Autumn Statement

Lord Hollick Excerpts

Wednesday 3rd December 2014 Lords Chamber

[Lord Deighton]

I thank my noble friend for that question. Obviously she was in my mind when we developed that measure. It will be part of the Finance Bill next year.

[Lord Hollick (Lab)]

Can the Minister shed some light on the increase in infrastructure spend over the forecast period? In his Statement today the Chancellor said:

“Improving productivity for all business demands a major investment in our nation’s infrastructure”.

Over the past few weeks we have been showered with press releases setting out various infrastructure projects; I stopped counting when we got to around £15 billion. I was therefore a little surprised by table 4.3, the summary of the effect of government decisions, which shows that over the forecast period there is only a £600 million increase in capital. Can the Minister tell us what the actual increase in infrastructure spend is and how it is to be financed if it is only £600 million over the next four years?

[Lord Deighton]

As I explained to the noble Lord earlier, we have made a very detailed analysis of infrastructure spend, which is running on average at £47 billion per year. The majority of that, more than 60%, is financed by the private sector, which of course is a great sign of the success of this Government. Every scheme which has been announced has a clear funding plan attached to it. The real transformation that has taken place with this Government is that instead of having a plan for roads one year at a time—if there is a bit more money you can tell the Highways Agency to build a road; if there is no money, you tell it to stop, which results in a very inefficient road-building programme—we have given it a proper organisation, a proper strategy and a proper financing plan over the next six years.