How spending cuts hit construction – full details

Grant Prior 15 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

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
18 hours ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
3 hours ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
19 hours ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
19 hours ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
18 hours ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
2 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
2 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
18 hours ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
1 day ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
2 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
2 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
2 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
2 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
2 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
2 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
2 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
5 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
5 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
5 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
5 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
6 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
5 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
5 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
5 days ago

Balfour Beatty lands £833m carbon capture power plant job

Work to start later this year on Teesside carbon capture gas-fired power station
6 days ago

Svella agrees deal to save Cubby Construction

Solvent purchase set to save 214 jobs and protect supply chain
6 days ago

J Coffey holds line on margins despite £52m revenue slide

Pre-tax profit down 14% but firm eyes strong pipeline to bounce back
6 days ago

Consultants called up for £2.3bn NHS SBS panel reboot

Market asked for views ahead of next-gen procurement rollout
6 days ago

Hochtief launches new UK data centre division

German business model to be introduced for UK construction
7 days ago

Construction skills body launches with 100,000 worker target

Industry to work closer with Jobcentres to find new talent
6 days ago