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Mon October 26 2020

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Construction hit hard by latest government cuts

18 Jun 10 The £1.1bn A14 road scheme and the £450m Tyne Tees hospital are the biggest construction casualties of the latest round of government cuts.

The £1.1bn A14 road scheme and the £450m Tyne Tees hospital are the biggest construction casualties of the latest round of government cuts.

Chief Secretary to the Treasury Danny Alexander announced £2bn of projects would be cut, with a further £8.5bn suspended. He blamed the outgoing Labour administration for spending beyond its means, following a review of 217 projects worth £34bn.

Construction projects which have either been cancelled or suspended include:

  • A14 road scheme – £1.1bn
  • Tyne Tees hospital – £450m
  • Visitor centre at Stonehenge – £25m
  • Leeds Holt Park Well-being Centre – £50m
  • Kent Thameside Strategic Transport Programme – £23m
  • Sheffield Retail Quarter – £12m
  • Libraries Modernisation Programme – £12m.

Alexander said: “We are determined to tackle the unprecedented budget deficit and bad financial management we have seen over the past decade, but are equally determined to do this in a way that is fair and responsible.

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“As a result of the poor decisions made by the previous government, I have taken the decision to cancel certain projects that do not represent good value for money, and suspend others pending full consideration in the spending review.

“We have also found another spending blackhole in the previous Government’s plans - projects had been approved with no money in place to pay for them. I am determined to deal with this problem head-on and ensure we never see this kind of irresponsible financial planning in Government again.”

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