“The Chancellor’s infrastructure plan is upside down.”

by | Nov 23, 2016

Share this article

Facebook Open Graph

Christopher Mahon, Investment Manager and Director of Asset Allocation Research at Barings:

“The Chancellor’s infrastructure plan is upside down. The treasury has already committed eye watering sums of money to programmes such as HS2, Heathrow & Hinkley that won’t be completed for another 20 years.  Billions upon billions have been promised, with those projects costing £56bn, £19bn, and £18bn respectively.

“Meanwhile only token amounts of money are being spent on practical projects that are needed today such as easing rail and road bottlenecks. For example, the £2bn announced today is fifty times smaller than the amounts committed to the 3 mega projects alone. This is despite the Treasury’s own analysis showing these smaller less glamorous projects give the bigger payback to the taxpayer. So it is a great shame that the Chancellor continues to be seduced by the glamour of the mega and ignores the utility and timeliness of the micro.

 

“Britain seems to be locked into a type of topsy turvy spending dogma which results in the UK’s well known productivity stagnation.”

Share this article

Related articles

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode