Clegg vows coalition will push forward with investment
Wednesday, 14 September 2011 05:46
The Deputy Prime Minister, Nick Clegg said in a speech today that the coalition would not allow government departments to “stockpile capital that could be put to good use today.”
Mr Clegg pledged a raft of new hand-picked infrastructure projects in areas such as rail, broadband and road-building that will be given priority status and carefully checked by ministers to ensure there are no delays or blockages and that they get delivered.
Whilst reiterating that Treasury Chief Secretary Danny Alexander that government departments will not be allowed to overspend their budgets and will not be bailed out by any reserves, Mr Clegg said: “''Since we came into government, ministers have been expected to make savings. Now they're under the same pressure to spend the money they've got.''
The message is aimed to rebut criticism from the Labour Party that the government is not doing enough to stimulate economic growth.
Mr Clegg said that in the last six months the global economy has deteriorated but said that the government was prepared to take action on weak economic growth and rising unemployment.
Mr Clegg said: ''The reality we face is stark; there is now little margin for error. But that does not mean we are helpless. It does not mean we intend to sit on our hands while the economy falters.'
However, The Treasury spokeswoman for the Labour party, Angela Eagle said: ''Nick Clegg says that the Government is not going to sit on its hands while the economy falters, but that is exactly what he and George Osborne are doing.
''His speech today merely says Ministers will turn up for work and make sure those projects which haven't been cut are delivered on time.''
The Prime Minister’s official spokesman said: "We are going to stick to our spending plans. Mr Clegg was saying this morning that we need to stick to our spending plans.
"We need to maintain fiscal credibility but, equally important, we need to deliver what we have promised on infrastructure."
In his speech, Mr Clegg made an implicit reference to a succession of private finance initiative (PFI) projects that the Labour government had initiated during its time in office. He said that Whitehall had too often blocked progress, resulting in many projects being delivered late and over budget.
Use the Myfinances.co.uk comparison tables to find the best deal on all types of investments.
Comments
Newsletter sign up