David Cameron vows to boost infrastructure projects

David Cameron The prime minister says there is cause for optimism over the economy

David Cameron has promised an "all-out mission" to kick-start infrastructure projects and revive the economy.

Writing in the Financial Times, the PM said he had given the go-ahead for two power plants in Yorkshire that would create 1,000 construction jobs.

Meanwhile, his deputy Nick Clegg announced which firms in England would benefit from the £950m final instalment of the regional growth fund.

Labour says neither announcement represents new investment.

Mr Cameron admitted in the Financial Times that the eurozone crisis was having a "chilling effect" on global growth and he warned there were "no short-cuts to success".

Broadband jobs

But he urged people to be optimistic, pointing to growing trade with India and China, and warned that pessimism and fear "can become self-fulfilling prophecies".

Mr Cameron spelled out a three-point plan based on confronting Britain's debts, improving competitiveness and building global trade.

Start Quote

This does not amount to the significant plan for jobs and growth Britain's economy desperately needs right now”

End Quote Chuka Umunna Shadow Business Secretary

"I am confident that we can both resolve the crises at hand and come through them with an economy that is stronger and fundamentally fairer," he wrote.

As well as approving power plants at Ferrybridge, West Yorkshire, and Thorpe Marsh, near Doncaster, Mr Cameron welcomed news that BT will complete its roll-out of superfast broadband by 2014 - generating work for 500 more engineers.

He said more infrastructure announcements could be expected over the coming months.

Meanwhile, Mr Clegg says the remainder of the £1.4bn regional growth fund cash will help create or safeguard "hundreds of thousands of jobs".

He told BBC Radio 4's Today that every pound of government money given to companies would bring £6 of private sector investment "providing more bang for your buck".

Ed Miliband: "The government's plans are too little, too late, because we've got a perfect storm in our economy"

Mr Clegg said the coalition government was seeking to "rewire the British economy" and cut the past "over-reliance of firms on decision makers in Whitehall".

In a written statement to Parliament, Business Secretary Vince Cable said there had been 492 bids for £3.3bn funding. A panel chaired by Lord Heseltine helped decide on the 119 successful bids for the £950m available.

Shadow Business Secretary Chuka Umunna accused the prime minister of being "out of touch" and said the government was failing to address a lack of economic growth.

He said the "long-delayed funding" represented a two-thirds cut, with one year's budget of the scrapped regional development agencies being paid out over three years.

"Power stations already in the pipeline are finally being given the green light, but no investment is actually being brought forward," he said.

"This does not amount to the significant plan for jobs and growth Britain's economy desperately needs right now."


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  • rate this

    Comment number 297.

    more big talk will it really do any good dont matter to dave and co what happens like blair brown and others before they will be ok remind us how much have tony and gordon made since leaving the sinking sink

  • rate this

    Comment number 296.

    This is for regional investment in England. This is where the lop sided asymetric set up of Britain looks so stupid. You have a British Government talking about investment for England, but no English Government. But you have a Scotish executive or Welsh etc talking about investment for Scotland and Wales, but nothing from the British Government (the Country's central Government). Wrong, all wrong.

  • rate this

    Comment number 295.

    I think we should all wear party hats and stand in a line singing motivational songs. We should stand in a line on the railway line so the line would be over-run with people about to get run over while singing the praises of David Cameron SPLATT!!!

    I am so funny, I don't know how I do it.

    P.S. I am insane.

  • rate this

    Comment number 294.

    If we ever do get infrastructure improvements: DO NOT employ expensive consultancies and multinationals. Give the little and local guy have a chance

    ==>Us taxpayers are paying for it so it should be according to our wishes, word the contracts/tenders so the work falls to British companies/firms. British jobs for British people, remember?

  • rate this

    Comment number 293.

    AN interesting thought, but a point missed. HS/2 will have little benefit to the places it passes by. There'll be a couple of thousand temprary jobs whilst its built, but afterwards the majority of users would be international travelers and some londoners - the only ones who could afford the tickets. HS/2 is no use to anyone else. We need to cut the commuitng.

  • rate this

    Comment number 292.

    Why don't the Bank of England QE monies go the same way? Everybody acknowledges QE might do nothing but line the banks pocket. The governments efforts, albeit late, do seem to offer a better return for the country and people.

  • rate this

    Comment number 291.

    I cannot believe the hipocriscy of this guy. He says we shouldn't talk the economy down..he did a great job of that when Brown was PM. He is a piece of work and will be more hated than Thatcher.

  • rate this

    Comment number 290.

    This government's infrastructure boost achieved by cutting regional development support by 60% and then announcing old money again and again.
    Eventually they will have to stop simply blaming the last government for its perceived mistakes and have to show that their own polices are having any effect other than negative.

  • rate this

    Comment number 289.

    Once again, the Labour party bring out Merlin the wizard, the man who can make money from nothing.
    The government has just dished out a $1 billion contract to Lockheed Martin in Ampthill under the WCSP defence programme, but the bbc & Labour party don't mention that.
    you can't keep outspending your income levels, it's basic economics which Gordon Brown ignored.

  • rate this

    Comment number 288.

    The idea to cut back personnel running things like The HM Forces, Fire Service, Coastguard, Civil Service etc. would be OK except for two things.

    1. Redundancy of these of puts more pressure on the social system and UK Services are much weaker (Like UK Defence).

    2. Governmental MP's should ALSO be cut by 65 in fairness {Suggestion by David Cameron}.

    If 1. is OK 2. is for the boys is NOT ?

  • rate this

    Comment number 287.

    It should be legal to prosecute UK prime ministers for deceit.

    What this country needs as well as infrastucture expenditure is a big business start up scheme, which weven Thatcher had.

    Its outrageous to just let UK economy & society be further seriously damaged & then be forced to take emergency panic measures.
    Either get a plan together Cameron or clear off. UK needs COMPETANT government

  • rate this

    Comment number 286.

    Colonel_Flange (275) "No need for HS/2 if we don't need to commute"

    It doesn't matter how fast it is (miles per hour) if it can only carry fifty people every hour. It's the CAPACITY (number of people per hour) which matters. If it can carry 100,000 people per hour at the same speed as before, that would be a massive improvement.

    Cameron should be in Cameroon in cahoots with Calamity Claire.

  • rate this

    Comment number 285.

    If we ever do get infrastructure improvements: DO NOT employ expensive consultancies and multinationals. Give the little and local guy have a chance. Spread the work amongst the UK workers and entrepreneurs. Invest in all of us by investing in UK employers !! Keep things simple and cut out all of the irrelevant focus groups, bumf churners and marketing parasites. Keep it lean and keen.

  • rate this

    Comment number 284.

    The only infrastructure work required at the moment is a complete overhaul of the entire road network. How much money is wasted on repairing damage to vehicles due to all the potholes?

  • rate this

    Comment number 283.

    dodo777. Cameron has raked back all monies that were keeping people in jobs only to give it all back through QE…..the man hasnt a clue no plan B
    Hourly interest bill ~£4m, so would your plan B to get further into debt? If so how far is enough? What about the money wasted on interest?

    Who actually spent the money that gave us the debt?

    Who hasn’t got a clue? Pot, kettle, black!

  • rate this

    Comment number 282.

    Don't spend money on "infrastructure", government never spends money wisely so it should not try doing it, remove the red tape the lefties brought to stifle the private sector and, if you have extra money (which you don't), reduce the taxes.

  • rate this

    Comment number 281.

    Its just another bailout for the big boys, this time in construction.

    After all, MPs also join the boards of big construction companies when they retire. Its not all about the banks, don't y'know.

  • rate this

    Comment number 280.

    Late, late and late. they would have done better not to cut so many public sector jobs early on.

    And... What a surprise, after 'snow' they're blaming the Eurozone now... and Cameron instructing the hoi polloi to be optimistic... If they had his or Gideon's resources, they would be.

  • rate this

    Comment number 279.

    "..embarked on Plan B when it was first needed."

    It's not planB (like EdM said). It's planA re-jigged. They can't afford any other. A borrowing binge will be latched on by jittery bond mkts. Their best hope is low growth in a no growth world - places like China are growing but they are interested in export not import. Even German growth (export led) is looking flat now.

  • rate this

    Comment number 278.

    Cameron has show his contempt for people on benefits not all people are scroungers and a lot more people will soon feel what its like to live on a pitence.I have a friend that has landed very nicely with job that is paying him twice the lowest legal wage and he is my friend but he has turned into a snob.PEOPLE WHO WILL FIND THEMSELVES JOBLESS SOON WILL HAVE A RUDE AWAKENING


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