Labour and Tories compete over infrastructure spend pledges

Aaron Morby 1 week ago
Share

Both the Tories and Labour are pushing for big rises in public borrowing to fund ambitious infrastructure plans for the country.

In a race to outbid each other, the parties have made infrastructure spending a key battleground in their election promises.

Chancellor of the Exchequer Sajid Javid said a new Conservative government would spend up to £20bn more each year on road, rail and other infrastructure projects.

The Tories said that they would spend up to 3% of national output on investment in infrastructure going forward, up from its current level of 1.8%.

Javid said low borrowing costs for the government meant it was a responsible time for the government to relax its borrowing rules to invest.

Labour’s proposals for a new National Transformation Fund would lift current government investment spending from £47bn to at least £100bn a year, or 4% of GDP.

This would be split into two pots – a social fund and green transformation fund.

Shadow Chancellor John McDonnell promised £150bn of additional infrastructure spending through the social fund for schools, hospitals, care homes and council houses.

The longer-term green transformation fund of £250bn would be spent over 10 years, channelled into transport and energy projects like a Crossrail for the North and retrofitting homes and building more wind farms.

Labour would adopt a new fiscal rule for the next Parliament that would exclude borrowing for investment from the country’s borrowing targets.

The new looser Tory fiscal framework governing its new ‘borrow to build rules’ would be reassessed if future borrowing costs rose significantly to above average.

Latest news

Interserve restructure paves way for possible break-up

Chief executive Debbie White to step down by end of December
8 hours ago

Kier Chief Operating Officer leaves as cost cuts continue

Claudio Veritiero joins 1,200 staff set to go by next June
8 hours ago

Eurovia trials robo-cars to ferry tools to highways sites

Driverless delivery vehicles will also survey road conditions as they go
8 hours ago

PDR Construction starts Arco HQ in Hull

£16m project marks major milestone in £80m waterfront regeneration
9 hours ago

Plan in for £365m Salford Cotton Quay scheme

Cotton Quays will include 37 and 48-storey buildings
16 hours ago

Crossrail traffic marshall threatens passer-by and kids

Bond Street station subcontractor sacked after confrontation with public
8 hours ago

Multiplex Europe chief Ashley Muldoon exits

Muldoon steps down after 22 years in top management shake-up
1 day ago

New-build housing completions top 200,000

Completions rise to the highest level since the 1980’s
1 day ago

Interserve chalks up 15th school project this year

Specialist needs school to be built in Oldham
1 day ago

Styles & Wood chiefs leave the business

CEO Tony Lenehan and finance boss Phil Lanigan depart
1 day ago

Commonwealth Games aquatic centre cost soars by 20%

Wates to start building work in January after £73m budget sign-off next week
1 day ago

New safety template in fight to prevent falls on site

New industry-standard guide launched: Download free now
1 day ago

Carillion liquidator to clawback £510m

Financial watchdog to consider whether to take action over conduct of directors in March
2 days ago

Graham wins £26m Poynton relief road

Main works on 3km Cheshire road to start next May
1 day ago

Interserve hires new construction commercial director

Ben Edwards takes up new role after seven years in Middle East
2 days ago

Developer fined £600,000 for white finger outbreak

Groundworkers suffer Hand Arm Vibration Syndrome on Places for People sites
1 day ago

Balfour tops October contracts league after road win

Morgan Sindall unseats Kier with the highest value of orders over last 12 months
3 days ago

British Land makes £200m profit on luxury Mayfair flats

Developer hails "highly successful" Clarges scheme
2 days ago

Network Rail plans Dragons’ Den to drive SME innovation

Rail infrastructure on track to deliver a third of spending via SMEs by 2022
2 days ago

Plans go in for 20-storey Bolton tower

Seddon lined-up as main contractor for major mixed-use scheme
2 days ago

Groundworker engulfed in flames after cable strike

Court hears how contractor failed to identify cables on car park site
2 days ago

Galliard to start luxury apartments above Crossrail station

Go-ahead for £140m residential scheme above delayed station
3 days ago

Co-op signs new maintenance deal for all stores

Trio of winners for five-year deal covering 3,500 food stores and funeral homes
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

Oakervee review backs full HS2 project

Leaked report floats idea of re-procuring contracts for best value
3 days ago

More than 200 hotels planned in London

Hotel building boom fuelled by Brexit-related fall in sterling
3 days ago

VolkerWessels to be taken private in buyout

Major shareholder makes offer for rest of business
3 days ago

Marcus Worthington went down owing £9m to subbies

Supply chain suffers again in latest administration fall-out
3 days ago

Kier Construction regional MD joins developer

Steve Creswell joins Sussex house builder Thakeham Group
3 days ago

Network Rail extends Ganymede labour supply deal

Derby-based labour supply agency has over 1,000 workers on the railways
3 days ago

Contractor services