Treasury 'must spend on building'

Written By Unknown on Jumat, 16 November 2012 | 16.50

15 November 2012 Last updated at 19:18 ET

The government should boost the UK economy by committing £1.5bn to backing major construction projects, the CBI business organisation has said.

It wants such "shovel ready" schemes to be driven forward to help create jobs and increase investment.

The CBI argues the government has the money available because ministerial departments under spent by almost £8bn last year due to cost cutting.

The Treasury said it was committed to supporting private sector growth.

'Industrial Olympics'

The CBI says the government should back the construction sector, by introducing measures including investment tax breaks, and business rate reductions, up to a value of £1.5bn in the first instance.

It argues that such moves would boost investment in infrastructure projects by the likes of pension funds.

CBI director general John Cridland said that this government action should run alongside the continuing general austerity measures.

"We need an industrial Olympics, with big schemes which can make a real difference," he said.

Mr Cridland highlighted the need for improvements in the UK's rail and road networks.


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