The coalition government has cancelled 12 projects totalling £2bn agreed to by the previous Labour government since the start of 2010. These include an £80m loan to Sheffield Forgemasters and new programmes for the young unemployed, Chief Secretary to the Treasury Danny Alexander told MPs. This is in an effort to save money. However are they looking at the big picture of why these were put in place and what they do for the economy? Clearly Labour’s view on the plans is somewhat different. They called it an “attack on jobs” and industries of the future.
But Mr Alexander said the previous government had gone on a “pre-election spending spree in the full knowledge that the government had long since run out of money”.
He told MPs: “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.
“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 black-hole 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.” So are you trying to say you will remain in power? I’m sure an incompetent monkey might get into power again!
The 12 projects were axed – and a further 12 suspended – after a review of 217 projects worth £34bn was ordered, amid claims the previous Labour government had embarked on a pre-election “scorched earth” spending policy.
In an angry response, shadow chief secretary Liam Byrne accused the Lib Dem minister of a U-turn over public spending and asked how many jobs would be lost as a result.
He told Mr Alexander: “Both the country and the Liberal Democrat party beyond will be aghast this afternoon at your attack on jobs, your attack on construction workers, your attack on the industries of the future and the cancellation of a hospital.”
“Let me ask you: what could be more front line than this? In five minutes this afternoon you have reversed three years of Liberal Democratic policy of which you were the principal author. What a moment of abject humiliation.” So are the Lib Dems playing puppet to the Tories?
He also said the spending projects being axed amounted to just 0.05% of government spending, “nailing the myth” that Labour had operated a “scorched earth” policy in the run-up to the general election.
The axed projects are:
* Stonehenge Visitor Centre: £25m
* Local Authority Leader Boards: £16m
* Sheffield Forgemasters International Limited: £80m
* Rollout of the Future Jobs Fund: £290m
* Six month offer recruitment subsidies: £30m
* Extension of Young Person’s Guarantee to 2011/12: £450m
* Two year Jobseeker’s Guarantee: £515m
* Active Challenge Routes – Walk England: £2m
* Dept of Health funding for County Sports Partnerships: £6m
* North Tees and Hartlepool hospital: £450m
* Local Authority Business Growth Initiative: £50m
* Outukumpu: £13m
Based on extracts from a BBC Article
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