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| Only a fraction of capital spending promised last year has materialised | Only a fraction of capital spending promised last year has materialised |
| (4 months later) | |
| Only a fraction of the billions of pounds of new capital spending that George Osborne announced in last year's autumn statement has been spent so far, research by the Guardian has established. | Only a fraction of the billions of pounds of new capital spending that George Osborne announced in last year's autumn statement has been spent so far, research by the Guardian has established. |
| Less than half of the public investment trumpeted by the chancellor last November has been paid out, and none of the £21bn in private investment promised has yet been spent. | Less than half of the public investment trumpeted by the chancellor last November has been paid out, and none of the £21bn in private investment promised has yet been spent. |
| Of the key public investment schemes announced last autumn, work has not yet begun on a single one of the half dozen major road schemes published by George Osborne, and £1bn of regional growth fund money has been "allocated" but is now being studied by lawyers before it is actually handed out to help businesses in more deprived areas. | Of the key public investment schemes announced last autumn, work has not yet begun on a single one of the half dozen major road schemes published by George Osborne, and £1bn of regional growth fund money has been "allocated" but is now being studied by lawyers before it is actually handed out to help businesses in more deprived areas. |
| Up to £21bn of new private sector investment was announced, but there is no word on £1bn earmarked for the regulated industries and of £20bn that had been expected to be raised or leveraged by pension funds, just £700m has been committed and not a penny has yet been spent. | Up to £21bn of new private sector investment was announced, but there is no word on £1bn earmarked for the regulated industries and of £20bn that had been expected to be raised or leveraged by pension funds, just £700m has been committed and not a penny has yet been spent. |
| The figures have been collated from the Treasury and other government departments as ministers rushed out news yesterday of an extra £5bn capital spending to be announced in the autumn statement. | The figures have been collated from the Treasury and other government departments as ministers rushed out news yesterday of an extra £5bn capital spending to be announced in the autumn statement. |
| Apparently in response to a growing clamour for immediate action to stimulate the UK's stagnant economy, Downing Street said that it planned for all £5bn for transport, skills, science and schools to be spent over the next two years, by the spring of 2015 and the next general election. | Apparently in response to a growing clamour for immediate action to stimulate the UK's stagnant economy, Downing Street said that it planned for all £5bn for transport, skills, science and schools to be spent over the next two years, by the spring of 2015 and the next general election. |
| However, the Ernst & Young Item Club, an economic forecasting club, said the total impact of the £5bn would be "almost negligible". | However, the Ernst & Young Item Club, an economic forecasting club, said the total impact of the £5bn would be "almost negligible". |
| The government's response comes after months of growing criticism, including within its own ranks, that the coalition was not doing enough to stimulate growth in the economy – despite several growth plans and a host of initiatives aimed at stimulating spending by businesses and consumers and creating jobs. | The government's response comes after months of growing criticism, including within its own ranks, that the coalition was not doing enough to stimulate growth in the economy – despite several growth plans and a host of initiatives aimed at stimulating spending by businesses and consumers and creating jobs. |
| A timeline drawn up by Labour shows that in the autumn after the government took power in 2010 there was a white paper on local growth in the October, a growth review in November, and a plan for growth the following March – a plan updated that November and again this spring. | A timeline drawn up by Labour shows that in the autumn after the government took power in 2010 there was a white paper on local growth in the October, a growth review in November, and a plan for growth the following March – a plan updated that November and again this spring. |
| In parallel, there have been two national infrastrucutre plans, with a third version also expected tomorrow, and a new industrial strategy was unveiled by the business secretary, Vince Cable, earlier this year. | In parallel, there have been two national infrastrucutre plans, with a third version also expected tomorrow, and a new industrial strategy was unveiled by the business secretary, Vince Cable, earlier this year. |
| Underpinning these more wide-ranging statements have been a plethora of initiatives including three multibillion pound schemes to get banks lending more money to businesses, a host of ideas for stimulating house building and home buying, various projects to help jobless people get work or set up their own business, and a series of one-off announcements about funding science-based investments – all used as an opportunity for ministers to claim they were doing something to inject some energy into the economy. | Underpinning these more wide-ranging statements have been a plethora of initiatives including three multibillion pound schemes to get banks lending more money to businesses, a host of ideas for stimulating house building and home buying, various projects to help jobless people get work or set up their own business, and a series of one-off announcements about funding science-based investments – all used as an opportunity for ministers to claim they were doing something to inject some energy into the economy. |
| But the various plans have so far failed to catapult the UK firstly out of recession, and now out of its still sluggish and precarious growth. | But the various plans have so far failed to catapult the UK firstly out of recession, and now out of its still sluggish and precarious growth. |
| The problem of money not following announcements appears to be one of the biggest obstacles. Funds earmarked for projects often have to wait for those schemes to be set up, infrastructure projects need planning permission, and in some cases demand – to buy new homes or borrow money to expand businesses – doesn't seem to be there. | The problem of money not following announcements appears to be one of the biggest obstacles. Funds earmarked for projects often have to wait for those schemes to be set up, infrastructure projects need planning permission, and in some cases demand – to buy new homes or borrow money to expand businesses – doesn't seem to be there. |
| This week, new figures showed over the first two months of the third and latest scheme to persuade banks to lend more money to business, Funding for Lending, that such lending actually fell; and last week it was revealed that, despite costing £435m, just one in 28 people on the work programme were still in their new jobs after six months. | This week, new figures showed over the first two months of the third and latest scheme to persuade banks to lend more money to business, Funding for Lending, that such lending actually fell; and last week it was revealed that, despite costing £435m, just one in 28 people on the work programme were still in their new jobs after six months. |
| Meanwhile, a new Green Investment Bank with £3bn of government funds only formally began operations just over a month ago, a new Business Investment Bank with £1bn of taxpayers money is only expected to start work in 18 months' time, none of the £150m allocated for superfast broadband has yet been handed over to the local authorities which have won it, and just one third of a total £2.4bn in the regional growth fund has been transferred to the winning regions. | Meanwhile, a new Green Investment Bank with £3bn of government funds only formally began operations just over a month ago, a new Business Investment Bank with £1bn of taxpayers money is only expected to start work in 18 months' time, none of the £150m allocated for superfast broadband has yet been handed over to the local authorities which have won it, and just one third of a total £2.4bn in the regional growth fund has been transferred to the winning regions. |
| The picture is similar in the housing market, despite a housing strategy last autumn – and individual initiatives including £530m for FirstBuy to help first-time buyers on to the property ladder by taking an equity stake in their homes, nearly 7,000 people of an expected 27,000 have taken this up. A second scheme, NewBuy, which offers guarantees to help people get mortgages has seen 3,000 reservations or applications – in the following year new housing starts fell 9% to less than 100,000, though completions rose by 6% to 117,190. | The picture is similar in the housing market, despite a housing strategy last autumn – and individual initiatives including £530m for FirstBuy to help first-time buyers on to the property ladder by taking an equity stake in their homes, nearly 7,000 people of an expected 27,000 have taken this up. A second scheme, NewBuy, which offers guarantees to help people get mortgages has seen 3,000 reservations or applications – in the following year new housing starts fell 9% to less than 100,000, though completions rose by 6% to 117,190. |
| In perhaps the most stark example of announcements not being matched by action, since the coalition came to power in May 2010, diggers have not gone into the ground on a single one of the 18 new major road schemes which have been announced. | In perhaps the most stark example of announcements not being matched by action, since the coalition came to power in May 2010, diggers have not gone into the ground on a single one of the 18 new major road schemes which have been announced. |
| In turn, part of the reason for such delays, has been the government's reluctance to part with its own cash, trying instead to design complicated mechanisms such as guarantees to get homebuyers, businesses and big investors like pension funds to spend their money. Instead critics claim government simply needs to spend more money directly: critics which include the CBI, also a strong supporter of austerity, claim departmental under-spend could fund £1.5bn of quick-fix changes. | In turn, part of the reason for such delays, has been the government's reluctance to part with its own cash, trying instead to design complicated mechanisms such as guarantees to get homebuyers, businesses and big investors like pension funds to spend their money. Instead critics claim government simply needs to spend more money directly: critics which include the CBI, also a strong supporter of austerity, claim departmental under-spend could fund £1.5bn of quick-fix changes. |
| Additional research by Flora MacQueen | Additional research by Flora MacQueen |
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