Sunday Times: NHS and schools face Labour axe
The Sunday Times reports that
"SPENDING on schools and hospitals will be slashed after the election under Labour plans, despite Gordon Brown’s pledges to ring-fence these areas against cuts."
"Treasury figures in last week’s budget mean that investment in new hospitals and schools, as well as extra wards and other facilities, will be more than halved over the next four years.
"The Treasury conceded that Labour’s guarantee to protect budgets only applied to current spending on wages and salaries and the cost of running schools and hospitals. Spending on new buildings and facilities would be reduced.
"The budget showed that the Treasury is relying on huge cuts in spending on infrastructure to reduce the record budget deficit. Such spending will drop from £50 billion this year to just £22 billion in 2013-14.
"Hospitals and schools account for a combined £13 billion of capital spending this year, which is set to drop to £6 billion over the next four years, adding up to a cumulative cut of more than £20 billion.
"John Hawksworth, head of the macroeconomics unit at Price Waterhouse Coopers, said the cuts in capital spending would be the biggest for decades.
“This is the most severe squeeze on capital spending since the late 1970s, at a time when there is still a strong need for greater spending on the infrastructure,” he said."
You can read the full article here.
"SPENDING on schools and hospitals will be slashed after the election under Labour plans, despite Gordon Brown’s pledges to ring-fence these areas against cuts."
"Treasury figures in last week’s budget mean that investment in new hospitals and schools, as well as extra wards and other facilities, will be more than halved over the next four years.
"The Treasury conceded that Labour’s guarantee to protect budgets only applied to current spending on wages and salaries and the cost of running schools and hospitals. Spending on new buildings and facilities would be reduced.
"The budget showed that the Treasury is relying on huge cuts in spending on infrastructure to reduce the record budget deficit. Such spending will drop from £50 billion this year to just £22 billion in 2013-14.
"Hospitals and schools account for a combined £13 billion of capital spending this year, which is set to drop to £6 billion over the next four years, adding up to a cumulative cut of more than £20 billion.
"John Hawksworth, head of the macroeconomics unit at Price Waterhouse Coopers, said the cuts in capital spending would be the biggest for decades.
“This is the most severe squeeze on capital spending since the late 1970s, at a time when there is still a strong need for greater spending on the infrastructure,” he said."
You can read the full article here.
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