Posts tagged George Osborne
Britain’s Olympics has delivered a £2.5 billion boost in foreign direct investment (FDI) over the past year, bringing with it more than 31,000 jobs, according to preliminary figures published today.
The investment projects generated following the 2012 Olympics’ British Business Embassy programme of global business summits have helped ensure that the UK has again retained its position as the leading European destination for foreign direct investment.
The preliminary data published today at the Global Investment Conference shows that during 2012-13, UK Trade & Investment (UKTI) recorded 1,462 projects which brought with them or safeguarded 163,489 jobs. Of these 58,170 are new jobs – beating both the quantity of investment attracted and employment secured in the previous year.
The Prime Minister, David Cameron joined other high profile delegates from 40 countries at the Global Investment Conference, including the German and Canadian finance Ministers, Managing Director of the International Monetary Fund Christine Lagarde, global chief executive officers, sovereign wealth funds representatives and corporate investors.
Senior Ministers Chancellor George Osborne, Energy Secretary Ed Davey, Trade Minister Lord Green, Treasury Ministers Greg Clark and Lord Deighton and London Mayor Boris Johnson also spoke to delegates about the UK’s compelling offer as both a hub for global growth and an international investment destination.
Trade and Investment Minister Lord Green said: “Foreign investment creates hundreds of thousands of jobs and helps to increase the productivity and competitiveness of the UK economy. It’s a vital strand of the Government’s plan for growth.
“The 2012 Olympics were a once in a generation opportunity for the UK to showcase to the world Britain’s compelling investment offer and these preliminary figures are very encouraging. Despite strong competition from our traditional competitors and emerging economies, Britain has retained its position as the leading destination for foreign direct investment in Europe.
“To retain the UK’s enviable position as one of the most attractive global locations of choice, Britain will need to continue to work hard to attract high value foreign investment in the coming year and beyond.“
The preliminary data published today compares favourably with last year’s 1406 recorded projects (4% increase) and 112,659 jobs (45% increase). Of the 163,489 jobs, 58,170 are new jobs and 105,319 safeguarded jobs. UKTI and its partners were involved in delivering nearly 84% of the projects. Full results will be published in July.
The Budget sets out further action to build a stronger economy, with help for UK businesses to create jobs and kick-start major construction projects across England.
Chancellor Osborne said in Parliament today that the government was “already supporting the largest investment in railways since Victorian times and spending more on new roads than in a generation.”
The Government would now boost spending by £3 billion from 2015-16 with the money saved from departmental budgets, amounting to a total of £15 billion of extra capital spending in the next 10 years
The Chancellor has also announced a new Help to Buy scheme involving equity loans on new build houses and £130 billion mortgage guarantee programme that will help people to buy their new homes.
Chancellor George Osborne said that by investing in the arteries of the country’s infrastructure, the Government will get growth “flowing to every part of the country”.
The latest stimulus of financial support to tackle long-term shortage in the housing market will see the building of new homes and boost employment in the construction industry.
Mr Osborne said: “We’ve switched billions of pounds from current to capital spending since the spending review. But on existing plans, capital spending is still due to fall back in 2015-16. I don’t think that’s sensible.
“So by using our extra savings from government departments, we will boost our infrastructure plans by £3 billion a year from 2015-16.
“That’s £15 billion of extra capital spending over the next decade. Because by investing in the economic arteries of this country, we will get growth flowing to every part of it.
“And public investment will now be higher on average as a percentage of our national income under our plans than it was in the whole period of the last Government.
“In June, we will set out long term spending plans for that long term capital budget.
“And we will use the expertise of Paul Deighton, the man who delivered the Olympics and who now serves in the Treasury, to improve the capacity of Whitehall to deliver big projects and make greater use of independent advice.”
The British Property Federation has welcomed the Government’s funding increase to kick start the housing market and help a number of build-to-rent schemes.
Director of policy at the British Property Federation, Ian Fletcher, said: “It’s encouraging the Government’s confidence in build to rent has been reciprocated and we are delighted to see that the equity funding was heavily oversubscribed.
“Working in partnership with government the sector should deliver an exciting and quality array of homes for renters.”
What is your reaction to Budget 2013 announced by Chancellor Osborne to boost infrastructure spending and build new homes? Share your thoughts by commenting here or raise your voice on our Facebook and Twitter pages.
Deputy Prime Minister Nick Clegg has announced £213 million of industry investment that will improve UK’s manufacturing supply chain and create 11, 000 new jobs.
In addition to the thousands of new jobs that will be created through the multi-million investment, some 5,000 existing jobs are set to be safeguarded.
Over £73 million has been awarded from Round 2 of the Advanced Manufacturing Supply Chain Initiative (AMSCI) to 12 national supply chain projects, and a further £140 million will be invested by business.
The scheme was open to bids from all manufacturing sectors as the Chancellor, George Osborne, announced an additional £120 million in the Autumn Statement for two further rounds of AMSCI funding.
Examples of winning bids include the creation of a ‘National Aerospace Technology Exploitation Programme’ led by the Aerospace Growth Partnership to address skills shortages and improve R&D collaboration in the aerospace sector.
The £35 million project will create nearly 5,000 jobs in the supply chain. Another successful bid, led by David Brown Gear Systems in Huddersfield, will position the UK as a world leader in the creation of large gearboxes for the next generation of offshore wind turbines.
Deputy Prime Minister Nick Clegg said: “Boosting jobs and growth is my number one priority to build a stronger economy. This investment will secure Britain’s future as a world leader in industries like cars, where we have traditionally taken the lead, and new technologies such as wind turbine gears and semiconductor chips.”
What is your reaction to the investment announced by Deputy Prime Minister Nick Clegg to improve the manufacturing supply chain and create thousands of new jobs? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter pages.
The Construction Products Association (CPA) has called on the Chancellor George Osborne to recognise the potential of the construction industry to drive economic growth and create new jobs in the trades.
According to the Association, it is vital for the government to spend the multi-billion capital investment boost announced in the Autumn Statement that could provide 0.8% additional growth in GDP.
Chief Executive of the CPA, Diana Montgomery said: “With the general economic outlook continuing to look uncertain, we are urging government to do more to drive growth by building on the recent increase in capital investment for repair and maintenance of roads and extending this to other parts of built environment, such as housing, schools and hospitals.
“We also want to see the UK improve on its current ranking of 24th in the world for the quality of its infrastructure. For the UK economy to remain internationally competitive in attracting inward investment, it is essential that there are significant improvements in its infrastructure.
“Government frequently states it is aware of the importance of the construction industry and its product manufacturers and suppliers. In these challenging times for the UK economy, the opportunities that we provide to drive economic growth and build a more sustainable future for the UK need to be prioritised. We can only hope the Chancellor does indeed recognise this.”
To read the full draft of the letter from the Construction Products Association to the Chancellor, click here.
The infrastructure investment package will be funded by welfare cuts and a reduction in other Whitehall departments. The latest revelation by the Chancellor represents a firm commitment by Government to boost construction projects and create new jobs.
The Civil Engineering Contractors Association (CECA) said that today’s autumn statement demonstrated that the government was listening to the needs of the infrastructure sector.
In advance of today’s statement CECA had worked with other industry bodies to press the case for immediate action to unlock activity in the sector.
Based on analysis of figures published today, CECA believes that around £775 million of work will be release in 2013/14 as a result of the Chancellor’s actions. More than £1 billion further additional work is due to follow the next year.
Commenting, CECA director of external affairs Alasdair Reisner said: “CECA has long argued that there is a pressing need for the government to take action to unlock new work in the infrastructure sector to achieve growth in the economy.
“Today’s Autumn Statement show that the government has listened. A combination of new projects and investment in repair and maintenance work offers the potential of additional work worth £775 million for CECA members in 2013/14.
“Investment in the infrastructure sector offers the best rate of return, but for larger infrastructure projects it can take time for these benefits to be realised, particularly due to the planning system.
“It is thus vital that government and industry work together to identify ways of unlocking work in the sector that will show an immediate benefit.
“By announcing new work in the fiscal year, the Chancellor has recognised the need to stimulate infrastructure activity in the short as well as the long term, as the best means of returning UK plc to economic health.
“Clearly we will need to be sure that this is genuinely new money, rather than recycling of funds that would otherwise have been spent on infrastructure elsewhere. But on the face of it, this appears to have been a good Autumn Statement for the industry.”
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.
John Cridland, the CBI director-general, has urged the government to invest £1.5 billion into major infrastructure projects that will boost the economy and create new jobs.
The CBI says that the government should back the construction sector, by introducing measures including investment tax breaks, and business rate reductions.
Such measures will encourage further financial investments and pave the way for more employment opportunities in the trades.
But the CBI chief also called for a focus on projects such as the Thames Tideway “super sewer” tunnel in London and the Hinkley Point nuclear power station in Somerset to give the economy an ‘Olympic-style shot’ in the arm.
“We need an industrial Olympics, with big schemes which can make a real difference,” Mr Cridland told the Evening Standard.
And in the Guardian he is quoted as saying: “Kennedy said at the start of the 60s that America would put a man on the moon by the end of the decade and it did, even though sadly Kennedy was not around to see it. We need the sense that we are just going to do these projects.”
Mr Cridland highlighted the need for improvements in the UK’s rail and road networks that are vital for strong economy and future growth.
The scheme will deliver economic growth and increase infrastructure investment to the UK which will create jobs for trade professionals including electricians, plumbers and gas engineers.
Mr Osborne said: “Today’s announcement aims to make mortgages and loans cheaper and more easily available, providing welcome support to businesses that want to expand and families aspiring to own their home.”
It is expected that banks currently offering loans through the National Loan Guarantee Scheme (NLGS) will continue to offer their NLGS branded product.
The Chancellor said: “The NLGS has made a real difference, with over 16,000 cheaper loans worth over £2.5bn already offered to businesses across the UK. In many cases, the money saved has meant an extra person employed who otherwise still might be looking for work.
“The more generous FLS has officially opened for business and will in time effectively take over from the NLGS, delivering credit easing to the whole economy.”
Do your predictions correspond to Chancellor’s indications for economic growth and more jobs? What do you think about the FLS? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter page.
The Government will enable businesses across Britain to access more and cheaper loans which will boost the economy and create new jobs, the BBC has reported.
Chancellor George Osborne announced the new £ 80 billion scheme, describing it as “a huge help for the British economy” which will give businesses the confidence to grow.
Under the Funding for Lending Scheme British banks will be able to lend money to businesses at a low interest rate, enabling the expansion of smaller businesses and the creation of new employment opportunities.
The Chancellor said: “Today’s announcement aims to make mortgages and loans cheaper and more easily available, providing welcome support to businesses that want to expand and families aspiring to own their home.”
Mr Osborne added the initiative would “inject new confidence into our financial system and support the flow of credit to where it is needed in the real economy – showing that we are not powerless to act in the face of the Eurozone debt storm”.
Welcoming the government’s announcement Director-General at the CBI, John Cridland, said: “This new scheme should provide a real incentive for banks and building societies to increase their lending to businesses and individuals, if possible at lower rates of interest.”
What is your reaction to the Funding for Lending scheme and how do you think you will be able to benefit from the £80 billion investment? Let us know what you think by commenting here or raising your voice on our Facebook and Twitter page.
The government will not go ahead with a three pence-a-litre rise in fuel duty in August, Chancellor George Osborne has announced.
The move follows a campaign by road users’ groups, who argued the change, announced in the Budget, would damage the economy.
Fuel duty will be frozen for the rest of the year, the chancellor told MPs.
Labour had threatened to force a House of Commons vote on the issue.
Mr Osborne said the government was “doing everything we can in very, very difficult economic circumstances” to help businesses and consumers.
Plans to increase airport capacity in Britain and build a third runway at London Heathrow are likely to be supported by the government despite environmentalists’ concerns.
Both David Cameron and George Osborne, have reviewed their initial decision to rule out future expansion for a third runway at Heathrow Airport. It will deal with increased trade capacity and high volume of extra passengers –the Guardian reported yesterday.
Business leaders have expressed concerns that if a third runway at London Heathrow is not built, trade might move elsewhere in Europe which could have a negative effect on future economic growth in Britain.
Expansion in some of Britain’s largest airports would create work opportunities for thousands of people in the building construction industry, creating new jobs and boosting civil engineering recruitment.
In the Budget Statement last Wednesday, Chancellor George Osborne, said the government will optimise air capacity. It is expected a report on aviation policy to be published, aiming to help businesses to trade better and make further improvement into airport capacity.
Tim Yeo, the Tory Chairman of the Energy and Climate Change Select Committee, told the Guardian that he had “completely changed” his mind on the Heathrow expansion plans and now believed there was no option but to build a third runway; this will ensure that the south of England will remain a worldwide aviation hub.
The Prime Minister said that he recognises the need for expanding airport capacity in Britain and that the government is looking at ways of helping businesses to make the most of country’s aviation capacity.
Mr Cameron said: “I’m not blind to the need to increase airport capacity, particularly in the South-East” adding, “Gatwick is emerging as a business airport for London under a new owner, competing with Heathrow.”
What is your reaction to the expansion of airport capacity at London Heathrow? Do you think construction work at Britain’s major airports will help your business? Share your thoughts by leaving a comment below:
The pharmaceutical giant GlaxoSmithKline (GSK) has confirmed an investment of £500 million across its manufacturing sites to increase production of its products whilst providing a major boost for the UK’s construction and manufacturing industry.
The company announced today it will build a new state-of-the-art manufacturing facility in Cumbria, North of England. An investment of £350 million for building the new facility would create hundreds of jobs and provide work opportunities for people in the building sector.
Building construction work is anticipated to begin within the next two years depending on obtaining the necessary planning consents. It is likely to take up to 6 years before the new facility is entirely completed.
The significant investment comes after Chancellor of the Exchequer, George Osborne, confirmed yesterday in Budget 2012, the government’s commitment to introduce a lower rate of corporation tax on profits generated from UK-owned intellectual property.
Chief Executive at GSK, Sir Andrew Witty, said: “The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain.”
Prime Minister David Cameron welcomed the investment as “excellent news” for businesses saying that cutting business tax will attract further investment to the British economy.
“It shows why we are right to cut business tax and focus on making the UK a dynamic and competitive place that can attract exactly this type of high tech investment.”- Mr Cameron said.
Additional investment of more than £100 million was also confirmed for GSK’s two manufacturing sites in Irvine and Montrose, Scotland. The company also said that it will invest in sustainable green energy production and environmentally friendly manufacturing technologies in the future.
Chancellor of Exchequer, George Osborne, has revealed positive growth figures for the British economy up to 2016, unemployment to fall and the inflation rate to decrease, giving hope to millions of people out of work and boosting businesses across Britain.
The Chancellor said that the Office for Budget Responsibility has revised its forecast figures for growth with an increase of 2% for the next year. Budget 2012 has been described by the Chancellor as a budget rewarding work and encouraging economic growth.
Mr Osborne said that the government will provide funding to upgrade railway lines in the north of England and deal with the lack of airport capacity in the South-East which will create new jobs in the building construction sector.
The Chancellor said: “We want to look at the opportunities for increasing the role of private investment in the road network, learning lessons from the water industry.”
Significant news for the building sector, revealed today in Budget 2012, was the government’s commitment to provide an extra £100 million to improve accommodation for armed forces personnel’s families.
Ten Major UK cities are to receive £100 million to fund 100Mbps superfast broadband in areas where private sector would not normally reach. Those are Belfast, Birmingham, Bradford, Bristol, Cardiff, Edinburgh, Leeds, Manchester, Newcastle and London.
Talking about the renewable energy sector, Chancellor Osborne said that the government will continue with its commitment to support green energy initiatives in the future. However, Mr Osborne said the government will make sure it ensures the fiscal effectiveness of the renewable energy.
Chancellor Osborne said: “I also want to see investment in our world-leading energy sector including renewables,” saying that “renewable energy will play a crucial part in Britain’s energy mix but I will always be alert to the costs we’re asking families, business to bear.”
What is your reaction to Budget 2012 and Chancellor’s commitment to deliver economic growth to the British economy? Share your thoughts with us by leaving a comment on Train4TradeSkills’ Facebook and Twitter pages:
Although the building construction sector remains one of the most stable industries in the UK, the CBI thinks greater investment is needed for infrastructure projects to encourage continual growth and business confidence.
The CBI has proposed a number of measures for the government as an opportunity to provide real boost for private sector investments in infrastructure schemes and give more support to small and medium businesses.
General Director at CBI, John Cridland, explained that the government should use Chancellor’s budget statement next month to deliver significant financial stimulus to make mortgages more affordable to the housing market.
Mr Cridland thinks future growth through reforms of the UK’s tax system is essential for businesses to invest in Britain. He is calling on the government to make some changes into the current system which will create new opportunities for growth.
Mr Cridland highlighted the significance of infrastructure investment as one of the most important priorities which the government needs to support in order to encourage industry’s growth and create permanent jobs.
He said: “Delivering private sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportunity will all provide a real boost for UK growth and jobs.”
Do you agree with the CBI that the infrastructure industry is a key factor for economic growth and creating new jobs? Share your thoughts by leaving a comment below:
The Chancellor George Osborne has been urged by business leaders to allocate more investment on capital projects rather than on the current expenditure which will give boost to the construction industry and encourage economic growth.
Improved access to government funds, cutting red tape for businesses and giving greater investment to infrastructure projects are the key demands by business leaders. The call comes ahead of the Chancellor’s budget statement next month which is expected to make significant announcements for creating new jobs and boosting the national economy.
The Construction Products Association (CPA) has urged the Chancellor to cut VAT for domestic projects that will improve energy efficiency for thousands of homes across the UK.
Chief Executive at CPA, Michael Ankers, said that the Chancellor needs to allocate in the budget more capital spending for housing and infrastructure projects because it will give confidence to businesses and provide sustainable investment for growth.
Mr Ankers said: “The 2012 Budget provides the Chancellor with the opportunity to introduce a package of measures to stimulate the economy and deliver growth. This should include a further rebalancing of public spending away from current expenditure and into capital investment, as this will not only generate economic activity and employment but will increase long term productivity as a result of improving the infrastructure of this country.”
What would your suggestions be to the Chancellor Osborne to help businesses across the UK? Is capital investment the best way to create jobs and sustainable development for growth? Share your thoughts by leaving a comment below:
There has been a significant increase in the number of vacancies advertised in the building construction industry, despite the negative forecast on UK unemployment figures to reach almost 3 million by the end of this year.
Recruitment consultants have reported an increase in construction vacancies for the first month of this year. One of the UK’s largest construction engineering recruiter has reported a rise of more than 50% in the number of advertised construction vacancies on their website, careerstructure.com.
Data published by the Recruitment and Employment Confederation (REC) has shown that engineering and construction workers were the most sought after employees in the UK. In contrast, the demand for hotel and catering staff has significantly declined according to the last survey from this year.
The Chartered Institute of Personnel and Development (CIPD) has published a report suggesting unemployment will continue to rise. However, the building construction industry is expected to continue to hiring more workers due to recent infrastructure projects and significant government investment.
The government has invested £5 billion towards infrastructure projects announced in the Autumn Statement in November, by Chancellor George Osborne. This has proven a positive incentive for the industry in regards to the progressive requirement as a result of business confidence and growth in the construction sector.
Do you think the increase of construction vacancies will continue and why? Share your thoughts on the future performance of the construction industry by commenting on Train4TradeSkills’ Facebook and Twitter pages: