Budget 2013 – Government commits to long-term infrastructure investment fundingMarch 20, 2013
London First has long argued for a long-term approach to be taken to capital investment in essential infrastructure, particularly for London’s transport system. Indeed, we re-emphasised the point in our pre-Budget submission.
The investment headline from the budget today is the Chancellor’s announcement of a £3bn increase in capital expenditure on infrastructure from 2015/16; but of greater importance is the commitment, in the full Budget paper published this afternoon, to set out longer term investment spending plans:
1.89 The Government will set out how this capital spending will be allocated at the 2015-16 Spending Round. The Spending Round will take a long term approach to capital planning, including setting planning assumptions out to 2020-21 for key areas of capital expenditure. The Spending Round will set social rental policy until 2025. This will provide the long-term policy certainty necessary to attract private investment today.
As always, we will need to see what this means in practice but it is hard to see how a long-term approach could not include increased investment. We will make this argument in our own submissions ahead of the Comprehensive Spending Review in June.