£10 billion less public cash for capital spending in second half of this financial year
Just to get you in the mood for the savageness of the cuts to be announced later today here is an observation on today’s release on public sector finances.
In the first six months of this financial year net investment, that is the envelope within which public sponsored construction broadly falls, has only dropped slightly on spending in last financial year.
That means we haven’t felt any real shock yet.
But if the Government is to stick to its spending target announced in the Budget there will be a very nasty drop in spending to come.
Here are the figures.
Last financial year net investment totalled £49.5 billion. This year there is £39 billion in the budget.
In the first half of the past financial year £15.2 billion was spent, roughly that amount has been spent in the same period this year.
That mean what while £34.5 billion was spent in the second half of last year, there is just £23.8 billion left for the next six months.
So the cuts will start to hurt from now.