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29 November 2011

Autumn Statement: Growth

The Chancellor of the Exchequer, George Osborne, and the Business Secretary, Vince Cable, have today announced a wide-ranging package of more than 140 reforms to build a stronger and more balanced economy. These measures include actions from the second phase of the Government’s Growth Review Phase II and the National Infrastructure Plan.

These measures are supported by an infrastructure package of £30 billion.  This includes unlocking up to £20 billion of private investment through signing a Memorandum of Understanding with two groups of UK pension funds, an additional £5 billion of infrastructure spending in this Spending Review period, and commitments to £5 billion of capital projects in the next Spending Review period. In addition, the Government is supporting around a further £1 billion of investment by Network Rail.

To make the UK’s infrastructure fit for the 21st century, the Government has published its National Infrastructure Plan 2011. The plan sets out a critical analysis of the state of the UK’s infrastructure and sets out a pipeline of over 500 infrastructure projects. It commits to clear ambitions to address the key challenges in each major infrastructure sector – energy, transport, telecommunications, waste and water.

The key measures in the National Infrastructure Plan include:

The second phase of the Government’s Growth Review has been led jointly by HM Treasury and the Department for Business, Innovation and Skills (BIS).  The Autumn Statement announces a set of further reforms building on this, including:

The Chancellor of the Exchequer, George Osborne, said:

“We are committed to making Britain the best place to start, finance and grow a business.  The measures I am announcing today will help us to achieve this by creating an environment in which businesses are easy to set up, have access to credit when they need it and are able to grow without being held back by red tape.  This action supports our deficit reduction plan and the Government’s monetary activism as we build a balanced economy.”

Business Secretary, Vince Cable, said:

“These measures are an important element of the Government’s work to create the right conditions for business to start up, invest, grow and create jobs. They sit alongside our deficit reduction plan and work to increase the supply of credit.

“I attach particular importance to infrastructure and Government capital spending, including that on innovation and science, and the credit easing initiative.  Speedy and effective implementation is now required, building on the major progress that has been made implementing phase one.”

The first phase of the Growth Review was published in March 2011. Work has started on all 137 commitments and substantial progress has been made.  The Government has today published an update on every single measure announced in The Plan for Growth.

Notes for editors

1. The Autumn Statement document, containing full details of all measures, can be downloaded from: http://www.hm-treasury.gov.uk/as2011_index.htm

2. The Office for Budget Responsibility have published updated forecasts for the economy and the public finances in their Economic and Fiscal Outlook, which can be downloaded from: http://budgetresponsibility.independent.gov.uk/publications/economic-and-fiscal-outlook/

3. Other documents published alongside the Autumn Statement document include:

4. The first phase of the Growth Review, led by the Chancellor of the Exchequer and the Secretary of State for Business, was published alongside Budget 2011 in the Plan for Growth. Work has started on all 137 commitments and substantial progress has been made. Full details of the progress that has been published today. http://www.hm-treasury.gov.uk/ukecon_growth_index.htm

5. The second phase of the Growth Review focused on infrastructure, logistics, education and skills, mid-sized businesses, the rural economy and open data. 

6. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hmtreasury.gsi.gov.uk

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