The Chancellor of the Exchequer’s comprehensive spending review , announced on 26th June, included wide ranging plans for overall Government spending and borrowing, funding for government departments, and capital expenditure. The following day the Chief Secretary to the treasury announced details of the infrastructure projects which will receive capital funding from 2015/16. The plans include:
- Council Tax to be frozen for a further 2 years;
- £3bn committed to capital investment in affordable housing;
- DCLG budget cut by 10% for revenue (leading to a 10% cut in local authority funding) and 35.6% for capital;
- Shale gas extraction to be encouraged by tax and planning changes; the Government has committed to publish guidance on extraction in the summer;
- £9.5bn increase in capital funding for transport;
- Museums to have more freedom from central government;
- Lord Heseltine’s proposal for a single local growth fund to receive funding but less than he proposed. Local Enterprise Partnerships will be able to bid for up to £2bn per year.