Infra investors lose confidence in Chancellor

Time is running out for the Chancellor to take action and restore confidence among infrastructure developers and investors, according to KPMG’s Infrastructure, Building & Construction division.

UK head of infrastructure at the Big Four firm, Richard Threlfall, said that in order to create growth and drive long-term competitiveness the UK requires huge investments now in its housing, transport networks, and energy infrastructure.

He said the infrastructure community had been knocked back recently by three decisions [see side box] that were at odds with the government’s commitment to invest in infrastructure to drive growth.

Ahead of the Budget announcement tomorrow, Threlfall said...

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robertlovell's picture

Ministries face cuts to fund infrastructure

robertlovell | | Permalink

The Chancellor is expected to divert savings across Whitehall departments to fund capital projects,as reported in The Guardian this afternoon. 

Osborne told the cabinet departments will face an extra 1% cut over the next two years to allow him to divert £2.5bn towards capital spending and to put £1.2bn aside for the next spending period in 2015-16.

Osborne and Danny Alexander briefed the regular weekly meeting of the cabinet on the cuts to highlight a renewed emphasis on capital spending as Osborne responds to criticisms that the government is failing to do enough to stimulate the economy.

Is £2.5bn over the next two years going to make a measurable difference though?