You are here: Home - Investing -

Government to announce £5bn investment into schools, transport and projects

Written by:
Chancellor George Osborne is set to announce a five billion pound investment in transport, schools, and science projects in tomorrow's Autumn Statement.

In the much-trailed statement, the Chancellor will say this investment is to be funded in part by departmental savings over the next two-and-a-half years.

Whitehall departments will be asked to cut day-to-day spending by 1% – around £950m – in 2013/14 and 2% – about £2.5bn – in 2014/15.

Most of these savings will come from cuts to back office functions, a government spokesman said.

Osborne will also update Parliament on the nation’s finances, with expectations high that figures from Office for Budget Responsibility will show growth forecasts pared back.

“We are committed to solving today’s problems, but also preparing for tomorrow’s challenges by investing in our future and equipping Britain for the global race,” a Treasury spokesman said.

The Chancellor is also expected to announce changes to the way Private Finance Initiative (PFI) projects are funded.

The government said changes would mean the new scheme, called PFI2, would be quicker, more transparent, and less generous to private companies.

The plans would see taxpayers take a share of up to 49% in new projects, meaning they would share in profits from public infrastructure projects.

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @Defaqto: Will your home insurance leave you out in the cold? 🤔 Only a fifth of home contents insurance policies, and a quarter of home…
  • Will your home insurance leave you out in the cold? 🤔 Only a fifth of home contents insurance policies, and a quar…
  • 10 reasons to get your #TaxReturn done now - and they could all mean more money for you! 💷 Questions about your ta…

Read previous post:
Osborne sets aside £77m to tackle ‘cowboy’ tax advisers

Chancellor George Osborne has given HM Revenue and Customs extra powers to tackle advisers promoting aggressive tax avoidance schemes.