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| Budget 2013: Infrastructure spending boosted by £3bn a year | Budget 2013: Infrastructure spending boosted by £3bn a year |
| (35 minutes later) | |
| The government says it will allocate an extra £3bn a year to infrastructure projects in the hope of boosting economic growth. | The government says it will allocate an extra £3bn a year to infrastructure projects in the hope of boosting economic growth. |
| In his Budget speech, Chancellor George Osborne said the increase would come into effect from 2015. | In his Budget speech, Chancellor George Osborne said the increase would come into effect from 2015. |
| He said it meant £15bn more spending in the next decade on roads, railways, power stations and other projects. | He said it meant £15bn more spending in the next decade on roads, railways, power stations and other projects. |
| The move comes in response to growing calls from business groups to boost infrastructure investment as the UK. | The move comes in response to growing calls from business groups to boost infrastructure investment as the UK. |
| "By investing in the economic arteries of this country, we will get growth flowing to every part of it," he told the House of Commons. | "By investing in the economic arteries of this country, we will get growth flowing to every part of it," he told the House of Commons. |
| The government has struggled to stimulate growth in the economy since enacting austerity measures in 2010. | The government has struggled to stimulate growth in the economy since enacting austerity measures in 2010. |
| The extra money is coming from extra cuts to government departmental spending. | The extra money is coming from extra cuts to government departmental spending. |
| In the last update to its National Infrastructure Plan in December, the Treasury said spending on infrastructure projects since 2010 had averaged £33bn a year, compared with the £29bn a year seen previously. | In the last update to its National Infrastructure Plan in December, the Treasury said spending on infrastructure projects since 2010 had averaged £33bn a year, compared with the £29bn a year seen previously. |
| However, businesses have been frustrated by the slow progress of new infrastructure projects, and official figures suggest spending fell in the last 12 months. | However, businesses have been frustrated by the slow progress of new infrastructure projects, and official figures suggest spending fell in the last 12 months. |
| The BBC's business editor Robert Peston described the announced rise as "very significant". | |
| Mr Osborne also announced measures to help homebuyers, including those buying new homes. | |
| Homebuilders welcomed the measures. "Building the homes the country desperately needs can be a key driver of economic activity," said Stewart Baseley, executive chairman of the Home Builders Federation. |