5% in each year to GDP growth.

TheBusinessDesk.com has teamed up with Ernst & Young to bring our readers up-to-the-minute, comprehensive coverage of The Autumn Statement.

We will be sending readers a summary of the main points of the statement within minutes of the Chancellor speaking with analysis available through the afternoon.

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