Public Sector
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Grant Thornton's chief economist
responds to the chancellor's Pre-Budget Report statement on the uk
economy
Pre-Budget Report: is the party over
for local government?
UK government needs a clearer strategy
for investors of 'infrastructure UK'
Low carbon growth measures need to go
a lot further
Grant Thornton's chief economist responds to the chancellor's
Pre-Budget Report statement on the uk economy
Public sector net debt is set to peak at 78% of GDP in 2014/15,
more than double the amount (36%) that the UK entered into the
current downturn says Stephen Gifford, Chief Economist at Grant
Thornton.
"The UK has overextended itself. The Chancellor went some way to
tackling the level of government debt today, but did not go far
enough. While it may not be sensible to cut spending in the midst
of a recession, the markets and the international community are
crying out for a realistic plan to restore confidence in the UK
economy."
Please
click here for the full press release.
Pre-Budget Report: is the party over for local government?
"The party is over for local government spending. The Pre-Budget
Report suggests that so-called unprotected expenditure by local
government needs to be reduced by 14% over the next Comprehensive
Spending Review period (2011 - 14). It suggests that local
government will need to cut non-essential spending by as much as
4.5% per annum in the years 2011 to 2014 or raise Council Tax to
cover the difference. Local government could even be required to
make cuts as high as 5.5-6.0% in order to offset underlying
spending pressures in essential services like adult social care."
says Damian Dewhirst, Associate Director at the Government and
Infrastructure Advisory practice of Grant Thornton.
Please
click here for the full press release.
UK government needs a clearer strategy for investors of
'infrastructure UK'
Commenting on the establishment of Infrastructure UK, which was
announced in today's Pre -Budget Report, Nathan Goode, Renewables
Partner for Grant Thornton's Government and Infrastructure Advisory
team says:
"In the establishment of Infrastructure UK, we welcome the unified
approach the UK Government is adopting to its future infrastructure
needs. Meeting the low carbon agenda and a new high speed line from
London to the West Midlands and beyond is expected to require in
excess of £200bn of new funding.
"However, if investors are to be attracted to meet this gap, they
require the Government to provide a clear strategy and supportive
investment framework. The creation of Infrastructure UK working
closely with the sponsor departments, represents a clear tick in
the box. That the Government is looking to build on the successful
track record of the UK in PFI/PPP will provide a further fillip to
the infrastructure investment community."
Please
click here for the full press release.
Low carbon growth measures need to go a lot further
Carbon capture and storage demonstration projects: "The process
for identifying sites for carbon capture and storage (CCS) is
still, for the most part, in difficulty. The focus should therefore
be on ensuring the existing process works better before more
funding is sent in its direction. There is also a question mark
over who will ensure that these projects are value for money and
effectively managed" said Nathan Goode, Energy and Renewable
Partner at Grant Thornton.
Funding carbon capture and storage demonstration projects via
contributions from electricity suppliers - Nathan says:
"Contributions from electricity suppliers towards CCS are positive
on the face of it but this measure will be less favourable among
many if the costs are merely passed back in the direction of paying
electricity customers."
Please
click here for the full press release.