£50bn Construction Cash Boost from Government

Monday, 14th November 2011
    It is believed that the Government is preparing plans for a £50bn construction investment programme to be unveiled alongside the Autumn Statement on November 29 which will be used for infrastructure investment including power stations, social housing and road building.     The money will be raised from the private sector so it will not derail the on-going deficit reduction plans and schemes will be in addition to 40 road, rail and national grid improvements which are already in the pipeline and will be accelerated.     The Sunday Times reported that the Government hopes to mobilise the mountain of private sector cash tied-up in pension funds and owned by insurance companies. The Department for Business, Innovation and Skills has been charged with drawing-up the growth plan for construction to lead the way in boosting the floundering economy.     The move follows pressure from construction chiefs and business leaders at the CBI to boost investment in the UK’s infrastructure. The Government hopes the timing will appeal to private sector investors frustrated by the low current rate of return from traditional investments.     Business secretary Vince Cable said: “We know there’s a large amount of institutional investment in pension funds and insurance companies looking for a safe return.”