Capital projects worth billions of pounds were cancelled or suspended by ministers today.
Treasury Chief Secretary Danny Alexander told MPs theat the last government had committed spend money ‘it simply did not have’, irresponsibly raising the hopes of many communities.In a statement to the House, he said ministers were immediately cancelling 12 projects, which would have cost nearly £2 billion, including the anticipated cull of the local authority business growth initiative (LAGBI).
Suspended projects include the Kent Thameside Strategic Transport Programme, valued at £23M.
The suspended or deferred projects, with a value of £8.5bn approved since January, will be considered again through the spending review process over the coming months.
’We have also found another spending black-hole in the previous government's plans - projects had been approved with no money in place to pay for them,’ Mr Alexander said.
‘I am determined to deal with this problem head-on and ensure we never see this kind of irresponsible financial planning in government again.’
The full list of projects cancelled:
Stonehenge Visitor Centre: £25m
Local Authority Leader Boards: £16m
Sheffield Forgemasters International Limited: £80m
Rollout of the Future Jobs Fund: £290m
Six month offer recruitment subsidies: £30m
Extension of Young Person's Guarantee to 2011/12: £450m
Two year Jobseeker's Guarantee: £515m
Active Challenge Routes - Walk England: £2m
County Sports Partnerships : £6m
North Tees and Hartlepool hospital: £450m
Local Authority Business Growth Initiative: £50m
Outukumpu: £13m
List of projects suspended:
Libraries Modernisation Programme: £12m
Sheffield Retail Quarter: £12m
Kent Thameside Strategic Transport Programme: £23m
University Enterprise Capital Fund: £25m
Newton Scholarships: £25m
Health Research Support Initiative: £73m
Leeds Holt Park Well-being Centre: £50m
Birmingham Magistrates Court: £94m
Successor Deterrent Extension to Concept Phase Long Lead Items: £66m
Search and Rescue Helicopters: £4.6bn (Successor Deterrent Extension to Concept Phase Long Lead Items will be reviewed as part of the broader Trident value for money review, which will report in the coming weeks. Search and Rescue Helicopters will be reviewed as a matter of urgency)
A14 Road: £1.1bn
