Government plans £50bn infrastructure boost

Ministers are drawing up plans for a £50 billion housing and road-building development in an attempt to boost the diminishing economy.

Chancellor George Osborne wants to encourage private companies to fund a "wartime" infrastructure building programme encompassing power stations, social housing, super-fast broadband and toll-roads.

The Government hopes that private investors, including pension funds and insurance companies, will help to fund infrastructure projects. It is believed that dipping into private sector cash would allow the Government to fund growth without putting its deficit reduction targets at risk.

In the meantime Chancellor George Osborne is planning to announce schemes for new toll roads, housing and power stations to kickstart growth. He said ‘I fully accept we need to have more initiatives, more government plans to stimulate housing, to get homes being built, to help construction, help infrastructure, help small businesses get more credit.

‘We’re going to announce plans for all those things in the next few weeks’
The Treasury is desperate to get money flowing into the economy now by bringing forward major building projects that might not have got off the ground for several years.

Business secretary Vince Cable commented "What we have to do is create a framework of stable regulation so that private investors will have the confidence to invest in big projects and help get the British economy moving again."

The plans are likely to fuel speculation that the Government is quietly switching to a 'Plan B' as the eurozone debt crisis threatens to derail the global economic recovery.

14/11/11

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