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| Danny Alexander announces £10bn of guarantees for nuclear power station | Danny Alexander announces £10bn of guarantees for nuclear power station |
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| The government has announced a bid to unlock investment in nuclear power by offering £10bn of guarantees to investors in a new power station at Hinkley Point. | The government has announced a bid to unlock investment in nuclear power by offering £10bn of guarantees to investors in a new power station at Hinkley Point. |
| The push on nuclear came as part of a major announcement on £100bn in public funding for capital projects such as road, rail and energy infrastructure that the government hopes will stimulate the ailing economy. The plans set out by the chief secretary to the Treasury, Danny Alexander, included more than £70bn of investment in transport, over £20bn in schools and £10bn in science, housing and flood defences. | |
| Government sources said the public funding to support the £14bn Hinkley Point project did not represent a subsidy to nuclear power since the guarantees would be offered at a commercial rate. | |
| The offer, which is subject to negotiation with the energy giant EDF, will bring a deal on the guaranteed prices between EDF and government closer to fruition. | The offer, which is subject to negotiation with the energy giant EDF, will bring a deal on the guaranteed prices between EDF and government closer to fruition. |
| Announcing long-term capital spending until the end of the decade, the chief secretary to the Treasury, Danny Alexander, also unveiled plans for a major road-building programme as well as an affordable housing programme. The National Housing Federation said the £3bn spending promised over the next two years was deeply disappointing in light of previous cuts. | Announcing long-term capital spending until the end of the decade, the chief secretary to the Treasury, Danny Alexander, also unveiled plans for a major road-building programme as well as an affordable housing programme. The National Housing Federation said the £3bn spending promised over the next two years was deeply disappointing in light of previous cuts. |
| Alexander claimed the government had already built 84,000 affordable homes, and the new money would lead to a further 165,000 homes being built. | Alexander claimed the government had already built 84,000 affordable homes, and the new money would lead to a further 165,000 homes being built. |
| The Treasury chief secretary also announced the prices for renewable generation including onshore and offshore wind, tidal, wave, biomass and solar. He said the prices were broadly similar to those the UK government pays under the existing Renewables Obligation. He said the reforms would bring forward 8-16 gigawatts of offshore wind capacity. | |
| The five-year time horizon of the capital project also binds the Liberal Democrats and Conservatives together in an agreed capital spending plan for the next parliament. The two parties refused to come to such a joint agreement on current spending, only agreeing a deal for 2015-16. | The five-year time horizon of the capital project also binds the Liberal Democrats and Conservatives together in an agreed capital spending plan for the next parliament. The two parties refused to come to such a joint agreement on current spending, only agreeing a deal for 2015-16. |
| The scale of the spending announcement was described by Labour as "hilarious hyperbole", pointing out that the spending represented no increase on what had been promised for 2015-16 in the spring budget. They also claimed experience had shown the government had been unable to translate grand infrastructure plans into reality on the ground. | The scale of the spending announcement was described by Labour as "hilarious hyperbole", pointing out that the spending represented no increase on what had been promised for 2015-16 in the spring budget. They also claimed experience had shown the government had been unable to translate grand infrastructure plans into reality on the ground. |
| Much of the extra capital spending will be funded by a £15bn sell-off of public assets by 2020 including the £10bn student loan book and £5bn in land and property. | |
| The Treasury No 2 also announced he had accepted the recommendation of Lord Deighton that crucial infrastructure delivery be taken out of the hands of civil servants and given instead to commercial experts. | The Treasury No 2 also announced he had accepted the recommendation of Lord Deighton that crucial infrastructure delivery be taken out of the hands of civil servants and given instead to commercial experts. |
| Other funding commitments include the go-ahead for HS2, a new nationwide rail network that will put two-thirds of northern England within two hours of London. | Other funding commitments include the go-ahead for HS2, a new nationwide rail network that will put two-thirds of northern England within two hours of London. |
| Alexander claimed the commitment to roads was the biggest since the 1970s. By 2020-21 the government plans to triple the money spent on roads compared with 2013. Overall, he said the government would invest £28bn over the six years from 2014 in enhancements and maintenance of national and local roads. This includes £6bn to help local authorities repair the local road network. | Alexander claimed the commitment to roads was the biggest since the 1970s. By 2020-21 the government plans to triple the money spent on roads compared with 2013. Overall, he said the government would invest £28bn over the six years from 2014 in enhancements and maintenance of national and local roads. This includes £6bn to help local authorities repair the local road network. |
| Superfast broadband provision will be expanded so 95% of UK premises will have access by 2017. | Superfast broadband provision will be expanded so 95% of UK premises will have access by 2017. |
| Alexander also presented the outline of a deal with the insurance industry designed to help 500,000 homes at risk of flooding. But he also announced plans to regulate affordable flood insurance should that prove necessary. That will be done through amendments to the water bill, he said. | Alexander also presented the outline of a deal with the insurance industry designed to help 500,000 homes at risk of flooding. But he also announced plans to regulate affordable flood insurance should that prove necessary. That will be done through amendments to the water bill, he said. |
| Alexander also announced a further £600m in the regional growth fund. | Alexander also announced a further £600m in the regional growth fund. |
| Dr Adam Marshall, director of policy at the British Chambers of Commerce, said: "Infrastructure projects are too often promised and too rarely delivered in this country, and that cycle must be broken. | |
| "If these announcements are to translate into short-term confidence, medium-term construction jobs and long-term competitiveness, the Whitehall machine must be judged by the number of diggers on the ground, not strategies and press notices." | |
| Ian Brinkley, director of the Work Foundation, said: "If there is a sound economic argument to invest more in social housing and road maintenance from 2016-17 onwards, it must make just as much sense to invest in these projects from 2014-15 onwards. Giving local authorities the means to tackle the poor repair of our roads now will create many 'shovel ready' projects, generating much-needed jobs in construction and related sectors, and help save future maintenance bills." |