Osborne’s little lie: there is no new investment

Posted on

Duncan Weldon from the TUC has, I note, already done the work of looking at the impact of the supposed new investment plans on previously announced intentions. As he has reported:

George Osborne just made a great deal of fuss about his plans to increase capital spending from 2015/16. The immediate question is — how big is this boost? The short answer is — there isn't really one.

Osborne spoke repeatedly about investing £50bn a year  and given current public sector net investment is around £25bn a year — these seems like an awful lot, a doubling of investment spend. However, it appears Osborne was talking about increasing gross rather than net investment spending.

Gross public sector net investment is around £47bn a year and was previously expected to be £50.4bn in 2015/16 according to the OBR (table 4.18).

In other words there doesn't actually appear to be an increase in capital spending.

How very misleading. This isn't a real increase and it is not even scheduled to start for two years, the economy needs a boost now — not smoke and mirrors about the future.

In other words, there is no new investment being announced.

Just cuts.


Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:

You can subscribe to this blog's daily email here.

And if you would like to support this blog you can, here: