Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to George Osborne’s infrastructure announcements, said:
“With Britain in a double-dip recession because of the Chancellor’s failed policies anything which helps to get the economy moving again is welcome. But these proposals do not go far enough.
“There is no guarantee that government-backed loans will see any infrastructure projects going ahead in the next year which wouldn’t have happened anyway. And they will not reverse the damage done by two years of deep cuts to long-term projects like house building and the school building programme which have seen a collapse in the construction sector.
“As for loans to support public private partnership (PPP) infrastructure projects, this is yet another u-turn as George Osborne axed this Labour government scheme two years ago.
“Why is the Government not repeating the bank bonus tax and using the funds raised to build thousands of affordable homes and get people back to work? The country is still waiting for this Chancellor to change course and get the real plan for jobs and growth we need to get the deficit down.”