George Osborne set to announce £5bn construction boost
Chancellor George Osborne is expected to announce tomorrow an extra £5bn of investment for capital projects in the construction industry that will boost the trades and create new jobs.
In the Autumn Statement, set to be announced tomorrow at 12:30 GMT in the House of Commons, the Chancellor will demand departmental savings of 1% next year and 2% in 2014/15 to raise extra cash for construction projects across the country.
The Statement provides an update on the Government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility. These forecasts are published alongside the Autumn Statement on 5 December.
At least £1bn of this is understood to have been earmarked to build an extra 100 new free schools and academies, but the move raises hope that there will be extra cash for housing as well as transport schemes.
Health, education, HM Revenue and Customs and nuclear decommissioning will escape his latest spending cut as well as frontline staff. Mostly savings will come from administration and back office staff.
Treasury sources say £1bn will go towards building 100 new free schools and academies, creating an additional 50,000 new school places.
The new cash for school will be in addition to the new PF2 schools programme that the industry has been eagerly awaiting, which will see £1.75bn spent on building and refurbishing 219 schools.