Hopes grow for road investment
The Government is believed to be preparing plans for a £50bn infrastructure investment programme to be unveiled alongside the Autumn Statement on November 29.
The money will be raised from the private sector so it will not derail the ongoing deficit reduction plans.
The Government hopes to mobilise the mountain of private sector cash tied-up in pension funds and owned by insurance companies via a revamped PFI model.
The Department for Business, Innovation and Skills has been charged with drawing-up the growth plan for construction to lead the way in boosting the floundering economy.
The money will be used for infrastructure investment including road building, power stations and social housing.
The schemes will be in addition to 40 road, rail and national grid improvements which are already in the pipeline and will be accelerated.
The move follows pressure from construction chiefs and business leaders at the CBI to boost investment in the UK’s infrastructure.
The Government hopes the timing will appeal to private sector investors frustrated by the low current rate of return from traditional investments.
Business secretary Vince Cable (pictured) said: “We know there’s a large amount of institutional investment in pension funds and insurance companies looking for a safe return.”