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Spending review: Transport and energy to get share of £100bn Spending review: Transport and energy to get share of £100bn
(35 minutes later)
Energy and transport will be the focus as the government reveals later how £100bn will be spent on infrastructure projects across the UK.Energy and transport will be the focus as the government reveals later how £100bn will be spent on infrastructure projects across the UK.
Nuclear and new sources of energy, and roads and railways, will be a big part of a raft of projects for 2015-20.Nuclear and new sources of energy, and roads and railways, will be a big part of a raft of projects for 2015-20.
But it is unclear how soon projects will start construction and Labour says investment is needed much quicker.But it is unclear how soon projects will start construction and Labour says investment is needed much quicker.
The details follow Tuesday's Spending Review, in which £11.5bn of cuts to Whitehall departments were announced. The details follow Wednesday's Spending Review, in which £11.5bn of cuts to Whitehall departments were announced.
Chancellor George Osborne said on Tuesday the £100bn for 2015-2020 would "raise our national game" and promote growth. Chief Secretary to the Treasury Danny Alexander will unveil the details in the Commons later. Chancellor George Osborne said on Wednesday the £100bn for 2015-2020 would "raise our national game" and promote growth. Chief Secretary to the Treasury Danny Alexander will unveil the details in the Commons later.
Electricity priceElectricity price
The BBC understands the focus will be on energy.The BBC understands the focus will be on energy.
The nuclear sector has long complained of a lack of government backing for new power stations - in particular agreeing a price for the electricity they will produce - so the government will try to show that commitment by promising money for the industry.The nuclear sector has long complained of a lack of government backing for new power stations - in particular agreeing a price for the electricity they will produce - so the government will try to show that commitment by promising money for the industry.
The transport plans are expected to focus more on roads than railways.The transport plans are expected to focus more on roads than railways.
One scheme thought to have been under consideration is for improvements on the A14, which runs from Catthorpe, in Leicestershire, to Felixstowe, in Suffolk.One scheme thought to have been under consideration is for improvements on the A14, which runs from Catthorpe, in Leicestershire, to Felixstowe, in Suffolk.
Mr Alexander's announcement is also expected to include plans to build schools and for investment in scientific research.Mr Alexander's announcement is also expected to include plans to build schools and for investment in scientific research.
The first £50bn will be committed to infrastructure projects starting in 2015-16 and the rest for 2016-20.The first £50bn will be committed to infrastructure projects starting in 2015-16 and the rest for 2016-20.
Treasury sources said "a lot of building will start this side of the [2015] election".Treasury sources said "a lot of building will start this side of the [2015] election".
Mr Osborne said in his Spending Review statement on Tuesday: "Successive governments of all colours have put short-term pressures over the long-term needs and refused to commit to capital spending plans that match the horizons of a modern economy. Mr Osborne said in his Spending Review statement on Wednesday: "Successive governments of all colours have put short-term pressures over the long-term needs and refused to commit to capital spending plans that match the horizons of a modern economy.
Real-terms fallReal-terms fall
"Today we change that, from roads to railways, bridges to broadband, science to schools.""Today we change that, from roads to railways, bridges to broadband, science to schools."
The £50bn for 2015-16 represents a real-terms fall of 1.7% from the infrastructure budget for 2014-15.The £50bn for 2015-16 represents a real-terms fall of 1.7% from the infrastructure budget for 2014-15.
But the coalition says the figure is still higher than the one Labour was planning when it was ousted from power in 2010.But the coalition says the figure is still higher than the one Labour was planning when it was ousted from power in 2010.
A lack of consistent economic growth led ministers to make the further cuts of £11.5bn in its 2015/16 Spending Review, as tax receipts have been lower than expected.A lack of consistent economic growth led ministers to make the further cuts of £11.5bn in its 2015/16 Spending Review, as tax receipts have been lower than expected.
In the review, the chancellor announced several measures aimed at saving money, including:In the review, the chancellor announced several measures aimed at saving money, including:
Mr Osborne said the economy was "out of intensive care".Mr Osborne said the economy was "out of intensive care".
But shadow chancellor Ed Balls said the government had presided over declining living standards and that the deficit had risen in the last year. He called for an immediate £10bn boost to infrastructure spending.But shadow chancellor Ed Balls said the government had presided over declining living standards and that the deficit had risen in the last year. He called for an immediate £10bn boost to infrastructure spending.