How spending cuts hit construction – full details

Grant Prior 12 years ago
Share

Chancellor George Osborne vowed to protect as much infrastructure investment as possible today as he declared war on bureaucratic waste and welfare spending in a bid to cut the country’s deficit.

Osborne listed a host of transport schemes which will still go ahead as he outlined £83bn of cuts across departments in the Comprehensive Spending Review.

But investment at a local level will still be decimated as capital spending by local authorities is set to fall by 30% over the next four years as their funding is slashed.

Further details of transport plans which will escape the axe will be outlined by Secretary of State Philip Hammond next week as his department cuts capital spending by 11% over the next four years as administration costs fall 33%.

Osborne said £10bn would still  go into funding national and local road networks, and public transport schemes in Britain’s major cities.

Projects going ahead will include widening the remaining section of the A11 to provide a continuous dual carriageway link between Norwich and the M11;  improving the junction between the M4 and M5 and easing congestion on the M1 between junctions 28 and 31

Work on the Mersey Gateway Bridge will also go ahead plus work to improve the A23 Handcross to Warninglid and the introduction of a managed motorway scheme between junctions 25 to 30 of the M62.

Hammond said: “Whilst we have had to make some difficult choices, I am confident that our focus on the long term will ensure that we can continue to build a transport system that supports economic growth and reduces carbon.

“We have secured investment to allow us to go ahead with important projects such as high speed rail, support for ultra-low carbon cars and major road building and public transport programmes.”

Funding for social housing has been slashed but Osborne believes 150,000 new homes will be built during the spending period funded by higher rents for tenants.

He also vowed to continue with the Decent Homes Initiative by spending £2bn during the period.

New prison building plans have been shelved but Osborne said £1.3bn will be spent over the next four years to maintain and refurbish existing buildings.

Health spending has been protected and new hospital building plans will continue at the Royal Oldham, St Helier and West Cumberland.

Spending on school maintenance and refurbishment work will be £15.8bn to improve 600 schools in the wake of the BSF programme being scrapped which will result in a 60% drop in capital spending in real terms by 2015-15.

The average cuts to each department will be 19% – lower than the widely anticipated 25%

Alan Johnson MP, Labour’s Shadow Chancellor, has criticised the coalition’s Comprehensive Spending Review as a huge gamble from a government with no plan for growth and jobs.

He said: “Today is the day that an abstract debate about spreadsheets and numbers turns into stark reality for people’s jobs and services. Their pensions, their prospects, their homes and their families.

“It is our firm belief that the rush to cut the deficit endangers the recovery and reduces the prospects for employment in the short term, and prosperity in the longer term.”

    Spending review

Cuts over four years

  • £83bn cut in spending
  • 490,000 public sector job cuts
  • Extra £2bn capital spend, reversing some cuts in June Budget
  • Council budgets cut 7.1% annually or 27% over 4 years
  • NHS budget protected (cap spend down 17%)
  • Transport budget cut 21% (cap spend down 11%)
  • CLG Communities budget slashed 51% (capital spend down 74%)
  • Home Office cut 23%, police numbers protected (cap spend -49%)
  • MoD 8% savings (cap spend -7.5%)
  • Education down 3.4% (cap spend -60%)
  • Energy cuts 18%, decommissioning budget up (cap spend up 41%)
  • Defra cut 29%, flood defence spending ringfenced (cap spend down 34%)
  • Cap on rail fares to rise
  • Construction cuts

  • 63% cut in annual social housing budget to £1.1bn
  • Council rents to rise to 80% of market rate to build 150,000 council homes over four years
  • 1500-place Runwell prison in Essex axed
  • Safe

  • Crossrail
  • £600m for London Underground upgrade
  • Second Mersey Crossing
  • Funding held for St Helier, West Cumberland, Royal Oldham hospitals
  • Boost to apprenticeships
  • £1bn for pilot carbon capture and storage
  • £200m to develop port sites for wind farms
  • Green investment bank go-ahead with £1bn
  • Widening the A11 to dual carriageway between Norwich and the M11
  • Improving the junction between the M4 and M5
  • Easing congestion on the M1 between junctions 28 and 31
  • Extending the route and increasing capacity on the Midland Metro
  • Constructing a new suspension bridge over the River Mersey
  • Upgrades to the Tyne and Wear Metro
  • £220m for cancer  research building in London
  • £69m for Diamond Synchrotron extension
  • £14bn of funding to Network Rail to support maintenance and investment, including major improvements to the East Coast Mainline, station upgrades at Birmingham New Street and network improvements in Yorkshire, around Manchester and the Barry to Cardiff corridor;

Latest news

Moving in to new markets paying off for McLaren

Contractor carving out new niche as leading player in heavy refurbs
2 days ago

Plan to add retentions record to payment reporting law

Government consults on tougher reporting to include disputed invoices and retention policies
3 days ago

Morgan Sindall wins £88m Beckton DLR depot upgrade

Delayed work to start on Docklands Light Railway train maintenance depot in East London
3 days ago

Hare and Severfield win £250m Sellafield deal

Country's two biggest steelwork contractors secure 17-year framework
3 days ago

Max Steward returns to head up ISG’s Agility fit-out arm

Former ISG project director returns after three years to take up MD role
3 days ago

McLaren wins massive Portland House refurb

Construction to start this year on £380m revamp of 28-storey building in central London
3 days ago

Green light for £275m HS2 Midlands nerve centre

Trio of contractors battling it out to win huge new depot near Birmingham
3 days ago

Winners named for Government £10bn offsite framework

29 firms secure places on mega framework for schools, healthcare, defence and justice jobs
4 days ago

ISG, Amey and Costain now industry’s quickest payers – list

Average payment times from main contractors slip by a day
4 days ago

Staff at Outco Surfacing start looking for new jobs

Administration notice filed two years after acquisition of NMC Group
4 days ago

£4.75m building work provision tips Higgins into the red

Partnerships business counts cost of changes to building safety rules
4 days ago

John F Hunt snaps up London temporary works design firm

Demolition contractor buys geotechnical and structural engineering design specialist RKD Consultant
4 days ago

Vital Energi lands £13m package at Plumstead regen site

Specialist will start on site this summer helping to transform the former home of Arsenal FC
4 days ago

Galliford Try to start £14m Scunthorpe Market scheme

Firm will build NHS staff accommodation and offices in two phases
4 days ago

Vast £500m British Library expansion go-ahead

London Mayor still needs to give final nod to 800,000 sq ft extension at St Pancras site in London
5 days ago

Wates names new chief executive

Cork-born Eoghan O’Lionaird to join later this month
5 days ago

Keltbray director joins Barhale as North East chief

Mark Wood heads operations in Yorkshire and North East England
5 days ago

Major London City building green deep retrofit approved

St Bride’s Tavern near Fleet Street will be demolished for the building expansion
5 days ago

Gilbert Ash lands starring role in £38m Welsh theatre revamp

Contractor to start work this year on Theatr Clwyd upgrade
5 days ago

Property clients to ramp up spending on decarbonising

Survey reveals nearly half of property chiefs plan to speed up spending on net-zero programmes over next twelve months
5 days ago

Average self employed labour rates top £1,000 a week

Average weekly earnings reach high for skilled trades
6 days ago

BAM wins £49m Harrogate Convention Centre revamp

Local council hopes to sanction work start this autumn
6 days ago

Renaker to top-out Manchester with 71-storey skyscraper

Developer lifts the lid on planned five-building cluster for phase 3 of Great Jackson Street development
6 days ago

Costain bridge lift delayed by ground conditions

National Highways chiefs postpone planned lifting operation
6 days ago

Nexus sells utilities and EV contracting arms for £78m

Group to now focus on remaining business at south east housing civils contractor Tamdown
6 days ago

Speller Metcalfe lands lead role on £40m Tamworth revamp

Town centre to be transformed under ambitious plans
6 days ago

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
6 days ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
7 days ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
1 week ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
1 week ago

Contractor services