Growth
Mr Speaker, government spending does not alone create sustainable growth.
Enterprise does.
And the job of the state is to provide the schools, science, transport links and reliable energy that enable business to grow.
Britain was once the place where the future was invented.
From the railway to jet engine to the world wide web.
We can be that country again.
And today we set out how we get there.
And a huge amount of innovation and discovery still goes on.
But successive governments of all colours have put short term pressures over the long term needs and refused to commit to capital spending plans that match the horizons of a modern economy.
Today we change that.
We commit now to £50 billion pounds of capital investment in 2015.
From roads to railways, bridges to broadband, science to schools.
It will amount to over £300 billion of capital spending guaranteed to the end of this decade.
Today we raise our national game.
This will mean that Britain will spend on average more as a percentage of its national income on capital investment in this decade – despite the fact money is tight – than in the previous decade, when government spending was being wasted in industrial quantities.
My Right Honourable Friend the Chief Secretary will tomorrow set out the next stage of our economic infrastructure plan, with specific plans for more than £100 billion of infrastructure projects.
But this is what it means for departments.
The Department for Transport will make a 9 per cent saving in its day to day resource spending, bearing down on the running costs of Transport for London and rail administration;
But its capital budget will rise to £9.5 billion – the largest rise of any part of Government.
And we will repeat that commitment for every year to 2020.
We’re already massively expanding investment on major road schemes; but we will do more.
So we’re announcing the largest programme of investment in our roads for half a century.
We’ve already expanded our investment in the railways.
But we will do more.
So we’re committing to the largest investment in our railways since the Victorian age, and with the legislation before this House today, we should give the green light to HS2 – a huge boost to the north of England and a transformation of the economic geography of this country.
Here in London we’re digging Crossrail, the largest urban infrastructure project in Europe.
But we will do more – looking at the case for Crossrail 2 linking London from North to South.
And we’re going to give the Mayor almost £9 billion pounds of capital spending and additional financing power to the end of this decade.