Menu
Finance
Cutting These 10 Everyday Expenses in 2014 Will Save You $8,844
How to Perfectly Plan Your Divorce to Protect Your Assets
PNC Bank Review – Overview of PNC Bank Accounts, Loans and More
Here’s Why Bank of America Just Closed Your Credit Card Without Telling You
2014 Academy Award Statue Valued at Just Under $400
Why You Could Start Seeing Your Credit Score on Your Credit Card Bills
How to Host Your Academy Awards Viewing Party on a Budget
Warren Buffett Reveals His No. 1 Investment Strategy That Anyone Can Follow
Your ATM’s OS is a Decade Old: Here’s Why Banks Are Scrambling to Update It
What You Need to Know About Obama’s $3.9 Trillion 2015 Budget
Discover What a Discover Bank Online Savings Account Can Do For You
4 Tips to Cut Your Monthly Bank Fees
Here’s Why One Analyst Says Bank Stocks Are Going to Double
How Ben Bernanke Earned $250,000 in 40 Minutes
Visa and MasterCard Join Forces to Protect Your Card from Hackers
Economy and growth hit by infrastructure plan 'chaos’
Chaotic decision making and lack of vision at the heart of the Government’s infrastructure plans are harming the economy and holding back growth, politicians and economists have warned.

The Government’s Infrastructure Plan is dismissed as “simply a long list of projects requiring huge amounts of money, not a real plan with a strategic vision and clear priorities” in a new report from the Public Accounts Committee published on Monday.

The Treasury has identified £310bn of works that need investment, with £200bn to come from the private sector.

Echoing the MPs’ concerns, the London School of Economics’ Growth Commission has called for “a new architecture for national infrastructure decisions to reduce policy uncertainty”.

John Van Reenan, of the Growth Commission, claimed the Government had simply created a “wish list with no analysis of how they are going to deliver. It’s pretty chaotic.”

Business groups also called for improvements. John Cridland, CBI director-general, said: “I have a queue of businesses at my door telling me the Infrastructure Plan needs speeding up.”

The reports will be seen as a criticism of the limited success the Government has had since establishing its specialist unit, Infrastructure UK, in 2010. They also come ahead of figures this week that will provide clues to whether the economy has continued to grow, following a surprise 0.3pc rise in the first three months of the year.

Plans to encourage pension funds to invest £20bn in public infrastructure have fallen short of target as, 18 months since they signed up, no projects are off the ground. A separate £40bn taxpayer guarantee scheme launched at the end of last year secured its first private sector deal only last week, for £75m.

Margaret Hodge, PAC chairman, said: “Investment in infrastructure is crucial for stimulating growth.” But she said the Treasury had not properly prioritised its 200 key projects – including roads, rail, airports, and ports – and had deterred investment by policy indecision.

“Investors will be reluctant to invest… until government policy is clear and consistent. Uncertainty can deter or delay investment and [add to] costs,” the report states.

The MPs also warned that consumers would shoulder the bulk of the costs through higher fares and bills, so-called “regulated prices”, piling pressure on cash-strapped households. Regulated prices have already been described by economists as “tax rises masquerading as price rises”.

Investors should also demonstrate “that their returns are reasonable and that any government support is justified”, as some risk will be offloaded to taxpayers and consumers under the infrastructure arrangements, the MPs said.

Speaking yesterday, former Chancellor and Cabinet minister Ken Clarke said the economy was just “keeping its head above water” and that there were “one, two, three years even, to go” of weak growth.

The Treasury argued it was the first time the Government had an infrastructure plan and a minister charged with delivering it.

Menu
Hey Ladies: Don’t Miss Out on the Broke Boyfriend Tax Exemption
3 Ways to Fix Your Finances in One Hour for Daylight Saving Time
IRS Reports This Year’s Average Tax Refund is $3,034
How to Start Saving Money for Your Baby’s College Education
How to Find Free Tax Preparation in Your City
IRS Wants to Pay You $25,000 for Saving Your Tax Return
5 Secrets Your Bank Doesn’t Want You to Know
How to Handle the 5 Most Awkward Money Situations
4 Tips to Cut Your Monthly Phone and Cable Bills
Stop Wasting Money Because You Won’t Admit You’re Old
Amazon Prime Price Hike: Is It Worth It?
10 Tips for Winning Your March Madness Bracket and Some Extra Cash
I Lost My W-2! What Should I Do?
4 Cheap, Fun Ways to Celebrate St. Patrick’s Day
What Four Leaf Clovers and Interest Rates Today Have in Common
Name
Name

Password