Infra investors lose confidence in Chancellor

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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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Ministries face cuts to fund infrastructure

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?

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